ECL Ecolab Inc

Leading cleaning and sanitation products company Ecolab Inc (ECL) has won the Innovation Sustainability Award, sponsored by the International Dairy Foods Association (“IDFA”), for its newly launched Envirocid Plus cleaner at the International Dairy Show in Atlanta.

Envirocid Plus is a novel clean-in-place (“CIP”) cleaner which helps dairy, food and beverage plants manage their effluent and operating costs and meet their compliance and sustainability objectives. The zero-phosphorus, low-nitrate cleaner utilizes blended acid formulation which helps processing plants reduce total phosphorus and nitrates in effluents. The award marks the recognition of Ecolab’s commitment to achieving this goal.

Ecolab offers its products to the food and beverage industries through its United States Cleaning and Sanitizing (“USCS”) segment. Revenues from its food and beverage business grew at a double-digit clip in second-quarter 2011, benefiting from new customer wins, pricing and better product penetration. Management expects the healthy growth to sustain in the third quarter.

Ecolab develops and markets products and services for the hospitality, food service, institutional and industrial markets. The company offers cleaning, sanitizing, pest elimination, maintenance and repair products as well as systems and services. Ecolab leads in cleaning, sanitizing, pest elimination and food safety solutions with annual sales of roughly $6 billion.

To drive growth, Ecolab continues to invest in strategic areas such as, product innovation, healthcare, water and energy and global pest elimination while rationalizing operating costs. The company remains focused on bringing new technologies aimed at reducing food safety risks.

We are encouraged by Ecolab’s strong international exposure and recovery across its end-markets. However, Ecolab is faced with aggressive competition from the likes of Clorox (CLX) and Church & Dwight (CHD). Moreover, raw material price hikes represent a headwind. We are currently Neutral on the stock.

 
CHURCH & DWIGHT (CHD): Free Stock Analysis Report
 
CLOROX CO (CLX): Free Stock Analysis Report
 
ECOLAB INC (ECL): Free Stock Analysis Report
 
Zacks Investment Research