Ecolab 3Q Profit Declines 47%
October 27 2020 - 09:38AM
Dow Jones News
By Micah Maidenberg
Ecolab Inc. said results for the third quarter picked up
compared with earlier this year when Covid-19-related lockdowns led
to a recession, but warned a new wave of virus infections likely
means slower growth in the current period.
The provider of a wide-range of cleaning products, sanitizers,
disinfectants and related items on Tuesday said third-quarter net
income fell 47% to $246.2 million, or 85 cents a share, from $464.2
million, or $1.59, in the same period a year earlier. The company
said it recorded $44 million in special charges in the quarter tied
to an efficiency initiative, weighing on profit.
Adjusted earnings fell to $1.15 a share for the quarter, 3 cents
higher than forecast by analysts polled by FactSet.
Sales fell 6% to $3.02 billion from $3.22 billion a year earlier
and were a bit ahead of the consensus estimate.
Sales, after adjusting for currency fluctuations, were down 2%
in its industrial unit, and 22% in its global-institutional
business, which offers cleaners and other products to restaurants,
laundries and other companies.
But Ecolab reported a 32% sales increase after adjusting for
currency moves for its global healthcare and life sciences
division, helped along by demand stoked by the pandemic.
"We expect the improvement to continue in our fourth quarter,
though likely at a slower rate as the second Covid-19 wave impacts
reopenings," Chief Executive Douglas Baker said in a statement. "At
the same time, the opportunities and challenges created by Covid-19
are much clearer."
The company has been pushing to invest more in hand care and
sanitizer capacity, Mr. Baker said.
Write to Micah Maidenberg at micah.maidenberg@wsj.com
(END) Dow Jones Newswires
October 27, 2020 09:23 ET (13:23 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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