Ecolab Sees 2Q Adjusted EPS Roughly Flat, 2022 Adjusted EPS Up
April 26 2022 - 9:25AM
Dow Jones News
By Rob Curran
Ecolab Inc. forecast second-quarter operating earnings
"approaching" year-earlier levels and growth in 2022 profit as it
manages the effect of surging raw-material and energy costs by
increasing prices and passing on an energy surcharge to
customers.
The St. Paul, Minn., provider of water, hygiene and
infection-prevention products and services forecast second-quarter
adjusted earnings approaching the $1.22 a share level from the
prior-year period.
For the full year, the company forecast adjusted earnings-per
share growth in the low teens, based on the timing of the energy
surcharge, which it is currently rolling out. The company said the
temporary energy surcharge, intended to offset the increase in
energy costs due to war in Ukraine, would be up to 12%, which it
expects to "develop progressively through the year." The effects of
the surcharge would become clearer as it exits the second quarter,
the company said.
"While we expect the impact of substantial raw material and cost
inflation to increase further in the second quarter and remain high
for the balance of the year, we are also very pleased with our
progress on pricing, and now expect it to be in the 6% to 7% range
for the balance of the year," said President and Chief Executive
Christophe Beck.
Write to Rob Curran at rob.curran@wsj.com
(END) Dow Jones Newswires
April 26, 2022 09:10 ET (13:10 GMT)
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