Ecolab 1Q Net Down on Surging Raw Energy Costs
April 26 2022 - 9:38AM
Dow Jones News
By Rob Curran
Ecolab Inc. said first-quarter earnings fell as higher prices
and sales volumes of its water-treatment and sanitation products
and services could not offset the effect of war-related inflation
on costs.
The St. Paul, Minn., provider of water-treatment, hygiene and
infection-prevention goods and services posted first-quarter net
income of $171.9 million, or 60 cents a share, down $193.6 billion,
or 67 cents a share, a year earlier. Excluding certain items,
Ecolab posted adjusted earnings of 82 cents a share.
First-quarter sales rose 16%, to $3.27 billion.
Raw material and freight costs rose 25% during the quarter, the
company said, citing the onset of the war in Ukraine. That added
roughly 55 cents a share of incremental costs, Ecolab estimated.
The company boosted prices by an estimated 5% in the first quarter,
up from 3% a year earlier.
In response to Russia's invasion of Ukraine and related
sanctions, Ecolab will limit Russian operations to those deemed
essential to life, providing minimal support for its health-care,
pharmaceutical, food-and-beverage and certain water businesses.
Shares fell slightly premarket.
Write to Rob Curran at rob.curran@wsj.com
(END) Dow Jones Newswires
April 26, 2022 09:23 ET (13:23 GMT)
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