Friday, April 29, 2011

ECL 1Q Profit Declines 2% from Restructuring Cost

Ecolab’s 1 Q profit earnings fell 2 %, due to restructuring charges caused a decline, despite an increase in Revenue. Gross Margin was slightly lower from 50% to 49.3%. However, the company raised its forecasted earnings from $2.49 to $2.53 a share. Ecolab reported a diluted EPS of $.40, equal to the prior year. The adjusted EPS of was +10%, which excludes special gains and charges and discrete tax items. This reaches the top end of forecasted range. The Reported sales saw a 6% jump to $1.5 Billion.

The improved sales growth in segment is led by US Cleaning and Sanitizing, Asia Pacific and Latin America, along with efficiency actions, which offsets the higher delivered costs. Douglas M. Baker, Jr. CEO feels their aggressive acquisitions in the previous year are expected to expand their market share and increase efficiency. At the time of issuance of 1Q earnings Ecolab was trading at $51.82.


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