Net Income for the Cleaning Products fell from $125.9 million from $129.3 million a year earlier. However, revenue rose 11.7% to $1.7 billion from the same quarter last year. ECL also beat the mean estimate of 63 cents per share, by reporting an adjusted 64 cents per share. Sales growth was led by US Cleaning & Sanitizing, Asia Pacific and Latin America, and a strong performance from acquisitions had offset the higher delivered product costs.
Ecolab chairmen, President and CEO attributed the company’s success to organic sales, recent acquisitions and pricing plans. The company plans on transforming Europe into a higher growth, more efficient and more profitable region. Despite, anticipated higher raw material costs, they remain on target to noticeable improvement in their operating margin in Europe.
Gross Margin shrank 1.3% to 49.3%, primarily due to increased costs which rose 14.8%. Revenue has risen in the last 4 consecutive quarters. Also, Net Income has dropped in the last two quarter, but has topped expectations with net income over the same two quarters.
-Jim
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