(RTTNews) - Cleaning and pest-control service provider Ecolab, Inc. (ECL: News ) on Tuesday reported a 15% year-over-year increase in profit for the third quarter, as new account sales, pricing and cost saving actions offset the effects of global recession and unfavorable foreign exchange.

Pro forma earnings per share for the quarter grew 11%, and topped analysts' expectations by a penny. The company also provided earnings guidance for the third quarter, in line with consensus estimate, and narrowed its earnings forecast for the full year 2009.

In a statement, chairman, president and chief executive officer, Douglas Baker, Jr. said, "We continue to make solid progress. The quarter was on track, reflecting our focus on new business growth, appropriate pricing and structural cost improvement to offset soft market conditions and yield the strong earnings gain."

Ecolab added that it's balanced business mix has provided stability during 2009's difficult economy, as steady demand from our food and beverage, food retail and healthcare markets, as well as increased sanitizer demand due to H1N1, has balanced soft trends in lodging and foodservice.

Third Quarter Results

The St. Paul, Minnesota-based company reported net income of $145.0 million or $0.60 per share for the third quarter, up from $126.2 million or $0.50 per share in the prior-year quarter.

Excluding discrete tax items as well as special gains and charges, pro forma earnings per share from ongoing operations for the quarter increased to $0.61 from $0.55 in the year-ago quarter. On average, 18 analysts polled by Thomson Reuters expected the company to earn $0.60 per share for the third quarter. Analysts' estimate typically excludes special items.
Ecolab was anticipating pro forma earnings in a range of $0.58 to $0.61 per share, excluding special gains and charges that include restructuring charges of about $0.02 to $0.04 per share.

Ecolab noted that currency translation had a negative impact of about $0.03 per share on pro forma earnings per share for the latest quarter.

Net sales for the quarter decreased 5% to $1.55 billion from $1.63 billion in the same quarter last year, and narrowly missed fourteen Wall Street analysts' consensus estimate of $1.56 billion. When measured in fixed currencies, sales remained flat with last year.

Segmental Details

Ecolab's U.S. cleaning & sanitizing sales for the third quarter edged down to $693.2 million from the year-ago quarter's $$695.5 million. However, segment operating income increased 17% to $141.1 million from last year.

U.S. other services sales for the quarter declined 6% to $117.6 million from last year. However, segment operating income grew 3% to $18.4 million from a year ago.

To receive FREE breaking news email alerts for Ecolab Inc. and others in your portfolio

 1   2   Next Page