Ecolab Inc. (NYSE: ECL):
THIRD QUARTER HIGHLIGHTS
- Reported sales $4.0 billion, +1% versus last year including
a 2% headwind from the sale of the global surgical solutions
business and a 1% headwind from currency exchange.
- Organic sales +4%, with very healthy growth across the
business. Volume growth strengthened to +2%, driven by good new
business wins and breakthrough innovation. Value pricing remained
in our targeted 2-3% range, supported by ongoing customer value
delivery.
- Reported operating income margin 26.1%. Organic operating
income margin 17.9%, +260 bps as solid sales growth and lower
delivered product costs more than offset growth-oriented
investments in the business.
- Reported diluted EPS $2.58, +83%, including a gain related
to the sale of the global surgical solutions business. Adjusted
diluted EPS, excluding special gains and charges and discrete tax
items were $1.83, +19%.
- Year-to-date cash flow from operating activities $2.0
billion; free cash flow increased 35% to $1.4 billion. Ecolab
repurchased approximately 1.9 million shares of its common stock
during the third quarter of 2024.
OUTLOOK
- 2024: Increased full year 2024 adjusted diluted earnings per
share outlook from prior $6.50 - $6.70 range to $6.60 - $6.70
range, +27% - 29%.
- 4Q 2024: Expect fourth quarter 2024 adjusted diluted
earnings per share in the $1.75 - $1.85 range, +13% - 19%.
Third Quarter Ended September
30
Reported
Adjusted
(unaudited)
Public Currency Rates
%
Public Currency Rates
%
(millions, except per share)
2024
2023
Change
2024
2023
Change
Net sales
$3,998.5
$3,958.1
1
%
$3,998.5
$3,958.1
1
%
Operating income
1,044.8
566.0
85
%
713.1
608.6
17
%
Net income attributable to Ecolab
736.5
404.0
82
%
522.0
441.7
18
%
Diluted earnings per share attributable to
Ecolab
$2.58
$1.41
83
%
$1.83
$1.54
19
%
Organic
%
2024
2023
Change
Net sales
$4,018.7
$3,865.4
4
%
Operating income
720.5
592.4
22
%
CEO Comment
Christophe Beck, Ecolab’s chairman and chief executive officer,
said, “We had another excellent quarter with broad-based
performance throughout our business. Organic sales grew across all
of our segments and our operating income margin continued to expand
to drive 19% growth in adjusted diluted earnings per share. Strong
new business wins and breakthrough innovation helped accelerate our
volume growth back to 2%. Our unique ability to deliver significant
total customer value has resulted in continued strong value pricing
that remains in our targeted 2-3% range despite favorable
carry-over pricing benefits now behind us. In a world that remains
hard to predict, our innovative solutions are more essential now
than ever to our customers as they drive productivity while also
reducing water and energy consumption.
“Our primary focus remains on fueling our positive growth
trajectory and continuing to execute on our 20% operating income
margin target. Our One Ecolab initiative supports these objectives
by leveraging our breakthrough innovation, digital technologies,
and global service expertise to deliver best-in-class customer
performance in their global operations to keep fueling our growth
and margin expansion. With this, we expect a strong finish to the
year and with continued good momentum, we look to drive 12-15%
growth in adjusted diluted earnings per share in 2025 and
beyond.”
Third Quarter 2024 Consolidated
Results
Ecolab’s third quarter reported sales increased 1%, including a
2% unfavorable impact from the sale of the global surgical
solutions business and a 1% unfavorable impact from foreign
currency exchange. Organic sales increased 4% when compared to the
prior year.
Third quarter 2024 reported operating income increased 85%
including the impact of special gains and charges, which were a net
gain primarily related to the sale of our global surgical solutions
business. Organic operating income increased 22%, as solid sales
growth and lower delivered product costs more than offset
growth-oriented investments in the business.
Reported other income in the third quarter of 2024 decreased
slightly. Reported net interest expense decreased $4 million
reflecting the impact from higher interest income earned on cash
balances.
The reported income tax rate for the third quarter of 2024 was
25.0% compared with the reported rate of 19.1% in the third quarter
of 2023. Excluding special gains and charges and discrete tax
items, the adjusted tax rate for the third quarter of 2024 was
19.7% compared with the adjusted tax rate of 18.5% in the third
quarter of 2023.
Reported net income increased 82% versus the prior year.
Excluding the impact of special gains and charges and discrete tax
items, adjusted net income increased 18% versus the prior year.
Reported diluted earnings per share increased 83% versus the
prior year. Adjusted diluted earnings per share increased 19% when
compared against the third quarter of 2023.
Currency translation had a $0.04 unfavorable impact on earnings
per share in the third quarter of 2024.
Ecolab repurchased approximately 1.9 million shares of its
common stock during the third quarter of 2024.
Third Quarter 2024 Segment
Review
Global Industrial
(unaudited)
Third Quarter Ended September
30
Organic
(millions)
2024
2023
% Change
% Change
Fixed currency
Sales
$1,993.0
$1,940.8
3
%
2
%
Operating income
349.1
299.1
17
%
16
%
Operating income margin
17.5
%
15.4
%
Organic operating income margin
17.5
%
15.5
%
Public currency
Sales
$1,966.7
$1,945.1
1
%
Operating income
342.7
300.7
14
%
The Industrial segment includes Water,
Food & Beverage, and Paper
Organic sales increased 2% with solid growth in Water and
improved growth in Food & Beverage and Paper. Water’s
performance was led by good growth in downstream and light water.
Improved Food & Beverage and Paper sales reflected good new
business wins. Organic operating income increased 16% as lower
delivered product costs and sales growth more than offset
investments in the business.
Global Institutional &
Specialty
(unaudited)
Third Quarter Ended September
30
Organic
(millions)
2024
2023
% Change
% Change
Fixed currency
Sales
$1,403.6
$1,314.1
7
%
7
%
Operating income
325.6
254.9
28
%
28
%
Operating income margin
23.2
%
19.4
%
Organic operating income margin
23.2
%
19.4
%
Public currency
Sales
$1,394.2
$1,313.0
6
%
Operating income
322.8
254.6
27
%
Organic sales growth remained very strong at 7%. Both the
Institutional and Specialty businesses drove robust sales gains,
continuing to significantly outperform end-market trends. Organic
operating income increased 28% as strong sales growth and lower
supply chain costs were partially offset by investments in the
business.
Global Healthcare & Life
Sciences
(unaudited)
Third Quarter Ended September
30
Organic
(millions)
2024
2023
% Change
% Change
Fixed currency
Sales
$334.1
$408.3
(18
)%
1
%
Operating income
35.8
44.7
(20
)%
24
%
Operating income margin
10.7
%
10.9
%
Organic operating income margin
10.7
%
8.7
%
Public currency
Sales
$330.4
$406.2
(19
)%
Operating income
34.8
43.8
(21
)%
Reported sales and operating income declined reflecting the sale
of the global surgical solutions business, which closed on August
1st. The increase in organic sales reflected continued growth in
Life Sciences and stable Healthcare sales. Modest growth in Life
Sciences was driven by good new business wins, which more than
offset soft near-term industry trends. Stable Healthcare sales
reflected improved pricing that was offset by strategic low margin
business exits as we continue to execute Healthcare’s business
transformation. Organic operating income increased 24% as value
pricing more than offset higher supply chain costs.
Global Pest Elimination
(unaudited)
Third Quarter Ended September
30
Organic
(millions)
2024
2023
% Change
% Change
Fixed currency
Sales
$308.7
$283.1
9
%
8
%
Operating income
63.1
59.0
7
%
6
%
Operating income margin
20.4
%
20.8
%
Organic operating income margin
20.6
%
20.8
%
Public currency
Sales
$307.2
$283.1
9
%
Operating income
62.8
59.0
6
%
Organic sales increased 8%, led by double-digit growth in food
& beverage and robust growth in food retail, restaurants, and
hospitality. Organic operating income increased 6% as strong sales
growth more than offset investments in the business.
Corporate
(unaudited)
Third Quarter Ended September
30
(millions)
2024
2023
Public currency
Sales
$ -
$10.7
Corporate operating expense
Nalco and Purolite amortization
50.0
49.9
Special (gains) and charges
(331.7
)
42.6
Other
-
(0.4
)
Total Corporate operating expense
($281.7
)
$92.1
Third quarter of 2024 corporate segment includes:
- amortization expense of $28 million related to the Nalco merger
intangible assets and $22 million related to Purolite acquisition
intangible assets
- special gains and charges were a net gain of $332 million,
reflecting the gain on sale of the global surgical solutions
business
Special gains and charges for the third quarter of 2023
impacting operating expense were a net charge of $43 million
primarily related to restructuring costs.
Business Outlook
2024
Ecolab expects full year 2024 adjusted diluted earnings per
share to improve further to the $6.60 to $6.70 range, rising 27% to
29% compared with adjusted diluted earnings per share of $5.21 in
2023. As previously disclosed, this range includes an unfavorable
$0.08 per share impact in the second half of 2024 from the sale of
the global surgical solutions business. As expected, favorability
from lower raw material costs has progressively eased through the
third quarter of 2024. These costs are anticipated to be stable to
slightly higher in the fourth quarter of 2024.
Assuming stable macroeconomic demand, Ecolab expects continued
solid sales growth, driven by value pricing and new business gains.
The company expects to leverage this growth with attractive organic
operating income margin expansion, driven by robust increases in
gross margin. Good underlying productivity improvement is expected
to be offset in the short-term by growth-oriented investments in
the business to fuel Ecolab’s long-term performance.
The company currently expects quantifiable special gains and
charges in 2024 to be a net gain of approximately $0.59 per share,
principally related to the gain on sale of the global surgical
solutions business of $0.92 per share. Other than the special gains
and charges noted above, other such amounts are not currently
quantifiable.
2024 – Fourth Quarter
Ecolab expects fourth quarter 2024 adjusted diluted earnings per
share in the $1.75 to $1.85 range, rising 13% to 19% compared with
adjusted diluted earnings per share of $1.55 a year ago.
The company currently expects quantifiable special charges in
the fourth quarter of 2024 to be approximately $0.13 per share,
principally related to restructuring charges. Other than the
special gains and charges noted above, other such amounts are not
currently quantifiable.
About Ecolab
A trusted partner for millions of customers, Ecolab (NYSE:ECL)
is a global sustainability leader offering water, hygiene and
infection prevention solutions and services that protect people and
the resources vital to life. Building on a century of innovation,
Ecolab has annual sales of $15 billion, employs more than 46,000
associates and operates in more than 170 countries around the
world. The company delivers comprehensive science-based solutions,
data-driven insights and world-class service to advance food
safety, maintain clean and safe environments, and optimize water
and energy use. Ecolab’s innovative solutions improve operational
efficiencies and sustainability for customers in the food,
healthcare, life sciences, hospitality and industrial markets.
www.ecolab.com
Ecolab will host a live webcast to review the third quarter
earnings announcement today at 1:00 p.m. Eastern Time. The webcast,
along with related materials, will be available to the public on
Ecolab's website at www.ecolab.com/investor. A replay of the
webcast and related materials will be available at that site.
Cautionary Statements Regarding
Forward-Looking Information
This news release contains certain statements relating to future
events and our intentions, beliefs, expectations and predictions
for the future which are forward-looking statements as that term is
defined in the Private Securities Litigation Reform Act of 1995.
Words or phrases such as “will likely result,” “are expected to,”
“will continue,” “is anticipated,” “we believe,” “we expect,”
“estimate,” “project,” “may,” “will,” “intend,” “plan,” “believe,”
“target,” “forecast” (including the negative or variations thereof)
or similar terminology used in connection with any discussion of
future plans, actions or events generally identify forward-looking
statements. These forward-looking statements include, but are not
limited to, statements regarding macroeconomic conditions and our
financial and business performance and prospects, including sales,
earnings, special charges, raw material costs, margins, pricing,
productivity, investments and new business. These statements are
based on the current expectations of management of the company.
There are a number of risks and uncertainties that could cause
actual results to differ materially from the forward-looking
statements included in this news release. In particular, the
ultimate results of any restructuring initiative depend on a number
of factors, including the development of final plans, the impact of
local regulatory requirements regarding employee terminations, the
time necessary to develop and implement the restructuring
initiatives and the level of success achieved through such actions
in improving competitiveness, efficiency and effectiveness.
Additional risks and uncertainties that may affect operating
results and business performance are set forth under Item 1A of our
most recent Form 10-K, and our other public filings with the
Securities and Exchange Commission (the "SEC"), and include the
impact of economic factors such as the worldwide economy, interest
rates, foreign currency risk, reduced sales and earnings in our
international operations resulting from the weakening of local
currencies versus the U.S. dollar, demand uncertainty, supply chain
challenges and inflation; the vitality of the markets we serve;
exposure to global economic, political and legal risks related to
our international operations, including geopolitical instability
and the escalation of armed conflicts; our ability to successfully
execute organizational change and management transitions;
information technology infrastructure failures or breaches in data
security; difficulty in procuring raw materials or fluctuations in
raw material costs; the occurrence of severe public health
outbreaks not limited to COVID-19; our ability to acquire
complementary businesses and to effectively integrate such
businesses; our ability to execute key business initiatives; our
ability to successfully compete with respect to value, innovation
and customer support; our increasing reliance on artificial
intelligence technologies in our products, services and operations;
pressure on operations from consolidation of customers or vendors;
restraints on pricing flexibility due to contractual obligations
and our ability to meet our contractual commitments; the costs and
effects of complying with laws and regulations, including those
relating to the environment, climate change standards, and to the
manufacture, storage, distribution, sale and use of our products,
as well as to the conduct of our business generally, including
labor and employment and anti-corruption; potential chemical spill
or release; our commitments, goals, targets, objectives and
initiatives related to sustainability; potential to incur
significant tax liabilities or indemnification liabilities relating
to the separation and split-off of our ChampionX business; the
occurrence of litigation or claims, including class action
lawsuits; the loss or insolvency of a major customer or
distributor; repeated or prolonged government and/or business
shutdowns or similar events; acts of war or terrorism; natural or
man-made disasters; water shortages; severe weather conditions;
changes in tax laws and unanticipated tax liabilities; potential
loss of deferred tax assets; our indebtedness, and any failure to
comply with covenants that apply to our indebtedness; potential
losses arising from the impairment of goodwill or other assets; and
other uncertainties or risks reported from time to time in our
reports to the SEC. In light of these risks, uncertainties,
assumptions and factors, the forward-looking events discussed in
this news release may not occur. We caution that undue reliance
should not be placed on forward-looking statements, which speak
only as of the date made. Ecolab does not undertake, and expressly
disclaims, any duty to update any forward-looking statement whether
as a result of new information, future events or changes in
expectations, except as required by law.
Non-GAAP Financial
Information
This news release and certain of the accompanying tables include
financial measures that have not been calculated in accordance with
accounting principles generally accepted in the U.S. (“GAAP”).
These non-GAAP financial measures include:
- fixed currency sales
- organic sales
- adjusted cost of sales
- adjusted gross profit
- adjusted gross margin
- fixed currency operating income
- adjusted operating income
- adjusted fixed currency operating income
- adjusted fixed currency operating income margin
- organic operating income
- organic operating income margin
- adjusted tax rate
- adjusted net income attributable to Ecolab
- adjusted diluted earnings per share
- free cash flow
We provide these measures as additional information regarding
our operating results. We use these non-GAAP measures internally to
evaluate our performance and in making financial and operational
decisions, including with respect to incentive compensation. We
believe that our presentation of these measures provides investors
with greater transparency with respect to our results of operations
and that these measures are useful for period-to-period comparison
of results.
Our non-GAAP financial measures for adjusted cost of sales,
adjusted gross margin, adjusted gross profit and adjusted operating
income exclude the impact of special (gains) and charges and our
non-GAAP financial measures for adjusted tax rate, adjusted net
income attributable to Ecolab and adjusted diluted earnings per
share further exclude the impact of discrete tax items. We include
items within special (gains) and charges and discrete tax items
that we believe can significantly affect the period-over-period
assessment of operating results and not necessarily reflect costs
and/or income associated with historical trends and future results.
After tax special (gains) and charges are derived by applying the
applicable local jurisdictional tax rate to the corresponding
pre-tax special (gains) and charges.
We evaluate the performance of our international operations
based on fixed currency rates of foreign exchange, which eliminate
the translation impact of exchange rate fluctuations on our
international results. Fixed currency amounts included in this
release are based on translation into U.S. dollars at the fixed
foreign currency exchange rates established by management at the
beginning of 2024. We also provide our segment results based on
public currency rates for informational purposes.
Our reportable segments do not include the impact of intangible
asset amortization from the Nalco and Purolite transactions or the
impact of special (gains) and charges as these are not allocated to
the Company’s reportable segments.
Our non-GAAP financial measures for organic sales, organic
operating income and organic operating income margin are at fixed
currency and exclude the impact of special (gains) and charges, the
results of our acquired businesses from the first twelve months
post acquisition and the results of divested businesses from the
twelve months prior to divestiture. Further, due to the sale of the
global surgical solutions business on August 1, 2024, we have
excluded the results of the business for August and September 2023
from these organic measures for the three-month and nine-month
periods ended September 30, 2023 to remain comparable to the
corresponding periods in 2024. In addition, as part of the
separation, we also entered into an agreement with ChampionX to
provide, receive or transfer certain products for a transitionary
period. Transitionary period sales of product to ChampionX under
this agreement are recorded in product and equipment sales in the
Corporate segment along with the related cost of sales. The
remaining sales to ChampionX are recorded in product and equipment
sales in the Global Industrial segment along with the related cost
of sales. These transactions are removed from the consolidated
results as part of the calculation of the impact of acquisitions
and divestitures.
We define free cash flow as net cash provided by operating
activities less cash outlays for capital expenditures. It should
not be inferred that the entire free cash flow amount is available
for discretionary expenditures. It should not be considered a
substitute for income or cash flow data prepared in accordance with
U.S. GAAP and may not be comparable to similarly titled measures
used by other companies. We believe free cash flow is meaningful to
investors as it functions as a useful measure of performance and we
use this measure as an indication of the strength of the Company
and its ability to generate cash.
These non-GAAP financial measures are not in accordance with, or
an alternative to, GAAP and may be different from non-GAAP measures
used by other companies. Investors should not rely on any single
financial measure when evaluating our business. We recommend that
investors view these measures in conjunction with the GAAP measures
included in this news release. Reconciliations of our non-GAAP
measures are included in the following "Supplemental Non-GAAP
Reconciliations" and “Supplemental Diluted Earnings per Share
Information” tables included in this news release.
We do not provide reconciliations for non-GAAP estimates on a
forward-looking basis (including those contained in this news
release) when we are unable to provide a meaningful or accurate
calculation or estimation of reconciling items and the information
is not available without unreasonable effort. This is due to the
inherent difficulty of forecasting the timing and amount of various
items that have not yet occurred, are out of our control and/or
cannot be reasonably predicted, and that would impact reported
earnings per share and the reported tax rate, the most directly
comparable forward-looking GAAP financial measures to adjusted
earnings per share and the adjusted tax rate. For the same reasons,
we are unable to address the probable significance of the
unavailable information.
(ECL-E)
ECOLAB INC.
CONSOLIDATED STATEMENTS OF
INCOME
(unaudited)
Third Quarter Ended
Nine Months Ended
September 30
%
September 30
%
(millions, except per share)
2024
2023
Change
2024
2023
Change
Product and equipment sales
$3,156.0
$3,170.9
$9,315.6
$9,152.0
Service and lease sales
842.5
787.2
2,420.6
2,229.8
Net sales
3,998.5
3,958.1
1
%
11,736.2
11,381.8
3
%
Product and equipment cost of sales
1,771.2
1,868.1
5,221.0
5,561.7
Service and lease cost of sales
490.3
462.4
1,409.6
1,308.8
Cost of sales (1)
2,261.5
2,330.5
(3
)%
6,630.6
6,870.5
(3
)%
Selling, general and administrative
expenses
1,024.8
1,024.9
0
%
3,178.2
3,026.8
5
%
Special (gains) and charges (1)
(332.6
)
36.7
(292.2
)
82.2
Operating income
1,044.8
566.0
85
%
2,219.6
1,402.3
58
%
Other (income) expense
(12.9
)
(14.5
)
(11
)%
(38.1
)
(42.0
)
(9
)%
Interest expense, net
70.4
74.3
(5
)%
220.8
226.3
(2
)%
Income before income taxes
987.3
506.2
95
%
2,036.9
1,218.0
67
%
Provision for income taxes
246.5
96.8
155
%
384.5
235.8
63
%
Net income including noncontrolling
interest
740.8
409.4
81
%
1,652.4
982.2
68
%
Net income attributable to noncontrolling
interest
4.3
5.4
12.9
15.1
Net income attributable to Ecolab
$736.5
$404.0
82
%
$1,639.5
$967.1
70
%
Earnings attributable to Ecolab per common
share
Basic
$2.60
$1.42
83
%
$5.76
$3.39
70
%
Diluted
$2.58
$1.41
83
%
$5.72
$3.38
69
%
Weighted-average common shares
outstanding
Basic
283.6
285.1
(1
)%
284.6
284.9
0
%
Diluted
286.0
286.9
0
%
286.8
286.4
0
%
(1) Cost of sales and Special (gains) and
charges in the Consolidated Statement of Income above include the
following:
Third Quarter Ended
Nine Months Ended
September 30
September 30
(millions)
2024
2023
2024
2023
Cost of sales
Other restructuring
$0.9
$5.9
$3.2
$17.2
Subtotal (a)
0.9
5.9
3.2
17.2
Special (gains) and charges
One Ecolab
24.4
-
38.9
-
Other restructuring
0.4
20.0
20.1
46.3
Sale of global surgical solutions
business
(364.0
)
4.8
(350.7
)
4.8
Acquisition and integration activities
3.5
3.0
8.3
11.5
Other
3.1
8.9
(8.8
)
19.6
Subtotal
(332.6
)
36.7
(292.2
)
82.2
Total special (gains) and charges
($331.7
)
$42.6
($289.0
)
$99.4
(a) Special charges of $0.9 million and
$4.2 million in the third quarter of 2024 and 2023, respectively,
and $3.2 million and $11.0 million for the first nine months of
2024 and 2023, respectively, were recorded in product and equipment
cost of sales. Special charges of $1.7 million and $6.2 million for
the third quarter and first nine months of 2023, respectively, were
recorded in service and lease cost of sales.
ECOLAB INC.
REPORTABLE SEGMENT
INFORMATION
(unaudited)
Third Quarter Ended September
30
Fixed Currency Rates
Public Currency Rates
%
%
(millions)
2024
2023
Change
2024
2023
Change
Net Sales
Global Industrial
$1,993.0
$1,940.8
3
%
$1,966.7
$1,945.1
1
%
Global Institutional & Specialty
1,403.6
1,314.1
7
%
1,394.2
1,313.0
6
%
Global Healthcare & Life Sciences
334.1
408.3
(18
)%
330.4
406.2
(19
)%
Global Pest Elimination
308.7
283.1
9
%
307.2
283.1
9
%
Corporate
-
10.7
(100
)%
-
10.7
(100
)%
Subtotal at fixed currency rates
4,039.4
3,957.0
2
%
3,998.5
3,958.1
1
%
Currency impact
(40.9
)
1.1
*
-
*
Consolidated reported GAAP net sales
$3,998.5
$3,958.1
1
%
$3,998.5
$3,958.1
1
%
Operating Income (loss)
Global Industrial
$349.1
$299.1
17
%
$342.7
$300.7
14
%
Global Institutional & Specialty
325.6
254.9
28
%
322.8
254.6
27
%
Global Healthcare & Life Sciences
35.8
44.7
(20
)%
34.8
43.8
(21
)%
Global Pest Elimination
63.1
59.0
7
%
62.8
59.0
6
%
Corporate
281.5
(91.6
)
*
281.7
(92.1
)
*
Subtotal at fixed currency rates
1,055.1
566.1
86
%
1,044.8
566.0
85
%
Currency impact
(10.3
)
(0.1
)
*
-
-
*
Consolidated reported GAAP operating
income
$1,044.8
$566.0
85
%
$1,044.8
$566.0
85
%
Nine Months Ended September
30
Fixed Currency Rates
Public Currency Rates
%
%
(millions)
2024
2023
Change
2024
2023
Change
Net Sales
Global Industrial
$5,790.7
$5,655.4
2
%
$5,742.4
$5,663.7
1
%
Global Institutional & Specialty
4,046.6
3,719.0
9
%
4,024.8
3,714.0
8
%
Global Healthcare & Life Sciences
1,112.0
1,189.7
(7
)%
1,100.0
1,176.7
(7
)%
Global Pest Elimination
872.6
797.4
9
%
869.0
795.5
9
%
Corporate
-
32.0
(100
)%
-
31.9
(100
)%
Subtotal at fixed currency rates
11,821.9
11,393.5
4
%
11,736.2
11,381.8
3
%
Currency impact
(85.7
)
(11.7
)
*
-
*
Consolidated reported GAAP net sales
$11,736.2
$11,381.8
3
%
$11,736.2
$11,381.8
3
%
Operating Income (loss)
Global Industrial
$926.0
$783.8
18
%
$914.8
$788.6
16
%
Global Institutional & Specialty
894.3
598.4
49
%
888.1
597.4
49
%
Global Healthcare & Life Sciences
106.5
113.3
(6
)%
103.6
109.5
(5
)%
Global Pest Elimination
174.1
155.9
12
%
173.4
155.7
11
%
Corporate
138.9
(248.3
)
*
139.7
(248.9
)
*
Subtotal at fixed currency rates
2,239.8
1,403.1
60
%
2,219.6
1,402.3
58
%
Currency impact
(20.2
)
(0.8
)
*
-
*
Consolidated reported GAAP operating
income
$2,219.6
$1,402.3
58
%
$2,219.6
$1,402.3
58
%
* Not meaningful.
As shown in the “Fixed Currency Rates” tables above, we evaluate
the performance of our international operations based on fixed
currency exchange rates, which eliminate the impact of exchange
rate fluctuations on our international operations. Amounts shown in
the “Public Currency Rates” tables above reflect amounts translated
at actual public average rates of exchange prevailing during the
corresponding period and are provided for informational purposes.
The difference between the fixed currency exchange rates and the
public currency exchange rates is reported as “Currency impact” in
the “Fixed Currency Rates” tables above.
The Corporate segment includes amortization from the Nalco and
Purolite transactions intangible assets. The Corporate segment also
includes special (gains) and charges reported on the Consolidated
Statement of Income.
ECOLAB INC.
CONSOLIDATED BALANCE
SHEETS
(unaudited)
September 30
December 31
September 30
(millions)
2024
2023
2023
Assets
Current assets
Cash and cash equivalents
$1,261.1
$919.5
$1,001.3
Accounts receivable, net
2,883.0
2,834.2
2,823.5
Inventories
1,572.4
1,497.2
1,536.0
Other current assets
401.8
393.2
428.6
Total current assets
6,118.3
5,644.1
5,789.4
Property, plant and equipment, net
3,545.5
3,474.6
3,332.8
Goodwill
7,898.7
8,148.2
8,098.4
Other intangible assets, net
3,282.1
3,493.5
3,528.6
Operating lease assets
688.2
553.5
536.0
Other assets
568.8
532.7
572.9
Total assets
$22,101.6
$21,846.6
$21,858.1
Liabilities and Equity
Current liabilities
Short-term debt
$643.0
$630.4
$1,129.1
Accounts payable
1,812.3
1,566.3
1,498.8
Compensation and benefits
604.9
655.5
553.3
Income taxes
235.1
158.7
134.3
Other current liabilities
1,413.8
1,334.9
1,285.0
Total current liabilities
4,709.1
4,345.8
4,600.5
Long-term debt
6,974.5
7,551.4
7,487.1
Pension and postretirement benefits
625.0
651.7
627.1
Deferred income taxes
264.6
418.2
450.9
Operating lease liabilities
551.4
425.5
415.0
Other liabilities
401.5
381.8
455.0
Total liabilities
13,526.1
13,774.4
14,035.6
Equity
Common stock
367.6
365.7
365.4
Additional paid-in capital
7,108.2
6,766.7
6,710.1
Retained earnings
11,228.4
10,075.4
9,832.8
Accumulated other comprehensive loss
(1,853.8
)
(1,850.4
)
(1,801.4
)
Treasury stock
(8,302.6
)
(7,312.7
)
(7,311.1
)
Total Ecolab shareholders’ equity
8,547.8
8,044.7
7,795.8
Noncontrolling interest
27.7
27.5
26.7
Total equity
8,575.5
8,072.2
7,822.5
Total liabilities and equity
$22,101.6
$21,846.6
$21,858.1
ECOLAB INC.
SUPPLEMENTAL NON-GAAP
RECONCILIATIONS
(unaudited)
Third Quarter Ended
Nine Months Ended
September 30
September 30
(millions, except percent and per
share)
2024
2023
2024
2023
Net sales
Reported GAAP net sales
$3,998.5
$3,958.1
$11,736.2
$11,381.8
Effect of foreign currency translation
40.9
(1.1
)
85.7
11.7
Non-GAAP fixed currency sales
4,039.4
3,957.0
11,821.9
11,393.5
Effect of acquisitions and
divestitures
(20.7
)
(91.6
)
(101.9
)
(132.3
)
Non-GAAP organic sales
$4,018.7
$3,865.4
$11,720.0
$11,261.2
Cost of sales
Reported GAAP cost of sales
$2,261.5
$2,330.5
$6,630.6
$6,870.5
Special (gains) and charges
0.9
5.9
3.2
17.2
Non-GAAP adjusted cost of sales
$2,260.6
$2,324.6
$6,627.4
$6,853.3
Gross profit
Reported GAAP gross profit
$1,737.0
$1,627.6
$5,105.6
$4,511.3
Special (gains) and charges
0.9
5.9
3.2
17.2
Non-GAAP adjusted gross profit
$1,737.9
$1,633.5
$5,108.8
$4,528.5
Gross margin
Reported GAAP gross margin
43.4
%
41.1
%
43.5
%
39.6
%
Non-GAAP adjusted gross margin
43.5
%
41.3
%
43.5
%
39.8
%
Operating income
Reported GAAP operating income
$1,044.8
$566.0
$2,219.6
$1,402.3
Special (gains) and charges at public
currency rates
(331.7
)
42.6
(289.0
)
99.4
Non-GAAP adjusted operating income
713.1
608.6
1,930.6
1,501.7
Effect of foreign currency translation
10.3
(0.6
)
20.3
0.1
Non-GAAP adjusted fixed currency operating
income
723.4
608.0
1,950.9
1,501.8
Effect of acquisitions and
divestitures
(2.9
)
(15.6
)
(5.3
)
(17.0
)
Non-GAAP organic operating income
$720.5
$592.4
$1,945.6
$1,484.8
Operating income margin
Reported GAAP operating income margin
26.1
%
14.3
%
18.9
%
12.3
%
Non-GAAP adjusted fixed currency operating
income margin
17.9
%
15.4
%
16.5
%
13.2
%
Non-GAAP organic operating income
margin
17.9
%
15.3
%
16.6
%
13.2
%
ECOLAB INC.
SUPPLEMENTAL NON-GAAP
RECONCILIATIONS
(unaudited)
Third Quarter Ended
Nine Months Ended
September 30
September 30
(millions, except percent and per
share)
2024
2023
2024
2023
Net Income attributable to Ecolab
Reported GAAP net income attributable to
Ecolab
$736.5
$404.0
$1,639.5
$967.1
Special (gains) and charges, after tax
(230.3
)
34.2
(206.3
)
78.6
Discrete tax net expense (benefit)
15.8
3.5
(42.7
)
2.3
Non-GAAP adjusted net income attributable
to Ecolab
$522.0
$441.7
$1,390.5
$1,048.0
Diluted EPS attributable to Ecolab
Reported GAAP diluted EPS
$2.58
$1.41
$5.72
$3.38
Special (gains) and charges, after tax
(0.81
)
0.12
(0.72
)
0.27
Discrete tax net expense (benefit)
0.06
0.01
(0.15
)
0.01
Non-GAAP adjusted diluted EPS
$1.83
$1.54
$4.85
$3.66
Provision for Income Taxes
Reported GAAP tax rate
25.0
%
19.1
%
18.9
%
19.4
%
Special gains and charges
(2.9
)
0.1
(1.6
)
0.1
Discrete tax items
(2.4
)
(0.7
)
2.4
(0.2
)
Non-GAAP adjusted tax rate
19.7
%
18.5
%
19.7
%
19.3
%
ECOLAB INC.
SUPPLEMENTAL NON-GAAP
RECONCILIATIONS
(unaudited)
Third Quarter Ended September
30
2024
2023
(millions)
Fixed Currency
Impact of Acquisitions and
Divestitures
Organic
Fixed Currency
Impact of Acquisitions and
Divestitures
Organic
Net Sales
Global Industrial
$1,993.0
($17.1
)
$1,975.9
$1,940.8
($4.3
)
$1,936.5
Global Institutional & Specialty
1,403.6
-
1,403.6
1,314.1
-
1,314.1
Global Healthcare & Life Sciences
334.1
-
334.1
408.3
(76.6
)
331.7
Global Pest Elimination
308.7
(3.6
)
305.1
283.1
-
283.1
Corporate
-
-
-
10.7
(10.7
)
-
Subtotal at fixed currency rates
4,039.4
(20.7
)
4,018.7
3,957.0
(91.6
)
3,865.4
Currency impact
(40.9
)
1.1
Consolidated reported GAAP net sales
$3,998.5
$3,958.1
Operating Income (loss)
Global Industrial
$349.1
($2.5
)
$346.6
$299.1
$0.6
$299.7
Global Institutional & Specialty
325.6
-
325.6
254.9
-
254.9
Global Healthcare & Life Sciences
35.8
-
35.8
44.7
(15.9
)
28.8
Global Pest Elimination
63.1
(0.4
)
62.7
59.0
-
59.0
Corporate
(50.2
)
-
(50.2
)
(49.7
)
(0.3
)
(50.0
)
Subtotal at fixed currency rates
723.4
(2.9
)
720.5
608.0
(15.6
)
592.4
Special (gains) and charges at fixed
currency rates
(331.7
)
41.9
Reported OI at fixed currency rates
1,055.1
566.1
Currency impact
(10.3
)
(0.1
)
Consolidated reported GAAP operating
income
$1,044.8
$566.0
Nine Months Ended September
30
2024
2023
(millions)
Fixed Currency
Impact of Acquisitions and
Divestitures
Organic
Fixed Currency
Impact of Acquisitions and
Divestitures
Organic
Net Sales
Global Industrial
$5,790.7
($64.3
)
$5,726.4
$5,655.4
($23.7
)
$5,631.7
Global Institutional & Specialty
4,046.6
(31.9
)
4,014.7
3,719.0
-
3,719.0
Global Healthcare & Life Sciences
1,112.0
-
1,112.0
1,189.7
(76.6
)
1,113.1
Global Pest Elimination
872.6
(5.7
)
866.9
797.4
-
797.4
Corporate
-
-
-
32.0
(32.0
)
-
Subtotal at fixed currency rates
11,821.9
(101.9
)
11,720.0
11,393.5
(132.3
)
11,261.2
Currency impact
(85.7
)
(11.7
)
Consolidated reported GAAP net sales
$11,736.2
$11,381.8
Operating Income (loss)
Global Industrial
$926.0
($3.6
)
$922.4
$783.8
($0.1
)
$783.7
Global Institutional & Specialty
894.3
(1.9
)
892.4
598.4
-
598.4
Global Healthcare & Life Sciences
106.5
-
106.5
113.3
(15.9
)
97.4
Global Pest Elimination
174.1
0.2
174.3
155.9
-
155.9
Corporate
(150.0
)
-
(150.0
)
(149.6
)
(1.0
)
(150.6
)
Subtotal at fixed currency rates
1,950.9
(5.3
)
1,945.6
1,501.8
(17.0
)
1,484.8
Special (gains) and charges at fixed
currency rates
(288.9
)
98.7
Reported OI at fixed currency rates
2,239.8
1,403.1
Currency impact
(20.2
)
(0.8
)
Consolidated reported GAAP operating
income
$2,219.6
$1,402.3
ECOLAB INC.
SUPPLEMENTAL NON-GAAP
RECONCILIATIONS
(unaudited)
Selected Cash Flow items
Third Quarter Ended
Nine Months Ended
September 30
September 30
(millions)
2024
2023
2024
2023
Cash provided by operating activities
$786.7
$787.7
$2,047.2
$1,559.3
Less: Capital expenditures
(236.4
)
(166.5
)
(634.8
)
(512.2
)
Free cash flow
$550.3
$621.2
$1,412.4
$1,047.1
ECOLAB INC.
SUPPLEMENTAL DILUTED EARNINGS
PER SHARE INFORMATION
(unaudited)
The table below provides a reconciliation
of diluted earnings per share, as reported, to the non-GAAP measure
of adjusted diluted earnings per share.
First
Second
Six
Third
Nine
Fourth
Quarter
Quarter
Months
Quarter
Months
Quarter
Year
Ended
Ended
Ended
Ended
Ended
Ended
Ended
Mar. 31
June 30
June 30
Sept. 30
Sept. 30
Dec. 31
Dec. 31
2023
2023
2023
2023
2023
2023
2023
Diluted earnings per share, as reported
(U.S. GAAP)
$0.82
$1.15
$1.97
$1.41
$3.38
$1.41
$4.79
Adjustments:
Special (gains) and charges (1)
0.07
0.08
0.15
0.12
0.27
0.11
0.38
Discrete tax expense (benefits) (2)
(0.01
)
0.01
0.00
0.01
0.01
0.03
0.04
Adjusted diluted earnings per share
(Non-GAAP)
$0.88
$1.24
$2.12
$1.54
$3.66
$1.55
$5.21
First
Second
Six
Third
Nine
Fourth
Quarter
Quarter
Months
Quarter
Months
Quarter
Year
Ended
Ended
Ended
Ended
Ended
Ended
Ended
Mar. 31
June 30
June 30
Sept. 30
Sept. 30
Dec. 31
Dec. 31
2024
2024
2024
2024
2024
2024
2024
Diluted earnings per share, as reported
(U.S. GAAP)
$1.43
$1.71
$3.14
$2.58
$5.72
Adjustments:
Special (gains) and charges (3)
0.08
0.00
0.08
(0.81
)
(0.72
)
Discrete tax expense (benefits) (4)
(0.17
)
(0.03
)
(0.20
)
0.06
(0.15
)
Adjusted diluted earnings per share
(Non-GAAP)
$1.34
$1.68
$3.02
$1.83
$4.85
$0.00
$0.00
Per share amounts do not necessarily sum
due to changes in shares outstanding and rounding.
(1) Special (gains) and charges for 2023
includes $21.1 million, $23.3 million, $34.2 million and $30.6
million, net of tax, in the first, second, third and fourth
quarters, respectively. These charges were primarily related to
restructuring charges, acquisition and integration charges and
litigation and other charges.
(2) Discrete tax expenses (benefits) for
2023 includes ($4.0) million, $2.8 million, $3.5 million and $8.9
million in the first, second, third and fourth quarters,
respectively. These expenses (benefits) are primarily associated
with stock compensation excess tax benefits and other discrete tax
benefits.
(3) Special (gains) and charges for 2024
includes $23.1 million, $0.9 million and ($230.3) million, net of
tax, in the first, second and third quarters, respectively. These
charges were primarily related to restructuring and the gain on the
sale of our global surgical solutions business.
(4) Discrete tax expenses (benefits) for
2024 includes ($48.2) million, ($10.3) million and $15.8 million in
the first, second and third quarters, respectively. These expenses
(benefits) are primarily associated with transferring certain
intangibles between affiliates, stock compensation excess tax
benefits, and other discrete tax expenses (benefits).
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241028455870/en/
Investor Contact: Andrew Hedberg
(651) 250-2185 Cairn Clark (651) 250-2291
Media Contact: Nigel Glennie (651)
250-2576
Grafico Azioni Ecolab (NYSE:ECL)
Storico
Da Dic 2024 a Gen 2025
Grafico Azioni Ecolab (NYSE:ECL)
Storico
Da Gen 2024 a Gen 2025
