Ecolab Inc. (ECL) third-quarter earnings rose 15% as the
cleaning and pest-control services company posted fewer charges and
higher margins, more than offsetting a revenue decline.
The company has said its markets continue to suffer despite
signs of recovery elsewhere in the economy. However, Ecolab said it
isn't relying on recovery to post strong growth, saying it is
working aggressively to gain market share and keep costs under
control.
Ecolab posted a profit of $145 million, or 60 cents a share,
from $126.2 million, or 50 cents per share, a year earlier.
Excluding restructuring costs, earnings rose to 61 cents from 55
cents. In July, the company predicted 58 cents to 61 cents a
share.
Revenue decreased 4.9% to $1.55 billion. Analysts surveyed by
Thomson Reuters recently anticipated $1.56 billion.
Gross margin rose to 50.6% from 48.7%.
Revenue for Ecolab's core business, U.S. cleaning and
sanitizing, was down 0.3% while earnings climbed 17%. Other U.S.
revenue fell 5.7%. International revenue jumped 1.2% on a
fixed-currency basis.
Looking ahead, the company said earnings in the current quarter
will be between 54 cents to 57 cents a share. Analysts see 57 cents
a share. Ecolab estimated gross margin between 50% to 51%.
Shares in Ecolab, which also narrowed its 2009 earnings target,
closed Monday at $45.93 and weren't active premarket. Having hit a
four-year low in March, the stock is up 31% for the year.
-By Joan E. Solsman and John Kell, Dow Jones Newswires;
212-416-2291; joan.solsman@dowjones.com