Ecolab Inc. reported record second-quarter earnings that met analysts' expectations, due mostly to contributions from its 2013 Champion Technologies acquisition.
The St. Paul-based maker of cleaning and sanitizing/water purification chemicals and services boosted its outlook for the full year.
"We had a solid first half of the year and expect an even better second half," CEO Doug Baker told analysts during a conference call Tuesday.
Adjusted earnings are now expected to reach $4.14 to $4.20 a share, up from the prior guidance of $4.10 to $4.20 a share, Baker said. If achieved, the new forecast will represent a 17 to 19 percent bump from 2013 results.
For the quarter ended June 30, Ecolab reported a 45 percent jump in operating earnings to $512 million, or $1.02 a share, which met analysts' expectations.
Global sales growth beat analysts' expectations slightly. Revenues rose 7 percent to $3.57 billion amid decent growth in water, food safety and pest control but very strong growth in the global energy segment.
Energy sales bolted 20 percent to $1.05 billion during the quarter as a result of Champion, which Ecolab bought in April 2013. Champion, with revenues of $1.3 billion at the time it was purchased, makes chemical additives and services that unclog and protect oil drilling rigs, pipelines, tanks, trucks and more.
With integration "on track," the fast-growing energy unit is performing well. "Champion had a huge quarter," Baker told analysts.