Ecolab experienced sales growth across most of its businesses, but had higher product costs than expected for the first quarter. Results barely missed analysts' expectations, officials reported Tuesday.
The St. Paul-based sanitizing, water filtration and chemicals maker reported product sales increases in its institutional, industrial and pest-elimination businesses. Ecolab's struggling energy business saw sales fall but enjoyed a boost to quarterly profits amid pricing gains and cost cutting.
Companywide, total sales rose 2 percent to $3.2 billion, while profits jumped 10 percent to $253.5 million, or 86 cents per share. Excluding one-time tax gains and special charges, earnings rose 4 percent to 80 cents per share, or a penny shy of analysts' consensus expectations.
For full-year 2017, Ecolab estimates adjusted earnings will grow 8 to 12 percent to $4.70 to $4.90 a share. Officials said they expected improved volume growth and pricing across all segments to overcome headwinds associated with rising product-delivery costs and negative currency exchange hedging.
Officials added that results are expected to be better in the second half of the year than the first.
"The first quarter was a mixed start to what will be a good year," said CEO Douglas Baker in a statement. "Earnings were in line with our expectations and energy saw much better results. Sales improved in our institutional, industrial and other segments, though not as much as expected, particularly in institutional. Profits benefited from new product innovation and cost savings, but were partly offset by higher-than-forecasted delivered product costs.
Ecolab's shares closed down 3 percent at $125.26.
Dee DePass • 612-673-7725
