By Tess Stynes
Ecolab Inc. cut its 2015 per-share earnings outlook amid
increasing currency headwinds and as low commodities prices weigh
on its energy business.
For the year, the cleaning-products company cut its per-share
earnings forecast to $4.45 to $4.60, from its previous estimate for
per-share profit of $4.50 to $4.70.
The company expects currency fluctuations to hurt 2015 sales by
six percentage points and per-share earnings by 30 cents.
For the second quarter, Ecolab forecast per-share earnings of
$1.05 to $1.11, below analysts' expectations for $1.13. Currency
translation and pension are expected to have a combined negative
impact of 10 cents a share.
The company's traditional product lines include disinfectants
and detergents used by restaurants, hospitals and other
institutions. Ecolab in recent years also has expanded through
acquisitions, such as its 2011 purchase of water-treatment
chemicals maker Nalco and its 2013 purchase of chemical company
Champion Technologies. The Champion Technologies deal further
expanded Ecolab's presence in the market for chemicals used by the
oil-and-gas sector.
Chairman and Chief Executive Douglas M. Baker Jr. said Tuesday
in a news release that "while food service and light industrial
markets continue to show improving trends, energy markets
contracted faster than expected and currency headwinds have
increased."
Overall, Minnesota-based Ecolab reported a profit of $233.4
million, or 77 cents a share, up from $191 million, or 62 cents a
share, a year earlier. Excluding restructuring, acquisition and
integration-related charges and other items, per-share earnings
rose to 80 cents from 74 cents. The company had projected 78 cents
to 83 cents.
Revenue decreased 1.2% to nearly $3.3 billion, slightly below
analysts' expectations for $3.36 billion. Excluding acquisitions
and currency impacts, sales rose 4%.
Excluding currency impacts, net sales rose 1% in the global
energy segment, while industrial segment sales improved by 5% and
institutional sales grew 6%.
Write to Tess Stynes at tess.stynes@wsj.com
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