Ecolab posts higher earnings despite sales decline: Ecolab boosts earnings despite sales decline of 5 percent

Tue. October 27, 2009; Posted: 10:49 PM

Oct 28, 2009 (Star Tribune - McClatchy-Tribune Information Services via COMTEX) -- ECL | Quote | Chart | News | PowerRating -- Unlike many of its peers in the manufacturing sector, Ecolab avoided a double-digit revenue decline in the third quarter but CEO Doug Baker said Tuesday that's he's expecting a tough sales climate to continue.

"We aren't planning on any big boomerang effect next year, or big spike up in demand," Baker told analysts.

Sales at the St. Paul-based maker of cleaning and sanitizing products dropped 5 percent to $1.5 billion in the quarter as its profit rose 15 percent to $145 million.

Driven by sales growth of its health care products, Ecolab boosted its third-quarter earnings to 60 cents a share -- a 20 percent increase that was in line with analysts' expectations.

Ecolab's hand sanitizers have been popular in the fight against the H1N1 flu, and Baker said that H1N1-related products probably boosted third-quarter revenue by $10 million. He estimated that flu-related sales could increase revenue by $20 million in the fourth quarter.

In the United States, Ecolab sales slipped 1 percent in the third quarter and foreign exchange rates had a 5 percent negative effect on the company's overall sales. At local currency rates, Ecolab's sales rose 8 percent in Latin America, 2 percent in the Asia Pacific region, but declined 1 percent in Europe, the Middle East and Africa.

Ecolab on Tuesday narrowed its forecast for full-year earnings to $1.98 to $2.01 per share, a change from the $1.96 to $2.02 range released last quarter.

The company's stock closed Tuesday at $44.95 per share, down 2.1 percent.

Liz Fedor --612-673-7709

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For full details on Ecolab Inc (ECL) click here. Ecolab Inc (ECL) has Short Term PowerRatings of 5. Details on Ecolab Inc (ECL) Short Term PowerRatings is available at This Link.

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