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TheStreet Open House

Ecolab Delivers Strong Third Quarter

Stocks in this article: ECL

CEO comment Commenting on the quarter, Douglas M. Baker, Jr., Ecolab’s Chairman and Chief Executive Officer said, “We continued to show strong results in the third quarter despite the challenging global economies. Growth remained solid across our businesses and regions, reflecting our focused efforts on new account gains, new products and services to yield improved results and lower costs for customers, and achieving the planned integration and synergy objectives from our combined businesses.

“We expect to deliver a strong year in 2012, and in doing so, help set up growth for the future. The integration of Ecolab and Nalco is going very well, and based on our experience with customers, we are more confident than ever in the value we will create through our merger. Our other recent acquisitions are also performing well and are ahead of plans. And our recently announced agreement to acquire Champion Technologies will further strengthen our strategic position, earnings and long-term outlook.

“We remain focused on our opportunities and the effective execution of our business approach. Our value proposition for customers remains compelling – delivering improved results at lower total costs – and we are using this winning combination to secure new business. We are in a very favorable situation – we are positioned to capitalize on excellent long-term growth opportunities, we have great technology, we have great sales-and-service teams and we have a great business model. We are committed to driving our business and delivering excellent results for our customers and shareholders in 2012 and beyond.”

Quarter overview In order to provide a meaningful comparison of the results of operations, where applicable, results for the third quarter of 2012 are compared against pro forma results for the third quarter of 2011. The pro forma 2011 results are based on the historical consolidated financial statements of Ecolab and Nalco and were prepared to illustrate the effects of the merger with Nalco. In addition, beginning in first quarter 2012, adjustments were made to move certain water treatment-related business from the U.S. Cleaning and Sanitizing and International Cleaning, Sanitizing and Other Services segments to the Global Water segment, consistent with how these businesses are now managed. This supplemental pro forma financial information is located on our website at www.ecolab.com/investor and in Ecolab’s report on Form 8-K filed April 27, 2012.

 

Third Quarter Ended September 30

(unaudited)
     
Reported

%

Adjusted Fixed Currency

%

(Millions, except per share) 2012   2011   change 2012  

2011*

  change
   
Net Sales $ 3,023.3 $ 1,736.1 74% $

3,043.7

$

2,855.6

7%

Operating Income 401.2 239.6 67%

434.2

365.1

19%

 

 

 

 

 

 

 

*Amounts represent the pro forma equivalent to the 2012 amounts presented.

 

Ecolab's reported sales rose 74% to a record $3 billion in the third quarter of 2012. Third quarter sales reflect the inclusion of the Nalco merger, which closed December 1, 2011. Third quarter 2012 sales rose 2% when compared with third quarter 2011 pro forma sales. Third quarter 2012 fixed currency sales rose 7% compared with third quarter 2011 pro forma fixed currency sales.

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