01—Abstract
Summary
Summary of the 10-K filed February 27, 2009. Cited figures are marked; the original filing is the authoritative source.
Ecolab Inc.'s 2008 10-K filing, covering the fiscal year ending December 30, 2008, provides a comprehensive overview of the company's business operations, financial performance, and strategic outlook.
The report details the company's established market position in providing cleaning, sanitizing, and pest elimination solutions and services to a wide range of industries, including food service, healthcare, and hospitality. Despite operating in a mature market, Ecolab demonstrated resilience and continued investment in innovation and global expansion during the reporting period. Financially, investors should note the company's consistent revenue generation and efforts to manage costs effectively.
The discussion of financial condition and results of operations will be key for understanding the impact of macroeconomic factors on the business and Ecolab's strategies to mitigate risks and capitalize on opportunities. The filing also outlines the company's commitment to corporate governance and risk management, offering transparency into its operational framework and strategic priorities for sustained growth and shareholder value.
02—Key points
Key Highlights
- Ecolab Inc. operates globally, offering essential cleaning, sanitizing, and pest elimination solutions and services across diverse industries.
- The company maintains a strong market presence and focuses on innovation and expanding its service offerings to drive growth.
- The 2008 fiscal year's financial performance is detailed, with emphasis on revenue streams and cost management strategies.
- Risk factors associated with economic conditions, competition, and operational execution are clearly identified.
- The report highlights Ecolab's commitment to robust corporate governance and shareholder accountability.
- Disclosures on financial condition and results of operations will be critical for assessing the company's financial health and outlook.
- The filing provides information on the company's segment and geographic financial performance, indicating areas of strength and opportunity.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2008, Ecolab Inc. kept $0.07.
- Revenue$6.14B100.0%
- Cost of revenue−$3.14B51.2%
- Gross profit$3.00B48.8%
- Operating costs−$2.28B37.2%
- Operating income$712.8M11.6%
- Interest, other & tax−$264.7M4.3%
- Net income$448.1M7.3%
Where FY2008 revenue went
$6.14B- Cost of revenue: $3.14B, 51% of revenue
- SG&A: $2.26B, 37% of revenue
- Net income: $448.1M, 7.3% of revenue
- R&D: $86.0M, 1.4% of revenue
- Interest, other & tax: $264.7M, 4.3% of revenue
Kept 7.3% as net incomeNet income $448.1M · 7.3%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2008filed February 27, 2009Financial Statements
FY2008 against FY2007
| Line item | FY2008FY2007 | Change |
|---|---|---|
| Revenue | $6.14B$5.47B | +12.2% |
| Cost of Revenue | $3.14B$2.69B | +16.7% |
| Gross Profit | $3.00B$2.78B | +7.8% |
| R&D Expenses | $86.00M— | — |
| SG&A Expenses | $2.26B$2.09B | +8.0% |
| Operating Income | $712.80M$669.00M | +6.5% |
| Interest Expense | $70.80M— | — |
| Net Income | $448.10M$427.20M | +4.9% |
| EPS (Basic) | $1.83$1.73 | +5.8% |
| EPS (Diluted) | $1.80$1.70 | +5.9% |
| Shares Outstanding (Basic) | 245.40M246.80M | −0.6% |
| Shares Outstanding (Diluted) | 249.30M251.80M | −1.0% |
05—Questions
Frequently Asked Questions
What were Ecolab's primary business segments and revenue drivers in 2008?
Ecolab's primary business revolves around providing cleaning, sanitizing, and pest elimination solutions and services to a broad spectrum of industries, including food service, healthcare, hospitality, and industrial sectors. Revenue is driven by product sales and recurring service contracts, indicating a stable and diversified income model.
What are the key risks identified by Ecolab that could impact its financial performance?
The key risks identified by Ecolab likely include the general economic climate, competitive pressures within its markets, potential fluctuations in raw material costs, regulatory changes, and the successful execution of its global business strategies. The company also faces risks related to its international operations and currency exchange rates.
How did Ecolab address financial performance and its outlook in the 2008 10-K?
The Management's Discussion and Analysis (MD&A) section of the 10-K would detail Ecolab's financial performance, explaining the drivers of revenue and expenses, and discussing its financial condition. The outlook would likely focus on strategies for continued growth, market penetration, and managing operational efficiencies in the prevailing economic environment.
What is Ecolab's geographical footprint, and how is financial performance segmented geographically?
Ecolab operates on a global scale. The filing provides financial information about operating segments and geographic areas, allowing investors to understand performance across different regions and identify potential growth markets or areas facing specific challenges.
06—Continue