Summary
Ecolab Inc. reported a decrease in net sales and net income for the first quarter of 2009 compared to the same period in 2008, largely attributable to the global recession, higher product costs, and unfavorable foreign currency exchange rates. The company also incurred significant restructuring charges related to its plan to streamline operations, reduce workforce, and optimize locations. Despite these headwinds, Ecolab saw strong sales growth in certain U.S. businesses (Kay and Healthcare) and in its Latin America and Canadian operations. Management actions such as pricing and cost savings initiatives are in place to mitigate the impact of the economic downturn.
Financial Highlights
28 data pointsBeta
Financial Statements
Beta
| Revenue | $1.35B |
| Cost of Revenue | $707.90M |
| Gross Profit | $640.30M |
| SG&A Expenses | $516.30M |
| Operating Income | $97.50M |
| Net Income | $57.40M |
| EPS (Basic) | $0.24 |
| EPS (Diluted) | $0.24 |
| Shares Outstanding (Basic) | 236.10M |
| Shares Outstanding (Diluted) | 238.10M |
Key Highlights
- 1Consolidated net sales decreased by 8% to $1.3 billion, or 1% on a fixed currency basis, impacted by the global recession and a change in distributor incentive programs.
- 2Net income attributable to shareholders decreased by 44% to $57.4 million ($0.24 per diluted share), compared to $102.9 million ($0.41 per diluted share) in the prior year.
- 3The company incurred approximately $33 million in restructuring charges ($21 million after tax) in the first quarter of 2009, impacting earnings per share by $0.09.
- 4U.S. Cleaning & Sanitizing segment sales declined 5%, with specific businesses like Kay and Healthcare showing positive growth, while Institutional and Food & Beverage saw decreases.
- 5International sales, when measured in fixed currency rates, increased by 3%, driven by strong performance in Latin America and Canada.
- 6Operating income decreased by 39% to $97.5 million, with a notable 52% decline in the International segment's operating income at fixed currency rates.
- 7The company maintained a strong liquidity position with $79.5 million in cash and cash equivalents and access to a $600 million credit facility, despite a decrease in cash provided by operating activities.