Summary
Ecolab Inc. (ECL) reported strong financial results for the third quarter and first nine months of 2021, demonstrating robust recovery and growth. Net sales increased by 10% to $3.32 billion for the quarter and 7% to $9.37 billion for the nine-month period compared to the prior year. This growth was driven by volume increases, pricing adjustments, and a recovery in market conditions across key segments, particularly Global Industrial and Global Institutional & Specialty. Profitability also saw significant improvement, with operating income rising 13% to $466 million for the quarter and 24% to $1.21 billion for the nine months. Net income from continuing operations attributable to Ecolab surged by 32% to $324 million in the third quarter, and by 24% to $829 million for the nine-month period. Diluted EPS from continuing operations also showed strong growth, reaching $1.12 for the quarter and $2.87 for the nine months. The company managed inflationary pressures on product costs through effective pricing strategies and operational efficiencies. Looking ahead, Ecolab announced a significant subsequent event: an agreement to acquire Purolite Corporation for $3.7 billion, which is expected to further enhance its offerings in life sciences and critical industrial markets.
Financial Highlights
55 data points| Revenue | $3.32B |
| Cost of Revenue | $2.02B |
| Gross Profit | $1.30B |
| SG&A Expenses | $832.00M |
| Operating Income | $465.80M |
| Interest Expense | $78.30M |
| Net Income | $328.60M |
| EPS (Basic) | $1.13 |
| EPS (Diluted) | $1.12 |
| Shares Outstanding (Basic) | 286.40M |
| Shares Outstanding (Diluted) | 289.20M |
Key Highlights
- 1Net sales increased by 10% to $3.32 billion in Q3 2021 and by 7% to $9.37 billion for the first nine months of 2021, compared to the prior year.
- 2Operating income grew by 13% to $465.8 million in Q3 2021 and by 24% to $1.21 billion for the nine-month period.
- 3Net income from continuing operations attributable to Ecolab increased by 32% to $324.5 million in Q3 2021 and by 24% to $828.9 million for the nine-month period.
- 4Diluted EPS from continuing operations was $1.12 in Q3 2021, a 32% increase, and $2.87 for the nine-month period, a 25% increase.
- 5The company experienced strong recovery in its Global Industrial (up 7% fixed currency sales) and Global Institutional & Specialty (up 18% fixed currency sales) segments.
- 6Despite inflationary pressures on delivered product costs, adjusted gross margin remained robust, supported by pricing and volume leverage.
- 7Ecolab announced a subsequent event: an agreement to acquire Purolite Corporation for $3.7 billion, enhancing its life sciences and industrial purification solutions.