02.24.15
Ecolab's reported sales rose 3% to a record $3.7 billion in the fourth quarter of 2014. Fourth quarter 2014 fixed currency and acquisition adjusted fixed currency sales rose 6%. Fourth quarter 2014 reported net income attributable to Ecolab increased 17% to $336 million.
For the year, sales rose 8% to nearly $14.3 billion and net income rose 24% to $1.2 billion.
Going forward, the company said it will repurchase approximately $1 billion of its shares.
"2014 was another excellent year for us. We achieved record new business wins, had a record year for new products launched, accelerated our sales momentum and delivered a very strong 18% adjusted earnings per share increase. We also continued to invest in the key drivers to build our company for the future. We finished 2014 a much stronger company with an improved team, and we are well prepared for the new year," observed. CEO Doug Baker.
"While 2015 presents us with a mix of opportunities and challenges, our balanced business portfolio, significant competitive advantages and experienced management teams should enable us to achieve another strong earnings performance in spite of very unfavorable currency movements. Though lower oil prices will slow our Energy segment results, the strength of its recurring business model makes us confident it will be accretive to the year; at the same time, our other businesses will benefit from lower raw material costs and, in the case of the Institutional and Other segments, improved end-use markets. Net, these factors should roughly offset each other, and we look for strong growth from operations before currency effects."
Fourth quarter 2014 sales for the Global Industrial segment, when measured at fixed currency rates, rose 4% to $1,284 million and fixed currency operating income increased 9% to $186 million compared with the year ago period. Fourth quarter 2014 acquisition adjusted fixed currency sales rose 2%, led by Water; acquisition adjusted fixed currency operating income increased 7%. Regionally, Latin America enjoyed strong growth, with modest gains in North America and Asia Pacific, and a slight decline in EMEA. When measured at public currency rates, Global Industrial segment sales were $1,259 million and operating income was $182 million.
Fourth quarter 2014 sales for the Global Institutional segment, when measured at fixed currency rates, rose 6% to $1,119 million, led by strong Specialty sales growth. Fixed currency operating income increased to $228 million, up 13% compared with last year. Sales for the segment showed strong gains in North America, Asia Pacific and Latin America, with modest gains in EMEA. When measured at public currency rates, Global Institutional segment sales were $1,102 million and operating income was $226 million.
Fourth quarter 2014 sales for the Global Energy segment, when measured at fixed currency rates, grew 11% to $1,138 million in the fourth quarter 2014 reflecting strong upstream and solid downstream growth. Fixed currency operating income increased 13% to $172 million. When measured at public currency rates, Global Energy segment sales were $1,131 million and operating income was $171 million.
Other segment sales, when measured at fixed currency rates, increased 5% to $190 million in the fourth quarter led by Pest. Fixed currency operating income increased 22% to $32 million. When measured at public currency rates, Other segment reported sales were $188 million and reported operating income was $31 million.
For the year, sales rose 8% to nearly $14.3 billion and net income rose 24% to $1.2 billion.
Going forward, the company said it will repurchase approximately $1 billion of its shares.
"2014 was another excellent year for us. We achieved record new business wins, had a record year for new products launched, accelerated our sales momentum and delivered a very strong 18% adjusted earnings per share increase. We also continued to invest in the key drivers to build our company for the future. We finished 2014 a much stronger company with an improved team, and we are well prepared for the new year," observed. CEO Doug Baker.
"While 2015 presents us with a mix of opportunities and challenges, our balanced business portfolio, significant competitive advantages and experienced management teams should enable us to achieve another strong earnings performance in spite of very unfavorable currency movements. Though lower oil prices will slow our Energy segment results, the strength of its recurring business model makes us confident it will be accretive to the year; at the same time, our other businesses will benefit from lower raw material costs and, in the case of the Institutional and Other segments, improved end-use markets. Net, these factors should roughly offset each other, and we look for strong growth from operations before currency effects."
Fourth quarter 2014 sales for the Global Industrial segment, when measured at fixed currency rates, rose 4% to $1,284 million and fixed currency operating income increased 9% to $186 million compared with the year ago period. Fourth quarter 2014 acquisition adjusted fixed currency sales rose 2%, led by Water; acquisition adjusted fixed currency operating income increased 7%. Regionally, Latin America enjoyed strong growth, with modest gains in North America and Asia Pacific, and a slight decline in EMEA. When measured at public currency rates, Global Industrial segment sales were $1,259 million and operating income was $182 million.
Fourth quarter 2014 sales for the Global Institutional segment, when measured at fixed currency rates, rose 6% to $1,119 million, led by strong Specialty sales growth. Fixed currency operating income increased to $228 million, up 13% compared with last year. Sales for the segment showed strong gains in North America, Asia Pacific and Latin America, with modest gains in EMEA. When measured at public currency rates, Global Institutional segment sales were $1,102 million and operating income was $226 million.
Fourth quarter 2014 sales for the Global Energy segment, when measured at fixed currency rates, grew 11% to $1,138 million in the fourth quarter 2014 reflecting strong upstream and solid downstream growth. Fixed currency operating income increased 13% to $172 million. When measured at public currency rates, Global Energy segment sales were $1,131 million and operating income was $171 million.
Other segment sales, when measured at fixed currency rates, increased 5% to $190 million in the fourth quarter led by Pest. Fixed currency operating income increased 22% to $32 million. When measured at public currency rates, Other segment reported sales were $188 million and reported operating income was $31 million.