Ecolab Delivers Strong Q2 Results

Ecolab Inc. reported strong second quarter earnings as sales increased, led by strong growth in Asia Pacific and Latin America, and as cost savings actions and lower delivered product costs benefited results.

Ecolab’s reported net sales rose 5% to $1.5 billion in the second quarter of 2010; measured in fixed currencies, sales rose 3%. Net income attributable to shareholders increased 30% to $129 million, with reported diluted earnings per share up 32% to $0.54.

Commenting on the quarter, Douglas M. Baker, Jr., Ecolab’s chairman, president and chief executive officer said, “We continue to make good progress. Our top line performance was driven by aggressive new account efforts and a strong pipeline of innovative new products. These, combined with our continued actions to reduce costs and to improve our efficiency, delivered the strong earnings performance.”

For the six months, sales rose 6% to more than $2.9 billion.

“We look for continued sales gains and double-digit earnings growth for the full year 2010. Our markets, as expected, have stabilized and are slowly recovering, though the pace continues to vary considerably by region. We will continue to focus on driving our top line while also improving margins, using our industry-leading sales and service team, new product innovation and focused efficiency investments to deliver strong earnings results. We expect continued improvement in our business as our initiatives continue to take hold. We think we have the right mix of opportunities, strategies and people to sustain superior growth this year and for many more in the future.”

Second quarter 2010 sales for Ecolab’s U.S. Cleaning & Sanitizing operations rose 3% to $689 million. Ecolab’s U.S. Cleaning & Sanitizing operating income increased 10% to $139 million.

U.S. Other Services sales were flat when compared with last year at $115 million. Operating income grew 2% to $19 million.

Sales of Ecolab’s International operations, when measured at fixed currency rates, grew 5% to $750 million in the second quarter. Fixed currency operating income decreased 5% to $55 million as we continued to make significant investments in our international businesses. When measured at public currency rates, International sales increased 9% and operating income rose 3%.