Ecolab Profits Rise, Yet Cautious

Ecolab Inc. has reported a 23% rise in fourth-quarter earnings, citing strong global demand and improved profitability across its U.S. businesses. The St. Paul, MN-based company however, said that currency translation will cut into first-quarter results, which weighed on Ecolab’s shares, closing down 1.2% at $34.60. The company a profit of $70.7 million (27 cents a share) up from $57.5 million (22 cents), from the same period a year earlier. Quarterly sales were up 6%, to $1.14 billion from $1.07 billion, on a year-over-year basis. The latest quarter’s profit included a tax charge of a penny per share related to the repatriation of foreign earnings, as well as a charge of 4 cents a share from stock-option expense. Thomson First Call analysts expected a 32 cents per share profit in the December period on revenue of $1.13 billion. Ecolab sees future earnings of 29 to 31 cents a share in the first quarter, on the way to a full-year profit of $1.38 to $1.42 a share. Wall Street had previously expected first-quarter earnings at 32 cents a share and 2006 profit at $1.45 a share.