Ecolab Reports Q4 Sales Reach a Record $956 Million

Ecolab Inc., St. Paul, MN, reported record sales for the fourth quarter ended Dec. 31, 2003 rose 8% to $956 million. Executives said strong profit growth from European operations and improved U.S. cleaning and sanitizing profitability, along with favorable currency trends and a lower effective tax rate, spurred results as diluted net income per share rose 37% to $0.26 per share in the fourth quarter.

Net income jumped 32% to a record $67 million. Fourth quarter 2002 net income included special charges related to restructuring and cost saving actions. Excluding those special charges from 2002 results, fourth quarter 2003 diluted earnings per share increased 18%.

“Conditions in certain of our businesses, including those serving the industrial markets, continued to be challenging in the quarter, but our ability to leverage our wide range of market opportunities while at the same time improve operating margins demonstrates once again the strength and balance of our business and strategy,” said Allan L. Schuman, Ecolab’s chairman and chief executive officer. “At the same time we achieved these strong earnings gains, we also made important progress in developing our newer businesses.”

For the 2004 fiscal year, diluted earnings per share are expected to rise to the $1.14-$1.17 range compared with net income per share of $1.06 in 2003 and show a double-digit increase over 2003’s income from ongoing operations of $1.03 per share

Mr. Schuman added the company is seeing continued improving trends in key restaurant and lodging markets.