Ecolab’s Annual Sales Rise 8%

Ecolab’s reported sales rose 3% to a record $3.7 billion in the fourth quarter of 2014. Net income 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.

“(It) 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 rose 4% to $1.3 billion, while operating income increased 9% to $186 million.

Regionally, Latin America enjoyed strong growth, with modest gains in North America and Asia Pacific, and a slight decline in EMEA.