Sept. 11 Attacks Impact Ecolab’s Results

Ecolab Inc., St. Paul, MN, has lowered its outlook for diluted earnings per share for the third quarter ended Sept. 30, due to the difficult economic environment in the travel and lodging Industries following the Sept. 11 terrorist attacks in the U.S. The company lowered diluted earnings per share for the third quarter ended September 30, 2001 to the $0.43-$0.45 range, down from $0.46-$0.48. Ecolab earned $0.46 per diluted share in the third quarter 2000.

The company will announce its actual third quarter results on Oct. 18. The company said that given the current economic conditions, it is extremely difficult to project future earnings at this time, but the company’s best present estimate is that full year 2001 diluted earnings per share will be in an approximate range of $1.45-$1.50. Ecolab previously said it expected diluted earnings per share to be in a $1.61-$1.63 range for 2001. The company earned $1.50 per diluted share in 2000 from its ongoing operations.

“The current concerns over travel have resulted in unprecedented declines in the lodging and convention business, and its ripple-down effects have also affected other areas of the hospitality industry, including restaurants,” said Allan L. Schuman, chairman and chief executive officer commented. “While we have a diverse customer base that enables us to offset some of this, the extraordinary events, and the general economic uncertainty and slowdown have presented a challenge to our earnings for the remainder of the year.

“We continue to work aggressively to offset this slowdown, and have undertaken a number of activities to enhance sales growth in this difficult environment. New products, new accounts, cross-selling, various promotional activities, enhanced service levels and a focus on global programs are but a part of that effort.”