Ecolab reports 12% earnings gain, record results for third quarter 1995.-0- 1995 THIRD QUARTER HIGHLIGHTS:
Record earnings per share +12% to $0.46(a)
Record earnings +8% to $30 million(a)
Record sales +9% to $349 million
Record Domestic and International sales and earnings offset
Joint Venture earnings decline
1995
($ Millions, except per share) Third % Nine %
Quarter Increase Months Increase
Net Sales $349 9% $991 11% Operating Income 49 8 121 10 Net Income: As reported 30 5 74 8 Pro forma net income* $ 30 8% $ 74 11% Net Income Per Share: As reported $0.46 10% $1.11 9% Pro forma(a) $0.46 12% $1.11 12% -0- The prior periods have been restated for the pooling of interests Pooling of Interests An accounting method, used in mergers and acquisitions, where the balance sheet items of the two companies are simply added together. Notes: The opposite of pooling of interests is the purchase acquisition method. treatment of the Company's December 1994 merger with Kay Chemical Company. (a) Pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma results reflecting an adjustment to increase income tax expense in 1994 related to the loss of Kay's Subchapter S Subchapter S IRS regulation that gives a corporation with 35 or fewer shareholders the option of being taxed as a partnership to escape corporate income taxes. income tax status. ST. PAUL St. Paul as a missionary he fearlessly confronts the “perils of waters, of robbers, in the city, in the wilderness.” [N.T.: II Cor. 11:26] See : Bravery , Minn., October 19, 1995: Continued growth from its U.S. and wholly-owned International operations Internal Operations (I.O., IO or I/O) is a fictional American Intelligence Agency in Wildstorm comics. It was originally called International Operations. I.O. first appeared in WildC.A.T.S. volume 1 #1 (August, 1992) and was created by Brandon Choi and Jim Lee. and a smaller number of average shares outstanding produced a 12% increase in Ecolab's pro forma earnings pro forma earnings Income not necessarily calculated in accordance with generally accepted accounting principles. For example, a company might report pro forma earnings that exclude depreciation expense and nonrecurring expenses such as restructuring costs. per share for its third quarter ended September 30, 1995. Sales rose 9% to a record $349 million for 1995's third quarter. Net income increased 8% to a record $30 million, as profits reflected the higher sales and attention to costs. Net income per share rose 12% to $0.46 per share, benefiting from the Company's recent share repurchase Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. . For the nine-month period ended September 30, 1995, sales rose 11% to $991 million. Net income for the period rose 11% to $74 million. Net income per share was $1.11, a 12% increase over pro forma net income per share for the first nine months of last year. Allan L. Schuman Allan L. Schuman, age 71, is the former CEO of Ecolab, Inc. He resigned as chairman of the board in May 2006 and was named chairman emeritus, an honorary position. He worked at Ecolab for 49 years. Mr. , Ecolab's President and Chief Executive Officer, commented on the results, stating "The third quarter once again demonstrated the strength and leadership of our people and our business. Ecolab s U.S. operations achieved sales and earnings growth in all of its businesses. Our major investments in Asia Pacific and Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. contributed significantly with double digit Noun 1. double digit - a two-digit integer; from 10 to 99 integer, whole number - any of the natural numbers (positive or negative) or zero; "an integer is a number that is not a fraction" sales and earnings increases, as we leveraged our international infrastructure through aggressive sales efforts. The Joint Venture's earnings decline was a disappointment, but in part reflects the short-term inability to recover higher raw material costs and the new management s actions to reengineer the German business. "We expect continued growth in the fourth quarter and are on course for another year of record results in 1995. Our people have risen to meet the competitive challenges and have demonstrated the aggressiveness, focus and service excellence that differentiates Ecolab in the marketplace and provides customers with the unmatched quality and value they expect from us. We are committed to maintain our industry leadership, broaden our product and service offerings, enhance the value and quality of our customer relationships and generate superior returns for our shareholders. Third quarter sales for Ecolab's U.S. operations rose 7% over last year to $267 million as the Kay, Food and Beverage F&B is a common abbreviation in the United States and Commonwealth countries, including Hong Kong. F&B is typically the widely accepted abbreviation for "Food and Beverage," which is the sector/industry that specializes in the conceptualization, the making of, and delivery of foods. and Pest Elimination divisions recorded double-digit growth. U.S. operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. rose 7% to $44 million as the benefits from higher sales and cost controls offset the effects of increased raw material costs and a challenging pricing environment. Ecolab's International sales rose 16% to $81 million in the third quarter while operating income rose 13% to $6 million. A continued excellent recovery in Ecolab s Brazilian operations, combined with good sales and margin improvement in both Asia Pacific and Canada, offset investments in South Africa South Africa, Afrikaans Suid-Afrika, officially Republic of South Africa, republic (2005 est. pop. 44,344,000), 471,442 sq mi (1,221,037 sq km), S Africa. . The effects of currency changes were not significant to overall International results. Joint Venture operations are included in the financial statements using the equity method of accounting. Sales continue to reflect challenging conditions in Europe s Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). laundry, foodservice and hospitality
markets, particularly in Germany. When measured in deutsche marks,
sales for the third quarter grew 5%. When translated into U.S.
dollars, Joint Venture sales comparisons benefited from the weaker U.S.
dollar and increased 19% to $235 million. Ecolab's equity in the
earnings of the Henkel-Ecolab joint venture declined to $2 million for
the third quarter compared with $2.5 million last year. This decline
reflected higher overall costs, costs related to changes by the Joint
Venture's new management to strengthen the organization and an
increase in the effective tax rate. These were partially offset by the
increased revenues.
In May 1995, Ecolab announced a 6 million share repurchase program. As part of that program, Ecolab purchased 3.5 million shares in June under a Dutch Auction Dutch Auction An auction where the price on an item is lowered until it gets its first bid, and then the item is sold at that price. Notes: The U.S. Treasury (and other countries) uses a Dutch auction when it sells securities. self-tender offer Self-tender offer A company that tenders for its own shares. . There are presently approximately 2.5 million shares remaining under the existing repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. authorization The right or permission to use a system resource; the process of granting access. See access control. which may be bought from time to time in open market and privately negotiated transactions. Ecolab is the leading global developer and marketer of premium cleaning, sanitizing and maintenance products and services for the hospitality, institutional and industrial markets. For the year ended December 31, 1994, Ecolab reported sales of $1.2 billion; including European Joint Venture sales of $0.8 billion, Ecolab's global coverage approximated $2 billion. Ecolab shares are traded on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. and the Pacific Stock Exchange under the symbol ECL (Emitter-Coupled Logic) A digital circuit composed of bipolar transistors in which the emitter ends are wired together. ECL gates switch faster than TTL gates, but consume more power. See TTL, I2L and bipolar. 1. . Ecolab news releases and other investor information are now available on the Internet at http://www.shareholder.com/ecolab/; and by telephone at 1-800-FACT-ECL. -0-
ECOLAB INC
CONSOLIDATED STATEMENT OF INCOME
THIRD QUARTER AND NINE MONTHS ENDED SEPTEMBER 30, 1995
(Unaudited)
(thousands, except per share) Third Quarter Nine Months
1995 1994 1995 1994
Net Sales
United States $267,219 $250,138 $764,475 $701,825
International 81,300 70,270 227,018 192,678
Total 348,519 320,408 991,493 894,503
Cost of Sales 156,594 140,939 444,537 392,953 Selling, General and Administrative Expenses 142,643 133,785 426,261 391,882 Operating Income United States 44,416 41,616 109,878 102,408 International 5,613 4,959 13,927 10,356 Corporate (747) (891) (3,110) (3,096) Total 49,282 45,684 120,695 109,668 Interest Expense, Net 3,436 3,206 8,453 10,548 Income Before Income Taxes and Equity in Earnings of Joint Venture 45,846 42,478 112,242 99,120 Provision for Income Taxes 17,979 16,447 44,672 37,800 Equity in Earnings of Henkel-Ecolab Joint Venture 2,010 2,456 6,540 7,547 Net Income, As Reported 29,877 28,487 74,110 68,867 Pro Forma Adjustment Kay Subchapter S Status (789) (1,919) Pro Forma Net Income $ 29,877 $ 27,698 $ 74,110 $ 66,948 Net Income Per Common Share As Reported $ 0.46 $ 0.42 $ 1.11 $ 1.02 Pro Forma $ 0.46 $ 0.41 $ 1.11 $ 0.99 Average Common Shares Outstanding 64,537 67,506 66,574 67,530 Prior periods have been restated for the pooling of interests treatment of the Company's December 1994 merger with Kay Chemical Company. CONTACT: Ecolab Inc., St. Paul Michael J. Monahan, 612/293-2809 (Tel) 612/225-3123 (Fax) |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion