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ECOLAB REPORTS 5 PERCENT DECLINE IN SECOND QUARTER EARNINGS

 ECOLAB REPORTS 5 PERCENT DECLINE IN SECOND QUARTER EARNINGS
 ST. PAUL, Minn., July 27 /PRNewswire/ -- Ecolab (NYSE: ECL) today reported that strong second quarter results from its ongoing U.S. and international operations were offset by higher net interest expense and soft joint venture profits.
 Ecolab's net sales for the quarter rose 12 percent to $247 million led by strong U.S. and international results. However, earnings from continuing operations for the second quarter ended June 30, 1992, declined 5 percent to $14 million from the year ago period due to the previously mentioned higher interest expense and the impact of recession in major European economies which weakened Henkel-Ecolab joint venture income. Because of a 32 percent increase in outstanding shares, earnings per share from continuing operations were $0.46 compared with $0.56 a year ago.
 Net sales for the six months increased 12 percent to $481 million. Earnings from continuing operations for the six months ended June 30 rose 13 percent to $26 million from last year. Earnings per share from continuing operations were $0.82 compared with $0.80 a year ago also reflecting the increased shares outstanding.
 Pierson M. Grieve, Ecolab's chairman, president and chief executive officer commented on the results saying, "We are very pleased with the results of Ecolab's U.S. and international operations. Despite the slow economic recovery in the U.S., our businesses showed good sales gains. Tight cost controls led to margin improvement. We also made important competitive gains in the marketplace. Though the Henkel-Ecolab joint venture is facing a challenging economic environment in Europe, it is successfully integrating its operations and we are satisfied with its progress in the face of the current difficult economies."
 Regarding the balance of the year, Grieve stated, "The second half is expected to show favorable comparisons. Our U.S. and international businesses continue to look strong, and we will benefit as per share results begin to compare against periods with similar outstanding share levels. We continue to expect to post significant earnings per share improvement for the full year 1992."
 Ecolab's U.S. sales rose 8 percent to $189 million in the second quarter led by continued good growth from the Institutional Division and double digit gains from both the Pest Elimination and Janitorial businesses. U.S. operating income increased 10 percent to $29 million as margins rose due to continued tight expense controls.
 International sales rose 27 percent to $58 million in the second quarter as strong sales gains in Asia Pacific and Latin America and revenues from the purchase of the Henkel businesses in July 1991, offset a decline in the Canadian Janitorial business. International operating income rose 25 percent to nearly $1 million.
 The Henkel-Ecolab joint venture results reflected the current recession and labor unrest in the major European economies. Total revenues for the joint venture's second quarter were $197 million, up 2 percent from pro-forma second quarter 1991 levels. Ecolab's equity in earnings from the Henkel-Ecolab joint venture in the second quarter was $2 million, with earnings reflecting lower than plan revenue levels due to the continuing weak European economic climate.
 Ecolab's second quarter 1992 selling, general and administrative costs reflect increased investment in its sales force and distributor expansion. Selling, general and administrative costs for 1991 are net of Ecolab's Europe operating profits of $4.5 million and $6.9 million for the second quarter and six months, respectively, earned prior to the formation of the joint venture. Interest expense rose reflecting the October 1991 placement of $100 million of 9.68 percent notes. The effective tax rate declined in the second quarter to 33.5 percent from 36.2 percent in the prior year due to an improved performance by international operations.
 Ecolab is a leading worldwide developer and marketer of premium cleaning, sanitizing and maintenance products and services for the hospitality, institutional and industrial markets. Ecolab's shares are traded on the New York Stock Exchange and the Pacific Stock Exchange under the symbol ECL.
 ECOLAB INC.
 CONSOLIDATED STATEMENT OF INCOME
 (Unaudited) (Thousands, except per share)
 Second Quarter Ended Six Months Ended
 6/30/92 6/30/91 6/30/92 6/30/91
 Net sales
 United States $188,962 $175,626 $367,377 $341,949
 International 58,244 45,750 113,851 86,618
 Total 247,206 221,376 481,228 428,567
 Cost of sales 112,518 101,869 219,229 200,239
 Selling, general and
 administrative expenses 106,499 89,211 211,562 179,348
 Operating income
 United States 28,923 26,222 50,465 45,466
 International 913 730 3,360 (1,094)
 Europe 4,536 -- 6,927 --
 Corporate (1,647) (1,192) (3,388) (2,319)
 Total 28,189 30,296 50,437 48,980
 Interest expense, net 9,187 6,684 18,803 13,379
 Income from continuing
 operations before income
 taxes and equity in earnings
 of joint venture 19,002 23,612 31,634 35,601
 Provision for income taxes 6,371 8,548 10,881 12,888
 Equity in earnings of
 Henkel-Ecolab joint venture 1,706 4,824 -- --
 Income from continuing
 operations 14,337 15,064 25,577 22,713
 (Loss) from discontinued
 ChemLawn operations -- (130) -- (12,732)
 Cumulative effect of the
 change in accounting for
 postretirement health
 care benefits -- -- -- (24,560)
 Net income (loss) 14,337 14,934 25,577 (14,579)
 Preferred stock dividends -- 1,925 -- 3,850
 Net income (loss) to common
 shareholders $14,337 $13,009 $25,577 $(18,429)
 Income (loss) per common share
 Continuing operations $0.46 $0.56 $0.82 $0.80
 Discontinued operations -- (0.01) -- (0.54)
 Change in accounting principle (1.04)
 Net income (loss) $0.46 $0.55 $0.82 $(0.78)
 Average common shares
 outstanding 3qK X_<+V 4KVL 44h'Zw{estment securities
 and purchased loans -- 1,331 6 1,348
 Loan servicing fees 3,738 3,021 7,796 6,635
 Securities & insurance
 brokerage fee income 2,967 1,650 5,515 3,281
 Banking service fees
 and other 3,034 3,334 5,679 5,625
 Total other operating
 income 15,237 8,327 22,175 15,776
 Other operating expense:
 General & administrative
 Salaries & benefits 20,356 20,033 41,440 39,436
 Occupancy 10,741 11,596 23,065 23,087
 Federal deposit
 insurance 4,704 4,366 9,408 8,731
 Other general and
 administrative 11,216 8,578 19,206 16,325
 Total general &
 administrative 47,017 44,573 93,119 87,579
 Other real estate
 owned 10,538 8,148 20,028 14,705
 Amortiz. of goodwill 478 486 956 972
 Total other operating
 expense 58,033 53,207 114,103 103,256
 Income (loss) before
 income taxes 9,498 (36,024) 18,505 (33,558)
 Income tax provision 946 1,088 1,864 1,990
 Net income (loss) 8,552 (37,112) 16,641 (35,548)
 Earnings (loss)
 per share 0.37 (1.61) 0.72 (1.54)
 THE DIME SAVINGS BANK OF NEW YORK, FSB
 Selected Consolidated Financial Information
 Non-performing Assets and Key Ratios
 (Dollars in thousands)
 NON-PERFORMING ASSETS:
 6/30/92 3/31/92
 Residential property:
 Non-performing loans $611,349 $655,640
 Other real estate owned, net 233,278 199,797
 Total residential property non-performing assets 844,627 855,437
 Commercial real estate and multifamily property:
 Non-performing loans 146,212 163,153
 Other real estate owned, net 75,056 72,197
 Total commercial real estate and multifamily
 property non-performing asset 221,268 235,350
 Other non-performing loans 3,874 3,908
 Investment securities in default 1,525 1,525
 Total non-performing assets 1,071,294 1,096,220
 Ratio of non-performing assets
 to total assets (pct.) 10.77 10.98
 12/31/91 9/30/91 6/30/91 3/31/91
 Residential property:
 Non-performing loans $669,539 $681,532 $684,364 $661,110
 Other real estate owned, net 187,551 183,768 166,270 152,104
 Total residential property
 non-performing assets 857,090 865,300 850,634 813,214
 Commercial real estate and
 multifamily property:
 Non-performing loans 169,448 165,619 171,349 168,104
 Other real estate owned, net 70,631 77,991 54,909 56,280
 Total commercial real estate
 and multifamily property
 non-performing asset 240,079 243,610 226,258 224,384
 Other non-performing loans 2,694 5,155 5,163 4,744
 Investment securities in
 default 1,525 1,525 1,525 1,525
 Total non-performing
 assets 1,101,388 1,115,590 1,083,580 1,043,867
 Ratio of non-performing assets
 to total assets (pct.) 11.13 10.80 10.15 9.69
 KEY RATIOS (in pct):
 Periods ended Three Months Six Months
 June 30 1992 1991 1992 1991
 Interest-earning assets yield 8.46 9.37 8.54 9.43
 Cost of deposits and borrowings 5.08 6.85 5.28 7.06
 Interest rate margin during period 3.38 2.52 3.26 2.37
 Net yield on average
 interest-earning assets 3.20 2.51 3.10 2.37
 General and administrative expense
 as a percentage of:
 Average total assets 1.93 1.66 1.91 1.62
 Average total assets and loans
 serviced for others 1.29 1.23 1.29 1.21
 June 1992 December 1991
 Regulatory capital ratios (pct.):
 Tangible capital ratio 2.40 2.27
 Leverage capital ratio 2.47 2.35
 Risk-based capital ratio 4.83 4.46
 Stockholders' equity to total assets 2.75 2.60
 -0- 7/27/92
 /CONTACT: David J. Totaro, 212-326-6965, or Richard H. Terzian, 212-326-6915, both of The Dime/
 (DME) CO: The Dime Savings Bank of New York FSB ST: New York IN: FIN SU: ERN


GK-TK -- NY050 -- 3471 07/27/92 11:26 EDT
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