Ecolab Inc. (ECL) Reports In-Line Q4 EPS; Plans $1B Stock Buyback

Ecolab Inc. (NYSE: ECL) reported Q4 EPS of $1.20, in-line with the analyst estimate of $1.20. Revenue for the quarter came in at $3.68 billion versus the consensus estimate of $3.74 billion.

Ecolab Inc. sees FY2015 EPS of $4.50-$4.70, versus the consensus of $4.69.

Ecolab also plans a $1 billion share repurchase.

Commenting on the quarter, Douglas M. Baker, Jr., Ecolab’s chairman and chief executive officer said, “2014 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.

“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.

“Foreign currency exchange and pension together will represent approximately a $0.35 headwind in 2015. We will work to offset that through continued strong business performance, operational improvements, synergies and cost efficiencies. Further, with our capital structure returning to our preferred range, we will launch a $1 billion share repurchase and accelerate our acquisition pipeline. Our team is excited about the opportunities this year will present and is committed to continuing to build our business while delivering another great year.”

For earnings history and earnings-related data on Ecolab Inc. (ECL) click here.

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