WASHINGTON (dpa-AFX) - Ecolab Inc. (ECL) said it plans to undertake restructuring and other cost-saving actions to help enable and enhance realization of its merger-related cost synergies as well as streamline and strengthen its global business. These actions, along with merger-related costs, will result in restructuring and other special charges in the fourth quarter of 2011 and in 2012 and 2013. Total merger-related restructuring costs over the period are expected to be about $180 million, with other special charges approximately $300 million. It is expected that the restructuring will be completed by the end of 2013. Ecolab revealed a reduction of the combined company's current global workforce by approximately 500 positions, primarily in corporate G&A. A number of these reductions are expected to be achieved through open positions and attrition. The company has also increased its cost synergy target for 2012 to approximately $75 million from the previous forecast of $35 million. Ecolab now expects adjusted earnings per share, excluding the impact of the Nalco merger, to rise 14% to $2.54 for the year ended December 31, 2011. Earlier, Ecolab projected 2011 adjusted earnings per share, excluding the impact of the Nalco merger, in a $2.53 - $2.55 range. Analysts polled by Thomson Reuters expect the company to report earnings of $2.54 per share for the year. Analysts' estimates typically exclude special items. Further, fourth quarter 2011 adjusted earnings per share, excluding the impact of the Nalco merger, are now expected to be $0.70, a 17% increase over the prior year. Analysts expect the company to earn $0.70 per share. Looking forward, the company continues to expect adjusted earnings per share, excluding special gains and charges and discrete tax items, for the year ending December 31, 2012 of about $3.00 per share, and has established a forecast range of $2.95 - $3.05 per share. This would represent a 16% to 20% increase over expected 2011 adjusted earnings per share, which exclude the impact of the Nalco merger. Analysts expect the company to earn $3.03 per share.
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