WASHINGTON (dpa-AFX) - Ecolab Inc. (ECL) reported that its first-quarter net income attributable to company surged to $159.6 million or $0.53 per share, from $49.7 million or $0.17 per share in the same quarter last year. The latest-quarter results included special gains and charges and discrete tax net benefits.
The company said it delivered strong first quarter earnings results that reached the top end of the company's forecasted range. The performance was led by healthy margin gains, which along with a lower interest expense and tax rate produced a 20% adjusted earnings per share increase over last year.
First quarter 2013 adjusted net income attributable to the company rose 20% to $181 million, and adjusted earnings per share increased 20% to $0.60, when compared with first quarter 2012 adjusted earnings per share of $0.50. Analysts polled by Thomson Reuters expected the company to report earnings of $0.59 per share for the quarter. Analysts' estimates typically exclude special items.
Net sales for the quarter rose to $2.87 billion from $2.81 billion in the prior year quarter. Eight analysts had consensus revenue estimate of $2.88 billion for the quarter.
The company announced that it plans to undertake restructuring and other cost-saving actions to realize its Champion acquisition-related cost synergies as well as streamline and strengthen its position in the fast growing energy market. As a result of these actions, the company anticipates cost synergies of approximately $25 million in 2013, with annual acquisition cost synergies of $150 million achieved by the end of 2015.
The company announced a reduction of the combined business's current global workforce by about 500 positions. The company said it expects to achieve the reductions through open positions and attrition.
The company expects second quarter adjusted earnings per share in the $0.81 to $0.85 range, including an expected $0.01 per share accretion from Champion, and representing a 13% to 18% increase when compared with adjusted earnings per share of $0.72 a year ago. When compared with the second quarter 2012 performance, the company looks for the second quarter 2013 to show double-digit fixed currency sales growth, with acquisition-adjusted fixed currency sales growth in the mid-single digits. Analysts expect the company to report earnings of $0.85 per share for the second-quarter.
The company now expects 2013 full-year adjusted earnings per share, including expected accretion from the Champion acquisition, to be in a $3.45 to $3.55 range, representing a 16% to 19% increase over the prior year. This includes a forecasted $0.07 of accretion from the Champion acquisition. The company previously forecast 2013 earnings per share in a $3.38 to $3.48 range excluding Champion. Analysts expect the company to report earnings of $3.52 per share for fiscal 2013.
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