WASHINGTON (dpa-AFX) - Ecolab Inc. (ECL) Tuesday announced a three percent decline in second quarter net income to $302 million from $311.4 million in the prior year. Earnings per share declined two percent to $1 from $1.02 last year. On an adjusted basis, earnings increased five percent to $1.08 per share. Impact of currency and pension headwinds were $0.09 per share.
On average, 18 analysts polled by Thomson Reuters expected the company to earn $1.08 per share. Analysts estimates usually exclude special items.
Net sales were down five percent to $3.389 billion from $3.568 billion a year ago. The Street was looking for $3.47 billion.
Looking ahead, Douglas Baker, Jr., chairman and chief executive officer said, 'We continue to expect strong mid-teens earnings per share growth in 2015 before the impact of currency as we significantly outperform our markets. We expect our Global Institutional, Global Industrial and Other segments to deliver mid-single digit fixed currency sales growth while also increasing their margins as they continue to leverage their growth and margin investments. These strong performances should more than offset flattish income results in our Energy segment, which itself is outperforming very challenging industry trends and is positioning well for a return to growth in 2016.'
For the full year, adjusted earnings per share forecast is in the range of $4.45 to $4.60, up six to ten percent from the prior year. Wall Street expect the company to earn $4.52 per share.
For the year, the company expects special gains and charges and quantifiable discrete tax items to be a net charge of approximately $0.20 per share.
For the third quarter, Ecolab expects adjusted earnings per share in the $1.24 to $1.31 range, representing a two to eight percent increase when compared with adjusted earnings per share of $1.21 a year ago. Currency translation and pension are expected to have a combined negative impact of $0.11 per share in the third quarter. Wall Street expects $1.31 per share.
In the prior year, reported third quarter earnings per share of $1.19 included special gains and charges and discrete tax items. Excluding these items, third quarter 2014 adjusted diluted earnings per share were $1.21.
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