ECL Ecolab Inc

   By Lisa Beilfuss 
 

Cleaning-products maker Ecolab said earnings and sales slipped in its latest quarter, thanks to slower global economic growth and adverse foreign exchange rates.

Still, results topped expectations.

The St. Paul, Minn., company sells specialized cleaning and sanitizing products to customers across the industrial, hospitality and health-care sectors, among others. For first-quarter results, Chief Executive Douglas Baker pointed to sluggish global economies and a tough oil and gas market. In addition, the company has been hurt by the stronger U.S. dollar that makes its products more expensive in foreign currencies.

Mr. Baker said Tuesday that energy and currency effects should lessen as the year progresses, adding that Ecolab remains on track to meet its financial targets for the year. The company continues to forecast $4.35 to $4.55 in adjusted earnings per share, bracketing the $4.46 average analyst estimate.

The company has grown its footprint through acquisitions, including its purchase of some Swisher Hygiene Inc. operations late last year, a water treatment provider in China and its 2011 purchase of water-treatment chemicals maker Nalco. In the first quarter, acquisitions helped boost performance in Ecolab's industrial and institutional segments, where operating income rose 23% and 19%, respectively, on an acquisition and currency-adjusted basis. Those increases helped offset a 46% slide in operating income at the company's energy business.

In all, Ecolab reported a profit of $230.8 million, down from $233.4 million a year earlier. On a per-share basis, earnings were flat at 77 cents a share, thanks to a lower share count. The company said adverse exchange rates knocked off 11 cents per share.

Revenue declined 6.1% to $3.10 billion. Analysts projected 76 cents in adjusted earnings per share on $3.12 billion in sales.

Shares in the company declined 0.4% in morning trading.

Write to Lisa Beilfuss at lisa.beilfuss@wsj.com

(END) Dow Jones Newswires

May 03, 2016 12:10 ET (16:10 GMT)

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