Ecolab Sees 2Q Adjusted EPS Roughly Flat, 2022 Adjusted EPS Up

By Rob Curran

Ecolab Inc. forecast second-quarter operating earnings "approaching" year-earlier levels and growth in 2022 profit as it manages the effect of surging raw-material and energy costs by increasing prices and passing on an energy surcharge to customers.

The St. Paul, Minn., provider of water, hygiene and infection-prevention products and services forecast second-quarter adjusted earnings approaching the $1.22 a share level from the prior-year period.

For the full year, the company forecast adjusted earnings-per share growth in the low teens, based on the timing of the energy surcharge, which it is currently rolling out. The company said the temporary energy surcharge, intended to offset the increase in energy costs due to war in Ukraine, would be up to 12%, which it expects to "develop progressively through the year." The effects of the surcharge would become clearer as it exits the second quarter, the company said.

"While we expect the impact of substantial raw material and cost inflation to increase further in the second quarter and remain high for the balance of the year, we are also very pleased with our progress on pricing, and now expect it to be in the 6% to 7% range for the balance of the year," said President and Chief Executive Christophe Beck.

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(END) Dow Jones Newswires

April 26, 2022 09:10 ET (13:10 GMT)

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