Foodservice growth boosts Ecolab results

Related tags Chief executive officer Revenue Ecolab

Ecolab, the global cleaning and pest elimination provider, has
announced record first quarter sales reflected largely by the
growth of its global foodservice markets.

Ecolab, the global cleaning and pest elimination provider, has announced record first quarter sales reflected largely by the growth of its global foodservice markets.

Ecolab's consolidated sales increased 11 per cent to a record $876 million (€798.8m) in 2003's first quarter. Net income rose 58 per cent to a record $55 million.

The company reported that the increase in net income reflected higher sales volume and good cost containment. It also said that currency translation had a favourable impact on net income of approximately $2 million.

Commenting on the quarter, Allan Schuman, Ecolab's chairman and chief executive officer, said: "We are very pleased with the first quarter's results. We posted good growth in our core businesses, offsetting the effects of the soft global economies. This was accomplished through the very committed and aggressive efforts of our associates, who relentlessly pursued new accounts, utilizing an array of new products and services, focusing on new solutions for customer problems, and leveraging the diversity of our customer base to outperform economic uncertainty to achieve their targeted results."

First quarter sales for Ecolab's US operations amounted $490 million, however operating income in the first quarter of 2003 declined 31 per cent to $4 million offset by soft sales and increased costs associated with infrastructure development at the company's GCS division impacted results.

Sales of Ecolab's International Cleaning & Sanitizing operations rose 6 per cent in the first quarter when measured at fixed currency rates. Excluding acquisitions and divestitures, sales rose 3 per cent.

The company also said that it expects sales for both domestic and international operations to increase in the second quarter 2003 over the second quarter 2002, with full year earnings per share expected to rise 10 -13 per cent.

With sales of $3.4 billion, Ecolab​ is a global developer and marketer of premium cleaning, sanitising, pest elimination, maintenance and repair products for the hospitality, foodservice, institutional and industrial markets.

Related topics Processing & packaging

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