Ecolab Inc. (ECL) said its profit for the third quarter declined 29 percent from last year on lower sales and a one-time charge. However, adjusted earnings per share matched analysts' expectations, while revenues missed their estimates.
Looking ahead, the company forecast earnings for the fourth quarter below Street estimates and also lowered its earnings guidance for the full year. The revised full-year earnings outlook primarily reflects unfavorable currency including the Venezuela devaluation, short term merger and acquisition dilution and lower Energy segment results.
For the fourth quarter, Ecolab forecast adjusted earnings per share in a range of $1.20 to $1.30, flat to an 8 percent increase above adjusted earnings per share of $1.20 a year ago. Analysts expect earnings of $1.35 per share for the quarter.
For fiscal 2015, Ecolab lowered its adjusted earnings outlook to a range of $4.35 to $4.45 per share from the prior $4.45 to $4.60 range per share, primarily due to worsening currency impacts. This represents a 4 to 6 percent increase over the adjusted $4.18 earned last year. Wall Street analysts expect the company to earn $4.50 per share for the year.
Third-quarter net income attributable to Ecolab declined to $257.8 million or $0.86 per share from $364.9 million or $1.19 per share in the prior year. The latest quarter's results include a charge for the devaluation of the remaining Venezuelan bolivar business.
On an adjusted basis, earnings for the quarter were $1.28 per share, compared to $1.21 per share last year. On average, 18 analysts polled by Thomson Reuters expected the company to earn $1.28 per share. Analysts estimates usually exclude special items.
Net sales declined 7 percent to $3.45 billion from $3.69 billion a year ago. The Street was looking for revenues of $3.54 billion.
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