Ecolab Inc (NYSE:ECL) stock rose 1.46% (As on February 15, 11:22:00 AM UTC-4, Source: Google Finance) after the company beaten the earnings estimates for the fourth quarter of FY 22. Acquisition adjusted fixed currency operating income increased 10%, as accelerating pricing overcame substantially higher delivered product costs, investments in the business, and unfavorable mix. Reported other expense increased $15 million in the fourth quarter of 2022, driven by a $26 million settlement expense related to U.S. pension plan lump-sum payments to retirees. Reported interest expense increased 56% reflecting debt issued to fund the Purolite acquisition and the impact from higher average interest rates on floating rate debt. Reported net income decreased 12% versus the prior year. Excluding the impact of special gains and charges, discrete tax items and the 2021 impact of the Purolite transaction, adjusted net income decreased 2% versus the prior year.
ECL in the fourth quarter of FY 22 has reported the adjusted earnings per share of $1.27, beating the analysts’ estimates for the adjusted earnings per share of $1.25, according to Zacks Investment Research. The company had reported the adjusted revenue growth of 9.09 percent to $3.7 billion in the fourth quarter of FY 22, which matches the analysts’ estimates for revenue of $3.7 billion. Acquisition adjusted fixed currency sales +12%, led by double-digit growth in the Industrial, Institutional & Specialty and Other segment, and improved growth in the Healthcare & Life Sciences segment.
Additionally, Ecolab repurchased approximately 0.5 million shares of its common stock during the fourth quarter of 2022 to complete the previously announced $500 million share repurchase program.
For the current quarter ending in March, Ecolab expects its per-share earnings to range from 82 cents to 90 cents.
On the other hand, Ecolab has expanded its previously announced $80 million Europe cost savings program to also focus on improving the performance of Institutional and Healthcare in other regions, resulting in an estimated $175 million of total annualized pre-tax savings ($135 million after-tax). The expanded program is designed to optimize the cost structure of the Company’s Institutional and Healthcare businesses, repositioning Institutional for the new environment and returning Healthcare to profitable growth, as the company continues to invest in other growth businesses. The savings are expected to be realized by the end of 2024. In connection with the expanded program, Ecolab now expects to incur pre-tax charges of $195 million ($150 million after tax).