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Mar 31, 2021
Ecolab Q1 2021 Earnings Report
Ecolab's first quarter results were impacted by the Texas freeze, which caused supply chain and customer disruptions, but were in line with expectations due to underlying sequential sales and earnings improvements.
Key Takeaways
Ecolab's first quarter earnings were affected by the Texas freeze, which had an estimated unfavorable impact of $0.10 per share. Reported sales decreased by 4%, while adjusted diluted EPS from continuing operations was $0.81, a decrease of 18% compared to the previous year.
The Texas freeze had an estimated unfavorable impact of $0.10 per share in the first quarter.
Reported sales from continuing operations decreased by 4% compared to last year.
Adjusted diluted EPS from continuing operations was $0.81, a decrease of 18% compared to last year.
Strong growth in the Healthcare & Life Sciences segment was more than offset by a modest Industrial segment decrease and narrowed declines in the Institutional & Specialty and Other segments.
Revenue by Segment
Forward Guidance
Ecolab anticipates significant growth in the second quarter, driven by the Institutional division's expansion and the recovery in the U.S. market, which will offset the slower recovery in Europe and emerging markets. The company expects robust consolidated gains in the second half, and continues to look for strong year-on-year growth for the full year 2021.
Positive Outlook
- Significant growth in the second quarter, primarily driven by strong year-on-year growth in our Institutional division
- New business as well as improving trends in early-reopening U.S. states and continued U.S. vaccination progress
- Robust consolidated gains in the second half
- Strong year-on-year growth for the full year 2021
- Earnings per share above 2019 earnings per share from continuing operations excluding the estimated $0.15 per share impact of the Texas freeze
Challenges Ahead
- Continued uncertain outlook regarding the timing and pace of global economic recovery from COVID-19’s impact does not yet present an adequate basis for us to provide either quarterly or annual earnings forecasts.
- Europe and emerging market recovery is softer
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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