Ecolab Q3 2020 Earnings Report
Key Takeaways
Ecolab's third quarter results showed significant improvement from the second quarter, while still reflecting the divergent impacts of COVID-19 on the business segments. Strong top and bottom line growth in the Healthcare & Life Sciences segment and further strong income growth in the Industrial segment were more than offset by significant declines in the Institutional & Specialty and Other segments.
Third quarter results showed significant improvement from the second quarter, while still reflecting the divergent impacts from COVID-19 on the business segments.
Reported sales from continuing operations decreased 6% from the year-ago period.
Reported diluted EPS from continuing operations was $0.85, a 43% decrease versus last year.
Adjusted diluted EPS from continuing operations were $1.15, a 24% decrease from the comparable period last year.
Ecolab
Ecolab
Ecolab Revenue by Segment
Forward Guidance
The continued uncertain outlook regarding the full extent of COVID-19’s impact on the global economy and its longevity do not yet provide an adequate basis for us to provide either quarterly or annual earnings forecasts.
Positive Outlook
- We expect full year 2020 Healthcare & Life Sciences segment sales to show strong growth over the prior year
- We expect modest pressure on our Industrial segment business sales
- We expect lessening pressure on results for our Institutional & Specialty and Other segments
- We expect sequential improvement from third quarter levels
- We expect our product and service innovation, investments in new hygiene and digital technologies, and successful sales and profit initiatives to augment a continuing recovery in customer activity.
Challenges Ahead
- The continued uncertain outlook regarding the full extent of COVID-19’s impact on the global economy and its longevity do not yet provide an adequate basis for us to provide either quarterly or annual earnings forecasts.
- COVID-19 impact on restaurant, hospitality and entertainment to result in a significant decline for the Institutional division sales within the Institutional & Specialty segment for the full year.
Revenue & Expenses
Visualization of income flow from segment revenue to net income