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Sep 30, 2021
Ecolab Q3 2021 Earnings Report
Ecolab's third quarter results reflected strong sales and double-digit earnings growth driven by market reopenings, new business wins, new products, and accelerated pricing.
Key Takeaways
Ecolab reported strong third-quarter results, with sales from continuing operations up 10% versus last year and adjusted diluted EPS from continuing operations up 20%. The company leveraged market reopenings with new business wins, new products, and accelerated pricing to deliver strong sales and double-digit earnings growth.
Strong third quarter results leveraged market reopenings with new business wins, new products and accelerated pricing to deliver strong sales and double-digit earnings growth.
Reported sales from continuing operations +10% versus last year.
Acquisition adjusted fixed currency operating margin +80 bps led by the Institutional & Specialty segment.
Cash flow from operating activities remained strong in the quarter at $623 million; free cash flow was $445 million, +$104 million (+31%) versus last year.
Revenue by Segment
Forward Guidance
Ecolab expects continued year-on-year growth in the fourth quarter 2021 led by increased volume and price momentum. However, substantial additional delivered product and other cost inflation will increase fourth quarter costs nearly $0.20 per share. Ecolab expects fourth quarter earnings to grow double digits, though not as strongly as the third quarter.
Positive Outlook
- Expect continued, if uneven, recovery in the U.S. and European markets, with the rest of the world following.
- Expect strong year-on-year growth in the fourth quarter 2021 led by increased volume and price momentum.
- Expect these drivers to result in the fourth quarter showing better year-over-year sales growth than the third quarter.
- Accelerated pricing and expect to more than cover the substantial delivered product cost and other cost increases.
- Strong business momentum, along with enhanced value proposition and favorable macro trends, positions Ecolab well to leverage the global recovery post-COVID and long-term fundamentals remain strong to deliver further superior shareholder returns.
Challenges Ahead
- Experienced substantial additional delivered product and other cost inflation.
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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