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Dec 31, 2020
Ecolab Q4 2020 Earnings Report
Ecolab's Q4 2020 earnings improved from the third quarter despite the negative impact of a greater than expected COVID-19 second wave.
Key Takeaways
Ecolab's fourth quarter earnings showed sequential improvement from the third quarter despite the negative impact from the greater than expected COVID-19 second wave. Reported sales from continuing operations decreased by 6% from the year-ago period. Adjusted diluted EPS from continuing operations were $1.23, a decrease of 15% versus last year.
Fourth quarter earnings showed sequential improvement from the third quarter despite the negative impact from the greater than expected COVID-19 second wave.
Reported sales from continuing operations decreased 6% from the year-ago period.
Reported diluted EPS from continuing operations was $1.04, a decrease of 23% versus last year.
Adjusted diluted EPS from continuing operations were $1.23, a decrease of 15% versus last year, reflecting COVID-19 related volume declines, unfavorable business mix and investments in the business which together more than offset cost savings, favorable pricing and lower variable compensation.
Ecolab
Ecolab
Ecolab Revenue by Segment
Revenue by Segment
Institutional & Specialty Revenue
CapyFin.comPest Elimination Revenue
CapyFin.com Forward Guidance
Ecolab expects COVID-19 will continue to have a significant effect on the economy and its end markets, with its primary impact in the early part of the year. The company expects to see the beginning of the COVID-19 recovery in its global end markets starting in the second quarter but believes it will take several quarters to fully realize a new normal.
Positive Outlook
- Strong new business wins
- Product and service innovation
- Investments in new hygiene and digital technologies
- Successful sales
- Profit initiatives
Challenges Ahead
- COVID-19 will continue to have a significant effect on the economy and our end markets
- Primary impact in the early part of the year
- Beginning of the COVID-19 recovery in our global end markets starting in the second quarter
- It will take until the end of the year to generally reach a new normal
- 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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income