Ecolab raises full-year profit forecast after strong Q3 earnings
Oct 29 (Reuters) -Water solutions company Ecolab ECL.N on Tuesday raised its full-year adjusted earnings forecast after reporting a third-quarter profit beat, bolstered by robust demand for its products and lower costs.
Ecolab servesindustries ranging from manufacturing and food and beverage processing to healthcare and petrochemicals.
Manufacturing activity in the United States, Ecolab's primary operating region, rebounded in August, boosted by a recovery in motor vehicle output.
Sales from the company's largest segment, global industrial — which provides water treatment and cleaning solutions to large industrial customers — increased to $1.99 billion in theJuly-September quarter, compared with $1.94 billion a year earlier.
The company's global institutional and specialty segment, which provides specialized cleaning and sanitizing products to institutional and specialty clients such as fast-food chains and grocery stores, experienced a 7% increase in sales.
It also raised the lower end of its full-year adjusted profit forecast to be in the range of $6.60 per share to $6.70 pershare, from prior viewof $6.50 to $6.70.
"Assuming stable macroeconomic demand, Ecolab expects continued sales growth, driven by value pricing and new business gains (this year)," the company said.
The company expects fourth quarter adjusted earnings per share in the $1.75 to $1.85 range.
The Saint Paul, Minnesota-based company posted an adjusted profit of $1.83 per sharefor the quarter ended Sept. 30, compared with analysts' estimate of $1.82, according to data compiled by LSEG.
Reporting by Pooja Menon; Editing by Shilpi Majumdar and Tasim Zahid
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