Ecolab Inc. (ECL, Financial) filed Quarterly Report for the period ended 2010-03-31.
Ecolab Inc. has a market cap of $11.47 billion; its shares were traded at around $48.59 with a P/E ratio of 23.6 and P/S ratio of 2. The dividend yield of Ecolab Inc. stocks is 1.3%. Ecolab Inc. had an annual average earning growth of 11.3% over the past 10 years. GuruFocus rated Ecolab Inc. the business predictability rank of 4.5-star.ECL is in the portfolios of Bill Frels of MAIRS & POWER INC, Ron Baron of Baron Funds, Jeremy Grantham of GMO LLC, Steven Cohen of SAC Capital Advisors, Dodge & Cox.
We recorded restructuring expense of $32.7 million ($20.9 million after tax) or $0.09 per diluted share during the first quarter of 2009. Restructuring expense on the Consolidated Statement of Income has been included both as a component of cost of sales and as a component of special gains and charges, as shown in the table above. Further details related to these restructuring expenses are included in Note 2.
Net interest expense totaled $15.0 million in the first quarter of 2010, compared with $15.8 million in the first quarter of 2009. The decrease in our first quarter net interest expense was primarily due to lower short-term borrowings and lower average interest rates during the period, offset partially by lower interest income.
The decrease in the adjusted first quarter effective tax rate was due primarily to increased benefits from the domestic manufacturing deduction in the U.S. The discrete tax items for 2010 included a $5 million charge due to the passage of the U.S. Patient Protection and Affordable Care Law which changes the tax deductibility related to federal subsidies and resulted in a reduction of the value of the companys deferred tax assets related to the subsidies. This charge was offset by a $6 million tax benefit from the settlement of an international tax audit.
Net income attributable to Ecolab increased 66% to $96 million in the first quarter of 2010. On a per share basis, reported diluted net income attributable to Ecolab per share increased 67% to $0.40 per share compared to $0.24 per share reported in 2009. The first quarter of 2010 includes $3.8 million, net of tax, of special gains and charges, and discrete tax benefits of $0.8 million, which together reduced the reported per share amount by $0.01 per share. Currency translation had a favorable impact of approximately $4 million, net of tax, or $0.02 per share for the first quarter of 2010 compared to 2009. The first quarter of 2009 included $22.3 million, net of tax, of net charges reported in special gains and charges, and $0.2 million of net discrete tax benefits, which together decreased the reported per share amount by $0.09.
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Ecolab Inc. has a market cap of $11.47 billion; its shares were traded at around $48.59 with a P/E ratio of 23.6 and P/S ratio of 2. The dividend yield of Ecolab Inc. stocks is 1.3%. Ecolab Inc. had an annual average earning growth of 11.3% over the past 10 years. GuruFocus rated Ecolab Inc. the business predictability rank of 4.5-star.ECL is in the portfolios of Bill Frels of MAIRS & POWER INC, Ron Baron of Baron Funds, Jeremy Grantham of GMO LLC, Steven Cohen of SAC Capital Advisors, Dodge & Cox.
Highlight of Business Operations:
· Diluted net income attributable to Ecolab per share increased 67% to $0.40 for the first quarter of 2010 compared to $0.24 in the first quarter of 2009. Excluding the impact of special gains and charges, and discrete tax items, adjusted diluted net income attributable to Ecolab per share increased 24% to $0.41 for the first quarter of 2010 compared to $0.33 in the first quarter of 2009.We recorded restructuring expense of $32.7 million ($20.9 million after tax) or $0.09 per diluted share during the first quarter of 2009. Restructuring expense on the Consolidated Statement of Income has been included both as a component of cost of sales and as a component of special gains and charges, as shown in the table above. Further details related to these restructuring expenses are included in Note 2.
Net interest expense totaled $15.0 million in the first quarter of 2010, compared with $15.8 million in the first quarter of 2009. The decrease in our first quarter net interest expense was primarily due to lower short-term borrowings and lower average interest rates during the period, offset partially by lower interest income.
The decrease in the adjusted first quarter effective tax rate was due primarily to increased benefits from the domestic manufacturing deduction in the U.S. The discrete tax items for 2010 included a $5 million charge due to the passage of the U.S. Patient Protection and Affordable Care Law which changes the tax deductibility related to federal subsidies and resulted in a reduction of the value of the companys deferred tax assets related to the subsidies. This charge was offset by a $6 million tax benefit from the settlement of an international tax audit.
Net income attributable to Ecolab increased 66% to $96 million in the first quarter of 2010. On a per share basis, reported diluted net income attributable to Ecolab per share increased 67% to $0.40 per share compared to $0.24 per share reported in 2009. The first quarter of 2010 includes $3.8 million, net of tax, of special gains and charges, and discrete tax benefits of $0.8 million, which together reduced the reported per share amount by $0.01 per share. Currency translation had a favorable impact of approximately $4 million, net of tax, or $0.02 per share for the first quarter of 2010 compared to 2009. The first quarter of 2009 included $22.3 million, net of tax, of net charges reported in special gains and charges, and $0.2 million of net discrete tax benefits, which together decreased the reported per share amount by $0.09.
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