Ecolab Inc. (NYSE:ECL)

Commenting on the quarter, Douglas M. Baker, Jr., Ecolab’s Chairman, President and Chief Executive Officer said, “Results were on target, and we are very pleased with our progress. We generated strong new account growth, appropriate pricing and significant cost savings to offset weak market conditions and higher raw material costs, yielding the good pro forma earnings improvement. Our team continues to deliver in spite of tough conditions.

“While it appears the economy is stabilizing, we have not yet seen markets turn up and we are not relying on a recovery to deliver our results. We continue to work aggressively, driving market share growth and keeping spending in check. At the same time, despite the major global economic challenges, we are using our strength to accelerate key investments in new products, sales force training, strategic growth initiatives, and infrastructure improvements that are critical to developing higher growth and profitability in 2010 and beyond. These actions will both help us gain traction as the economy recovers and benefit future results – and we are doing these while still expecting to show solid pro forma earnings growth this year. We know these are the right actions in this environment, and are confident we are building an even stronger, more profitable company with more opportunity for superior growth for years to come.”

Ecolab has issued 2009 third quarter financial guidance and has adjusted its previously issued 2009 full year guidance.

^a The above forecasts reflect the Company's current and preliminary views and are therefore subject to change. Please refer to the Company's Safe Harbor Statement (usually in press releases) for the factors that could cause actual results to differ materially from those contained in any forward-looking statement.

^b Non-GAAP EPS figures generally exclude certain non-operating gains and losses as well as certain non-cash items. Non-GAAP information should not be viewed in isolation or as a substitute for reported, or GAAP information . For a more complete explanation of the company's definition of non-GAAP please refer to its financial press releases. The GeoTeam® non-GAAP figures may, from time to time, differ from company supplied figures.

“2009 will continue to be a tough year and demand aggressive actions from all of us at Ecolab. Fortunately, we have large markets with a lot of room to expand our share and the industry’s leading sales and service force to help customers realize better results at lower costs. The majority of our businesses serve markets that are expected to grow in 2009, and we have been early and aggressive in taking actions to reduce our costs. Further, our balance sheet and cash flow remain strong, and we will use them to make key growth investments and improve returns into the future. The challenges are significant, but our growth opportunities are greater. We expect to once again deliver better results for our customers, improve our returns and position Ecolab for an even better future.”

^a The above forecasts reflect the Company's current and preliminary views and are therefore subject to change. Please refer to the Company's Safe Harbor Statement (usually in press releases) for the factors that could cause actual results to differ materially from those contained in any forward-looking statement.

^b Non-GAAP EPS figures generally exclude certain non-operating gains and losses as well as certain non-cash items. Non-GAAP information should not be viewed in isolation or as a substitute for reported, or GAAP information . For a more complete explanation of the company's definition of non-GAAP please refer to its financial press releases. The GeoTeam® non-GAAP figures may, from time to time, differ from company supplied figures.

Guidance Report: (Non-China)

First Quarter Fiscal 2009 Guidance Ending March

Full Year Fiscal 2009 Guidance Ending December

“2009 will obviously be challenging. Nonetheless, we are well-positioned with significant competitive advantages, a great team and a strong balance sheet. Our focus is squarely on driving share, simplifying our supply chain to lower ongoing costs, and driving new programs and businesses which further improve our ability to meet our customers’ needs. While these are areas we always focus on, it is hardly business as usual. We have already taken very difficult steps to lower our cost structure and continue to tightly manage ongoing expenses.

 “However, good economy or bad economy, our focus on growth, business improvement, and advancing shareholder value does not change. Our goals this year are clear: build our market position, continue to invest in our growth initiatives, reposition the company to fully leverage the post-crisis economy, and continue to drive growth.”

*Non-GAAP EPS Figures exclude non-operating gains and losses. 

Source: Business Wire (February 12, 2009)