Ecolab forecasts strong 2024 after lower costs drive profit beat
Feb 13 (Reuters) - Ecolab on Tuesday forecast higher-than-expected adjusted profit for 2024, as the water solutions firm banks on stable macroeconomic demand and lower costs in the first half of the year.
Shares of the company rose 4.3% in premarket trading to $211.70.
The company said it expects sales growth during the current fiscal year to be driven by new business gains, favorable product pricing and lower operating expenses.
It expects annual 2024 adjusted profit to be in the range of $6.10 per share to $6.50 per share, compared with analysts' estimates of $6.14 per share, according to LSEG data.
"We expect another very strong year of operating margin expansion, building upon our success in 2023, and remain confident in our path to deliver on our 20% margin objective over the next few years," Ecolab's CEO Christophe Beck said.
Ecolab posted an adjusted profit of $1.55 per share for the fourth quarter ended Dec.31, compared with analysts' average estimate of $1.54 per share.
Quarterly earnings got a boost from sales growth and lower costs in its global institutional & specialty segment. The unit's operating income grew 41% to $238.7 million from last year, driven by new business gains and pricing.
The company also forecast adjusted profit for the current quarter to be in the range of $1.27 per share to $1.37 per share, above the Street estimates of $1.12 per share. (Reporting by Kabir Dweit; Editing by Shweta Agarwal)
