July 29 (Reuters) - Water solutions company Ecolab ( ECL )
on Tuesday posted an adjusted profit for the second
quarter that narrowly missed Wall Street estimates, hit by
reduced demand for its services that include cleaning,
sanitization and cooling.
Ecolab's ( ECL ) shares fell 2.88% to $262 in premarket trading.
The company forecast third-quarter adjusted profit between
$2.02 and $2.12 per share, the mid-point of which is in line
with analysts' estimate of $2.07 per share, according to data
compiled by LSEG data.
Ecolab ( ECL ) said that in the near-term, the global operating
environment remains unpredictable, characterized by constantly
evolving end-market demand and impacts from geopolitics and
international trade policy.
President Donald Trump's tariffs on U.S. trade partners and
the retaliatory levies from countries such as China have
threatened a rise in raw material costs for companies such as
Ecolab ( ECL ).
"I see little impact to Ecolab ( ECL ) from tariffs. They already
implemented surge pricing to account for tariffs, so any tariff
impacts should be more of a pass through cost for Ecolab ( ECL ),"
Morningstar analyst Seth Goldstein had said prior to the
earnings announcement.
Sales at the company's global institutional and specialty
segment, which makes cleaning and sanitizing products for
customers such as quick-serving restaurant chains and food
retailers, fell 2.4% to $1.51 billion in the second quarter,
from a year earlier.
However, sales from the global water unit, Ecolab's ( ECL ) biggest
segment that provides water treatment and cleaning solutions to
large industrial customers, rose 2.4% to $1.91 billion from last
year.
The Saint Paul, Minnesota-based company posted a profit of
$1.89 per share on an adjusted basis for the three months ended
June 30, compared with analysts' average estimate of $1.90.