April 28 (Reuters) -
Water solutions company Ecolab ( ECL ) kept its annual
profit forecast unchanged on Tuesday despite tariff
uncertainties and lower first-quarter revenue and profit,
sending its shares 1.7% higher.
The company, which offers cleaning, sanitization, cooling
and other water-related services to a host of industries, said
it still expects earnings to grow 12% to 15% this year.
Ecolab ( ECL ) is leveraging its diverse supply chain, 'local for
local' production model and a recently announced 5% surcharge on
all its products and services in the U.S. to mitigate tariff
impact, it said.
U.S. President Donald Trump's tariffs on trade partners, and
retaliatory levies by countries such as China, have threatened
to inflate prices of raw materials and equipment for companies
such as Ecolab ( ECL ).
The company's first-quarter sales fell 1.5% from a year
ago to $3.69 billion, as its global institutional and specialty
segment was hurt by the sale of its surgical unit announced last
year and weak demand from healthcare customers.
It posted a profit of $402.5 million, or $1.41 per
share, in the quarter ended March 31, compared with $412.1
million, or $1.43 per share, a year ago.
The Saint Paul, Minnesota-based company also forecast
current quarter adjusted profit between $1.84 per share and
$1.94 per share. Analysts were expecting $1.90 per share,
according to data compiled by LSEG.