Edition:
India

Ecolab Announces Plan To Spin Off Its Upstream Energy Business


Tuesday, 5 Feb 2019 

Feb 4 (Reuters) - Ecolab Inc ::ECOLAB ANNOUNCES PLAN TO SPIN OFF ITS UPSTREAM ENERGY BUSINESS AS AN INDEPENDENT PUBLIC COMPANY; EXPECTS FOURTH QUARTER 2018 DILUTED EPS OF $1.48, WITH ADJUSTED DILUTED EPS OF $1.54; FORECASTS 10%-14% FULL YEAR 2019 ADJUSTED EPS GROWTH.SEES FY 2019 ADJUSTED EARNINGS PER SHARE $5.80 TO $6.00.SEES Q4 2018 ADJUSTED EARNINGS PER SHARE $1.54.SEES FY 2018 ADJUSTED EARNINGS PER SHARE $5.25.SEES FY 2018 EARNINGS PER SHARE $5.01.SEES FY 2019 EARNINGS PER SHARE $0.08.SEES Q4 2018 EARNINGS PER SHARE $1.48.ECOLAB CURRENTLY EXPECTS THAT TRANSACTION WILL BE COMPLETED BY MID-YEAR 2020.SEPARATION TRANSACTION IS EXPECTED TO BE A TAX-FREE SPIN-OFF TO U.S. SHAREHOLDERS FOR U.S. FEDERAL INCOME TAX PURPOSES.NEW STAND-ALONE CO EXPECTED TO RAISE NEW DEBT, PROCEEDS OF WHICH ARE EXPECTED TO BE PAID TO ECOLAB IN FORM OF A DIVIDEND.FOR FULL YEAR 2018, UPSTREAM ENERGY UNAUDITED SALES ARE EXPECTED TO BE APPROXIMATELY $2.4 BILLION.ANTICIPATED BENEFITS OF EFFICIENCY INITIATIVE ARE NOW ESTIMATED TO BE $325 MILLION.ADDITIONAL SAVINGS OF EFFICIENCY INITIATIVE ARE EXPECTED TO BUILD THROUGH 2019 WITH GREATER IMPACT IN 2020 AND 2021.ECOLAB PLANS TO RETAIN DOWNSTREAM BUSINESS.NOW EXPECTS TOTAL PRETAX CHARGES RELATED TO EFFICIENCY INITIATIVE TO BE ABOUT $260 MILLION WITH ABOUT $325 MILLION OF PRE-TAX SAVINGS BY 2021.INCLUDED IN 2019 FORECAST IS AN APPROXIMATE $0.08 PER SHARE CURRENCY TRANSLATION HEADWIND.ECOLAB EXPECTS TO MAINTAIN ITS CURRENT DIVIDEND. 

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