(Reuters) -Water solutions company Ecolab 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 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.
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.
(Reporting by Katha Kalia in Bengaluru; Editing by Sahal Muhammed)
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