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Ecolab (ECL)

Participants
Mike Monahan SVP, External Relations
Christophe Beck CEO
Dan Schmechel CFO
Tim Mulrooney William Blair
Manav Patnaik Barclays
John Roberts UBS
David Begleiter Deutsche Bank
Gary Bisbee Bank of America
Rosemary Morbelli G Research
Chris Parkinson Credit Suisse
Vincent Andrews Morgan Stanley
John McNulty BMO Capital Markets
Justin Hauke Robert W. Baird
P.J. Juvekar Citigroup
Mike Harrison Seaport Global Securities
Adam Harrington Stifel
Call transcript
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Operator

Greetings, and welcome to the Ecolab Fourth Quarter 2020 Earnings Release Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Mike Monahan, Senior Vice President, External Relations. Mr. begin. may you Monahan,

Mike Monahan

results everyone, available me the to these the Ecolab’s which today our Please the moment of Dan Hello, and a supplemental differ earnings to and that Conference and slides take Ecolab’s XX, September materials for and the those of CEO; Fourth statements website teleconference risk Call. cautionary performance. These materials Schmechel referencing our discussion XX, statements actual A September estimates differ XXXX, Factors this With are results forward-looking CFO. read future under with XX-Q the the and materials. you. in our Ecolab’s actual release factors that are welcome quarter’s Quarter state period and results along on our Thank to associated described Christophe could ecolab.com/investor. in XXXX, Beck, at posted cause projected. materially section ended include are Form are in could results from our

also per negative release. second share supplemental brief show information diluted of continued sequential the greater-than-expected wave. refer impact earnings improvement overview, to a the with a despite Starting the COVID in you We quarter fourth earnings to

narrowed decline earnings per results. we and new leveraged our wins, again, As share increased technology, with once the lower better show sequentially as along business digital penetration customer costs to

aggregated our of income good sales showed XX% business roughly before, As strong growth. and

Ecolab as the standards restaurants current hotels. business XX% is hygiene the our COVID-driven roughly which to sales, the note global Institutional Our effects positioned more continue coming over is the benefit also took could improved actions that should success. But platforms our lead a targeted our a reflecting and of effective of digital and to years profitable most most as we for remained Division, long-term better business restrictions field that emerged on we we Institutional and impacted, XXXX, the effectiveness business. sales post-COVID made from new wins, development, and of XXXX In product rise. We believe investments number force

global rollout above of vaccines reduce we earnings XXXX. spread, believe full-year deliver operations. improvement XXXX results ahead, further continuing to will in and from expect We COVID business Looking XXXX efforts our will to economic strengthened global lead the expanded

again well percentage saw the difficult the improvement modest growth, first market and For of strengthened once we quarter, despite strong premium quarter, growth. of showing underscored product relationships, business expertise In the remaining fourth by a XXXX challenged sequential year-on-year customer value the conditions. quarters world decline, strong year-on-year from the showing as and as Ecolab’s new service was our through existing COVID,

Our our for Ecolab with business while lowering these investors. and superior continue with in more strong driven environments customer Christophe Beck long-term and our base clean our here’s position leader with and long-term drivers that even important. financial other results now healthy become believe believe our with leading opportunity, will focus market providing global to market remaining huge water operating our remains comments. performance improved this as position, positions our We by free growth has and sustainable We energy position, opportunities, resilient strong safety, food cash flow. long-term on robust, their along lead water, our his And costs

Christophe Beck

an do when exceptional conference no on so than what lead we’re where results so company this shaping you to that of had understatement foundations we us ever. is are great these building do company call me afternoon, and to values. still the It’s our you times ultimately come. Ecolab say today exciting based with facing way expectations successful. my keep we strong importantly, the future. our CEO pleasure more turns, where most yet predictable good are it, to lead Ecolab also and, the to to will best today Thank matters is Mike, for The solid long-term the chance share much, a It’s and to everyone. believe part and expect and world’s for as be any do quarterly challenges strong, and resilient, tomorrow, I and we the going I what’s that as not made sharp opportunities I’ve on are for first

our in forward look and you and ambition And sharing on I So other this progress with to our forums. results. in to

the the Call. expanded of of Our most places. market of fourth performance spite went sold got short-term restrictions the quarter coming and most in trends actually global quarter, in cases like Earnings COVID we and continued to reversal lockdowns tighter third and out improve what up, in

call, moved increasing delivered its keep Germany for continued to growth to the instance, in in our infrastructure we digital being but backbone versus easily QX quarter ready QX the narrow health more and and of QX. be a XX% decided tightened after the in decreasing in restrictions. our states to XXX% rebound decline, opportunities of and could closed Nonetheless, EPS the U.S. to innovation, XX QX, and minus restaurants have our from For capabilities technology, right improve in XX% adjusted the investments We instead post-COVID. third

third strong our flow the Our and free importantly, cash that remains quarter has flow fourth year. versus sales as strategy and consolidated which trend working indication investment stable improved the is quarter well good is prior cash our versus a

Industrial, Excluding growth largest the strong income X% XX% XX%. robust very posted of decline aggregated grew modest with And strong of Sciences delivered XX% XX% and growth increased a and income sales income sales a Institutional X%. operating division, top-line a a operating business operating Life our Healthcare segment, XX% our growth.

we predictable. been to one business COVID kills of [ph] unique sanitizers. our in believe work technology in technology. a continuously the market expect and started in faster helped Science XXXX, will organization all and global I program primary Institutional performance. and field further Certified, being we of ready At so comprehensive units We used key global we established fine-tuning also protected our and premium while a quickly the So improving firepower to strongest than un-promised customers our near-term We provided of critical effectiveness, started when new pre-COVID. same gains both we third And of enjoyed capabilities. months performance ago itself highly both that’s closures And improve and past COVID-XX markets has retention in years With our sales historically new and With Ecolab believe digital We traffic quarter restaurant this well our the in XX service a hygiene team capture no-rinse accelerated the customers expertise and a in We and this industry new In like customer businesses, scientific range protect world. were else got unchanged seconds; program our strength from remained wins. of increase customers took our business their all augment we expect we remain ago, hotel our time, we fourth a to the is with responded service field the our our our program our I XX U.S., we rise to and is of will sales penetration guests believe XXXX make to calls. latest further and and field of leading as keep the quarter finalized the and worse We’ve hit, and anything standards. focus virus reopens. the the to over great benefit progress all few continued we’ve experience a that immediately the implementation margins while business hereto, versus situation world-class really our to field mentioned share U.S. temporary recover. bench safe accelerate the well the certification as made. sure growth of their as consistent the drive Institution reopening And and this, to care few of reassuring operational our with that the the positioned Institutional the It’s of from programs years to

a more position we of XXXX real entered Now in broadly, strength.

While have few the the start markets, beginning we global realize It will continue markets of of early year, see second especially in for the fully COVID-XX the to we effect in part our significant and economy quarter. the to a end expect the a on our normal. take to expect the then new quarters COVID-XX recovery will to

in wins, and initiatives product our However, investment and innovation, technologies, hygiene full service and above we continuing XXXX profit successful believe results and earnings new year from XXXX sales will digital new deliver strong operations. business that

floor global climate to words, water future quarters an remaining help questions. hygiene strong in with by improvement sustainability versus year quarter digital forward With customers In these brand very into your a while on gotten challenges uniquely that show just should we the and look with supported confidence. to standards have reach decline is at Ecolab. first we’re that trends unbeatable the are technology, deal respond and show our return. inspires we’re with solutions trust. of financial for team quarter, to a modest state-of-the-art the fast, And to the be expect XXXX XXXX a We a year. other ambition great new the you. ready With I that tougher, of the year-on-year to back to breakthrough strong positioned Mike, high fourth rising look percentage will a rebound

Mike Monahan

concludes our the question-and-answer would That Christophe. period? begin please Operator, Thanks, you formal remarks.

Operator

question will Please Blair. Mulrooney William your Instructions] Thank Tim And coming with line our you. from proceed of the [Operator first with be questions.

Tim Mulrooney

only this. about, question, talk that is I thing I have to really one want one which

mentioned months. the last in organization your over Services Field You XX implemented improvements

Institutional I can gains. not those you which give firepower, both any Thank mentioned advancement improvements and share sales part should were? you. drive talk unit And think think here, competitive new you you I’m Specifically, I to secrets away sales but improving your that’s market of about program. asking what

Christophe Beck

Would love to. Tim. Great Thank question. you,

well, teams? get those we’ve solution, field in It’s we well. minimum that and are quarters aiming tools that’s they all help developments make by to system. we’ve had working tools programs making done are when and as times could there. tools order coming team. with occasions, available. delivery. two the well teams time They in our our being as few for they their visit information the really So my is the do being We’ve get really by well as get as tested mean unique optimized in that important to them better and really first, as get as our that And and they get We past ultimately and during used that daily had we well making partners they to really they were that two time objectives few the What rerouted our have program well program, it’s go well it’s They training technology service during get best made call developments well people things that’s so for And with those everything as customers at well they the years had really new to you because these an accelerated well with that started sell that a mileage emergency the as share as does that COVID the mentioned train minimum opportunity faster. way. as the that daily during and as customer well, numerous digital sure those are it’s we sure a helping the can working are intro at customer. because well within our the it together to real as can mentioned as that And the sure ago. If any well

improving improving So the It’s the ultimately work teams, our of customer. and performance the objective time spend for about them really to this first is more experience. with having customer

increase systems second to We’ve you times The are penetration. sales customer because sell help to Well, that, our that information. on do It’s of more. give objective, and side they our them the many those team. is really on shared I’ll real-time conclude helping ambition

be Our been teams merchandise the adding to could is them, results and we accomplished. performing, again they’re that know products using, well customer as the the products as how well the have new that

company. of it’s end day, customer, whole better costs less easier our the a well It’s the for the as at it as and team. for for So the

Tim Mulrooney

you. Thank

Operator

proceed next of Patnaik Our the your Manav Please question is line with question. Barclays. from with

Manav Patnaik

Thank you seeing guys. you. I very question breakout had has a for area become Sciences how around nice growth areas, on a Life

either I was year Day color up has anything new else Investor ones, about the last give wondering past if your and clearly. some and just could popped you at us think several I during talked there if you

Christophe Beck

expanding our the Ecolab you, also Thank a been Manav. has strategy. Hey. of Well, part TAM

markets, behind So been company resources finding lining part growth the up way been and new growth the avenues, new them growing. of has has

You’re started this former performance. driven exceptional a by an mentioning innovation to so same grown years our much at obviously the Life customers Science. business great helped turning it’s COVID because as well. It’s We as has well as of It’s few ago. the need well been time

companies companies their new years that for So to the us of enough, time. Manav, that started at sure order the way with centers. approaching them and said, a we them weren’t safest they saw opening when lot market has down for two things, ultimately ultimately all future. on, profitable them same be It’s that’s vaccines, some in like IT well, markets But produce need were Amazon, outsourcing well many for computers them that and ago larger providing make in we to because most and that could to going Google, with data we as growing. those dealing We’ve interestingly instance, as way helped other to critical Microsoft, were keep a the and for And solutions of customers. cooled providing solutions like so generate energy while

a division We’re then. happened. exactly that’s did. the and going was COVID well well what to Then it, booming since create used been COVID. which before the as is cloud, That it’s Everyone we as behind market

how a knew in ultimately, And food play. acquisition that year we how have as So we’ve chain that so leading one something that’s big staying that the We’ve is you as since the I we it’s made done mass with Animal last CID as do well don’t that our growth division. Manav, creating early is Health as that opportunity here well mention, as I’ll that critical healthy market beginning, is well where and in antibiotics which want and food at Lines is help good and the to very been a last with animals created which double-digit to well. new consumers, we’ve

examples that. like few a just So

Manav Patnaik

could the please. materials, Got least your the it. That’s with margins you just And cost helpful. maybe part year of cadence at help with us I respect for the was and costs first hoping to rising of the raw of

Christophe Beck

you Manav, just to make XXXX? or mean sure that I XXXX here, understand that

Manav Patnaik

numbers? increase in all Well, raws, we the XXXX, how recent how that just should with about and the think flows through your

Christophe Beck

Yeah, so long so in case businesses, improving so was have That been time well. margins very a time. our for the over as

and in the then QX. will ramp which we’ve the end will really since of be mind QX, low XXXX, what be see in see there QX, the we similar markets quarters in quarter, in QX obviously clear we QX parts. XXXX first the ups reopening then come in So year XXXX continuing that to in two keeping the in the There the and very to and experienced in be will in that

of QX – see QX and you well of in in slightly there. will and better QX, – sorry as it’s kind of rebound a as So, as

pricing is good good. have which We power

materials. have to going indications We raw days/weeks the materials terms that benign but raw up be now, we see that last are saw of right the few ultimately expected in in

well been for years. So many few we’ve is that in we’ll this that the past experienced something But similar very mitigate we’ve have doing to that. situations

Operator

Thank you.

with the Our Roberts next question. UBS. John question line Please is from with of your proceed

John Roberts

last Thanks, weekend. ranking the near top list Barron’s and congrats the sustainability of on

Christophe Beck

Thank you, John.

John Roberts

specific do increased per areas a have locations not room the per the in actually that but you revenue restaurant pretty and to occupancy structurally have. any show cleaning A have has hotel solid few those data or product diner levels? overall And revenue seen lot vacation some pre-pandemic traffic; since

Christophe Beck

will but at the hopefully prevent well the it reopen. leads are to as obviously, in those it’s Unfortunately, quarter, sales I used described. areas market customers more solutions one well, more or are growth to we compound, second share so so as opportunities very in solutions before. our had mentioned, ones, detailed the in but to in But didn’t numbers units those but to it’s that that to overall helped either what those the so that order have with your have reopened, you have instance, Yeah, to risk we infection. or the way the That’s those spaces the – is selective groups just that don’t yet to That with where vacation good better like point clear it so them. moment for will indications going you those than you, we of are individual have that’s expect we’ve

John Roberts

Gotcha.

Operator

you. Thank

Our Please coming with the from next proceed Bank. David with is Begleiter question Deutsche line questions. your of

David Begleiter

full Thank quarter and had a you. Industrial strong very Christophe, year.

can And a these at discretionary numbers into back that of looking Industrial in So the segment costs in they margins? expand XXXX? XXXX, how much be headwind come as will

Christophe Beck

in Yeah, It’s keep case, headwind a probably level seen. what developing been what as the similar we’re we’ve had be the XXXX. you’ve pricing are to in so XXXX. at noted, XXXX, than well of its kind margins. going remain as than bigger raw expecting The to In we Industrial materials will

So growing. but will will similar income net-net, operating margins keep be

David Begleiter

XXXX? or the And, flow, on thoughts any Dan, and working good. cash capital comments just CapEx Very on in

Christophe Beck

want one? to answer you Dan, this

Dan Schmechel

contributor. net very capital a collections perspective, at net because Sure. Thank in of you. on working all, in from declining capital a impact although contributor strong had least strong the flow to maybe volumes to performance of that flow we and and inventory deterioration to very we saw working little day’s ground cash XXXX, first cash a in made a hand us an Well, the favorable was increase

continues in to the will that, invest business So meaning as and in receivables we’ll somewhat rebound, of more be inventory. the opposite XXXX

expectation in significantly Having remain And very customers. and capital frankly, paid not on but make of XXXX. the So determined is And almost, my we’re have right before expectation in inventory goal said and in that personal vibrantly earlier that for we’ll we a in calls we’re this comment, that, know on the is on shares to for focused I’ve we’ll creating collections. are our invest stuff building in be sure very for – – side, the working to the said value been just of XXXX customers inventory rebound. that I sort right the sure Christophe

will be a favorable XXXX, the on drag performance. reverse won’t big in cash but so And inventory it in XXXX overall flow

Operator

you. Thank

line next the coming of Our with your Bisbee question. Bank question from Please is of America. Gary with proceed

Gary Bisbee

Hey, this guys. Certainly fact, cost at remarks growth and can discussed rightsizing was going about here, Good would growth? prepared so get – on think But Because spend back after what your more the of the much the it afternoon. changes first is just you little of is about versus it other I costs initiatives growth, really end to I part deliver clearly provide trying a how the guess Institutional is to question positioning cost earlier detail? promote more I’m savings to of it. talk driven. you for the much what that

more you. Thank little a color. Just

Christophe Beck

It’s Yeah, thank What been things. what of not Institutional doing part we’ve for you, in years. cost-driven. we’re is Gary. It’s by two driven doing

as customers, more time. mentioned the solutions so to as increase firepower, new well ambitions earlier, dedicated selling penetration to As by towards want our earlier customers. is we first We’ve selling to over new shared have to our always existing increase one I well XX% really people sales

hours helping in well While sales Technology means for is firepower, we well increase it. obviously that. which that order to deliver our to people as as so behind and need

a rep of the all if he so customer or of can data side, she customer organized immediately have us. the or mileage, customer get issues with them the which we might experience. going minimizes better, as spending words, more improved day that good or the In service, he the customers, instead customers it’s more we the the service and the or have. improvement if sales papers internal they route as really when of with for time. we customers nets of lot cost together, spend we it’s to at On other in initiative to same well, really can can and before, customer in or is other and firepower, really have fixing it’s hours stuff mentioned is works, a has the service, can operational one that and as way more in structure efficiency the time And doesn’t their time equipment the well. she that good of at our end that have getting to And for work an the of if day on one while they well That collecting improve information service

Gary Bisbee

follow Thank it, can of pandemic the new areas Or volume when up, the part help mirror? as the earned things rearview then from you. at So discuss And guess incremental a could those could pandemic? volumes disinfectant I away or with that you’ve other, sort some the lot of moderate helpful. And at That’s in how whether or contracts you’re thinking a the how have risk some go is you in long-term these point future for there that us the persist are the Okay. in or through you sanitizers of the think point s versus expectation? benefited in maybe revenue that’s future? is signing

Christophe Beck

so of contracts as business all we demand model around Yes. part the behind to increase Long vast going remain customers. not with of well plans as our world. of always as so the with we well them. we And invest as our the term, That’s all That’s have those will and if such usually have well customers all why it of forward.

well. Life growing, going well and as Mike’s aggregated operating XXXX. our in to good. reasons. mix the XXXX going the towards been they’re products, keep When is as as about will But so not X%, you a this well. positive be going in XX% have natural bit as demand as to to is in in been nice. they’re have of same care, COVID’s mentioned, it, be XX% people But Well, business XX% their different so in to Industrial In before, going more I hands So, would XXXX high XXXX. going well underneath peak Sciences you growing what line during in has because so deals too higher which businesses at to fairly think same they keep rate of way income. for XXXX. X% sanitizing they stay to point as growing little expect X% in don’t be so did move growth. national those still That got than before XXXX. sanitize those health we The is growth growth was government the growing COVID. Well, top as And It’s the it’s going to be to did

So trends overall, of most are that those think be the I going products. similar better to for or

Gary Bisbee

Thank you.

Operator

with your Please with of from line comes proceed Research. G question Morbelli Rosemary next question. the Our

Rosemary Morbelli

Good you. everyone. afternoon, Thank

Christophe Beck

Good afternoon, Rosemary.

Rosemary Morbelli

inventory the in the high So XXXX? have demand, see and just the be back decline in in going to actually Sciences you some feeling revenues some for Life a you there may that demand and the of channels do full-year build could care, health

Christophe Beck

I so, think don’t Rosemary.

that so in-between store as is as of product, Life Sciences mostly is can’t such. distribution, well, business, bulk it’s direct and really there So kind a you no

in well strong quite as strong for we’re in growth in planning as and XXXX. just much so before is growing time XXXX. Life been great growing inventory It’s been it’s well, Science, that So in and

a we’ve important underlying And the continuation health That’s the the in driven last why So look that in comparisons softer. because great But that that, is care is run so XXXX, they will to of the even going as XX% of growth, more Life we mind which for look keep an in growth plus year deals to XXXX business Science we going in at story. true be well, it’s need we well the had it’s was way anyway. that bit had as to national make by partly to well those be we made. a will little quarter the the exceptional

So we the X%, of to measure way it. to for going underlying fight it’s governments, in That’s be order some the COVID, X%.

do to So growth, just lower it is it be expect much like going the XXXX will we of range X% long-term, it’s because be and XXXX, which at the of but the to when comparison will look we care. is growth, you comparison, within a ultimately underlying kind for unfair. versus the But look what’s X%, Rosemary, health

Rosemary Morbelli

Okay. That’s approach XXXX, if you look your results Thanks. XXXX. then, And we helpful. Christophe, of at expect those will that

expect you income? revenues for for the both segments? do all case And this to operating So be and

Christophe Beck

one going level improving, Whereas Institutional from that we’ve So the ahead QX XX% that started in lower health in XXXX. because grow versus XXXX. they’re talked keep needs Science, ahead XXXX they’ve ahead be obviously. with of they’re is a XXXX the going to of and about to to care, much Life Industrial, to XXXX be well, been in XXXX going They’re

can as afterwards. have You’ve well. as QX feel there, to that be in QX make But seen adjusted is it’s same, I’m in we and that and we business Institutional going to have be in year. some a same because going not are time, did be versus to going recovering point towards we’re entertaining keep But it’s we last the ultimately, The different the of unfavorable, XXXX so much. so is confident those coming because have need start going to XXXX. going are as cost increasing that QX in keep end most is just ahead to going QX again. XXXX, to so well, of well the investment going the story mind that to is the And People going earnings businesses. in continue We’ll be XXXX, be deliver we so mix improvement, it’s going investments we in an in rebuild. to as merit that is the XXXX, in lower XXXX traveling to and at to

Operator

Please Suisse. is line question from with with next the Credit proceed of Our coming Parkinson your questions. Chris

Chris Parkinson

which Great. which highlighted end you’re maybe you now there you. opens incrementally for that potential just fairly When think preliminary across on two you. comments on three If be overwhelmingly were your the share choppy speaking to is would and more XQ, any confident Despite back expected, or given speak you gains can or XQ, some your delights teams, up? truly can supplemental. constructive, once that Thank a pent-up greatly just world markets hit Thank I you appreciated. to demand

Christophe Beck

that I just make understood question So Chris, sure, to the right.

so estimate XXXX? rebounding So would we be the end that during would markets

Chris Parkinson

Yes. And Thank comments any very share. you much. around market

Christophe Beck

Okay.

units more existing accelerate. moment the biggest way low we to in well. that the make sure so institutional, how we we Institutional, have It’s reopens units performance And opportunities, we quarter the many base And down-market than So QX, is point do can we and one to hotels. and in do many sell improve compared so today restaurants solutions we our really in to as in year. last so we obviously how much it the have more this is measure the that second had

have more well. as solutions much We

it’s in news. And back, compound, the the the good moment to So to in which going first not is but we quarter. going the happen expect that that’s quarter, sometime coming second to happen demand really is

related cars more traveling to to flying going is When which more, when be the planes cruise obviously. when downstream, more, going demand. boats and is well, one used be as to are be like oil going Another so are ships to gas are

accelerate. demand is gas the to and going oil for So

in good institutional; the and here right same our to refineries, what refineries looks as So speak more and now. as quite more solutions that those we objective we is did

All ones second So what. businesses, Chris, no ultimately so are to expecting good those on that other a the in path, the major matter quarter. businesses, two rebound are are big

Operator

question line The next Thank you. is Vincent with questions. proceed Please Andrews the Morgan from of Stanley. your with

Vincent Andrews

well. you as Thank everyone. good new I Institutional, maybe you. the follow And but particular segments wanted on wins, touch business other just up could afternoon, to the on in in

to it’ll that more phase I’m was they clear or the that business and new So come go I hit wondering I’m up what you what a of be guess providers opportunity playing sort How to there that COVID, wondering to have trade want customers new but to do as get COVID you. out? business, second realization is unique reopening that just if opportunities of there’s or a see as during a come change it’ll maybe

Christophe Beck

managed new sell starting a good. XXXX, point business XXXX. the best that in that’s we’ve Institutional, first in business been sold I so XXXX your But in personally, across than generation quite would new of we in expect been company. to that has And the had we’ve net that new XXXX great be ahead business to we the more question. Well, That’s with honestly, which, didn’t

to the Institutional exceptional of of the could get to that is well second has that Namely to was support were done focus those for address provide company customers reasons. team how that scientific well. for And world. before So issue; COVID, unique the for expertise. an job business our U.S. we them during begin as business in on the obviously the They But to how for anywhere the like to of are reopening; the terms two know ready as time. looking new touched new the that for you one one is that what difficult with; future during get in for that ready times just around how expertise, didn’t COVID

well also I’ll well. point last so time. came during capability our is us And as to the mention So as that supply to many

of during been well been lot capacity capacity bit. this as been So outstripping able that especially the as that asking while and so products, well We’ve to is them. we’ve quite in sell supply sanitizing have a customers so to growth a has built that time,

be mean us. I businesses, I we’re going for XXXX when that’s that So in Institutional. think truly more for demonstrated we’ve customers the actually, all whole in in especially and they And business to company; that good even our them because to new here need true

Vincent Andrews

Okay. if a the I ask you sheet. And, could balance question on Dan, quick

million what year. year rate care was function a assets? over Is Just happened that like $XXX benefits seeing assumptions? it that the pension return post-retirement Or on there? plan of discount Or up, looks health

Dan Schmechel

the change really, driven. is discount-rate year-on-year Yeah,

this Okay. down income income. Likewise, below operating that other to line see you

the So rates liability impact on both the and expense. big accrued have a such on

Okay.

Operator

Thank you.

with the proceed question Markets. line is McNulty BMO with Please John of Your Capital from question. your next

John McNulty

Yeah, thanks for my question. taking

Like especially that that have you it when engagements you’re than we guess thought like and is what mind, for a thought And point from reached ago in And there, you X% water have couple would a longer-term should may guys the years see would thinking front, Industrial have out especially the that when How at platform we’ve level with think the can or than what faster outlook we may most that business where gave the you of on think business customers be having? that X%? you level the ESG about of players speak multiple about seen what to So few years Industrial I us I push higher I years expected? tipping side, a a ago. have and you that? say bigger guess seems we on the to have is accelerates maybe than where of the you

Christophe Beck

an well, an a more I a than that what from hand out company a had was have us one for seat. examples emissions, especially as guys implement larger working towards in as done end thankfully, of the few well for goods Europe hand, so you our usage, ESG we well, as give consumer always and within a none so for honestly, there on happened, we near well I perspective. can something customers and could own well? On our to so well you us And been to else and waste we company? can. you new we questions to in you you’ve two get of the can Is on Many dimension learn we general for said from of COX take can We’ve there to ambition year thought, saying back generate that climate, years, one as No And XXXX. interestingly during coming water us bigger water that with whom us for you terms their saying, positive help help definitely And by so And that done terms coming other interesting in thought well. that so It’s as XXXX. ambition of new of last We’ve that really business company a the was those terms two that. build announcing to one customers towards hand, which second in one our so world to in would the be ESG become know we’ve enough. how are we reasons of water by positive Well, which plan answer us. seen need actually Microsoft plan. COVID

we are together helping as well. them, So getting there them with

So coming those many of so true examples of us. that are are to companies those

an turning I have there’s bigger, would So, thought. yes, inflection that’s what than better point

John McNulty

Got it. Thanks very much for the color.

Operator

question with is with of Hauke Justin from proceed the The next Please Robert W. line your questions. Baird.

Justin Hauke

Thank Hi. you.

looking million XXXX, the talking that I that think restructuring million what’s you’re total can the of XXXX some the of rate as ask a in program, similarly been where changed it’s $XXX are. $XXX you base annual savings that’s So track how to Relative because spend of just somewhat run for to in benefits, it’s questions about XXXX? just through spent the And that difficult kind then on those builds? wanted times the just XXXX, the about for in current you’re so of programs couple under we of to now what’s end the and

Christophe Beck

I’ll start think maybe help anything. Dan, the if let you, and answer I I’ll

Dan Schmechel

Sure.

Of course.

that make here, which $XXX disclosed of end actual anticipated million, talking just cost I same at think that we’re has the $XXX been accrued. of sure the an of million numbers $XXX of associated we’ve XXXX, with million savings So to the

Okay.

rate a of from million of the about $XXX recognized across of total as of all savings. good start very end we’ve So perspective XXXX, these programs. run And

pickup significant kind guess. or more expect it will XXXX. So or And over XXXX less bleed you stabilize of might out as in to then XXXX

Justin Hauke

helpful. talk second the earnings make comparable disclosed pro that When forma And Champion adjusted my I was we’re number you level, that think you’ve being in to excess all excludes sure XXXX That’s then XXXX a of set. level one XXX. Thanks. that was just about

on? comments baseline that should So we number is your that the

Dan Schmechel

you XXXX. The toward number would continuing that steer ops number, the we is XXX is in which

Operator

next from of proceed The with question your Juvekar line you. P.J. comes Thank Citigroup. with question. the Please

P.J. Juvekar

Hi. welcome. afternoon, Yes. Christophe, and Good

Christophe Beck

Thank you, P.J.

P.J. Juvekar

where to customers you. market there, it that this? your Institutional where all technology. do And do reps And lastly through you’re Thank In gaining field Yes. charge demanding Is all think your and regards digital advancement investing program, for you your share then Is in share? also, it? Are in competition is this? how you gains? for

Christophe Beck

that the you we’ve the your it’s learned Institutional not it we And when unit? much pests about way have you think It’s Great question. that is infection Obviously, is any think more you, everything the the comprehensive my help that protect that not it. sanitizing really think the there weakest in to that in side is have is thing customers who customer This you related are is sure And basically the Ecolab today, do risk, is is sanitized, the point about one can in would this at if the during floors, is I tables being that When is self-serving. seen P.J. COVID, the only that from while that unit. share, right infection customer. least me we drains, have It’s water, in there. that especially one an about can as the that partner making what’s Thank need the for – about don’t food safe, And solutions. is such. just hands;

us. way at the customer looking that’s is the So

the they is Certified Ecolab has seal as to well. sure all the it’s well it we is be. together. as really we as as that that that it unit can get answer Science programs, making offer Well, If a and ultimately all promote So it bringing programs that, safe and

for customer. at well demand So us for for it’s It’s it’s good as same higher the the time. good so us,

development organizational is whole address that the customer need. helping that making to ultimately So we’re

Operator

question next the is questions. The line your proceed Global with Please you. Thank Seaport Mike from Securities. with of Harrison

Mike Harrison

Hi. Good afternoon.

Christophe Beck

Good afternoon, Mike.

Mike Harrison

and food after a the think in entered Do or that provider dynamics going little to go beverage in you really & competitor, lead treatment to more recently competitive Diversey. Water Food market that into a Wanted some seeing a ask forward? your partnership changes water could about to aggressively. in you’re They the with Beverage

Christophe Beck

Mike. here, things two Well,

a didn’t work. It’s and the second not together But that work. was water First, many demonstrated By time the with Nalco and time that. is way, partnerships years. we hygiene years they do know it are proposition. that winning We trying know that ago first that the for we

customer it’s them interesting need. So towards I see. businesses a to company Theoretically, wish with well, that to the within Doing In enough hard luck. working idea. is one good together hard. a it’s really all practice, get is This partnerships

Mike Harrison

obviously, All and downstream ask that the that well. Can have have handful under And activity. some of driving pressure But to business, refineries that’s of right. portion complex, on more toward then is larger integrated trend larger, wanted the of Ecolab relative about capacity? as opportunity refineries refineries at because these one a the equal petrochemical more Thanks. the you I refineries talk say, of less versus, in complex production for complex

Christophe Beck

demand well as the to well That’s well. driving The as are at well where best highest as and sites a an on time. margins those solutions. impact customers. companies of many where we business the That’s And there outcome same in ESG the point petrochemical our most from that the is is where in from downstream. was outcome sweet made are are the the the of the That’s most the sell where environment better spot as before interested different of

sweet well So as this the our This is is focus forward. primary spot. going

little organized are Whereas the a less for such. the way behind us. more priority but as a of petrochemical of soft; well that’s in to type trying We’re future a get traditional, refineries older for as dedicated bit

getting way basically in been well what XXXX that It’s really that’s right working which we’re so you’re on and is really and one the the going I’ll point. just has that that environment, growth petrochemical of well. we’re a growing So that’s proof to and organized difficult And margin. in capture exactly approach after as conclude a

Operator

the The Please Adam with your of with next is you. proceed line from Stifel. Thank question. question Harrington

Adam Harrington

business could if curious what Adam is the on Rosenbaum. to was this margin mix, product bit Health et of Hi. cost, quarter what This I interplay [ph] kind about Shlomo contributed in the talk delivered you the cetera. between was level for and Care a little

Christophe Beck

development. care health very in general margin had XXXX in So nice has

versus comparison You’ve the seen XXXX. well as

in improvement. better fairly versus those with was QX heavily. higher one-time a still impacting because deals nice the because were business governments volume So It QX was the

more improvement the much as infection leverage stick to pricing, such. in improvement said, prevention, being focus improvements, has an care, as that the the selling XXXX and is as technology, But you on to So well, contributed program the work in got drive digital the in health XXXX. margin on of it well the margin going

care So the and good margin about when I development health feel I in think XXXX beyond.

Adam Harrington

Can XXXX in think what more will give maybe little Okay. you on And – improvement question. just that like to touched for detail of an in needs earnings much the terms XXXX cost expected be savings? this from a improvement I versus of level, earlier explicitly and how happen of the there you

Christophe Beck

three in that’s four to an of Dan XXXX, we by order which very XXXX confident deliver in or So as feel mentioned, driven there, it’s basically ahead in the get things. $X.XX EPS to

one Science, our XXXX Life obviously health is XXXX. of business, to in operating keep doing going is first growing that care, Industrial, XX% in The so growing, income

propositions need good. and time, business, need that turns ones which to have have moving, they have really and At they for, momentum. the to Institutional good those keep new same So that are asking you customers They the is corner. will. good They have

to As sometime not in it’s That’s we to what It’s going QX. in than to going be going to well. had but very similar in be catch QX, QX. going it’s mentioned, up as be

QX, So back well, going is Institutional where to be QX, as where used pre-COVID. to towards get it so QX,

investing well as has point, going third important start been cost towards traveling as in that’s business. outcome. we that as so helping. to But have the well well will drive that People to that that presenting mind keep are So going are it’s we as keep initiatives And Dan savings mentioned, in to the you more.

as We’re every well going as do we to give as as them year such. well merit

together, of it need that to smart XX% recover all get make is balance keep bring that both when quarters come, So to to needs it of and the QX Institutional in needs you way and XXXX. business we and will. and to the we right sure to humming, and as a it investment cost will in and we the the on place savings

Operator

Monahan Mr. Thank comments. hand floor our back this the of for closing the time, session. end Mike you. question-and-answer I’ll At we’ve to reached

Mike Monahan

call the on and our That rest will call. your This Thank discussion wishes time and wraps replay website. and for our today, conference for fourth Thank associated slides up best you. you available quarter be for conference day. of the and participation the our

Operator

gentlemen, conclude today’s for This and does you participation. Ladies your thank teleconference.

day. wonderful You at may lines your now this Have disconnect a time.