Ecolab Delivers Strong Third Quarter

  Ecolab Delivers Strong Third Quarter

                 Reported EPS $0.80; adjusted EPS $0.87, +16%

                      Pro forma fixed currency sales +7%

 2012 adjusted EPS forecast range narrowed to $2.96-$3.00, +17% to 18%, from
                              prior $2.95-$3.02

Business Wire

ST. PAUL, Minn. -- October 30, 2012

Ecolab Inc. (NYSE: ECL):

2012 THIRD QUARTER HIGHLIGHTS:

  *Record sales of $3.0 billion, +74%, including the impact of the Nalco
    merger.
  *Fixed currency sales +7% compared with third quarter 2011 pro forma fixed
    currency sales including Nalco operations.
  *Reported diluted EPS $0.80, including integration and restructuring
    charges related to the Nalco merger.
  *Record adjusted EPS $0.87, +16%, excluding special gains and charges and
    discrete tax items.
  *Results led by strong gains in Global Energy, Latin America and worldwide
    Kay, Healthcare and Pest Elimination operations.

              Third Quarter Ended September 30
               (unaudited)
               Reported                       Adjusted*             
               Third Quarter           %        Third Quarter           %
(Millions,
except per     2012       2011        change   2012       2011        change
share)
                                                                        
Net Sales      $ 3,023.3   $ 1,736.1   74%      $ 3,023.3   $ 1,736.1   74%
Operating        401.2       239.6     67%        432.4       267.4     62%
Income
Net Income
Attributable   $ 238.0     $ 154.3     54%      $ 258.7     $ 177.2     46%
to Ecolab
                                                                        
Diluted Net
Income Per     $ 0.80      $ 0.65      23%      $ 0.87      $ 0.75      16%
Share

* These non-GAAP measures are adjusted for special gains and charges and
discrete tax items.


Ecolab delivered strong third quarter sales and earnings results, as adjusted
earnings per share increased 16% over last year and reached the top end of
Ecolab’s forecasted range. Results were led by strong growth in its Global
Energy, Latin America and worldwide Kay, Healthcare and Pest Elimination
businesses.

CEO comment
Commenting on the quarter, Douglas M. Baker, Jr., Ecolab’s Chairman and Chief
Executive Officer said, “We continued to show strong results in the third
quarter despite the challenging global economies. Growth remained solid across
our businesses and regions, reflecting our focused efforts on new account
gains, new products and services to yield improved results and lower costs for
customers, and achieving the planned integration and synergy objectives from
our combined businesses.

“We expect to deliver a strong year in 2012, and in doing so, help set up
growth for the future. The integration of Ecolab and Nalco is going very well,
and based on our experience with customers, we are more confident than ever in
the value we will create through our merger. Our other recent acquisitions are
also performing well and are ahead of plans. And our recently announced
agreement to acquire Champion Technologies will further strengthen our
strategic position, earnings and long-term outlook.

“We remain focused on our opportunities and the effective execution of our
business approach. Our value proposition for customers remains compelling –
delivering improved results at lower total costs – and we are using this
winning combination to secure new business. We are in a very favorable
situation – we are positioned to capitalize on excellent long-term growth
opportunities, we have great technology, we have great sales-and-service teams
and we have a great business model. We are committed to driving our business
and delivering excellent results for our customers and shareholders in 2012
and beyond.”

Quarter overview
In order to provide a meaningful comparison of the results of operations,
where applicable, results for the third quarter of 2012 are compared against
pro forma results for the third quarter of 2011. The pro forma 2011 results
are based on the historical consolidated financial statements of Ecolab and
Nalco and were prepared to illustrate the effects of the merger with Nalco. In
addition, beginning in first quarter 2012, adjustments were made to move
certain water treatment-related business from the U.S. Cleaning and Sanitizing
and International Cleaning, Sanitizing and Other Services segments to the
Global Water segment, consistent with how these businesses are now managed.
This supplemental pro forma financial information is located on our website at
www.ecolab.com/investor and in Ecolab’s report on Form 8-K filed April 27,
2012.

             Third Quarter Ended September 30
              (unaudited)
                                                                    
              Reported                %        Adjusted Fixed           %
                                               Currency
(Millions,
except per    2012       2011       change   2012        2011*      change
share)
                                                         
Net Sales     $ 3,023.3   $ 1,736.1   74%      $  3,043.7   $ 2,855.6   7%
Operating       401.2       239.6     67%         434.2       365.1     19%
Income
                                                                  
*Amounts represent the pro forma equivalent to the 2012 amounts presented.


Ecolab's reported sales rose 74% to a record $3 billion in the third quarter
of 2012. Third quarter sales reflect the inclusion of the Nalco merger, which
closed December 1, 2011. Third quarter 2012 sales rose 2% when compared with
third quarter 2011 pro forma sales. Third quarter 2012 fixed currency sales
rose 7% compared with third quarter 2011 pro forma fixed currency sales.

Third quarter 2012 reported operating income increased 67% to $401 million.
Both third quarter reported 2012 and third quarter pro forma 2011 results
include special gains and charges and discrete tax items. Excluding special
gains and charges, third quarter 2012 adjusted operating income of $432
million increased 14% compared with third quarter 2011 pro forma adjusted
operating income. Excluding special gains and charges and at fixed currency
rates, third quarter 2012 adjusted fixed currency operating income of $434
million increased 19% when compared with third quarter 2011 pro forma adjusted
fixed currency operating income.

Third quarter 2012 reported net income attributable to Ecolab increased 54% to
$238 million, representing $0.80 per diluted share, and included Nalco merger
integration and restructuring charges.

Third quarter 2012 adjusted net income attributable to Ecolab rose 46% to $259
million, and adjusted diluted earnings per share increased 16% to $0.87. Third
quarter 2011 adjusted diluted earnings per share were $0.75. Currency
translation had an unfavorable effect of $0.03 on reported and adjusted
diluted earnings per share in the third quarter of 2012.

Segment review
Third quarter 2012 sales for U.S. Cleaning & Sanitizing operations rose 1% to
$774 million. Adjusted for the transfer of certain water treatment-related
business from the U.S. Cleaning and Sanitizing segment to the Global Water
segment, sales increased 4% when compared with third quarter 2011 pro forma
sales. Kay and Healthcare led the growth. U.S. Cleaning & Sanitizing operating
income increased 17% to $184 million compared with the year ago period; U.S.
Cleaning & Sanitizing operating income increased 14% when compared with third
quarter 2011 pro forma operating income.

U.S. Other Services sales increased 4% to $124 million in the third quarter.
Operating income grew 3% to $22 million.

Sales for International Cleaning, Sanitizing and Other Services operations,
when measured at fixed currency rates, grew 3% to $813 million in the third
quarter. Adjusted for the transfer of certain water treatment-related business
from the International Cleaning, Sanitizing and Other Services segment to the
Global Water segment, sales increased 5% in fixed currencies when compared
with third quarter 2011 pro forma fixed currency sales, led by strong growth
in Latin America operations and moderate growth in Asia Pacific and Europe.
International Cleaning, Sanitizing and Other Services fixed currency operating
income increased 12% to $97 million in the third quarter when compared with a
year ago; fixed currency operating income increased 14% when compared with
third quarter 2011 pro forma fixed currency operating income, led by margin
improvement in Europe. When measured at public currency rates, International
Cleaning, Sanitizing and Other Services sales were $802 million and operating
income was $96 million.

Global Water sales, when measured at fixed currency rates, were $543 million,
increasing 5% when compared with third quarter 2011 pro forma fixed currency
sales. Continued good trends in North America and Latin America offset soft
demand from heavy industrial users in Europe and Asia in the quarter. Fixed
currency operating income was $70 million in the third quarter, representing a
25% increase when compared with third quarter 2011 pro forma fixed currency
operating income. When measured at public currency rates, Global Water sales
were $538 million and operating income was $69 million.

Global Paper sales, when measured at fixed currency rates, declined 4% to $202
million in the third quarter when compared with third quarter 2011 pro forma
fixed currency sales, reflecting the strategic elimination of certain low
margin business. Modest growth in Latin America and Europe sales were more
than offset by soft packaging sales in Asia. Fixed currency operating income
increased 16% to $24 million in the third quarter when compared with third
quarter 2011 pro forma fixed currency operating income. Third quarter 2011
operating income included an unusual bad debt expense; adjusted for that
charge, third quarter 2012 Global Paper operating income rose 5%. When
measured at public currency rates, Global Paper sales were $201 million and
operating income was $24 million.

Global Energy sales, when measured at fixed currency rates, grew 20% to $587
million in the third quarter when compared with third quarter 2011 pro forma
fixed currency sales, with strong growth in all business segments. Fixed
currency operating income increased 29% to $94 million in the third quarter
when compared with third quarter 2011 pro forma fixed currency operating
income. When measured at public currency rates, Global Energy sales were $584
million and operating income was $94 million.

The Corporate segment includes amortization from the Nalco merger intangible
assets, merger integration costs, investments in the development of business
systems and other corporate investments made as part of Ecolab’s ongoing
efforts to improve our efficiency and returns. The Corporate segment also
includes special gains and charges. Special gains and charges for the third
quarter 2012 of $31 million ($22 million after-tax) primarily consisted of
charges for Nalco merger-related restructuring and integration costs as well
as charges from the European restructuring plan previously announced in 2011.
Special gains and charges for the third quarter 2011 of $28 million ($24
million after-tax) primarily consisted of charges from the previously
announced European restructuring as well as Nalco merger and integration
costs.

The reported income tax rate for the third quarter 2012 was 29.0% and compared
with the reported rate of 31.8% in the third quarter 2011. Excluding the tax
rate impact of special gains and charges and discrete tax items, the adjusted
effective income tax rate in the third quarter 2012 was 29.4% compared with
30.2% for the same period last year.

Business Outlook
With the exception of special gains and charges, the following forecasts
exclude the impact of the pending Champion Technologies acquisition.

2012
Ecolab narrowed its 2012 full-year adjusted earnings per share forecast to
$2.96 to $3.00, representing a 17% to 18% increase over the prior year.
Ecolab’s prior forecast was $2.95 to $3.02.

Special gains and charges for the full year 2012 are expected to be
approximately a $0.60 per share net charge, primarily driven by restructuring
charges, Nalco merger and integration costs, and charges related to the
pending Champion acquisition, offset by a gain on the Vehicle Care sale.
Future amounts related to discrete tax items for 2012, if any, are not
currently quantifiable.

2012 – Fourth Quarter
Ecolab expects fourth quarter adjusted earnings per share in the $0.87 to
$0.91 range, representing a 24% to 30% increase, compared with adjusted
earnings per share of $0.70 a year ago. When compared with the combined
companies’ fourth quarter 2011 pro forma performance, we look for mid
single-digit fixed currency sales growth, improved adjusted gross margin and
SG&A ratios to sales, and a lower adjusted effective tax rate to drive a very
attractive adjusted earnings performance in the fourth quarter.

Our detailed outlook for the fourth quarter 2012 is as follows:

Adjusted Gross Margins, excluding special gains and       46% - 47%
charges
SG&A % of Sales, including impact of purchase accounting   approx. 32%
Interest expense, net                                      approx. $65 million
Adjusted effective tax rate                                28% - 29%
Adjusted EPS, excluding special gains and charges          $0.87 - $0.91
Diluted shares                                             approx. 300 million
                                                           

We expect fourth quarter 2012 special gains and charges, including
restructuring charges, to be a net charge of approximately $0.10 per share,
which will be primarily Nalco merger-related and European restructuring
charges, integration charges related to the Nalco transaction, and charges
related to the Champion acquisition, offset by a gain on the Vehicle Care
sale.

Reported fourth quarter 2011 legacy Ecolab earnings per share of $0.34
included special gains and charges, discrete tax items and the impact of the
Nalco merger. Excluding these items, fourth quarter 2011 adjusted diluted
earnings per share were $0.70.

About Ecolab
With 2011 pro forma sales of $11 billion and more than 40,000 employees,
Ecolab Inc. (NYSE: ECL) is the global leader in water, hygiene and energy
technologies and services that provide and protect clean water, safe food,
abundant energy and healthy environments. Ecolab delivers comprehensive
programs and services tothe food, energy, healthcare, industrial and
hospitality markets in more than 160 countries. For more Ecolab news and
information, visit www.ecolab.com.

Ecolab will host a live webcast to review the third quarter earnings
announcement and earnings guidance today at 1:00 p.m. Eastern Time. The
webcast, along with related presentation slides, will be available to the
public on Ecolab's website at www.ecolab.com/investor. A replay of the webcast
and related materials will be available at that site. Listening to the webcast
requires Internet access, the Windows Media Player or other compatible
streaming media player.

Cautionary Statements Regarding Forward-Looking Information
This communication contains certain statements relating to future events and
our intentions, beliefs, expectations and predictions for the future which are
forward-looking statements as that term is defined in the Private Securities
Litigation Reform Act of 1995. Words or phrases such as “will likely result,”
“are expected to,” “will continue,” “is anticipated,” “we believe,” “we
expect,” “estimate,” “project,” “may,” “will,” “intend,” “plan,” “believe,”
“target,” “forecast” (including the negative or variations thereof) or similar
terminology used in connection with any discussion of future plans, actions or
events generally identify forward-looking statements. These forward-looking
statements include, but are not limited to, statements regarding benefits of
the Champion acquisition; integration plans and expected synergies; the
expected timing of completion of the Champion acquisition; our financial and
business prospects, including forecasted 2012 fourth quarter and full year
business results, including sales, adjusted gross margin, SG&A ratios to
sales, interest expense, adjusted effective tax rate, special gains and
charges, including restructuring charges, Nalco merger and integration costs,
Champion acquisition-related costs and gain on the Vehicle Care sale, and
adjusted diluted earnings per share; shares outstanding; integration progress
and the benefits of the Nalco merger; growth prospects; new business;
strengthened strategic position; and long-term outlook. These statements are
based on the current expectations of management of the company. There are a
number of risks and uncertainties that could cause actual results to differ
materially from the forward-looking statements included in this communication.
In particular, the ultimate results of any restructuring, integration and
business improvement actions, including cost synergies, depend on a number of
factors, including the development of final plans, the impact of local
regulatory requirements regarding employee terminations, the time necessary to
develop and implement the restructuring and other business improvement
initiatives and the level of success achieved through such actions in
improving competitiveness, efficiency and effectiveness. In addition, as it
relates to the Champion acquisition, these risks and uncertainties include (i)
the risk that the regulatory approvals or clearances required for the
acquisition may not be obtained, or that required regulatory approvals may
delay the acquisition or result in the imposition of conditions that could
have a material adverse effect on the company or cause the company to abandon
the acquisition, (ii) the risk that the conditions to the closing of the
acquisition may not be satisfied, (iii) the risk that a material adverse
change, event or occurrence may affect the company or Champion prior to the
closing of the acquisition and may delay the acquisition or cause the company
to abandon the acquisition, (iv) problems that may arise in successfully
integrating the businesses of the company and Champion, which may result in
the combined business not operating as effectively and efficiently as
expected, (v) the possibility that the acquisition may involve unexpected
costs, unexpected liabilities or unexpected delays, (vi) the risk that the
credit ratings of the company may be different from what the company currently
expects, (vii) the risk that the businesses of the company or Champion may
suffer as a result of uncertainty surrounding the acquisition and (viii) the
risk that disruptions from the transaction will harm relationships with
customers, employees and suppliers.

Additional risks and uncertainties that may affect operating results and
business performance are set forth under Item 1A of our most recent Form 10-Q,
our current report on Form 8-K filed October 12, 2012 and the company’s other
public filings with the Securities and Exchange Commission (the “SEC”) and
include our ability to integrate Nalco and realize the anticipated benefits of
the merger as well as to close and integrate the proposed acquisition of
Champion; our ability to attract and retain high caliber management talent to
lead our business; difficulty in procuring raw materials or fluctuations in
raw material costs; our ability to execute key business initiatives; vitality
of the markets we serve; the impact of worldwide economic factors such as the
worldwide economy, credit markets, interest rates and foreign currency risk;
exposure to economic, political and legal risks related to our international
operations; the costs and effects of complying with laws and regulations
relating to the environment and to the manufacture, storage, distribution,
sale and use of our products; changes in laws, regulations or accounting
standards; our ability to develop competitive advantages through innovation;
our substantial indebtedness; information technology systems failures; the
ability to acquire complementary businesses and to effectively integrate such
businesses; restraints on pricing flexibility due to contractual obligations;
pressure on operations from consolidation of customers, vendors or
competitors; public health epidemics; potential losses arising from the
impairment of goodwill or other assets; potential loss of deferred tax assets;
the occurrence of litigation or claims, including related to the Deepwater
Horizon oil spill; acts of war, terrorism, severe weather or natural or
man-made disasters; the loss or insolvency of a major customer, supplier or
distributor; and other uncertainties or risks reported from time to time in
our reports to the Securities and Exchange Commission. In light of these
risks, uncertainties, assumptions and factors, the forward-looking events
discussed in this communication may not occur. We caution that undue reliance
should not be placed on Forward-Looking Statements, which speak only as of the
date made. Ecolab does not undertake, and expressly disclaims, any duty to
update any forward-looking statement whether as a result of new information,
future events or changes in expectations, except as required by law.

Non-Solicitation
This communication does not constitute an offer to sell or the solicitation of
an offer to buy any securities, nor shall there be any sale of securities in
any jurisdiction in which such offer, solicitation or sale would be unlawful
prior to registration or qualification under the securities laws of any such
jurisdiction.

Non-GAAP Financial Information
This news release and certain of the accompanying tables include financial
measures that have not been calculated in accordance with accounting
principles generally accepted in the U.S. (GAAP). These non-GAAP financial
measures include fixed currency sales, pro forma sales, pro forma fixed
currency sales, adjusted gross margins, fixed currency operating income, pro
forma operating income, pro forma fixed currency operating income, adjusted
operating income, pro forma adjusted operating income, adjusted effective tax
rate, adjusted net income attributable to Ecolab and adjusted diluted earnings
per share. We provide these measures as additional information regarding our
operating results. We use these non-GAAP measures internally to evaluate our
performance and in making financial and operational decisions, including with
respect to incentive compensation. We believe that our presentation of these
measures provides investors with greater transparency with respect to our
results of operations and that these measures are useful for period-to-period
comparison of results.

We include in special gains and charges items that are unusual in nature,
significant in amount and important to an understanding of underlying business
performance. In order to better allow investors to compare underlying business
performance period-to-period, we provide adjusted gross margin, adjusted
operating income, pro forma adjusted operating income, adjusted net income
attributable to Ecolab and adjusted diluted earnings per share, which excludes
special gains and charges and discrete tax items.

The adjusted effective tax rate measure promotes period-to-period
comparability of the underlying effective tax rate because the amount excludes
the tax rate impact of special gains and charges and discrete tax items which
do not necessarily reflect costs associated with historical trends or expected
future costs.

We evaluate the performance of our international operations based on fixed
currency rates of foreign exchange. Fixed currency sales and fixed currency
operating income measures (and the applicable 2011 pro forma equivalent for
each) eliminate the impact of exchange rate fluctuations on our international
sales and operating income, respectively, and promote a better understanding
of our sales and operating income trends from underlying business performance.
Fixed currency amounts included in this release are based on translation into
U.S. dollars at the fixed foreign currency exchange rates established by
management at the beginning of 2012.

These non-GAAP financial measures are not in accordance with, or an
alternative to, GAAP and may be different from non-GAAP measures used by other
companies. Investors should not rely on any single financial measure when
evaluating our business. We recommend that investors view these measures in
conjunction with the GAAP measures included in this news release. A
reconciliation of reported diluted earnings per share to adjusted diluted
earnings per share is provided in the table "Supplemental Diluted Earnings per
Share Information" included in this news release.

(ECL-E)

ECOLAB INC.
CONSOLIDATED STATEMENT OF INCOME
THIRD QUARTER & NINE MONTHS ENDED SEPTEMBER 30
(unaudited)
                                                                         
                   Third Quarter Ended                Nine Months Ended
                   September 30              %        September 30              %
(millions,
except per         2012          2011        Change   2012          2011        Change
share)
                                                                                
Net sales          $ 3,023.3     $ 1,736.1   74%      $ 8,792.9     $ 4,953.2   78%
                                                                                
Cost of sales        1,616.4       877.9     84%        4,839.3       2,509.1   93%
(1)
Selling, general
and                  977.7         595.3     64%        2,949.1       1,786.5   65%
administrative
expenses
Special (gains)     28.0        23.3                111.0       68.0
and charges (1)
Operating income     401.2         239.6     67%        893.5         589.6     52%
Interest            64.2        13.2      386%      214.2       39.8      438%
expense, net (1)
Income before        337.0         226.4     49%        679.3         549.8     24%
income taxes
Provision for       97.7        71.9      36%       212.5       175.3     21%
income taxes
Net income
including            239.3         154.5     55%        466.8         374.5     25%
noncontrolling
interest
Less: NI (loss)
attrib. to          1.3         0.2                 (5.4    )    0.7
noncontrolling
interest (1)
Net income
attributable to    $ 238.0      $ 154.3     54%      $ 472.2      $ 373.8     26%
Ecolab
                                                                                
Earnings
attributable to
Ecolab per
common share
Basic              $ 0.81        $ 0.67      21%      $ 1.62        $ 1.61      1%
Diluted            $ 0.80        $ 0.65      23%      $ 1.58        $ 1.58      0%
                                                                                
                                                                                
Weighted-average
common shares
outstanding
Basic                292.7         231.9     26%        292.0         231.8     26%
Diluted              298.6         236.1     26%        298.3         236.2     26%
                                                                                
                                                                                
(1) Special gains and charges in the Consolidated Statement of Income above include
the following:
                                                                                
(millions)         2012          2011                 2012          2011
                                                                                
Cost of sales
Restructuring      $ 1.7         $ 4.5                $ 9.6         $ 5.3
Recognition of
Nalco inventory     1.5         -                   72.7        -
fair value
step-up
Subtotal cost of     3.2           4.5                  82.3          5.3
sales
                                                                                
Special (gains)
and charges
Restructuring        20.8          12.6                 73.2          52.8
Champion
acquisition          3.8           -                    3.8           -
costs
Nalco merger and
integration          16.4          10.3                 47.0          10.3
costs
Gain on sale of      (13.0   )     -                    (13.0   )     -
business
Business
structure and        -             0.3                  -             1.2
optimization
Cleantec
acquisition         -           0.1                 -           3.7
integration
charges
Subtotal special
(gains) and          28.0          23.3                 111.0         68.0
charges
                                                             
Operating income    31.2        27.8                193.3       73.3
subtotal
                                                                                
Interest
expense, net
Debt
extinguishment       -             -                    18.2          -
costs
                                                                                
Net income
attributable to
noncontrolling
interest
Recognition of
Nalco inventory      -             -                    (4.5    )     -
fair value
step-up
                                                                 
Total              $ 31.2       $ 27.8               $ 207.0      $ 73.3
                                                                                

ECOLAB INC.
OPERATING SEGMENT INFORMATION
THIRD QUARTER & NINE MONTHS ENDED SEPTEMBER 30
(unaudited)
                                                                                                                        
                   Third Quarter Ended                                          Nine Months Ended
                   September 30                                                 September 30
                   Reported      Reported      Pro forma     % Change           Reported      Reported      Pro forma     % Change
(millions)         2012          2011          2011          Reported  Pro     2012          2011          2011          Reported  Pro
                                                                        forma                                                        forma
                                                                                                                                     
Net Sales
  U.S. Cleaning    $ 774.1       $ 763.1       $ 741.8       1%         4%      $ 2,243.9     $ 2,197.0     $ 2,126.7     2%         6%
  & Sanitizing
  U.S. Other         124.2         119.6         119.6       4%         4%        357.1         343.3         343.3       4%         4%
  Services
  Int'l
  Cleaning,          813.5         788.1         776.7       3%         5%        2,342.7       2,268.7       2,234.4     3%         5%
  Sanitizing &
  Other Services
  Global Water       542.9         -             517.7                  5%        1,551.2       -             1,493.7                4%
  Global Paper       202.4         -             210.2                  -4%       602.2         -             609.9                  -1%
  Global Energy     586.6       -           489.6                 20%      1,671.8     -           1,367.2               22%
    Subtotal at
    fixed            3,043.7       1,670.8       2,855.6     82%        7%        8,768.9       4,809.0       8,175.2     82%        7%
    currency
    rates
  Effect of
  foreign           (20.4   )    65.3        111.7                          24.0        144.2       244.4   
  currency
  translation
    Consolidated   $ 3,023.3    $ 1,736.1    $ 2,967.3    74%        2%      $ 8,792.9    $ 4,953.2    $ 8,419.6    78%        4%
                                                                                                                                     
Operating Income
  U.S. Cleaning    $ 183.9       $ 157.7       $ 161.0       17%        14%     $ 482.6       $ 412.6       $ 421.8       17%        14%
  & Sanitizing
  U.S. Other         21.6          20.9          20.9        3%         3%        53.9          51.5          51.5        5%         5%
  Services
  Int'l
  Cleaning,          96.8          86.1          85.1        12%        14%       227.3         199.5         196.0       14%        16%
  Sanitizing &
  Other Services
  Global Water       69.8          -             55.8                   25%       167.6         -             146.8                  14%
  Global Paper       23.7          -             20.4                   16%       60.7          -             61.0                   0%
  Global Energy      94.2          -             72.8                   29%       257.4         -             194.9                  32%
  Corporate         (87.0   )    (33.4   )    (82.5   )                       (357.5  )    (89.7   )    (98.4   )
    Subtotal at
    fixed            403.0         231.3         333.5       74%        21%       892.0         573.9         973.6       55%        -8%
    currency
    rates
  Effect of
  foreign           (1.8    )    8.3         12.8                           1.5         15.7        24.2    
  currency
  translation
    Consolidated   $ 401.2      $ 239.6      $ 346.3      67%        16%     $ 893.5      $ 589.6      $ 997.8      52%        -10%
                                                                                                                                     

Note: The Corporate segment includes amortization from the Nalco merger's
intangible assets, merger integration costs, investments in the development of
business systems and other corporate investments made as part of Ecolab's
ongoing efforts to improve efficiency and returns. The Corporate segment also
includes special (gains) and charges reported on the Consolidated Statement of
Income.

Pro forma amounts for 2011 reflect the impact of the Nalco merger as if the
transaction had been completed as of January 1, 2010, as well as the movement
of certain water treatment related business to better align with internal
management of those businesses.


ECOLAB INC.
CONSOLIDATED BALANCE SHEET
(unaudited)
                                                              
                                                                  
                                    September 30   December 31    September 30
(millions)                          2012           2011           2011
                                                                  
Assets
Current assets
Cash and cash equivalents           $ 324.0        $ 1,843.6      $ 207.3
Accounts receivable, net              2,199.0        2,095.3        1,143.1
Inventories                           1,103.8        1,069.6        504.9
Deferred income taxes                 186.3          164.0          86.5
Other current assets                 259.8        223.5        149.2    
Total current assets                  4,072.9        5,396.0        2,091.0
                                                                  
Property, plant and equipment,        2,334.2        2,295.4        1,218.2
net
Goodwill                              5,893.7        5,855.3        1,504.0
Other intangible assets, net          4,103.3        4,275.2        418.8
Other assets                         318.7        362.8        273.6    
                                                                  
Total assets                        $ 16,722.8    $ 18,184.7    $ 5,505.6  
                                                                  
Liabilities and Equity
Current liabilities
Short-term debt                     $ 631.0        $ 1,023.0      $ 336.8
Accounts payable                      858.6          815.7          413.4
Compensation and benefits             459.6          497.2          300.0
Income taxes                          73.0           81.7           36.5
Other current liabilities            796.5        748.7        531.0    
Total current liabilities             2,818.7        3,166.3        1,617.7
                                                                  
Long-term debt                        5,386.7        6,613.2        700.2
Postretirement health care and        997.0          1,173.4        494.8
pension benefits
Other liabilities                    1,494.2      1,490.7      222.0    
Total liabilities                     10,696.6       12,443.6       3,034.7
                                                                  
Equity
Common stock                          340.1          336.1          335.1
Additional paid-in capital            4,162.5        3,980.8        1,404.8
Retained earnings                     3,856.9        3,559.9        3,531.2
Accumulated other comprehensive       (353.6   )     (344.9   )     (160.7   )
loss
Treasury stock                       (2,060.5 )    (1,865.2 )    (2,643.4 )
Total Ecolab shareholders' equity     5,945.4        5,666.7        2,467.0
Noncontrolling interest              80.8         74.4         3.9      
Total equity                          6,026.2        5,741.1        2,470.9
                                                                  
Total liabilities and equity        $ 16,722.8    $ 18,184.7    $ 5,505.6  
                                                                  

ECOLAB INC.
SUPPLEMENTAL DILUTED EARNINGS PER SHARE INFORMATION
(unaudited)
                                                                           
The table below provides a reconciliation of diluted earnings per share, as reported, to
the non-GAAP measure of adjusted diluted earnings per share.
                                                                                   
               First     Second      Six         Third       Nine        Fourth
               Quarter   Quarter     Months      Quarter     Months      Quarter   Year
               Ended     Ended       Ended       Ended       Ended       Ended     Ended
               Mar. 31   June 30     June 30     Sept. 30    Sept. 30    Dec. 31   Dec.
                                                                                   31
               2011      2011        2011        2011        2011        2011      2011
Diluted
earnings per
share,
as reported    $  0.40   $ 0.53      $ 0.93      $ 0.65      $ 1.58      $  0.34   $ 1.91
(U.S. GAAP)
                                                                                   
Adjustments:
Special
(gains) and       0.05     0.11        0.16        0.10        0.26         0.25     0.52
charges (1)
Tax expense
(benefits)        0.00     (0.01 )     (0.00 )     (0.00 )     (0.01 )      0.03     0.03
(2)
Nalco merger                                                                0.07     0.08
impact (3)
                                                                                   
Adjusted
diluted                                                                      
earnings
per share      $  0.45   $ 0.64     $ 1.09     $ 0.75     $ 1.84     $  0.70   $ 2.54
(Non-GAAP)
                                                                                   
                                                                                   
               First     Second      Six         Third       Nine        Fourth
               Quarter   Quarter     Months      Quarter     Months      Quarter   Year
               Ended     Ended       Ended       Ended       Ended       Ended     Ended
               Mar. 31   June 30     June 30     Sept. 30    Sept. 30    Dec. 31   Dec.
                                                                                   31
               2012      2012        2012        2012        2012        2012      2012
Diluted
earnings per
share,
as reported    $  0.17   $ 0.62      $ 0.79      $ 0.80      $ 1.58
(U.S. GAAP)
                                                                                   
Adjustments:
Special
(gains) and       0.33     0.11        0.44        0.07        0.51
charges (4)
Tax expense
(benefits)        0.00     (0.01 )     (0.00 )     (0.00 )     (0.01 )
(5)
                                                                                   
Adjusted
diluted                                                                      
earnings
per share      $  0.50   $ 0.72     $ 1.22     $ 0.87     $ 2.09              
(Non-GAAP)
                                                                                   

Per share amounts do not necessarily sum due to changes in shares outstanding
and rounding.

(1) Special (gains) and charges for 2011 include restructuring charges of $9.0
million, $25.2 million, $14.8 million and $8.9 million, net of tax, in the
first, second, third and fourth quarters, respectively. Special (gains) and
charges for 2011 also include $8.5 million and $37.1 million, net of tax, in
the third and fourth quarters, respectively for Nalco merger and integration
costs. Special (gains) and charges also include $18.4 million, net of tax, in
the fourth quarter related to the modification of a customer agreement and
Cleantec acquisition and integration costs of $2.9 million, net of tax,
recorded in the first quarter, as well as other items, net of tax.

(2) First quarter 2011 discrete tax expense primarily includes the impact of a
change in our blended U.S. state tax rate, partially offset by a discrete tax
benefit related to a state refund claim. Second quarter 2011 discrete tax
benefits primarily include discrete tax impacts of recognizing settlements and
adjustments related to prior year tax returns. Third quarter 2011 discrete tax
benefits primarily relate to net benefits from filing our 2010 U.S. federal
and other International income tax returns and settlements and adjustments
related to prior year tax returns. Fourth quarter discrete tax expense
primarily includes a charge related to the realizability of foreign net
operating loss carryforwards.

(3) The Nalco merger impact primarily relates to shares issued as
consideration for the equity portion of the merger.

(4) Special (gains) and charges for 2012 include restructuring charges of
$21.4 million, $23.8 million and $14.7 million, net of tax in the first,
second and third quarters, respectively. Special (gains) and charges for 2012
also include $10.0 million, $8.8 million and $11.7 million, net of tax, in the
first, second and third quarters, respectively related to Nalco merger and
integration costs. Special gains and charges for 2012 also include $56.3
million, net of tax, in first quarter, for the recognition of Nalco inventory
fair value step-up. Special (gains) and charges for 2012 also include debt
extinguishment costs of $11.4 million, net of tax, in the first quarter.
Special (gains) and charges for 2012 also include $3.3 million, net of tax in
the third quarter related to Champion acquisition costs. Special (gains) and
charges for 2012, also include a net of tax gain of $8.1 million in the third
quarter related to the sale of an investment in a U.S. business, originally
sold prior to 2012.

(5) First quarter 2012 tax expense includes various individually insignificant
items, which net to total discrete tax expense of $1.4 million. Second quarter
2012 discrete tax net benefits of $2.6 million primarily include the impact of
remeasurement of foreign deferred tax assets and liabilities due to the impact
of tax rate changes resulting from a change in tax jurisdiction, offset
partially by foreign audit settlements and adjustments. Third quarter 2012
discrete tax net benefits of $0.9 million primarily include net benefits from
filing our 2011 U.S. federal tax return and a release of a valuation allowance
related to a capital loss carryforward, partially offset by the remeasurement
of certain deferred tax assets and liabilities resulting from changes in local
country tax rates.


Contact:

Ecolab Inc.
Michael J. Monahan, 651-293-2809
or
Lisa L. Curran, 651-293-2185
 
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