Ecolab Delivers Strong First Quarter EPS

  Ecolab Delivers Strong First Quarter EPS

            Reported diluted EPS $0.53; adjusted EPS +20% to $0.60

   2013 adjusted EPS forecast range increased to $3.45-$3.55, +16% to 19%,
     including expected accretion from the completed Champion acquisition

Business Wire

ST. PAUL, Minn. -- April 30, 2013

Ecolab Inc. (NYSE: ECL):

2013 FIRST QUARTER HIGHLIGHTS:

  *Reported diluted EPS $0.53
  *Record adjusted EPS $0.60, +20%, excluding special gains and charges and
    discrete tax items, led by good results from Global Food & Beverage and
    Global Specialty along with overall strong operating margin improvement
  *Reported and fixed currency sales +2%; fixed currency sales +3% excluding
    acquisitions and divestitures

CHAMPION ACQUISITION CLOSED:

  *Champion estimated 2013 adjusted earnings per share accretion $0.07,
    rising to $0.50 in 2016
  *Expect to realize cost synergies of $150 million by the end of 2015
  *Restructuring plan of $80 million announced to realize acquisition-related
    cost synergies

                                                                     
                 First Quarter Ended March 31
                 (unaudited)
                 Reported                          Adjusted*
                 First Quarter           %          First Quarter           %
(Millions,
except per       2013       2012        change     2013        2012        change
share)
                                                                            
Net Sales        $ 2,872.1   $ 2,810.9   2    %     $ 2,872.1   $ 2,810.9   2   %
Operating          261.7       165.8     58   %       313.4       283.2     11  %
Income
Net Income
Attributable      159.6      49.7      221  %      180.5      150.3     20  %
to Ecolab
                                                                            
Diluted Net
Income Per       $ 0.53      $ 0.17      212  %     $ 0.60      $ 0.50      20  %
Share
                                                                                

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

Ecolab delivered strong first quarter earnings results that reached the top
end of the company’s forecasted range. The performance was led by healthy
margin gains, which along with a lower interest expense and tax rate produced
a 20% adjusted earnings per share increase over last year.

CEO comment

Commenting on the quarter, Douglas M. Baker, Jr., Ecolab’s chairman and chief
executive officer said, “The first quarter earnings reached the top end of our
forecast range as we delivered excellent earnings growth despite comparison to
a strong period last year and challenging market conditions in 2013. Our team
did a good job delivering results, with new account growth, appropriate
pricing and significant synergy and cost savings driving the strong
double-digit earnings improvement.

“While the global markets remain mixed, with continued sluggish trends in
North America and softer trends in Europe offset by favorable markets in Asia
Pacific and Latin America, we look for improved sales growth and further
double-digit earnings per share gains over the balance of 2013 and for the
full year. Our new business results have been accelerating. Our product
innovation remains strong as we continue to emphasize new and more effective
products. Our large and well-trained global sales and service teams continue
to provide our customers with the most effective and comprehensive
personalized on-site service. When combined, we are able to provide the best
results and lowest water, energy and labor costs for both large and small
customers. We believe this formula remains a powerful competitive advantage to
differentiate us in the market, and we will continue to leverage it to deliver
better results for our customers and better returns for our shareholders.

“We are also pleased to have closed on our acquisition of Champion earlier
this month. Champion improves our ability to better serve customers by
bringing important and complementary geographic and technology strengths to
our Global Energy business – bolstering the steady-growth upstream production
area – and enables us to better serve our customers in attractive and growing
oil and gas development opportunities. In addition, we expect it will provide
significant earnings accretion, adding approximately $0.07 to 2013 adjusted
earnings per share and rising to $0.50 by 2016.”

Quarter overview

             First Quarter Ended March 31
               (unaudited)
                                                                   
               Reported                %          Adjusted Fixed          %
                                                  Currency
(Millions)     2013       2012       Change     2013       2012       Change
Net Sales      $ 2,872.1   $ 2,810.9   2   %      $ 2,861.8   $ 2,795.6   2   %
Operating        261.7       165.8     58  %        312.6       283.1     10  %
Income
                                                                              

Ecolab's reported and fixed currency sales rose 2% to a record $2.9 billion in
the first quarter of 2013. When adjusted for acquisitions and divestitures,
first quarter 2013 fixed currency sales rose 3%.

First quarter 2013 reported operating income increased 58% to $262 million.
Both reported first quarter 2013 and 2012 results include special gains and
charges and discrete tax items. Excluding special gains and charges, first
quarter 2013 adjusted operating income of $313 million increased 11% compared
with first quarter 2012 adjusted operating income. Excluding special gains and
charges and at fixed currency rates, first quarter 2013 adjusted fixed
currency operating income of $313 million increased 10% when compared with
first quarter 2012 adjusted fixed currency operating income.

First quarter 2013 reported net income attributable to Ecolab increased 221%
to $160 million, representing $0.53 per diluted share, and included special
gains and charges and discrete tax net benefits.

First quarter 2013 adjusted net income attributable to Ecolab rose 20% to $181
million, and adjusted diluted earnings per share increased 20% to $0.60, when
compared with first quarter 2012 adjusted diluted earnings per share of $0.50.
Currency translation had no significant effect on reported and adjusted
diluted earnings per share in the first quarter of 2013.

Segment review

Effective in 2013, we have a new organizational model to support global growth
which has changed our financial reporting segment structure. In order to
provide a meaningful comparison of the results of operations, 2012 segment
information has been recast to be consistent with how these businesses are now
managed. This supplemental unaudited business segment information is located
on our website at www.ecolab.com/investor and in Ecolab's current report on
Form 8-K filed April 26, 2013.

First quarter 2013 sales for the Global Industrial segment, when measured at
fixed currency rates, rose 1% to $1,141 million led by solid Global Food &
Beverage growth which more than offset slight declines in Global Water and
Global Paper sales. Fixed currency operating income increased 19% to $117
million compared with the year ago period. When adjusted for acquisitions,
first quarter 2013 fixed currency sales were flat and showed similar results
by region. Excluding the impact of mining and the deemphasized businesses
which declined versus last year, Global Water sales to the heavy and light
industries were flat; regionally, North America recorded good sales growth
which was more than offset by modest sales declines elsewhere due to a
challenging comparison period in last year’s first quarter. When measured at
public currency rates, Global Industrial sales were $1,146 million and
operating income was $118 million.

First quarter 2013 sales for the Global Institutional segment, when measured
at fixed currency rates, rose 2% to $975 million, led by double-digit Global
Specialty sales growth. Fixed currency operating income increased 9% to $145
million compared with last year. Global Healthcare sales grew modestly and
Global Institutional business sales were flat. Sales for the segment showed
strong growth in Latin America with good gains in Asia Pacific and North
America, which more than offset lower sales in EMEA. When measured at public
currency rates, Global Institutional sales were $978 million and operating
income was $145 million.

Global Energy segment sales, when measured at fixed currency rates, grew 7% to
$579 million in the first quarter 2013 led by growth in the upstream market.
Fixed currency operating income decreased 4% to $79 million. Both results
reflect the comparison to an unusually strong first quarter 2012, when fixed
currency sales rose 29% and operating income rose 53%, as well as ongoing
investment in the field sales organization. Full year 2013 sales and operating
income are expected to grow at double-digits rates. When measured at public
currency rates, Global Energy sales were $580 million and operating income was
$79 million.

Other segment sales, when measured at fixed currency rates, declined 5% to
$167 million in the first quarter. Fixed currency operating income increased
4% to $21 million. Adjusted for the sale of Vehicle Care in the fourth quarter
2012, first quarter 2013 fixed currency sales increased 5% with good results
from both Global Pest Elimination and Equipment Care, and fixed currency
operating income increased 12%. When measured at public currency rates, Other
segment reported sales were $168 million and reported operating income was $21
million.

The Corporate segment includes amortization from the Nalco merger intangible
assets and certain merger integration costs. The Corporate segment also
includes special gains and charges. Special gains and charges for the first
quarter 2013 were a net charge of $53 million ($36 million after-tax) and
primarily consisted of a charge related to the devaluation of the Venezuelan
currency, restructuring charges, Nalco integration costs and Champion
acquisition related costs. Special gains and charges for the first quarter
2012 were a net charge of $131 million ($99 million after-tax) and primarily
consisted of charges for the fair value step-up of Nalco inventory,
restructuring costs, Nalco integration and early debt retirement costs.

The reported income tax rate for the first quarter 2013 was 19.6% and compared
with the reported rate of 44.7% in the first quarter 2012. Excluding the tax
rate impact of special gains and charges and discrete tax items, the adjusted
effective income tax rate was 28.2% in the first quarter 2013 compared with
30.7% for the same period last year. The improved tax rate was primarily the
result of global tax planning actions and the geographic mix of income.

Energy Restructuring

Ecolab announced that it plans to undertake restructuring and other
cost-saving actions to realize its Champion acquisition-related cost synergies
as well as streamline and strengthen Ecolab’s position in the fast growing
energy market. As a result of these actions, Ecolab anticipates cost synergies
of approximately $25 million in 2013, with annual acquisition cost synergies
of $150 million achieved by the end of 2015.

Actions associated with the acquisition to improve the effectiveness and
efficiency of the business includes the following:

  *A reduction of the combined business’s current global workforce by
    approximately 500 positions. A number of these reductions are expected to
    be achieved through open positions and attrition. Those whose jobs are
    eliminated will be offered severance and outplacement as appropriate.
  *Improved ongoing leverage and simplification in global supply chain,
    including the reduction of plant and distribution center locations.
  *Rationalization of sales offices and other redundant facilities.
  *Procurement savings from the company’s larger scale.
  *Product line optimization.

The pretax merger-related restructuring costs are expected to be approximately
$80 million ($55 million after tax), with approximately $50 million ($30
million after tax) in 2013. The company anticipates that approximately $60
million of the $80 million restructuring costs will represent net cash
expenditures. The restructuring is expected to be completed by the end of
2015.

Business Outlook

2013

Ecolab expects 2013 full-year adjusted earnings per share – including expected
accretion from the Champion acquisition – in a $3.45 to $3.55 range,
representing a 16% to 19% increase over the prior year. This includes a
forecasted $0.07 of accretion from the Champion acquisition. Ecolab previously
forecast 2013 earnings per share in a $3.38 to $3.48 range excluding Champion.
When compared with the full year 2012, and excluding the impact of the
Champion acquisition, we look for solid fixed currency sales growth, improved
adjusted gross margin and SG&A ratios to sales, and a lower adjusted effective
tax rate to drive a double-digit adjusted earnings per share performance.

Special gains and charges for the full year 2013 are expected to be
approximately a $0.45 per share net charge, primarily driven by restructuring
charges, Nalco integration costs, Champion acquisition related costs and the
Venezuelan devaluation charge and discrete tax items within first quarter.
Future amounts related to discrete tax items for 2013, if any, are not
currently quantifiable.

2013 – Second Quarter

Ecolab expects second quarter adjusted earnings per share in the $0.81 to
$0.85 range, including an expected $0.01 per share accretion from Champion,
and representing a 13% to 18% increase when compared with adjusted earnings
per share of $0.72 a year ago. When compared with the second quarter 2012
performance, we look for the second quarter 2013 to show double-digit fixed
currency sales growth, with acquisition-adjusted fixed currency sales growth
in the mid-single digits; Ecolab also expects improved adjusted operating
income and a lower adjusted effective tax rate, yielding double-digit adjusted
earnings per share growth in the second quarter.

Our detailed outlook for the second quarter 2013 is as follows:

                                                 
Adjusted Gross Margin, excluding special gains      45% to 46%
and charges
SG&A % of Sales                                     32% to 33%
Interest expense, net                               $65 million to $70 million
Adjusted effective tax rate                         28% - 29%
Adjusted EPS, excluding special gains and           $0.81 - $0.85
charges
Diluted shares                                      approx. 307 million
                                                    

We expect second quarter 2013 special gains and charges, including
restructuring charges, Nalco integration costs, Champion deal and integration
costs, and Energy restructuring related costs to be a net charge of
approximately $0.25 per share.

Reported second quarter 2012 diluted earnings per share of $0.62 included
special gains and charges and discrete tax items. Excluding these items,
second quarter 2012 adjusted diluted earnings per share were $0.72.

About Ecolab

A trusted partner at more than one million customer locations, Ecolab (ECL) is
the global leader in water, hygiene and energy technologies and services that
protect people and vital resources. With 2012 sales of $12 billion and 41,000
associates, Ecolab delivers comprehensive solutions and on-site service to
promote safe food, maintain clean environments, optimize water and energy use
and improve operational efficiencies for customers in the food, healthcare,
energy, hospitality and industrial markets in more than 170 countries around
the world. For more Ecolab news and information, visit www.ecolab.com.

Ecolab will host a live webcast to review the first 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 our financial
and business prospects, including forecasted 2013 second quarter and full year
business results, including fixed currency sales, adjusted gross margin, SG&A
ratios to sales, interest expense, adjusted effective tax rate, adjusted
earnings per share and diluted shares outstanding; adjusted operating income;
special gains and charges, including restructuring charges, Nalco integration
costs, Champion acquisition and integration costs and Energy restructuring
related costs; expected accretion from the Champion acquisition; Champion
acquisition cost synergies; restructuring and cost savings actions, including
workforce reductions; procurement savings and facility rationalizations;
economic and market conditions; sales growth; new product introductions; and
margin improvement. 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 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.

Additional risks and uncertainties that may affect operating results and
business performance are set forth under Item 1A of our most recent Form 10-K
for the year ended December 31, 2012, the company's other public filings with
the Securities and Exchange Commission (the "SEC") and include the vitality of
the markets we serve; the impact of economic factors such as the worldwide
economy, capital flows, interest rates and foreign currency risk; our ability
to integrate the Nalco merger and the Champion acquisition and to realize the
anticipated benefits of these transactions; our ability to attract and retain
high caliber management talent to lead our business; our ability to execute
key business initiatives; potential information technology infrastructure
failures; exposure to global 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; the occurrence of litigation or
claims, including related to the Deepwater Horizon oil spill; our ability to
develop competitive advantages through innovation; difficulty in procuring raw
materials or fluctuations in raw material costs; our substantial indebtedness;
our 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;
potential class action lawsuits; the loss or insolvency of a major customer or
distributor; acts of war or terrorism; natural or man-made disasters; water
shortages; severe weather conditions; and other uncertainties or risks
reported from time to time in our reports to the SEC. 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-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, adjusted gross margins, fixed currency
operating income, adjusted operating income, adjusted fixed currency 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, and
significant in amount. In order to better allow investors to compare
underlying business performance period-to-period, we provide adjusted gross
margin, 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, fixed currency
operating income and adjusted fixed currency operating income measures
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 2013.

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
FIRST QUARTER ENDED MARCH 31, 2013
(unaudited)

                                             First Quarter Ended     
                                              March 31                  %
(millions, except per share)                  2013       2012          Change
                                                                        
Net sales                                     $ 2,872.1   $ 2,810.9     2    %
                                                                        
Cost of sales (1)                               1,564.9     1,614.0     -3   %
Selling, general and administrative             995.8       989.7       1    %
expenses
Special (gains) and charges (1)                49.7       41.4    
Operating income                                261.7       165.8       58   %
Interest expense, net (1)                      61.5       86.1       -29  %
Income before income taxes                      200.2       79.7        151  %
Provision for income taxes                     39.2       35.6       10   %
Net income including noncontrolling             161.0       44.1        265  %
interest
Less: Net income (loss) attributable to        1.4        (5.6    )
noncontrolling interest (1)
Net income attributable to Ecolab             $ 159.6     $ 49.7       221  %
                                                                        
Earnings attributable to Ecolab per common
share
Basic                                         $ 0.54      $ 0.17        218  %
Diluted                                       $ 0.53      $ 0.17        212  %
                                                                        
                                                                        
Weighted-average common shares outstanding
Basic                                           295.4       291.5       1    %
Diluted                                         300.9       297.9       1    %
                                                                             

(1) Special (gains) and charges in the Consolidated Statement of Income above
include the following:

                                                     
                                                         First Quarter Ended
                                                         March 31
    (millions)                                           2013      2012
                                                                    
    Cost of sales
    Restructuring                                        $ 2.0      $ 2.1
    Recognition of Nalco inventory fair value step-up     -        73.9  
    Subtotal                                               2.0        76.0
                                                                    
    Special (gains) and charges
    Restructuring charges                                  18.5       26.5
    Champion acquisition costs                             7.8        -
    Nalco merger and integration costs                     3.8        14.9
    Venezuela currency devaluation                         23.4       -
    Litigation related charges and other                  (3.8 )    -     
    Subtotal                                               49.7       41.4
                                                                   
    Operating income subtotal                             51.7     117.4 
                                                                    
    Interest expense, net
    Acquisition debt costs                                 2.2        -
    Debt extinguishment costs                             -        18.2  
    Subtotal                                               2.2        18.2
                                                                    
    Net income attributable to noncontrolling interest
    Venezuela currency devaluation                         (0.5 )     -
    Recognition of Nalco inventory fair value step-up     -        (4.5  )
    Subtotal                                               (0.5 )     (4.5  )
                                                                   
    Total                                                $ 53.4    $ 131.1 
                                                                            


ECOLAB INC.
OPERATING SEGMENT INFORMATION
FIRST QUARTER ENDED MARCH 31, 2013
(unaudited)
                                                              
                                     First Quarter Ended
                                     March 31
(millions)                           2013            2012            % Change
                                                                     
Net Sales
Global Industrial                    $ 1,140.7       $ 1,129.9       1    %
Global Institutional                   974.7           951.3         2    %
Global Energy                          579.1           538.9         7    %
Other                                 167.3       175.5        -5   %
Subtotal at fixed currency rates       2,861.8         2,795.6       2    %
Currency impact                       10.3        15.3    
Consolidated                         $ 2,872.1    $ 2,810.9      2    %
                                                                     
Operating Income
Global Industrial                    $ 117.1         $ 98.1          19   %
Global Institutional                   145.3           132.9         9    %
Global Energy                          78.8            82.1          -4   %
Other                                  20.6            19.9          4    %
Corporate                             (100.9  )    (167.3  )
Subtotal at fixed currency rates       260.9           165.7         57   %
Currency impact                       0.8         0.1     
Consolidated                         $ 261.7      $ 165.8        58   %
                                                                          

Note: The Corporate segment includes amortization from the Nalco merger's
intangible assets and certain merger integration costs. The Corporate segment
also includes special (gains) and charges reported on the Consolidated
Statement of Income.

Effective in the first quarter of 2013, the company changed its reportable
segments due to a change in its underlying organizational model designed to
support the business following the Nalco merger and to facilitate global
growth.



ECOLAB INC.
CONSOLIDATED BALANCE SHEET
(unaudited)
                                                           
                                                                  
                                March 31         December 31      March 31
(millions)                      2013             2012             2012
                                                                  
Assets
Current assets
Cash and cash equivalents       $ 824.3          $ 1,157.8        $ 354.0
Accounts receivable, net          2,182.1          2,225.1          2,049.0
Inventories                       1,145.3          1,088.1          1,087.4
Deferred income taxes             201.3            205.2            183.2
Other current assets             250.4          215.8          286.2    
Total current assets              4,603.4          4,892.0          3,959.8
                                                                  
Property, plant and               2,415.5          2,409.1          2,331.6
equipment, net
Goodwill                          5,908.5          5,920.5          5,946.8
Other intangible assets,          4,022.5          4,044.1          4,237.8
net
Other assets                     346.3          306.6          328.6    
                                                                  
Total assets                    $ 17,296.2      $ 17,572.3      $ 16,804.6 
                                                                  
Liabilities and Equity
Current liabilities
Short-term debt                 $ 497.1          $ 805.8          $ 1,346.9
Accounts payable                  845.0            879.7            805.1
Compensation and benefits         405.4            518.8            409.8
Income taxes                      108.1            77.4             71.2
Other current liabilities        828.6          771.0          808.7    
Total current liabilities         2,684.2          3,052.7          3,441.7
                                                                  
Long-term debt                    5,737.1          5,736.1          4,911.0
Postretirement health care        1,219.2          1,220.5          1,164.7
and pension benefits
Other liabilities                1,423.2        1,402.9        1,482.1  
Total liabilities                 11,063.7         11,412.2         10,999.5
                                                                  
Equity
Common stock                      343.6            342.1            337.5
Additional paid-in capital        4,309.7          4,249.1          4,049.5
Retained earnings                 4,112.3          4,020.6          3,551.3
Accumulated other                 (509.2   )       (459.7   )       (249.5   )
comprehensive loss
Treasury stock                   (2,094.7 )      (2,075.1 )      (1,955.6 )
Total Ecolab shareholders'        6,161.7          6,077.0          5,733.2
equity
Noncontrolling interest          70.8           83.1           71.9     
Total equity                      6,232.5          6,160.1          5,805.1
                                                                  
Total liabilities and           $ 17,296.2      $ 17,572.3      $ 16,804.6 
equity
                                                                             


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
               2012        2012        2012        2012        2012        2012        2012
Diluted
earnings per
share,
as reported    $ 0.17      $ 0.62      $ 0.79      $ 0.80      $ 1.58      $ 0.77      $ 2.35
(U.S. GAAP)
                                                                                       
Adjustments:
Special
(gains) and      0.33        0.11        0.44        0.07        0.51        0.14        0.65
charges (1)
Tax expense
(benefits)       0.00        (0.01 )     (0.00 )     (0.00 )     (0.01 )     (0.02 )     (0.03 )
(2)
                                                                                       
Adjusted
diluted                                                                          
earnings
per share      $ 0.50     $ 0.72     $ 1.22     $ 0.87     $ 2.09     $ 0.89     $ 2.98  
(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
               2013        2013        2013        2013        2013        2013        2013
Diluted
earnings per
share,
as reported    $ 0.53
(U.S. GAAP)
                                                                                       
Adjustments:
Special
(gains) and      0.12
charges (3)
Tax expense
(benefits)       (0.05 )
(4)
                                                                                       
Adjusted
diluted                                                                          
earnings
per share      $ 0.60                                                            
(Non-GAAP)
                                                                                       

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

(1) Special (gains) and charges for 2012 include restructuring charges of
$21.4 million, $23.8 million, $14.7 million and $40.4 million, net of tax in
the first, second, third and fourth quarters, respectively. Special (gains)
and charges for 2012 also include $10.0 million, $8.8 million, $11.7 million
and $15.5 million, net of tax, in the first, second, third and fourth
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 and $12.7 million, net of tax in the third and
fourth quarters, respectively, 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. Special (gains) and charges for 2012 also
include a net gain of $27.6 million, net of tax in the fourth quarter related
to the sale of our Vehicle Care division offset partially by litigation
related charges.

(2) 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. Fourth quarter 2012 discrete tax net benefits of $7.1
million primarily include the remeasurement of deferred tax assets and
liabilities due to the impact of tax rate changes resulting from a change in
tax jurisdiction, as well as other various individually insignificant items.

(3) Special (gains) and charges for the first quarter 2013 include
restructuring charges of $14.1 million, net of tax. Special (gains) and
charges for the first quarter of 2013 also include $15.0 million, net of tax
for the devaluation of Venezuelan currency, and $9.8 million, net of tax,
related to Nalco merger and Champion acquisition costs. Special (gains) and
charges for the first quarter of 2013 also includes a net gain of $2.5
million, net of tax related to other items.

(4) The first quarter 2013 discrete tax benefit of $15.5 million is driven
primarily by net benefits related to the remeasurement of certain deferred tax
assets and liabilities and the retroactive extension during first quarter 2013
of the U.S. R&D credit.

Contact:

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