Ecolab Inc. (ECL – Free Report) reported adjusted earnings (excluding special gains, charges and tax items) of $1.28 per share in the third quarter of 2016, which exceeded the Zacks Consensus Estimate by a penny. However, earnings remained flat on a year-over-year basis.

Adjusted net sales were $3.39 billion, down 1.74% from the year-ago quarter. Also, net sales lagged the Zacks Consensus Estimate of $3.46 billion.

Quarter Details

Global Industrial segment sales grew 2% year over year to almost $1.18 billion at fixed currency. This was driven by gains in Food & Beverage, with modest growth in Water and Paper sales. Acquisition adjusted fixed currency operating income soared 12% fueled by lower delivered product costs, appropriate pricing and cost savings initiatives.

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Global Institutional segment sales increased 6% to $1.16 billion, led by strong growth in the institutional and Specialty businesses. Acquisition adjusted fixed currency operating income increased 6% owing to strong growth from the Specialty and Institutional business. Sales were strong in North America, Asia Pacific, Latin America and Europe as well.

Global Energy acquisition adjusted fixed currency sales decreased 8% owing to a drop in the company’s upstream business revenues.

Sales from the Other segment climbed 8% year over year to $210.5 million on account of strong growth in both Pest Elimination and Equipment Care businesses.

The company witnessed a 50% increase in fixed currency operating income. However, excluding special gains and charges, third-quarter 2016 adjusted operating income was flat with the figure reported in the same quarter last year. Notably, at fixed currency rates, adjusted fixed currency operating income increased 5%.

Outlook

For the fourth quarter of 2016, Ecolab projects adjusted gross margin in the range of 48% to 49%. Selling, general & administrative (SG&A) expenses, as a percentage of sales, are expected to be approximately 31%. Interest expenses are projected at around $70 million.