Ecolab to cut 2% of work force; 30 in Minnesota
Susan Feyder
Star Tribune
Published Jan 11 2002
Ecolab Inc. said Thursday it will cut 350 to 450 jobs -- about 2
percent of its worldwide work force -- over the next 12
months as it moves to reduce costs and streamline operations.
The St. Paul-based company, which makes cleaning, sanitizing
and maintenance products, said it expects about 30 jobs to be
eliminated in Minnesota, where it has about 1,600 employees,
including about 1,300 people at its headquarters. Spokesman
Mike Monahan said the work-force reductions will affect
employees of all levels and be accomplished through attrition,
voluntary severance and layoffs.
Ecolab has had a hiring freeze in effect since last summer,
Monahan added.
Besides trimming its work force, Ecolab also plans to close
some facilities, discontinue some products and change some
employee benefit plans.
The cost-cutting moves will result in a one-time pretax charge
of $50 million to $60 million this year, which will be partially
offset by $20 million in one-time gains from the changes in
benefit plans.
Ecolab said that the net result of its changes should be $25
million to $30 million in annual pretax savings when the
restructuring is complete in 2003.
Ecolab also said Thursday it earned 30 cents a share in the
fourth quarter, putting its earnings for 2001 at $1.45 a share.
The quarterly and year-end results are in line with the
company's expectations and the consensus estimate of
Thomson Financial/First Call. The company expects operating
earnings for 2002 to be $1.58 to $1.62 per diluted share.
Ecolab stock closed Thursday at $40 a share, down 84 cents, or
about 2 percent, for the day. The company's operations have
suffered because of the soft economy, and its stock price has
fallen more than 5 percent in the last year.
-- Susan Feyder is at
sfeyder@startribune.com .
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