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ST. PAUL, Minn.–(BUSINESS WIRE)–Ecolab Inc. (NYSE:ECL) announced a temporary energy surcharge of 8% to 12% on all of its global products, effective April 1, 2022. This surcharge is intended to alleviate the dramatic rise in energy costs.
Christophe Beck, President and CEO of Ecolab, commented, “The prolonged global environment of higher raw material and logistics costs, driven by the inflationary environment the world has experienced over the past year, has recently faced unprecedented surges stemming from Russia. – Ukrainian conflict.
“As a long-term business partner to our customers, we have taken continuous steps to ensure supply chain resilience and reduce volatility by accelerating value engineering, optimizing supplier footprint, by increasing strategic inventory and expanding our end-to-end supply chain partnerships to help mitigate extreme shortages of raw materials and logistics We have also taken a wide range of productivity measures to improve our efficiency and reduce our costs in order to help offset the strong inflationary challenges and the resulting prices.
“Nevertheless, we must now also implement this temporary energy surcharge to mitigate the dramatic rise in oil and gas costs and its impact on commodity and logistics inflation to ensure that we can continue to provide a reliable supply of products, as well as continuing to invest in the product innovation, digital technology and service expertise that are core to our differentiated global offering.We will monitor this situation monthly; when the current spike in energy costs moderates , we plan to reduce or eliminate this surcharge.
“We are confident that this move will ensure our ability to continue to provide the products and services that our customers rely on, as well as to provide the leading technologies, solutions and services to help our customers reduce their use of natural resources and their impact on the environment, while improving their total cost of ownership.
A trusted partner at nearly three million customer sites, Ecolab (ECL) is a global leader in water, hygiene, and infection prevention solutions and services that protect the health of people, the planet, and businesses. With annual sales of $13 billion and more than 47,000 associates, Ecolab delivers comprehensive science-based solutions, data-driven insights, and world-class service to advance food safety, maintain clean and safe environments, optimize water and energy use and improve operational efficiency. and sustainability for customers in the food, healthcare, hospitality and industrial markets in more than 170 countries around the world. www.ecolab.com
Cautions 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. intended”, “will continue”, “is planned”, “we believe”, “we expect”, “estimate”, “plan”, “may”, “shall”, “to guarantee”, “intend “, “plan”, “believe”, “target”, “expect” (including the negative form or variations thereof) or similar terminology used in connection with any discussion of future plans, actions or events generally identify statements prospective. These forward-looking statements include, but are not limited to, the duration, reduction and elimination of the energy surcharge and the continuity of supply of products and services. These statements are based on the current expectations of the company’s management. 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, including the duration and severity of the geopolitical events causing the current inflationary environment. and other developments that increase costs or affect the availability of products or services.
Additional risks and uncertainties that could affect results of operations and business performance are set forth in Section 1A of our most recent Form 10-K and our other public filings with the Securities and Exchange Commission (the “SEC”), and include the effects and duration of the COVID-19 pandemic; raw material supply difficulties or raw material cost fluctuations; exposure to global economic, political and legal risks related to our international operations, including the impact of sanctions or other actions taken by the United States or other countries, and retaliatory measures taken by Russia in response, in the context of the conflict in Ukraine; our ability to compete successfully on value, innovation and customer support; pressure on operations due to customer or supplier consolidation; constraints on pricing flexibility due to contractual obligations and our ability to meet our contractual commitments; repeated or prolonged government and/or business shutdowns or similar events; acts of war or terrorism; natural or man-made disasters; and other uncertainties or risks noted from time to time in our filings with the SEC. In light of these risks, uncertainties, assumptions and factors, the forward-looking events discussed in this release may not occur. We caution you that you should not place undue reliance on forward-looking statements, which speak only as of the date made. Ecolab does not undertake and expressly disclaims any obligation to update any forward-looking statement, whether as a result of new information, future events or changes in expectations, except as required by law.
Michael J. Monahan (651) 250-2809
Andrew C. Hedberg (651) 250-2185
Cairn Clark (651) 250-2291
Source: Ecolab Inc.