Ecolab Inc.'s (A/Stable/A-1) announcement that its first-quarter earnings were weaker year over year does not affect Standard&Poor's ratings or outlook on the company. The first-quarter earnings shortfall primarily reflects special charges related to restructuring and cost-saving actions. Otherwise, the company notes that results show an improvement over weak fourth-quarter 2001 results, especially in the U.S. The company anticipates that results in the latter half of 2002 will continue to build on progress made in the first half. Ratings are supported by the company's above-average business profile. The cash purchase of the remaining 50% of Ecolab's joint venture with Henkel KgaA has resulted in a moderate increase in financial risk, but credit protection measures and financial flexibility are still
