DOW JONES NEWSWIRES
Clorox Co.'s (CLX) fiscal fourth-quarter profit rose 7.6% on
increased margins, despite flat revenue, as earnings beat analysts'
views.
Shares were recently up 0.6% at $61.40.
Consumer-products makers like Clorox have been roiled by
volatile commodities prices for the past few years. The company has
improved its profit with price increases despite pressure during
the recession for retailers and consumers to cut costs.
In June, the company raised its quarterly dividend 8.7%, joining
many consumer-products makers who have been sweetening their
payouts during the recession, a striking contrast with other
industries. That month, Chairman and Chief Executive Don Knauss
said he expected the economic recovery to be slow and
hard-earned.
For the period ended June 30, the company known for its namesake
bleach and other household cleaning goods posted income of $170
million, or $1.20 a share, up from $158 million, or $1.13 a share,
a year earlier. Excluding restructuring and other items, earnings
rose to $1.35 from $1.14.
Revenue was flat at $1.5 billion.
Analysts polled by Thomson Reuters expected earnings of $1.19
and revenue of $1.49 billion.
Gross margin rose to 45.8% from 42.1% on price increases, cost
savings and lower commodities costs.
Volume fell 2% due to the price increases and Clorox's exit from
its private-label food bags business. North American sales were
flat as volume declined 3%, though earnings grew 15%. International
sales grew 1% on a 1% increase in volume, while earnings fell 10%
on unfavorable foreign exchange rates.
The company affirmed its earnings forecast for the new fiscal
year.
-By Kerry Grace Benn, Dow Jones Newswires; 212-416-2353;
kerry.benn@dowjones.com