Consumer products maker Clorox Co. (CLX) Friday reported an increase in first-quarter profit, which the company attributes to strong top-line growth and cost savings. Citing higher estimated foreign currency devaluation versus dollar, Clorox lowered its fiscal 2009 sales growth target, but maintained the earnings per share guidance.
Clorox earned $128 million or $0.91 per share, in the first quarter, up from $111 million, or $0.76 per share, a year ago.
The company's latest quarter results included pretax restructuring-related charges of $6 million, or $0.03 per share, and a pretax loss of $3 million, or $0.01 per share, related to the Burt's Bees acquisition.
The year-ago results included pretax restructuring-related charges of about $27 million, or $0.12 per share. The charges for both years were associated with the previously announced consolidation of the company's manufacturing network and other actions the company decided to take in light of its Centennial Strategy.
Excluding items, Clorox delivered first-quarter earnings per share of $0.95, compared with $0.88 in the same quarter last year. On average, 14 analysts polled by First Call/Thomson Financial expected the company to report earnings of $0.84 per share.
Quarterly sales totaled $1.38 billion, a 12% rise from last year's from $1.24 billion. Excluding the Burt's Bees acquisition, sales were up 8%. Ten Wall Street analysts had a consensus revenue estimate of $1.35 billion for the quarter.
For the sequentially preceding quarter, Clorox's net earnings were $158 million, or $1.13 per share, on sales of $1.50 billion.
Sales volume increased 4% in the quarter. Excluding Burt's Bees products, volume was up 1%. Clorox said sales growth outpaced volume growth primarily due to the benefit of price increases and favorable product mix.
During the quarter, gross margin decreased 200 basis points to 40.6% from 42.6% a year ago, reflecting about 40 basis points impact by restructuring-related charges on cost of goods.
Business segment wise, North America delivered an 11% rise in sales to $1.17 billion, along with a 4% rise in volume. The company attributed the volume growth to Burt's Bees products, Green Works natural cleaners, record shipments of Glad ForceFlex trash bags, Brita water-filtration products, Fresh Step scoopable cat litter and Kingsford charcoal products. The segment's pretax earnings were up 15%.
International sales increased 14% to $217 million, with volume rising 5%, driven by shipments of laundry and homecare products in Latin America. However, pretax earnings were down 22%, hurt by higher costs for commodities, manufacturing and logistics, as well as increased advertising and merchandising spending to support Latin American growth. According to the company, about 20% of its sales are outside of the U.S., with about 10% in the core markets of Canada, Australia, New Zealand, Mexico and Chile.
Among others in the sector, consumer products giant Colgate-Palmolive Co. (CL) on October 30 has reported a 19% increase in third-quarter profit, helped by double-digit sales growth on price increases and growth in international sales.
Another rival, Procter & Gamble Co. (PG), the world's largest consumer products maker, said on October 29 that its first-quarter earnings rose 9% from last year, helped by price increases, favorable foreign exchange and higher non-operating gains from planned divestitures. The company, which makes Tide detergent, Head & Shoulders shampoo, Gillette Fusion razors and Pampers diapers, also reported a 9% increase in its sales for the quarter.
Looking forward, for fiscal 2009, Clorox continues to anticipate earnings per share in the range of $3.60 - $3.75. Lower commodity costs, favorable product mix and higher cost savings are anticipated to offset the negative impact of foreign currency declines and higher interest costs for the full year. Street analysts expect earnings of $3.69 per share for the year.
Full-year sales are now projected rise 4% to 6%, lower than its prior growth forecast range of 6% to 8%, due to higher estimated foreign currency devaluation versus the U.S. dollar.
Clorox also anticipates higher cost savings in a range of $100 million - $105 million. Meanwhile, restructuring-related charges outlook remains unchanged in the range of $20 million - $25 million.
CLX is trading at $60.41, up $2.20, on a volume of 993,404 shares.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.