Clorox Expects To See Volume Growth Resume In Fiscal 2010
August 03 2009 - 3:53PM
Dow Jones News
Clorox Co. (CLX) said it expects volume to begin growing again
in fiscal 2010, but reiterated its profit guidance for the
year.
The company affirmed its earnings forecast for the new fiscal
year ending in June at $4 to $4.15 a share, putting its estimate
below the average analyst estimate of $4.17 a share, according to a
poll by Thomson Reuters. The stock was recently down $2.20, or
3.6%, to $58.81.
The company also disclosed that Wal-Mart Stores Inc. (WMT) will
not be carrying its new Green Works brand of laundry detergent in
the U.S. Clorox in June announced the launch of the natural laundry
detergent. On a conference call, company executives said Wal-Mart's
decision on the new detergent was unexpected and that the retailer
could choose to revisit its decision. Other retailers have agreed
to carry the new brand.
In recent quarters, Clorox' volume have been hurt by price hikes
taken to offset high commodity prices. Clorox and other consumer
companies have stopped hiking prices as commodity costs have come
down. Clorox has also rolled back prices for its Glad trash
bags.
In the latest quarter, the company's volume fell 2% due to the
price increases and Clorox's exit from its private-label food bags
business.
Volume are a key measure of units sold and consumer companies -
including Clorox - have seen volume come under pressure as they
raised prices to offset higher commodity prices.
Clorox's fiscal fourth-quarter profit rose 7.6% on increased
margins, despite flat revenue, as earnings beat analysts'
views.
For the period that 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.
By Anjali Cordeiro, Dow Jones Newswires; 201-938-2408;
anjali.cordeiro@dowjones.com
(Kerry Grace Benn contributed to this report.)