Clorox Net Up 17%; Raises Year View

Clorox Co.'s (CLX) fiscal second-quarter earnings rose 17% as price increases helped drive the consumer-products company's improved sales and margins.

The company also raised the low end of its full-year earnings estimate by five cents to between $4.25 and $4.35 a share and now expects sales to increase 3% to 5%, up from its prior forecast of 2% to 4% sales growth.

The maker of liquid bleach and Glad trash bags, which has a largely U.S.-focused business, has seen increased sales for over a year as the economy gradually shows signs of improving. Cost controls and higher prices have also helped the bottom line, but rising costs for commodities and manufacturing remain a challenge.

For the quarter ended Dec. 31, Clorox reported a profit of $123 million, or 93 cents a share, up from $105 million, or 79 cents, a year earlier. The most-recent quarter included a gain of three cents a share on a sale and leaseback transaction.

Sales jumped 8.5% to $1.33 billion, benefiting from price increases and a 5% rise in volume.

Analysts polled by Thomson Reuters had most recently forecast per-share earnings of 81 cents on revenue of $1.27 billion.

Gross margin improved to 42.5% from 41.5%.

Sales in the cleaning segment--Clorox's largest top-line contributor--rose 15% to $425 million and income jumped 28%. The household segment's sales climbed 7% while its profit rose 65%.

The international segment's sales increased 3% but income dropped 24%, largely due to fewer shipments in Latin America and Canada. In the lifestyle segment, sales rose 8% while income was up 1%.

Shares were trading 1.3% higher at $80.20 premarket. The stock has gained 13% over the past year through Friday's close.

Write to Melodie Warner at [e-mail]

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