Clorox 4Q Net Up 7.6% On Higher Margins, EPS Beat Views

   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; [e-mail]