Clorox Doesn't See Need To Rollback Prices

Clorox (CLX) doesn't see the need for a broad reduction in prices at this time despite the drop in consumer spending, Chief Executive Don Knauss said at the Consumer Analyst Group of New York conference in Floriday.

"We believe pricing will hold," said Knauss. "We don't anticipate talking a lot more pricing but on the other hand we don't intend to take pricing down."

Investors have been concerned that consumer manufacturers may have to cut prices for their products under pressure from retailers looking to drive sales. Lower prices would hurt margins and profitability for branded manufacturers, who are already seeing sales pressures from rival private-label goods.

Clorox echoed comments by other food and consumer product companies through the conference this week.

"We don't think our pricing has been over aggressive. We never priced at the peak of these commodities," Knauss said. "We haven't had any gun fights with any retailers over the issue."

The company said it is "cautiously optimistic" about the balance of its fiscal year 2009 which ends in June. The company is poised for a "solid year" in fiscal 2010, Knauss said, but he also pointed to headwinds like pension expenses that will continue into next year.

The company said if there were an opportunity to cut prices it was most likely look at plastic bags and wraps.

-Anjali Cordeiro; Dow Jones Newswires; 201-938-2408; [e-mail]