Clorox Earnings Jump 13% On 6% Volume Growth.Business Editors OAKLAND, Calif.--(BUSINESS WIRE)--Oct. 25, 2000 The Clorox Company (NYSE NYSE See: New York Stock Exchange , PE: CLX (library, graphics) CLX - The Common Lisp library providing a low-level interface to the X Window System, equivalent to Xlib. Graphics toolkits can be built on top of CLX, e.g. McCLIM, Garnet, CLUE and CLIO. ) announced a 13 percent increase in earnings, before the cumulative effect of a change in accounting principle, for the fiscal first quarter ended September 30. Continued strength of the company's line-up of home care products, margin improvement initiatives in the company's international business, operating efficiencies in the company's auto care business and record summer demand for Kingsford charcoal charcoal, substance obtained by partial burning or carbonization (destructive distillation) of organic material. It is largely pure carbon. The entry of air during the carbonization process is controlled so that the organic material does not turn to ash, as in a all contributed to the company's strong results. Earnings for the quarter were $100 million, or 42 cents per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, before a one-time, $2 million charge related to the company's adoption of Statement of Financial Accounting Standards No. 133, "Accounting for Derivative Instruments Derivative instruments Contracts such as options and futures whose price is derived from the price of an underlying financial asset. and Hedging Activities." Net earnings after the cumulative effect of the change in accounting principle were $98 million, or 41 cents per diluted share. In the prior-year quarter, the company reported earnings of $88.5 million, or 37 cents per diluted share, before merger-related charges. Sales for the quarter increased 5 percent, to $985 million, compared with $942 million in the prior-year quarter. Overall volumes increased 6 percent. "Our solid results this quarter demonstrated our ability to leverage our leading brands, particularly in the home care category," said Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Craig Sullivan Craig Sullivan, American Known for being an Exceptional EMS Director Currently operating a successful EMS in Boone NC]. born and raised in Ashe County NC. Currently living in Zionville NC with wife and 3 kids External links
A summary of key results by business segment follows. Unless otherwise noted, growth comparisons are with the first quarter of fiscal 2000. U.S. Household Products and Canada -- 7% growth in volumes -- 6% growth in net sales -- 6% growth in earnings before income tax Volume growth in this segment was fuelled by the strong performance of most home care products. Clorox Disinfecting Wipes, one of the company's most successful new product launches in history since its debut last January, continued to generate significant incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. volume. Other major contributors to top-line growth were Clorox Clean-Up, buoyed by new advertising and merchandising; and Pine-Sol dilutable cleaners, behind the popular Meadow Fresh Meadow Fresh NZ Ltd formed as the result of a brand swap in September 2005 between New Zealand Dairy Foods Ltd and New Zealand Milk (a now defunct Fonterra subsidiary). The two companies that emerged from the swap were: In the laundry category, the conversion to Ultra Clorox liquid bleach Noun 1. liquid bleach - a solution containing bleaching agents; used for laundry solution - a homogeneous mixture of two or more substances; frequently (but not necessarily) a liquid solution; "he used a solution of peroxide and water" , which features an improved whitening whit·en·ing n. 1. An agent used to make something white or whiter. 2. The act or process of making white or whiter. Noun 1. formula, continued to generate new volume growth by increasing sales in areas where the new product is available. Offsetting the Ultra volume growth were unfavorable quarter-to-quarter comparisons on other laundry products due to heavy introductory spending and pricing initiatives in the base period. Volumes in the water filtration category declined, as consumption of replacement filters softened soft·en v. soft·ened, soft·en·ing, soft·ens v.tr. 1. To make soft or softer. 2. To undermine or reduce the strength, morale, or resistance of. 3. in the wake of a merchandising campaign in the previous quarter. U.S. Specialty Products -- 3% growth in volumes -- 4% growth in net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight -- 5% growth in earnings before income tax Volumes in the company's bags and wraps business were down slightly, as modest growth in Glad branded products was offset by the elimination of low-margin custom brands and intense competitive activities on lower-priced trash bags and food storage bags. The success of new, premium products introduced in March - especially Glad Odor odor (o´der) a volatile emanation perceived by the sense of smell. o·dor n. 1. The property or quality of a thing that affects, stimulates, or is perceived by the sense of smell. Shield trash bags and GladWare deep-dish and divided-dish containers - helped drive the sales growth rate above volume growth for the overall segment. Good barbecuing bar·be·cue n. 1. A grill, pit, or outdoor fireplace for roasting meat. 2. a. A whole animal carcass or section thereof roasted or broiled over an open fire or on a spit. b. weather across much of the U.S. and favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. competitive positioning led to a double-digit jump in Kingsford and Match Light charcoal volumes; shipments for both brands reached record levels for the first quarter. The company's auto care business contributed to segment profit growth, partly due to cost savings associated with bringing the manufacture of Armor All appearance products in-house in early 2000. Armor All protectants and tire care recorded significant volume gains, particularly in mass merchandise retail outlets retail outlet n → punto de venta retail outlet n → point m de vente retail outlet retail n → . The elimination of many non-strategic items in the STP STP or standard temperature and pressure, standard conditions for measurement of the properties of matter. The standard temperature is the freezing point of pure water, 0°C; or 273.15°K;. product line - to focus on higher-margin products with the greatest growth potential - led to a volume decline in performance products and in the overall auto care category. The cat litter business recorded strong single-digit volume growth behind the successful repositioning repositioning Laparoscopic surgery The changing of a Pt's position during a procedure to improve access or visualization of the operative field, which may be linked to complications, as it changes anatomic planes of operation. Cf Laparoscopic surgery. of the Scoop Away product line. Since taking over management of this brand from First Brands in 1999, Clorox has introduced new advertising and pricing strategies There are many ways in which the price of a product can be determined. The following are the foremost strategies that businesses are likely to use. Competition-based pricing Setting the price based upon prices of the similar competitor products. and product improvements that resulted in significant volume growth and a gain in market share in the first quarter. Fresh Step Crystals, a premium silica-gel based litter product introduced in June, also contributed to volume growth and segment sales growth. International -- 10% growth in volumes -- 4% growth in net sales -- 49% growth in earnings before income tax The March acquisition of Bon Bril cleaning utensil businesses in Venezuela, Colombia and Peru contributed to volume growth in the quarter. Segment profit growth was driven by cost-saving initiatives: the company's Asia operations were restructured during the fourth quarter of fiscal 2000, while sales and distribution activities were brought in-house and brands were consolidated in certain Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. markets. Looking ahead to the remainder of fiscal 2001, Sullivan said: "The results this quarter are consistent with our goals of generating mid-single-digit top-line growth and low-double-digit earnings growth for the full fiscal year. Our focus on international expansion, new product launches and our ability to refine our marketing and sales strategies on existing products will continue to drive sales and volume growth. At the same time, we are on track with a number of cost-saving initiatives and focused on improving working capital, to continue to grow our profits faster than sales." The Clorox Company is a $4 billion, multi-national manufacturer and marketer of household products and products for institutional markets. Except for historical information, matters discussed above, including statements about future growth, profitability, costs or expectations, are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. based on management's estimates, assumptions and projections. Important factors that could cause results to differ materially from management's expectations are described in "Forward-Looking Statements and Risk Factors" and "Management's Discussion and Analysis Management's discussion and analysis (MD&A) A report from management to shareholders that accompanies the firm's financial statements in the annual report. It explains the period's financial results and enables management to discuss topics that may not be apparent in the financial of Financial Condition and Results of Operation" in the company's SEC Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ending June 30, 2000, as updated from time to time in the company's SEC filings. Those factors include, but are not limited to, marketplace conditions and events, the company's costs, risks inherent in litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. or international operations Internal Operations (I.O., IO or I/O) is a fictional American Intelligence Agency in Wildstorm comics. It was originally called International Operations. I.O. first appeared in WildC.A.T.S. volume 1 #1 (August, 1992) and was created by Brandon Choi and Jim Lee. , the success of new products, integration of acquisitions, and environmental, regulatory and intellectual property matters. Clorox will host a live audio webcast of a discussion with the investment community regarding the company's first quarter results. The webcast, which can be accessed at www.clorox.com, will begin at 7 a.m. Pacific time (10 a.m. Eastern time) on Wednesday, October 25. A replay of the webcast will be archived for one week on the company's Web site.
THE CLOROX COMPANY
STATEMENTS OF CONSOLIDATED EARNINGS
(In millions, except earnings per-share amounts)
Three Months Ended
9/30/00 9/30/99
Net Sales $ 985 $ 942
Total cost of products sold 549 517
--------- ---------
Gross Profit 436 425
Selling and administration 123 127
Advertising 110 116
Research and development 14 14
Merger, integration
and restructuring -- 2
Interest expense 26 23
Other expense, net 8 6
--------- ---------
Earnings before income
taxes and cumulative
effect of change in
accounting principle 155 137
Income taxes 55 50
--------- ---------
Earnings before cumulative
effect of change in
accounting principle 100 87
Cumulative effect of change
in accounting principle (FAS 133) (2) --
--------- ---------
Net Earnings $ 98 $ 87
========= =========
Earnings per Common Share
Basic
Earnings before merger
related costs and cumulative effect
of change in accounting principle $ 0.43 $ 0.37
Merger related costs -- --
Cumulative effect of
change in accounting
principle (FAS 133) (0.01) --
--------- ---------
Net earnings $ 0.42 $ 0.37
========= =========
Diluted
Earnings before merger
related costs and cumulative effect
of change in accounting principle $ 0.42 $ 0.37
Merger related costs -- (0.01)
Cumulative effect of
change in accounting
principle (FAS 133) (0.01) --
--------- ---------
Net earnings $ 0.41 $ 0.36
========= =========
Weighted Average Shares
Outstanding (in thousands)
Basic 235,522 237,020
Diluted 238,568 240,578
THE CLOROX COMPANY
SEGMENT INFORMATION(1)
Earnings
before
Net Sales Chg. vs. Income Taxes Chg. vs.
(millions) Year ago (millions)(2) Year ago
U.S. Household
Products and Canada $425 6% $139 6%
U.S. Specialty
Products 419 4 102 5
International 141 4 19 49
Corporate -- -- (105) --
Total $985 5% $155 13%
(1) Operating segment information reflects the company's current
organization structure and management information
(2) Before cumulative effect of change in accounting principle
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