Clorox Reports 21 Percent EPS Growth in Fourth Quarter.Business Editors OAKLAND, Calif.--(BUSINESS WIRE)--Aug. 3, 2000 Strong sales of new products and cost-saving initiatives propelled a 21 percent increase in earnings 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 for 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. ) in its fiscal fourth quarter ended June 30, 2000. Contributing to the earnings surge and solid top-line growth were record shipments of home care, 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 and food products; strong growth in 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. ; and the continued margin-enhancing benefits of integrating businesses acquired from First Brands Corporation in early 1999. Net earnings for the quarter, before merger-related and other one-time charges, were $138 million or 58 cents per diluted share. This compares with earnings of $115 million, or 48 cents per diluted share, before one-time charges, in the fourth quarter of 1999. Sales for the quarter increased by 5 percent to $1.15 billion, from $1.1 billion in the prior-year quarter; this increase outpaced unit volume growth of 4 percent during the quarter. "As we had anticipated, our bottom-line performance picked up momentum as we advanced through the fiscal year and we ended on a high note," said Clorox 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
adj. Not satisfied or fulfilled: unmet demands. consumer needs. Our new disinfecting products in the home care category are prime examples. We achieved our target of $90 million in annual savings resulting from the First Brands merger ahead of schedule, and now expect the savings will reach $125 million. And we continued to build critical mass in Latin America, through growth in core product categories and a new product line acquired in the previous quarter, while making progress on margin improvement across our international businesses." For the full year, net earnings before merger-related and other one-time charges were $420 million, or $1.75 per diluted share, compared with $390 million or $1.63 per diluted share in fiscal 1999. Total sales were $4.08 billion, compared with $4 billion the previous year; unit volume grew by 2 percent year over year. A summary of key results by business segment follows: U.S. Household Products and Canada Fourth quarter volumes for this segment grew by 12 percent, primarily due to record, double-digit growth of home care products. Major home care product launches in previous quarters that contributed significantly to the record quarter and year included Clorox Disinfecting Wipes, Clorox Disinfecting Spray and Liquid-Plumr Foaming Pipe Snake Pipe snake may refer to:
The two companies that emerged from the swap were: Laundry additive additive In foods, any of various chemical substances added to produce desirable effects. Additives include such substances as artificial or natural colourings and flavourings; stabilizers, emulsifiers, and thickeners; preservatives and humectants (moisture-retainers); and shipments exceeded a strong prior-year quarter, when a pipeline build-up build·up also build-up n. 1. The act or process of amassing or increasing: a military buildup; a buildup of tension during the strike. 2. of new laundry products significantly raised volumes. Three products launched in the third quarter contributed to growth in the most recent quarter: 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" , introduced in the western half of the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. ; Clorox FreshCare dry cleaning dry cleaning, process of cleaning fabrics without water. Special solvents and soaps are used so as not to harm fabrics and dyes that will not withstand the effects of ordinary soap and water. Dry cleaning began in France about the middle of the 19th cent. and gentle fabric care; and a Fresh Wildflowers scented liquid bleach. The consumption rate of Ultra bleach bleach Solid or liquid chemical compound used to whiten or remove the natural colour of fibres, yarns, paper, and textile fabrics. Sunlight was the chief bleaching agent up to the discovery of chlorine in 1774 by Karl Wilhelm Scheele (b. 1742—d. , where it is now available, is outpacing the rate for regular bleach in areas not yet converted to the Ultra format. U.S. Specialty Products While fourth quarter volumes in this segment declined by 3 percent compared to the prior year, the three categories that include former First Brands businesses -- automotive care, Glad food storage and disposal products, and cat litter -- contributed significantly to improved operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. through on-going cost-saving initiatives, rationalization rationalization, in psychology: see defense mechanism. of stock-keeping units (database) stock-keeping unit - (SKU) /skyoo/ (rarely seen expanded) A common term for a unique numeric identifier, typically in a database. Originally this was used only for products, but has spread in usage. Compare with UID for sense development. and improvements in such areas as trade promotion and manufacturing. Volumes in the Glad business were lower than the prior-year quarter, primarily due to a continuing focus on eliminating some low-margin, private-label products. Two food storage containers introduced late in the third quarter contributed to growth of the GladWare disposable container line; three other innovative Glad products launched in March gained distribution during the quarter and are expected to contribute to top-line growth in future quarters with national advertising support. The food products group concluded a record volume year with record, double-digit growth in the fourth quarter, behind strong demand for single-serving cups of Hidden Valley Ranch dressing, introduced in the second quarter; and the success of K C Masterpiece marinades, introduced in the third quarter. In the seasonal products category, shipments of Kingsford and Match Light charcoal products achieved record levels for the quarter and the full year; insecticide insecticide Any of a large group of substances used to kill insects. Such substances are mainly used to control pests that infest cultivated plants and crops or to eliminate disease-carrying insects in specific areas. shipments were down due to continued soft consumer demand. In auto care, continuing rationalization of non-core, low-margin items from the former First Brands business increased this category's contribution to overall operating profits, while reducing volumes compared to the prior-year quarter. Similarly, while cat litter volumes declined slightly in the quarter with the elimination of inefficient trade promotion programs, profit contribution of this category increased significantly over the prior-year quarter. Initial consumer demand for Fresh Step Crystals, introduced during the quarter, and solid growth in shipments of Scoop Away scoopable litter, partially offset the impact of the trade promotion changes. International For the second straight quarter, all principal Clorox regions outside the United States reported volume gains, resulting in a 9 percent increase for the segment over the prior-year quarter. Latin America, the company's primary international region, enjoyed strong double-digit volume growth, mainly due to the third-quarter acquisition of the Bon Bril cleaning utensil businesses in Colombia, Venezuela and Peru. Robust shipments of Mistolin and Poett cleaning products, and of Clorox brand bleach in Brazil, also contributed to quarterly growth. The company's Australia and New Zealand New Zealand (zē`lənd), island country (2005 est. pop. 4,035,000), 104,454 sq mi (270,534 sq km), in the S Pacific Ocean, over 1,000 mi (1,600 km) SE of Australia. The capital is Wellington; the largest city and leading port is Auckland. business, which primarily consists of Glad and related household products, also reported strong volume growth for the quarter and full year. In Asia, Clorox restructured its operations during the quarter, moving to third-party distributors Third-Party Distributor The name given to institutions that sell or distribute mutual funds to investors for fund management companies without direct relation to the fund itself. in many regions to improve profitability. Looking ahead to the new fiscal year, Sullivan said: "The businesses we acquired from First Brands are now contributing positively to our sales and profitability growth. Our other major U.S. businesses are healthy and growing, particularly the home care category. And our international business is stronger than ever, as we place greater focus and resources on continued strong growth and margin improvement, particularly in Latin America. These factors position us for healthy top-line and earnings growth in the new fiscal year, consistent with our five-year strategy." The Clorox Company is a multinational manufacturer and marketer of household products, both domestic and international, and products for institutional markets. Note on a change in accounting practices: Delivery costs, previously reported as part of selling, delivery and administration, are now classified under cost of products sold. Selling, delivery and administration expense and cost of products sold for prior periods have been restated to conform to Verb 1. conform to - satisfy a condition or restriction; "Does this paper meet the requirements for the degree?" fit, meet coordinate - be co-ordinated; "These activities coordinate well" the current period presentation. 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, 1999, 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.
THE CLOROX COMPANY
STATEMENTS OF CONSOLIDATED EARNINGS
(In millions, except earnings per-share amounts)
Three Months Ended Year Ended
6/30/00 6/30/99 6/30/00 6/30/99
-------- -------- -------- --------
Net Sales $ 1,153 $ 1,100 $ 4,083 $ 4,003
Total cost of products sold 625 613 2,250 2,181
-------- -------- -------- --------
Gross Profit 528 487 1,833 1,822
Selling and administration 140 146 525 554
Advertising 120 114 465 474
Research and development 19 18 63 63
Merger, integration and
restructuring 15 79 36 180
Interest expense 27 22 98 97
Other expense, net 7 6 24 24
-------- -------- -------- --------
Earnings before income taxes 200 102 622 430
Income taxes 75 52 228 184
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Net Earnings $ 125 $ 50 $ 394 $ 246
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Earnings per common share
before restructuring
Basic $ 0.59 $ 0.49 $ 1.78 $ 1.66
Diluted 0.58 0.48 1.75 1.63
Earnings per common share
after restructuring
Basic $ 0.53 $ 0.21 $ 1.67 $ 1.05
Diluted 0.52 0.21 1.64 1.03
Weighted Average Shares
Outstanding (in thousands)
Basic 235,094 236,616 236,108 235,364
Diluted 237,830 240,666 239,614 240,002
THE CLOROX COMPANY
CONSOLIDATED BALANCE SHEETS
(In millions)
6/30/00 6/30/99
------ ------
ASSETS
Current Assets
Cash and short-term investments $ 247 $ 132
Receivables, net 640 610
Inventories 376 319
Prepaid expenses and other 168 29
Deferred income taxes 25 26
------ ------
Total current assets 1,456 1,116
Property, Plant and Equipment - Net 1,079 1,054
Brands, Trademarks, Patents and Other
Intangibles - Net 1,536 1,497
Investments in Affiliates 111 104
Other Assets 161 361
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Total $4,343 $4,132
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable $ 313 $ 206
Accrued liabilities 392 350
Accrued integration and restructuring 16 23
Short-term debt and notes payable 775 734
Income taxes payable 39 48
Current maturities of long-term debt 6 7
------ ------
Total current liabilities 1,541 1,368
Long-term Debt 592 702
Other Obligations 192 255
Deferred Income Taxes 224 237
Stockholders' Equity 1,794 1,570
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Total $4,343 $4,132
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