Clorox Reports Record Second Quarter Results; Total shipments were up 13 percent, sales climbed 14 percent, earnings per share jumped 16 percent; Company acquired two businesses in Latin America; Armor All acquisition completed for a net $360 million.OAKLAND, Calif.--(BUSINESS WIRE)--Jan. 16, 1997--The Clorox Company (NYSE NYSE See: New York Stock Exchange , PSE PSE 1. pale soft exudative pork. 2. portosystemic encephalopathy. :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. ) Thursday reported that a 13 percent increase in worldwide second quarter shipments helped push sales, earnings and earnings per share to record highs for the period. 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 for the Oct.-Dec. quarter were $530.2 million, up 14 percent from $466.8 million a year ago. Both net earnings and earnings per share surged 16 percent to $43.9 million, or 85 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , respectively vs. $37.9 million or 73 cents per share in the prior year. The company's second quarter performance drove first half results to record highs for the period. Total shipments were up 14 percent. Net sales also were up 14 percent to $1.1 billion from $985.3 million a year ago. Net earnings jumped 13 percent to $109.4 million from $96.7 million, and earnings per share were up a robust 15 percent to $2.12 vs. $1.85. "We're pleased with our year-to-date progress and the continued strength of our overall business," 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 type of operating company that engages in transactions with outsiders and that is owned by another business. For example, in 1995 the stockholders of Capital Cities/ABC approved a $19 billion merger with the Walt Disney Company, whereupon . The international business in particular achieved substantial volume gains that were driven primarily by the growth of our 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. operations. The gain in net earnings is the result primarily of the higher volumes and improved gross margins. It is particularly gratifying grat·i·fy tr.v. grat·i·fied, grat·i·fy·ing, grat·i·fies 1. To please or satisfy: His achievement gratified his father. See Synonyms at please. 2. in view of the 21 percent increase in advertising expense during the quarter," Sullivan added. Total domestic shipments were a second quarter record and reflected, in part, record or higher volumes for the majority of the company's major brands. Significantly, the Clorox 2 color-safe 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. brand shipped its highest volumes since the second quarter of fiscal 1994 as the result of the introduction of the Ultra concentrated liquid formula in April of 1996. The increase in Clorox 2 shipments has stabilized category declines. Shipments of Hidden Valley bottled salad dressing grew strongly during the quarter as the brand continued to respond to initiatives launched in fiscal 1996 to rebuild this important business. New products contributing to the second quarter volume record include S.O.S scrubber sponges introduced last June; and the second quarter start-of-ship for Fresh Scent Clorox Clean-Up cleaner, Professional Strength Tilex instant mildew mildew, name for certain fungi and protists, for the diseases they cause in various crops, and for the discoloration (and sometimes the weakening and disintegration) they cause in such materials as leather, fabrics, and paper. stain remover stain remover n → quitamanchas m inv stain remover n → détachant m stain remover stain n → , and Clorox Automatic Toilet Bowl Cleaner Blue plus Bleach. Second quarter shipments for the international business were far ahead of a year ago. Most of the growth occurred in the Latin America division, the company's largest international unit and the immediate focus of its growth initiatives outside the U.S. Two new businesses were brought into the Latin America portfolio during the second quarter. In Chile, where Clorox is the leading marketer of 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" , the company acquired the Shell Group's non-core but profitable line of household products. These include the leading window cleaner and the number two 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. and air freshener air freshener n → ambientador m air freshener air n → désodorisant m air freshener air n → . In Argentina, the company captured a 33 percent share and took leadership in the dilutable cleaner market by acquiring Pinoluz, the leading pine cleaner brand in that country. Clorox's Argentine business also includes the leading line of bleaches and a broad line of home cleaning products and insecticides insecticides, chemical, biological, or other agents used to destroy insect pests; the term commonly refers to chemical agents only. Chemical Insecticides . "These acquisitions are strategically on target," Sullivan observed. "They expand our presence in key markets and are an excellent fit with core categories we've targeted for expansion in Latin America." Sullivan noted that the Latin America division is becoming increasingly profitable and is making good progress in consolidating and building on earlier acquisitions. In other businesses, shipments of Brita water filtration products were a second quarter record due to strong domestic growth across all channels of trade and continued new distribution. Marketed in both the U.S. and Canada, Brita is the leading water filtration brand in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. . Shipments of both the cleaning products and dressings and sauces marketed by the company's Professional Products unit were a second quarter record, with the cleaners achieving an all-time record quarter. As reported on Jan. 2, Clorox completed its acquisition of Armor All, the leading line of automotive cleaning products. Net assets Net assets The difference between total assets on the one hand and current liabilities and noncapitalized long-term liabilities on the other hand. net assets See owners' equity. acquired included $48 million in cash which reduced the price-per-share from an initial $19.09 to about $17 for a net acquisition cost of $360 million. Armor All will be operated as a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of The Clorox Company and is quickly being folded into the business. Sullivan said the acquisition, which extends Clorox's cleaning expertise into a new market having promising growth opportunities, is expected to dilute second half earnings by about 2 to 3 percent, or approximately 15 cents per share. Commenting further on the outlook for the balance of the fiscal year, Sullivan reported current plans are to begin shipping eight new domestic products and three new international products during the current third quarter. In the U.S., they will include Floral Fresh Clorox 2 dry and liquid color-safe bleaches, Formula 409 carpet cleaner, several new flavors New Flavors - An object-oriented Lisp from Symbolics, the successor to Flavors, it led to CLOS. ["Reference Guide to Symbolics-Lisp", Symbolics, March 1985]. in the bottled salad dressing and barbecue sauce categories, and the Brita Magnum 3-qt. pitcher. This will bring to 19 the number of new products introduced during this fiscal year. Later in the year, Sullivan said consumers can expect to find new products from both the Combat and Black Flag insecticide lines in their local stores. "Even with the dilutive effect Dilutive effect Result of a transaction that decreases earnings per common share (EPS). of Armor All and the expense associated with our heavy new product schedule, we expect fiscal 1997 to be another good year in terms of earnings growth and preparing the business for more profitable growth in the longer term," Sullivan said. Readers are cautioned that any discussion of future business prospects is subject to risks and uncertainty, and actual results could differ materially from those discussed in this release. We refer readers to the company's statement entitled "Forward Looking Statements and Risk Factors," which was contained in its SEC Form 8-K Form 8-K The form required by the SEC when a publicly held company incurs any event that might affect its financial situation or the share value of its stock. Form 8-K See 8-K. filed on Jan. 9, 1997. It discusses risk factors which are of particular importance to the company. -0-
THE CLOROX COMPANY
STATEMENTS OF CONSOLIDATED EARNINGS
(In thousands, except earnings per-share amounts.)
(Unaudited)
Three Months Ended Six Months Ended
December 31 December 31
1996 1995 1996 1995
Net Sales $ 530,215 $ 466,789 $ 1,120,988 $985,275
Cost and Expenses
Cost of products sold 235,626 213,171 492,987 444,504
Selling, delivery and
administration 120,439 102,378 237,033 201,034
Advertising 80,910 66,628 169,884 139,110
Research and
development 11,532 11,205 22,030 21,407
Interest expense 11,745 7,588 22,242 15,360
Other (income)
expense, net (2,986) 2,196 (4,959) 1,629
Total Costs and
Expenses 457,266 403,166 939,217 823,044
Earnings before
Income Taxes 72,949 63,623 181,771 162,231
Income Taxes 29,034 25,712 72,346 65,541
Net Earnings $ 43,915 $ 37,911 $ 109,425 $ 96,690
Earnings per Common
Share $0.85 $0.73 $2.12 $1.85
Weighted Average
Shares Outstanding 51,685 52,089 51,615 52,222
THE CLOROX COMPANY
CONSOLIDATED BALANCE SHEETS
(In thousands)
Unaudited
December 31
1996 1995
ASSETS
Current Assets
Cash and short-term investments $ 80,911 $ 105,866
Accounts receivable 302,002 220,371
Inventories 189,853 157,524
Deferred income taxes 24,110 11,575
Prepaid expenses 25,362 16,219
Total current assets 622,238 511,555
Property, Plant and Equipment - Net 569,186 533,208
Brands, Trademarks and Other Intangibles 1,140,328 599,880
Investments in Affiliates 98,833 94,225
Other Assets 280,503 120,355
Total $2,711,088 $1,859,223
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities $ 648,861 $ 458,128
Long-term Debt 793,350 249,487
Other Obligations 121,807 80,987
Deferred Income Taxes 148,221 136,957
Put Option Obligations 75,638 17,259
Stockholders' Equity 923,211 916,405
Total $2,711,088 $1,859,223
-0- Note To Editors: The Company completed its tender offer on December 30, 1996 for all outstanding shares of common stock of Armor All Products Corp., the assets and liabilities of which are included in the December 31, 1996 balances above at fair values. CONTACT: The Clorox Company News Media Fred Reicker, 510/271-7291 (Work) 510/351-7548 (Home) or The Clorox Company Investment Community Karen Rose, 510/271-7385 Ughetta Ugolini, 510/271-2270 |
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