Clorox Reports Second-Quarter Results.Business Editors OAKLAND, Calif.--(BUSINESS WIRE)--Jan. 31, 2001 The Clorox Company (NYSE NYSE See: New York Stock Exchange :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. ) (PSE PSE 1. pale soft exudative pork. 2. portosystemic encephalopathy. :CLX) today announced earnings of $74 million, or 31 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 special charges, for its fiscal second quarter ended Dec. 31, 2000. This compares with earnings of $80 million, or 33 cents per diluted share, in the prior-year quarter. Overall volumes decreased 2 percent, reflecting in part, slower consumption growth across a number of categories in which Clorox competes. Sales for the quarter decreased by 6 percent to $899 million, compared with $954 million in the prior-year quarter. Sales lagged volume as the mix of products sold during the quarter shifted away from higher-priced products and toward larger sizes. Foreign currency weakness and an increase in the company's reserves for unsaleable unsaleable Adjective unable to be sold Adj. 1. unsaleable - impossible to sell unsalable unsaleable, unsalable (US) adj → invendible products and deductions also contributed to the decline in sales. "While these results are in line with the estimates we announced on Dec. 14, we are obviously disappointed with our performance this quarter," 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, comparisons are with the second quarter of fiscal 2000. U.S. Household Products and Canada -- 2% decline in volumes -- 6% decline in sales -- 11% decline in pretax earnings before special charges Category softness, especially in water-filtration products, dilutable cleaners and disinfecting sprays, contributed to volume declines in this segment. Lower shipments of Brita water filtration systems and replacement filters, due to trade inventory and merchandising reductions, had the strongest negative impact on segment results this quarter. Clorox Disinfecting Wipes, introduced in January 2000, 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. The rollout and results for 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" are on track, with the consumption rate for Ultra continuing to outpace out·pace tr.v. out·paced, out·pac·ing, out·pac·es To surpass or outdo (another), as in speed, growth, or performance. outpace Verb [-pacing, the rate for regular 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. in areas not yet converted to the Ultra format. U.S. Specialty Products -- 5% decline in volumes -- 6% decline in sales -- 8% decline in pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern earnings before special charges Results in this segment were primarily driven by declines in the company's bags and wraps and auto care businesses. Declines in Glad bags and wraps were driven by the elimination of low-margin custom brands and intense competition in the lower-priced trash bags. These trends were partially offset by the success of new premium products introduced in March 2000, including additions to the lineup of GladWare tight-sealing containers. Category softness and the rationalization rationalization, in psychology: see defense mechanism. of 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;. promotion programs and non-strategic items led to volume declines in the company's auto care business. Armor All auto-appearance products partially offset these declines with strong initial response to the new line of Armor All protectant protectant /pro·tec·tant/ (pro-tek´tant) protective. protectant, protective 1. affording defense or immunity. 2. an agent affording defense against harmful influence. and cleaning wipes launched in December 2000. Record cold weather during November and December reduced opportunities for charcoal barbecuing and drove lettuce prices higher, depressing volume for Kingsford charcoal briquets and Hidden Valley dressings. The introduction of new "easy squeeze" bottles of Hidden Valley dressings early in the second quarter partially offset the negative impact due to soft salad-dressing consumption. Clorox's cat litter business was down slightly as 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 and the June 2000 introduction of Fresh Step Crystals were more than offset by softness on other Fresh Step litters. International -- 5% growth in volumes -- 6% decline in sales -- 23% growth in pretax earnings before special charges International volume growth was fueled by the March 2000 acquisition of Bon Bril cleaning utensils businesses in Latin America and by new product introductions. Sales results were negatively affected by an assortment shift favoring lower revenue products and by local currency weakness in Australia, 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. , Colombia, Chile and Venezuela. International profitability was up sharply, driven by successful on-going margin improvement efforts and by favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. joint-venture income. Separately, Clorox today announced it will implement SAP's enterprise resource planning See ERP. (application, business) Enterprise Resource Planning - (ERP) Any software system designed to support and automate the business processes of medium and large businesses. system software. "We are excited by the opportunity this implementation affords to gain even greater visibility and control over our business," Sullivan said. "Clorox has already seen very good results and gained valuable experience from implementing enterprise resource planning systems in Brazil and Canada." The Clorox Company is a $4 billion, multinational manufacturer and marketer of household products and products for institutional markets. Except for historical information, matters discussed above, including statements about future growth, profitability, plans for international expansion 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, led by Chairman and CEO Craig Sullivan, of a discussion with the investment community regarding the company's second-quarter results and its outlook going forward. 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, Jan. 31. 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 Six Months Ended
12/31/00 12/31/99 12/31/00 12/31/99
Net Sales $899 $954 $1,884 $1,896
Cost of products sold
before special charges 513 535 1,062 1,052
Special charges
(inventory and
related costs) 12 -- 12 --
------- ------- ------- -------
Total cost of
products sold 525 535 1,074 1,052
------- ------- ------- -------
Gross Profit 374 419 810 844
Selling and
administration 128 135 251 262
Advertising 100 110 210 226
Research and development 17 15 31 29
Special charges -
restructuring and
asset impairment 4 6 4 8
Interest expense 23 23 49 46
Other expense, net 3 10 11 16
------- ------- ------- -------
Earnings before
income taxes and
cumulative effect
of change in
accounting principle 99 120 254 257
Income taxes (1) 35 44 90 94
------- ------- ------- -------
Earnings before
cumulative effect
of change in
accounting
principle 64 76 164 163
Cumulative effect
of change in
accounting principle
(FAS 133) -- -- (2) --
------- ------- ------- -------
Net Earnings $64 $76 $162 $163
======= ======= ======= =======
Earnings per Common Share
Earnings before
special charges
and cumulative
effect(2)
of change in
accounting
principle
Basic $0.31 $0.34 $0.74 $0.71
Diluted 0.31 0.33 0.73 0.70
Earnings after
special charges
and cumulative
effect of change
in accounting
principle
Basic $0.27 $0.32 $0.69 $0.69
Diluted 0.27 0.32 0.68 0.68
Weighted Average Shares
Outstanding
(in thousands)
Basic 236,069 236,475 235,796 236,747
Diluted 239,093 239,737 238,956 240,211
(1) The effective tax rate before special charges (inventory and
related costs, and asset impairment) for the three and six months
ended December 31, 2000 is 35.5% and before restructuring for the
three and six months ended December 31, 1999 is 36.5%.
(2) Reflects net earnings before special charges (inventory and
related costs, and asset impairment) of $10 million for the three
and six months ended December 31, 2000 and $4 million and $5
million related to restructuring, for the three and six months
ended December 31, 1999, respectively.
The Clorox Company Segment Information (1)
Earnings
Before
Special
Earnings Charges
Before and
Income Income
Net Taxes Taxes
Sales Chg. vs. (millions) Chg. vs. (millions) Chg. vs.
(millions) year ago (2) year ago (2) year ago
U.S.
Household
Products
and
Canada $365 -6% $95 -21% $107 -11%
U.S.
Specialty
Products 378 -6% 81 -13% 86 -8%
Inter-
national 156 -6% 32 23% 32 23%
Corporate -- -- (109) 8% (110) 3%
----- ---- ----- ---- ----- -----
Total $899 -6% $99 -18% $115 -9%
===== ==== ===== ===== ===== =====
(1) Operating segment information reflects the company's current
organization structure and management information.
(2) Before cumulative effect of change in accounting principle.
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion