Clorox Updates Third-Quarter Earnings Outlook; Announces Webcast Discussion of Third-Quarter Results.

Business Editors

OAKLAND, Calif.--(BUSINESS WIRE)--March 19, 2002

The Clorox Company (NYSE:CLX) (PSE:CLX) today updated its earnings outlook for the third quarter ending March 31, 2002, to 42 cents to 43 cents per share, and confirmed its earnings per share outlook of $1.84 to $1.87 for fiscal year 2002. Clorox also indicated that it now expects third-quarter volume and sales growth to be up in the range of 3 percent to 5 percent. Excluding divestitures, volume and sales in the third quarter are expected to be up 4 percent to 6 percent.

As previously indicated, the company's earnings per share estimates for the third quarter exclude the gain or loss on any divestitures or potential divestitures as well as potential asset-impairment charges associated with Clorox's business in Argentina. For the full fiscal year, these estimates also exclude the impact of special charges taken in calendar year 2001.

The company now anticipates it will record a noncash asset-impairment charge in the third quarter of approximately $100 million before taxes for its Argentina business due to the impact of the devaluation and economic crisis in that country. Consistent with accounting rules that require prorating the tax effect over the remainder of the fiscal year, this charge is projected to negatively impact reported earnings per share in both the third and fourth quarter by approximately 36 cents and 6 cents, respectively. During the third quarter, the charge will be partially offset by the previously announced pretax gain of $36 million (or about 9 cents per share), resulting from the sale of the Maxforce professional insecticides business.

"Despite the highly challenging environment in Latin America, in particular Argentina, we are continuing to make good progress against our key priorities," said Chairman and CEO Craig Sullivan. "We're encouraged by the overall trends we're seeing on our businesses, including the strong initial results from our recent launch of Clorox ReadyMop."

On Thursday, May 2, 2002, Clorox will host a live audio webcast of its discussion with the investment community regarding the company's results in the fiscal third quarter ending March 31, 2002. The company will release its third-quarter results earlier that same day.

The webcast, which can be accessed at www.clorox.com, will begin at 10:30 a.m. PDT (1:30 p.m. EDT) May 2. Following the live discussion, a replay of the webcast will be archived for one week on the company's Web site at www.clorox.com.

The Clorox Company is a $3.9 billion, multinational manufacturer and marketer of household products and products for institutional markets.

Except for historical information, matters discussed above, including statements about future volume, sales and earnings growth, profitability, costs, cost savings or expectations, are forward-looking statements 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 of Financial Condition and Results of Operation" in the company's SEC Form 10-K for the year ending June 30, 2001, as updated from time to time in the company's SEC filings. Those factors include, but are not limited to, general economic and marketplace conditions and events, the company's costs, disruption associated with staff reductions, risks inherent in litigation or international operations, the success of new products, integration of acquisitions, and environmental, regulatory and intellectual property matters.