Clorox reports record third quarter results; Armor All acquisition helps drive an 18 percent increase in total shipments; sales climbed 16 percent, earnings per share were up 10 percent.OAKLAND, Calif.--(BUSINESS WIRE)--April 16, 1997--Bolstered by its new Armor All automotive cleaning products business acquired in December, The Clorox Company (NYSE NYSE See: New York Stock Exchange , PCX (1) A bitmapped graphics file format that handles monochrome, 2-bit, 4-bit, 8-bit and 24-bit color and uses RLE to achieve compression ratios of approximately 1.1:1 to 1.5:1. Images with large blocks of solid colors compress best under the RLE method. See PC Paintbrush. :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. ) reported today that shipments of its products world wide soared 18 percent for the third quarter and that sales and earnings per share achieved new 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 third quarter were $649.2 million, up 16 percent from $560.1 million a year ago. Net earnings climbed 10 percent to $65.6 million from $59.6 million in the prior year. Earnings per share were $1.27, a 10 percent increase over the $1.15 earned in the year ago period. Earnings per share for the just ended quarter included a dilution impact of about 3 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. resulting from the Armor All acquisition. Results for the first nine months of the fiscal year also were at record levels. Total shipments were up 16 percent. Net sales increased 15 percent to $1.8 billion from $1.5 billion in the prior year. Net earnings climbed 12 percent to $175 million from $156 million, and earnings per share jumped 13 percent to $3.39 from $3.00 a year ago. "We're pleased with the volume and earnings performance of the business for the quarter and year-to-date," 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 are ahead for the quarter and the first nine months. Armor All contributed about 11 percentage points of the third quarter's 18 percent surge. Volume 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. continues to be particularly impressive." Sullivan attributed the improvement in third quarter gross profit, before Armor All, primarily to the benefit of ongoing cost reduction initiatives. "The 10 percent improvement in third quarter net earnings is 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. inasmuch as in·as·much as conj. 1. Because of the fact that; since. 2. To the extent that; insofar as. inasmuch as conj 1. since; because 2. it was achieved after a 25 percent increase in advertising expense," Sullivan noted. Total domestic shipments, without the impact of Armor All, were a third quarter record. Notably, shipments of the Clorox 2 line of color-safe bleaches were up strongly from a year ago behind the launch of the Ultra formula in April 1996 and the roll out of the Floral Fresh scented version, which started shipping in March of this year. Third quarter volume records were set by Match Light instant lighting 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 briquets and by the cat litter and 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. business units. Shipments of the Black Flag line were up strongly following a relaunch Relaunch can refer to several things:
marketed to pest control pest control n → control m de plagas pest control n → lutte f contre les nuisibles pest control pest n operators were a record for any quarter. The company's 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. shipped higher total volumes for the quarter, driven both by acquisitions and strong growth of the base business in Latin America. Shipments of Brita water filtration products also were up and were a third quarter record. Brita continues by far to be the leading brand in a market which it created. Sullivan reported that new product activity continues to be on a fast track. During the just ended quarter, 10 new international products were introduced, and two were introduced in the U.S. The latter include Rain Clean 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" , a proprietary light fragrance that joins the company's line of scented bleaches. Shipments are planned to start in May. The Brita Magnum pitcher, which holds 50 percent more water in a new design that is easier to handle, began shipping to the trade in February. Some 31 new products have been introduced year-to-date. Sullivan also reported that the integration of the Armor All business is "going very well and is on schedule" with completion targeted for the end of May. "Shipments for the January-March quarter were strong, and we're looking forward with anticipation to our first season in this new cleaning products opportunity for the company." Looking ahead, Sullivan said, "We're on track to have another good year, even after 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." 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 en·ti·tle tr.v. en·ti·tled, en·ti·tling, en·ti·tles 1. To give a name or title to. 2. To furnish with a right or claim to something: "Forward Looking Statements and Risk Factors," which is 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. on Jan. 9, 1997. It discusses risk factors which are of particular importance to the company. Statements of Consolidated Earnings and Consolidated Balance Sheet consolidated balance sheet A balance sheet in which assets and liabilities of a parent company and its controlled subsidiaries are combined, thereby presenting balance sheet items for the parent and its subsidiaries as if they were a single firm. follow: -0-
THE CLOROX COMPANY
STATEMENTS OF CONSOLIDATED EARNINGS
(In thousands, except earnings per-share amounts.)
Unaudited
Three Months Ended
March 31
1997 1996
Net Sales $ 649,209 $ 560,091
Cost and Expenses
Cost of products sold 287,862 255,570
Selling, delivery and
administration 135,355 114,686
Advertising 84,543 67,543
Research and development 12,035 11,103
Interest expense 17,005 10,753
Other expense (income), net 2,603 432
---------- ----------
Total Costs and Expenses 539,403 460,087
Earnings before Income Taxes 109,806 100,004
Income Taxes 44,186 40,405
Net Earnings $ 65,620 $ 59,599
========== ==========
Earnings per Common Share $ 1.27 $ 1.15
Weighted Average Shares Outstanding 51,740 51,767
STATEMENTS OF CONSOLIDATED EARNINGS (CONTINUED)
(In thousands, except earnings per-share amounts.)
Unaudited
Nine Months Ended
March 31
1997 1996
Net Sales $1,770,197 $1,545,366
Cost and Expenses
Cost of products sold 780,849 700,074
Selling, delivery and
administration 372,388 315,720
Advertising 254,427 206,653
Research and development 34,065 32,510
Interest expense 39,247 26,113
Other expense (income), net (2,356) 2,061
---------- ----------
Total Costs and Expenses 1,478,620 1,283,131
Earnings before Income Taxes 291,577 262,235
Income Taxes 116,532 105,946
Net Earnings $ 175,045 $ 156,289
========== ==========
Earnings per Common Share $ 3.39 $ 3.00
Weighted Average Shares Outstanding 51,657 52,070
CONSOLIDATED BALANCE SHEETS
(In thousands) Unaudited
March 31
1997 1996
ASSETS
Current Assets
Cash and short-term investments $ 113,732 $ 88,433
Accounts receivable 399,304 320,797
Inventories 201,220 175,613
Deferred income taxes 25,058 11,113
Prepaid expenses 19,326 24,736
---------- ----------
Total current assets 758,640 620,692
Property, Plant and Equipment - Net 574,422 540,441
Brands, Trademarks and Other
Intangibles 1,151,654 673,810
Investments in Affiliates 102,022 98,690
Other Assets 295,735 246,936
Total $2,882,473 $2,180,569
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities $ 682,494 $ 651,864
Long-term Debt 907,570 356,902
Other Obligations 109,762 101,903
Deferred Income Taxes 157,781 133,062
Stockholders' Equity 1,024,866 936,838
---------- ----------
Total $2,882,473 $2,180,569
CONTACT: Clorox Company (News Media) Fred Reicker, 510/271-7291 (W) or 510/351-7548 (H) or (Investment Community) Karen Rose, 510/271-7385 (W) Ughetta Ugolini, 510/271-2270 (W) |
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