Clorox Co.'s (CLX) fiscal second-quarter earnings rose 17% as
price increases helped drive the consumer-products company's
improved sales and margins.
The company also raised the low end of its full-year earnings
estimate by five cents to between $4.25 and $4.35 a share and now
expects sales to increase 3% to 5%, up from its prior forecast of
2% to 4% sales growth.
The maker of liquid bleach and Glad trash bags, which has a
largely U.S.-focused business, has seen increased sales for over a
year as the economy gradually shows signs of improving. Cost
controls and higher prices have also helped the bottom line, but
rising costs for commodities and manufacturing remain a
challenge.
For the quarter ended Dec. 31, Clorox reported a profit of $123
million, or 93 cents a share, up from $105 million, or 79 cents, a
year earlier. The most-recent quarter included a gain of three
cents a share on a sale and leaseback transaction.
Sales jumped 8.5% to $1.33 billion, benefiting from price
increases and a 5% rise in volume.
Analysts polled by Thomson Reuters had most recently forecast
per-share earnings of 81 cents on revenue of $1.27 billion.
Gross margin improved to 42.5% from 41.5%.
Sales in the cleaning segment--Clorox's largest top-line
contributor--rose 15% to $425 million and income jumped 28%. The
household segment's sales climbed 7% while its profit rose 65%.
The international segment's sales increased 3% but income
dropped 24%, largely due to fewer shipments in Latin America and
Canada. In the lifestyle segment, sales rose 8% while income was up
1%.
Shares were trading 1.3% higher at $80.20 premarket. The stock
has gained 13% over the past year through Friday's close.
Write to Melodie Warner at melodie.warner@dowjones.com
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