08.05.04
The Clorox Company, Oakland, CA, posted sales growth of 8% to $1.24 billion and a volume increase 6%, due to new products, all-time-record shipments of charcoal and higher shipments of Clorox disinfecting wipes, cat litter, food products and Brita water-filtration products, for the fourth quarter ended June 30.
Strong sales growth was also attributed to new products in North America such as the Clorox ToiletWand disposable toilet-cleaning system, Clorox Bleach Pen gel and Glad Press 'n Seal sealable plastic wrap. In the household product segment in Latin America/Other, Clorox executives said volume grew 10% and sales rose 9% based on increased shipments of insecticides in Korea and positive category trends in Argentina.
Fourth quarter net earnings grew to $185 million, compared to $149 million a year ago. Net earnings reflected an $11 million pretax restructuring and asset-impairment charge related to transferring some Glad production to third-party manufacturing, as well as $7 million from additional tax benefits and lower losses related to the company's discontinued Brazil operations.
Clorox also reported net earnings were up 15% to $549 million for the year ended June 30. Fiscal-year sales increased 4% to $4.32 billion and volume jumped of 4%.
"A number of strategic decisions impacted our results," commented president and chief executive officer Jerry Johnston. "For example, we chose to invest heavily in new products in our North America businesses, and although start-up costs reduced pretax earnings in these segments, the investment is driving strong top-line growth. In addition, initiatives we put into place a couple of years ago to improve results in our Latin America businesses are continuing to pay off in significant year-over-year sales, volume and pretax earnings growth."
Clorox expects fiscal year 2005 results will be consistent with the company's long-term expectations for sales and volume growth of 3-5%. For the first quarter of fiscal 2005, Clorox also anticipates sales and volume growth of 3-5%, and earnings per diluted share between $0.53-$0.55. Clorox's also announced that its primary shareholder, Henkel KgaA, may sell some or all of its stake in Clorox to fund the acquisition of The Dial Corp.
Strong sales growth was also attributed to new products in North America such as the Clorox ToiletWand disposable toilet-cleaning system, Clorox Bleach Pen gel and Glad Press 'n Seal sealable plastic wrap. In the household product segment in Latin America/Other, Clorox executives said volume grew 10% and sales rose 9% based on increased shipments of insecticides in Korea and positive category trends in Argentina.
Fourth quarter net earnings grew to $185 million, compared to $149 million a year ago. Net earnings reflected an $11 million pretax restructuring and asset-impairment charge related to transferring some Glad production to third-party manufacturing, as well as $7 million from additional tax benefits and lower losses related to the company's discontinued Brazil operations.
Clorox also reported net earnings were up 15% to $549 million for the year ended June 30. Fiscal-year sales increased 4% to $4.32 billion and volume jumped of 4%.
"A number of strategic decisions impacted our results," commented president and chief executive officer Jerry Johnston. "For example, we chose to invest heavily in new products in our North America businesses, and although start-up costs reduced pretax earnings in these segments, the investment is driving strong top-line growth. In addition, initiatives we put into place a couple of years ago to improve results in our Latin America businesses are continuing to pay off in significant year-over-year sales, volume and pretax earnings growth."
Clorox expects fiscal year 2005 results will be consistent with the company's long-term expectations for sales and volume growth of 3-5%. For the first quarter of fiscal 2005, Clorox also anticipates sales and volume growth of 3-5%, and earnings per diluted share between $0.53-$0.55. Clorox's also announced that its primary shareholder, Henkel KgaA, may sell some or all of its stake in Clorox to fund the acquisition of The Dial Corp.