02.07.11
Clorox Corporationposted a marginal increase in second-quarter fiscal 2011 earnings of 68 cents a share compared with 66 cents in the year-ago quarter, surpassing the Zacks Consensus Estimate of 62 cents.
Clorox’s net sales during the quarter declined 3.0% year over year to $1,179 million from $1,215 million in the year-ago quarter, marginally surpassing the Zacks Consensus Estimate of $1,176 million. The decline was primarily attributable to lower volume, unfavorable impact of the Venezuelan currency devaluation and higher trade-promotion spending, partially offset by increased pricing.
Total volume in the quarter dropped 3% due to lesser shipments of Clorox disinfecting wipes and other disinfecting products resulting from the H1N1 flu pandemic, as well as fragile trends across several of the company’s U.S. categories.
Clorox’s sales in the cleaning segment dipped 6% due to a 6% decline in volume. The decline in segment volume was mainly attributable to lower shipments of Clorox disinfecting wipes, other disinfecting products and Clorox laundry additives. The decline was partially offset by higher shipments of Pine-Sol dilutable cleaners and lower selling, administrative and sales promotion expenses.
Household segment sales inched down 4% primarily due to a decline in volume by 1%. Decrease in volume in the segment was primarily attributable to lower shipments of Glad food-storage products, Kingsford charcoal and Scoop Away cat litter.
Clorox’s Lifestyle segment recorded a slender 3% sales growth on the back of a 3% rise in volume. The volume growth was primarily driven by volume growth in Burt’s Bees natural care products and Hidden Valley salad dressing due to new products and incremental advertising, partially offset by lower shipments of Brita water-filtration products.
In the International segment, Clorox’s sales inched down 1%, while volume surged by 3%. The top-line was primarily impacted by the Venezuela currency devaluation, partially offset by increased pricing and favorable exchange rates in other countries. Increase in volume was primarily driven by new home products launches and category growth in Latin America.