Top Companies Report

12. Clorox

June 28, 2012

Oakland, CA
510.271.7000
www.thecloroxcompany.com
Sales: $2.5 billion for household, personal care and I&I products.
Corporate sales: $5.2 billion. Net income: for the year ended June 30, 2011.

Key Personnel: Donald R. Knauss, chairman and chief executive officer; Lawrence S. Peiros, executive vice president and chief operating officer; Frank A. Tataseo, executive vice president, strategy and growth, partnerships and Clorox Professional Products and information technology; Thomas B. Britanik, senior vice president, chief marketing officer; Wayne L. Delker, senior vice president, chief innovation officer; Benno Dorer, senior vice president, cleaning division and Canada; James Foster, senior vice president, chief product supply officer; Jaqueline P. Kane, senior vice president, human resources and corporate affairs; Grant J. LaMontagne, senior vice president, chief customer officer; Stephen M. Robb, senior vice president, chief financial officer; George C. Roeth, senior vice president, general manager, specialty division; Laura Stein, senior vice president, general counsel.

Major Products: Cleaning—Clorox disinfecting wipes, Pine-Sol dilutable cleaners, Clorox Clean-Up cleaner and Clorox bathroom cleaners; Personal Care—Burt’s Bees natural personal care products.

New Products: Burt’s Bees Güd body care products, Burt’s Bees personal care wipes, Liquid-Plumr Double Impact 2-in-1 Clog Clearer, Clorox Commercial Solutions Clorox Professional Cleaners & Degreasers, Clorox Healthcare Hydrogen Peroxide Cleaner Disinfectant Wipes and Spray, Clorox Commercial Solutions Clorox Broad Spectrum Quaternary Disinfectant Cleaner.

Comments: After a difficult 2011, Clorox is back on the beam. The company expects sales to rise 4% in fiscal 2012, versus the previous outlook of 2-4%.

The company credits the upward revision to improvement in the US, strong gains behind innovation, price increases and retailer merchandising. In fact, fiscal Q3 volume rose 4% and sales grew 7%. During the quarter, cleaning volume rose 7% and sales were up 10%. Volume was up due to higher shipments of Clorox disinfecting wipes and Clorox bathroom cleaners. The natural personal care business also had solid volume growth behind the new Güd personal care line. Finally international sales rose 4% on a 1% increase in volume. Leading the way was Latin America, which reported strong volume gains due to higher shipments of home care products in Argentina, Mexico and Peru.


Burt’s Bees expanded its personal care empire with the Güd collection.
In January, Clorox acquired Aplicare, Inc. and HealthLink, providers of infection control products for the health care industry. The moves were called important steps in the company’s effort to increase exposure to faster-growing categories as part of an ongoing portfolio transformation. The acquisitions complement and expand the breadth and depth of the health care portfolio of the company’s Away From Home business.

In fiscal 2011, corporate sales were flat and net income declined 7%. Price increases were offset by unfavorable product mix and the impact of Walmart pickup allowances. Clorox sales were driven by the international business, as well higher sales of Pine-Sol cleaner and Burt’s Bees personal care products.

More specifically, cleaning sales dipped less than 1% to about $1.6 billion. In addition to Pine-Sol gains, Clorox Clean-Up Cleaner with Bleach, Clorox disinfecting bathroom cleaners and Clorox Disinfecting Wipes also provided a sales lift. These increases were partially offset by lower shipments of laundry additives due to category softness; and lower shipments of Tilex mold and mildew remover.

To focus on its strategic businesses, the company sold its auto care unit and cut $100 million in costs.
Clorox has recorded $100 million or more in savings every fiscal year since 2003. At the same time, Clorox rolled out 15 new products and/or packaging sustainability improvements and impacted a cumulative 16% of the portfolio in 18 months, which is ahead of its goal of 25% by 2013.

Looking ahead, Clorox expects fiscal 2013 sales to rise 2-4% due to continued market share and category momentum. In 2013, Clorox will celebrate its 100th anniversary.


 
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