Clorox Updates Financial Outlook

The Clorox Company updated its financial outlook for the fiscal second quarter ending Dec. 30, 2005, and confirmed its outlook for the fiscal year ending June 30, 2006. Clorox anticipates sales growth of 2-4% percent for the second quarter. A year ago quarter, the company delivered 9% sales growth. The company’s second-quarter outlook for diluted EPS from continuing operations is now in the range of 44-49 cents. Included in the company’s second-quarter outlook is an estimated incremental impact of 3-4 cents from expensing equity compensation in accordance with SFAS No. 123-R. The company also provided initial financial outlook for the fiscal third quarter ending March 31, 2006, as well as the fiscal fourth quarter. It anticipates sales growth of 4-7%, which reflects the net benefits of price increases and new products. Clorox anticipates third-quarter diluted EPS from continuing operations in the range of 66-73 cents. The company’s third-quarter outlook includes strong advertising support behind new products. For the fourth quarter, Clorox anticipates sales growth of 3-5 percent and diluted EPS from continuing operations in the range of $1.04-$1.14. Included in the company’s fourth-quarter outlook are the continuing benefits of price increases, and the company’s expectation that commodity costs in the latter part of the fiscal year will be slightly lower than the extreme post-hurricane levels, although still higher than year-ago levels. For fiscal 2006, the company’s sales outlook continues to be at the high end of its previously communicated long-term target of 3-5%. Clorox’s fiscal-year outlook for diluted EPS from continuing operations continues to be in the range of $2.91-$3.06, which includes an estimated incremental impact of 14-16 cents from expensing equity compensation in accordance with SFAS No. 123-R.