Clorox Cuts 2006 Outlook on Rising Energy-Related Costs

Clorox Co. cut its earnings forecast for the current fiscal year due to rising energy-related costs driven by the recent hurricanes. The maker of bleach and other household products also plans price increases on about 40% of its products. Clorox shares fell 77 cents (1.4%) to close at $53.81 Tuesday on the New York Stock Exchange. The company lowered forecast for earnings from continuing operations for the fiscal year that ends in June to between $2.91 and $3.06 a share. It had earlier expected earnings of $3 to $3.11 a share, while Wall Street analysts had on average expected earnings of $3.05 a share, up from $3.04 in the previous year. However, Clorox raised its forecast for the fiscal first quarter ended Sept. 30. It now expects to report income of 68 – 72 cents a share from continuing operations. It previously expected earnings of 65 – 72 cents a share. Clorox’s raised its sales growth outlook to a range of 5% to 6% from $1.09 billion a year earlier, suggesting a sales range of $1.15 billion to $1.16 billion. For the fiscal second quarter ending Dec. 31, Clorox projects income from continuing operations of 41 – 47 cents a share. In early August, the outlook stood at 50 -57 cents a share. The company said it cut the forecast due to higher commodity costs. Clorox still projects second-quarter sales growth of 1% to 3% from the $1 billion recorded a year earlier. The forecast suggests a range of $1.01 billion to $1.03 billion.