Sales of New Products Help Boost Clorox

Clorox Co., maker of bleach and other household products, said on Tuesday quarterly profit rose on sales of new products and reduced advertising costs. The company also forecast profit for the current third quarter, ending in March, below analysts’ estimates but forecast full-year profit in line with estimates, with the difference made up in the fourth quarter.

Oakland, CA-based Clorox, which makes products ranging from Glad plastic bags to Hidden Valley salad dressing, posted profit of $109 million in the fiscal second quarter ended Dec. 31. That compares with $89 million a year earlier, when it also recorded a $30 million asset writedown.

Sales rose 2% to $947 million. Volume, which factors out price and currency changes, rose 4%, largely on sales of new products like a Clorox bleach pen and bathroom cleaners with Teflon.

The company also said the Internal Revenue Service has proposed adjustments related to an investment that could cost Clorox an additional $200 million in taxes. Clorox said it disputes the matter, which involves a fund in which it is a limited partner. Clorox also said it has accrued for any taxes relating to the dispute and does not expect the outcome to have any material impact on earnings.