Clorox Profits Rise but Sales Tepid

Clorox Co., Oakland, CA, said quarterly profit rose a scant 2.8% as rainy weather dampened sales of its Kingsford barbecue charcoal. But Clorox benefited from an aggressive cost-cutting program as it tries to increase earnings in categories that do not lend themselves to high sales growth, analysts said.

The company expects an additional $100 million in savings in the current fiscal year, executives told analysts during a conference call. Sales rose 2.1% to $1.15 billion, driven by results at its Glad plastic bags, KC Masterpiece barbecue sauce and Hidden Valley salad dressing businesses.

Clorox, which last year formed a joint venture with leading U.S. consumer products maker Procter & Gamble Co. to make and sell Glad plastic bags and wraps, said new products will include Glad Press ‘n Seal food wrap.