Clorox Reports First Quarter Results

The Clorox Company today announced earnings before special charges of $108 million, compared with earnings of $100 million, a year ago. Despite the improvements, the company said it would cut more jobs in the coming months.

Overall volume in the first quarter increased 6% over the prior-year period, reflecting growth in all business segments. Sales for the quarter increased 3% to $991 million. Excluding the impact of foreign currencies, sales would have posted a 4% gain.

“First-quarter volume and profit were higher than expected, and we’re highly encouraged that our focused efforts are continuing to drive positive volume and market-share trends on our businesses. We intend to strengthen our investment in advertising to maintain this momentum,” said chairman and CEO Craig Sullivan. “However, we’re still not satisfied with our performance in a number of areas. We had previously identified Ocutting costs everywhere’ as a key priority for this fiscal year, and we’re stepping up our efforts to improve our cost structure and to generate additional funds to invest in growth.”

By segment, Household Products-North America reported a 3% increase in volume, a1% decline in sales and a 4% decline in pretax earnings before special charges. Household Products-Latin America and Other includes operations outside the United States and Canada, excluding the European automotive-care businesses, reported a 7% growth in volume; flat sales and a 5% decline in pretax earnings before special charges

Specialty Products, including charcoal, U.S. and European automotive-care businesses, cat litter, insecticides, food products and professional products, reported a 13% gain in volume; 12% growth in sales and 15% growth in pretax earnings before special charges.