Clorox Backs Fiscal 2007 View, Sees Higher Commodity Costs

Clorox Co. said that for fiscal 2007 it still expects sales growth in line with its prior long-term target of 3% to 5%. Sales growth is expected to outpace volume growth, particularly in the first two quarters, due to the carryover benefit of fiscal 2006 price increases, the maker of Armor All, Fresh Step cat litter and Hidden Valley Ranch salad dressing said. The company backed its profit forecast for fiscal 2007 in the range of $3.20 to $3.30 a share, reflecting about five cents to six cents a share for possible charges primarily related to restructuring information technology activities. The earnings target also reflects a higher tax rate and an impact of about five cents a share from expensing of equity compensation.