Clorox Posts 7% Sales Gains in Third Quarter

Oakland, CA-based The Clorox Company reported sales growth across all segments drove the company’s strong earnings results for the third quarter ended March 31. Clorox reported third-quarter net earnings of $126 million, an 18% increase from a year ago.

Third quarter sales also grew 7% to $1.086 billion. Executives said sales growth outpaced the 4% growth in volume primarily due to reduced coupon spending, price increases and favorable foreign exchange rates. Volume growth was driven by new products, record shipments of Clorox disinfecting wipes and Glad trash bags, and increased shipments of Brita water-filtration products, food products, charcoal and cat litter.

Sales of household products in North America grew 6% and volume jumped 3%. Sales were driven by increased shipments of new products, including Clorox Bleach Pen gel and Tilex Mildew Root penetrator and remover. Household product sales in other regions grew as well, such as 13% in Latin America.

“We are delighted with our third quarter performance,” said president and chief executive officer Jerry Johnston. “We continued to build momentum, and displayed fundamental strength across the company. The continued focus and hard work of Clorox people around the world helped drive our strong top- and bottom-line results.”

For the fourth quarter, Clorox continues to expect mid-single-digit volume growth compared to the year-ago period, with sales growing faster than volume. Consistent with its long-term goals, Clorox expects fiscal 2004 volume and sales growth between 3-5% and double-digit growth in earnings per diluted share.