Clorox Remains on Track in Fiscal 2002

Clorox Co. has reaffirmed its earnings guidance for fiscal 2002, despite the devaluation of the Argentine peso, as it expects cost cuts to help mitigate lost sales. The maker of Clorox bleach, Glad bags and Hidden Valley salad dressings said it was still on track to post earnings of $1.82to $1.87 a share in the fiscal year ending in June, before one-time charges. The company issued that guidance in December.

Yesterday, president Eduardo Duhalde set a devaluation of the Argentine peso, which is pegged to the dollar, by nearly 30%.

“Our most recent fiscal-year earnings guidance anticipated some Latin America currency and economic weakness,” Craig Sullivan, chairman and chief executive, said in a statement. “While we expect that the currency impact from a devaluation in the range of 40-50% would reduce overall company sales for the full fiscal year by about 1%, results in other areas, including the benefits from cost-saving projects, should allow us to deliver against our earnings targets.”

About 3% of the company’s sales come from Argentina.