Lower Clorox Profits Top Estimates

Clorox Co. stated that its second-quarter profit fell precipitously because of restructuring charges and a greater investment in marketing, but earnings surpassed Wall Street’s target by a wide margin, helped by higher sales and selling prices. Clorox said net income dropped to $83 million (55 cents per share) from $699 million ($3.68) a year ago. Earnings from continuing operations also came to 55 cents which, according to Thomson First Call, was ahead of analysts’ average estimate of 47 cents. Sales for the three months ended Dec. 31 rose 6% to $1.06 billion from $1 billion in last year’s second quarter. The company said that volume advanced 2%, boosted by increased shipments of home-care products, institutional products and goods to Latin America. It also noted that greater shipments of Glad trash bags and Kingsford charcoal also boosted volume. Clorox forecast earnings from continuing operations of 68 to 73 cents a share, for the third quarter. On average, analysts expect the company to make 72 cents a share. Fourth-quarter earnings are seen at $1.04 to $1.14 a share, compared with analysts’ estimate of $1.07. Fiscal 2006 earnings are targeted at $2.97 to $3.07 versus analysts’ outlook of $2.96.