Clorox reports solid sales and margin growth in first quarter Net cash provided
by operations increased to $208 million from $131 million in the yearago
quarter.The yearoveryear increase was due primarily to favorable changes in
working capital.For the full fiscal year, clorox anticipates free cash flow of
about 9 percent to 10 percent of sales.The company defines free cash flow as
cash provided by operations less capital expenditures.In september, the company
issued $600 million of 10year senior notes, temporarily increasing its cash
balance prior to the midoctober repayment of other maturing longterm debt of
$350 million.The company's cash balance is expected to return to a more
normalized level by dec.31. 11% pretax earnings increase Volume growth in the
segment was driven primarily by high doubledigit growth in the professional
products business, due to the benefit of acquisitions made in fiscal 2012 and a
doubledigit increase in the base business.Shipments in the home care business
were about equal to the year ago quarter, with alltime record shipments of
clorox disinfecting wipes, offset by declines on pinesol products due to a price
increase in the fourth quarter of fiscal 2012.Home care sales increased due to
the benefit of beats by dre uk price
increases.Laundry volume decreased due to lower shipments of clorox 2 stain
fighter and color booster, partially offset by the highest volume growth of
bleach in more than two years.Segment sales outpaced volume largely due to the
benefit of price increases.Pretax earnings growth was driven primarily by higher
sales and the benefit of strong cost savings, partially offset by unfavorable
product mix. 19% beats by dre
sale online pretax earnings increase The segment's volume and sales
decreases were driven primarily by declines in the charcoal business, reflecting
the impact of price increases earlier in the calendar year and the comparison to
very strong merchandising and volume growth in the yearago quarter.Cat litter
volume declined due to price increases implemented in the fourth quarter of
fiscal 2012 and increased competitive activity.Glad volume was up, with
continued strong gains in premium trash bag products such as glad odorshield
trash bags with febreze.The variance between the changes in segment volume and
sales was primarily due to the benefit of price increases.Pretax earnings growth
was driven largely by strong cost savings, partially offset by lower sales. 2%
pretax earnings increase drdrebtshdphones Volume was up in
the food business driven primarily by higher shipments of hidden valley
products, offset by lower shipments of kc masterpiece products due to strong
competitive activity.Volume declined in the water filtration business due to
lower shipments of faucet mount products, as well as lower brita bottle
shipments, compared to strong volume behind the new product launch in the
prioryear quarter.Burt's bees shipments declined slightly, following strong
growth in the yearago period, behind a robust pipeline of new products.Burt's
bees delivered doubledigit retail sales growth.Segment sales grew primarily due
to the benefit of price increases.Pretax earnings growth reflected the benefit
of cost savings. 30% pretax earnings decrease Volume declined in the segment
largely due to the exit of nonstrategic export businesses.Base business in latin
america grew both volume and sales, while canada volume and sales declined
slightly.Segment sales increased primarily due to price increases, partially
offset by unfavorable foreign exchange.The pretax earnings decline of $12
million was due to the inflationary impact on manufacturing and logistics costs,
unfavorable foreign exchange and expenses associated with it systems
implementation in latin america.Clorox markets some of the most trusted and
recognized brand names, including its namesake bleach and cleaning products,
clorox healthcare", HealthLink, Aplicare and Dispatch products, Green Works
naturally derived home care products, PineSol cleaners, Poett home care
products, Fresh Step cat litter, Glad bags, wraps and containers, Kingsford
charcoal, Hidden Valley and KC Masterpiece dressings and sauces, Brita
waterfiltration products, and Burt's Bees and gud natural personal care
products.Nearly 90 percent of the company's brands hold the no.1 or No.2 market
share positions in their categories.The company's products are manufactured in
more than two dozen countries and marketed in more than 100 countries.Clorox is
committed to making a positive difference in the communities where its employees
work and live.Founded in 1980, the clorox company foundation has awarded cash
grants totaling more than $87 million to nonprofit organizations, schools and
colleges.In fiscal year 2012 alone, the foundation awarded $3.5 million in cash
grants, and Clorox made product donations valued at $15 million. Forwardlooking
statementsthis press release contains"Forwardlooking statements"Within the
meaning of section 27a of The securities act of 1933, as amended(The securities
act),AndSection 21E of the Securities Exchange Act of 1934, as amended(The
exchange act),Andsuch forwardlooking statements involve
risksAnduncertainties.Except for historical information, matters discussed
above, including statements about future volume, sales, costs, cost savings,
earnings, cash flows, Plans,objectives, expectations, growth, or profitability,
are forwardlooking statements based on management's
Estimates,assumptionsAndprojections.Words such as"Will," "Could," "May,"
"Expects," "Anticipates," "Targets," "Goals," "Projects," "Intends," "Plans,"
"Believes," "Seeks," "Estimates,"And variations on such words,Andsimilar
expressions, are intended to identify such forwardlooking statements.These
forwardlooking statements are only predictions, subject to
risksAnduncertainties,Andactual results could differ materially from those
discussed above.Important factors that could affect performanceAndcause results
to differ materially from management's expectations are described in the
sections entitled"Risk factors"And"Management's DiscussionAndAnalysis of
Financial ConditionAndResults of Operations"In the annual report on form 10k for
the fiscal year ended june 30, 2012, as updated from time to time in the
company's sec filings.These factors include, but are not limited to: the
company's costs, including volatilityAndincreases in commodity costs such as
resin, diesel, chloralkali, sodium hypochlorite, highstrength bleach,
agricultural commoditiesAndother raw materials;Increases in energy costs; the
ability of the company to implementAndgenerate expected savings from its
programs to reduce costs, including its supply chain restructuringAndother
restructuring plans;Supply disruptions or any future supply constraints that may
affect key commodities or product inputs;Risks inherent in relationships with
suppliers, including solesource or singlesource suppliers;Risks related to the
handling and/or transportation of hazardous substances, including, but not
limited to, chlorine;The success of the company's strategies; the ability to
manageAndrealize the benefits of joint venturesAndother cooperative
relationships, including the company's joint venture regarding the company's
Glad plastic bags, wrapsAndcontainers business,Andthe agreements relating to the
provision of information technology, procure to payAndother key services by
third parties; risks relating to acquisitions, mergersAnddivestitures,Andthe
costs associated therewith; risks inherent in maintaining an effective system of
internal controls, including the potential impact of acquisitions or the use of
thirdparty service providers,Andthe need to refine controls to adjust for
accounting, financial reportingAndother organizational changes or business
conditions; the ability of the company to successfully manage tax, regulatory,
product liability, intellectual property, environmentalAndother legal matters,
including the risk resulting from jointAndseveral liability for environmental
contingenciesAndrisks inherent in litigation, including class action
litigationAndInternational litigation; risks related to maintainingAndupdating
the company's information systems, including potential disruptions, costsAndthe
ability of the company to implement adequate information systems in order to
support the current businessAndto support the company's potential growth;The
ability of the company to develop commercially successful products that delight
the consumer; consumerAndcustomer reaction to price changes;Actions by
competitors;Risks related to customer concentration; customerspecific ordering
patternsAndtrends;Risks arising out of natural disasters;The impact of disease
outbreaks, epidemics or pandemics on the company's, suppliers' or customers'
operations;Changes in the company's tax rate; unfavorable worldwide, regional or
local general economicAndmarketplace conditionsAndevents, including consumer
confidenceAndconsumer spending levels, the rate of economic growth, the rate of
inflation or deflation,Andthe financial condition of the company's customers,
suppliersAndservice providers; foreign currency exchange rate
fluctuationsAndother risks of international operations, including
governmentimposed price controls; unfavorable political conditions in the
countries where the company does businessAndother operational risks in such
countries; the impact of the volatility of the debtAndequity markets on the
company's cost of borrowing, cost of capitalAndaccess to funds, including
commercial paperAndits credit facility; risks relating to changes in the
company's capital structure, including risks related to the company's ability to
implement share repurchase plansAndthe impact thereof on the company's capital
structureAndearnings per share; the impact of any unanticipated restructuring or
assetimpairment chargesAndthe ability of the company to successfully implement
restructuring plans;Risks arising from declines in cash flow, whether resulting
from declining sales, higher cost levels, tax payments, debt payments, share
repurchases, higher capital spending, interest cost increases greater than
management's expectations, interest rate fluctuations, increases in debt or
changes in credit ratings, or otherwise; the costsAndavailability of
shippingAndtransport services;Potential costs in the event of stockholder
activism;Andthe company's ability to maintain its business reputationAndthe
reputation of its brands. The company has disclosed information related to sales
growth, gross margin and diluted eps on a nongaap basis to supplement its
condensed consolidated statements of earnings presented in accordance with
gaap.These nongaap financial measures exclude certain items that are included in
the company's results reported in accordance with gaap, including charges
associated with simplification of the company's supply chain and other
restructuringrelated charges and the impact of foreign exchange and foreign
currency exchange transactions and acquisitions. Management believes that these
nongaap financial measures provide useful additional information to investors
about current trends in the company's operations and are useful for
periodoverperiod comparisons.These nongaap financial measures should not be
considered in isolation or as a substitute for the comparable gaap measures.In
addition, these nongaap measures may not be the same as similar measures
provided by other companies due to potential differences in methods of
calculation and items being excluded.They should only be read in connection with
the company's condensed consolidated statements of earnings presented in
accordance with gaap.
没有评论:
发表评论