US Market News
2月前
Clorox Reports Q3 Fiscal Year 2026 Results, Updates OutlookApril 30, 2026 4:10 PM
PR Newswire (US)
OAKLAND, Calif., April 30, 2026 /PRNewswire/ -- The Clorox Company (NYSE: CLX) today reported results for the third quarter of fiscal year 2026, which ended March 31, 2026.Third-Quarter Fiscal Year 2026 SummaryFollowing is a summary of key results for the third quarter. All comparisons are with the third quarter of fiscal year 2025 unless otherwise stated.Net sales of $1.67 billion were flat versus the year-ago quarter. Organic sales1 decreased 1%.Gross margin decreased 140 basis points to 43.2% from 44.6% in the year-ago quarter, primarily driven by higher manufacturing and logistics costs and unfavorable mix, partially offset by cost savings.Diluted net earnings per share (diluted EPS) increased 3% to $1.54 from $1.50 in the year-ago quarter. This includes lapping cyberattack insurance recoveries in the prior period, lower costs related to the company's investment in its digital capabilities and productivity enhancements in the current period, partially offset by costs associated with the acquisition of GOJO Industries (GOJO).Adjusted EPS1 increased 13% to $1.64 from $1.45 in the year-ago quarter, primarily driven by cost savings, lower advertising investments and lower selling and administrative expenses, partially offset by higher manufacturing and logistics costs and unfavorable mix.Year-to-date net cash provided by operations was $282 million compared to $687 million in the year-ago period, representing a 59% decrease, primarily due to the Glad joint venture agreement termination payment."Our third-quarter results were mixed, with continued momentum in some parts of our portfolio and slower-than-anticipated market share recovery in others," said Chair and CEO Linda?Rendle. "Looking ahead, we recognize there is more work to do in what continues to be a challenging consumer and cost environment. We're focused on improving execution to accelerate market share progress in challenging areas while continuing to invest behind areas of strength. We're excited about the opportunities ahead as we expand our innovation pipeline and integrate Purell into our portfolio, reinforcing our confidence in our ability to deliver more consistent, profitable growth over time."
This press release includes certain non-GAAP financial measures. See "Non-GAAP Financial Information" at the end of this press release for more details.
1Organic sales growth / (decrease) and adjusted EPS are non-GAAP measures. See Non-GAAP Financial Information at the end of this press release for reconciliations to the most comparable GAAP measures.Strategic and Operational Highlights The following are recent strategic and operational highlights:Completed its acquisition of GOJO Industries on April 1, expanding the company's product portfolio to include the Purell® brand and GOJO's health and hygiene solutions.Continued to invest in value superiority through innovation across its portfolio, including Hidden Valley Ranch with Avocado Oil, YumYum Ranch and Parmesan Ranch Seasoning, Kingsford Craftsmoke Pellets, the expansion of Burt's Bees Lip Treats platform and a new skincare line, enhanced packaging and formulation options for Fresh Step, as well as expanded scent offerings across Clorox, Glad, and Pine-Sol. Clorox PURE continued to gain traction following its launch with velocities exceeding expectations. Clorox and Burt's Bees were recognized among the Most Trusted Brands of 2026 by USA TODAY, while Burt's Bees, Glad and Hidden Valley Ranch innovations were named the Best New Products in 2026 by Newsweek. The company was recognized among Barron's Most Sustainable Companies in the U.S. for the fourth consecutive year and named among America's Most Iconic Companies by Time Magazine.Key Segment ResultsThe following is a summary of key third-quarter results by reportable segment. All comparisons are with the third quarter of fiscal year 2025 unless otherwise stated.Health and Wellness (Cleaning; Professional Products)Net sales were essentially flat, driven by 1 point of higher volume, net of incremental shipments ahead of consumption in the prior quarter, partially offset by unfavorable price mix.Segment adjusted EBIT2 decreased 7%, primarily due to higher manufacturing and logistics costs, partially offset by cost savings.Household (Bags and Wraps; Cat Litter; Grilling)Net sales increased 3%, driven by 3 points of higher volume, primarily due to shipment ahead of consumption in Cat Litter and Grilling.Segment adjusted EBIT increased 21%, primarily due to cost savings.Lifestyle (Food; Water Filtration; Natural Personal Care)Net sales decreased 9%, driven by 6 points of lower volume primarily due to lower consumption and retail inventory adjustments.Segment adjusted EBIT was essentially flat, as the impact of lower net sales was offset by lower advertising investments and lower selling and administrative expenses.International (Sales Outside the U.S.)Net sales increased 8%, primarily driven by favorable foreign exchange rates and higher volume. Organic sales grew 2%.Segment adjusted EBIT increased 16%, primarily due to higher net sales and cost savings, partially offset by higher manufacturing and logistics costs.
2Adjusted EBIT is a non-GAAP measure. See Non-GAAP Financial Information at the end of this press release for reconciliations to the most comparable GAAP measures.Fiscal Year 2026 Outlook The company is updating its full-year outlook for net sales, gross margin and adjusted EPS for the latest performance and trajectory as well as the impact from the company's acquisition of GOJO Industries, which closed on April 1, 2026.The following are?three key drivers of the company's fiscal year 2026 outlook; one is transitory and the others are inorganic:?The most significant driver of the company's fiscal year 2026 outlook is a transitory one. The company shipped about two weeks of inventory ahead of consumption at the end of the?fourth-quarter?of fiscal year 2025 as?retailers built?inventory in advance of its ERP transition. The company expected?retailers to draw down on these inventories in the first quarter of this fiscal year, resulting in year-over-year?shipments?decline. From a year-over-year sales growth perspective, the reduction in sales from this inventory?draw down?translates to about 7.5 points of decline in fiscal year 2026 as compared to the higher base in fiscal year 2025. Inventory?draw down?is expected to reduce fiscal year 2026 earnings per share by about 90 cents. In comparison to the higher base in fiscal year 2025, this results in a year-over-year reduction of about 30% to fiscal year 2026 diluted earnings per share and about 23% to fiscal year 2026 adjusted earnings per share.? The GOJO acquisition is expected to have 3 points of positive impact?to?net sales and 2 to 4 cents dilution?to?adjusted earnings per share, which reflects one quarter of profit contribution as well as the interest expense associated with the transaction. As previously mentioned, GOJO is EBITDA margin neutral to Clorox. However, it has a different gross margin and operating expense profile compared to Clorox' existing business. These differences have been captured in the latest outlook.The company expects less than 1 point of negative impact on net sales from the divestiture of VMS business, offset by less than 1 point of positive impact from favorable foreign exchange.The company is updating the following elements of its fiscal year 2026 outlook:??The company now expects net sales to be down about 6%, including slightly less than 3 points of positive impact from the acquisition of GOJO. It also expects less than 1 point of negative impact from the divestiture of its VMS business, offset by less than 1 point of positive impact from favorable foreign exchange. This compares to its prior sales decline expectation at the low end of 6% to 10% range. Organic sales are now expected to decrease about 9%, versus?its?prior expectation at the low end of 5% to 9% decline.??Organic sales growth?expectation continues?to include a negative impact of about 7.5 points related to the reversal of the impact from incremental shipments associated with the ERP transition in the prior year.?Gross margin is now expected to be down 250 to 300 basis points. This compares to the company's prior expectation at the low end of 50 to 100 basis points?decline range. Impact from the GOJO acquisition is expected to be about 60 basis points of headwinds, of which about 50 basis points is transaction-related costs mainly associated with inventory step up. The reversal of the impact from incremental shipments associated with ERP transition in the prior fiscal year is expected to result in about 100 basis points of headwinds. Gross margin expectation also includes headwinds associated with higher energy costs from the Middle East conflict. Selling and administrative expenses are still expected to be about 16% of net sales. It continues to include about 90 basis points of impact from the company's strategic investments in digital capabilities and productivity enhancements.??Advertising and sales promotion spending is still expected to be 11% of net sales.??The company's effective tax rate is still expected to be about 24%.??Fiscal year diluted EPS is now expected to be between $4.78 ?and $4.98, a year-over-year decrease of 24% to 27%. This outlook range now includes about 30 cents of impact from transaction-related costs associated with the GOJO acquisition and about 37 cents of long-term strategic investments in digital capabilities and productivity enhancements.?This compares to its prior expectation at the low end of?$5.60?and?$5.95 range. This diluted EPS range continues to include the negative impact of about 90 cents related to the reversal of the impact from incremental shipments associated with the ERP transition in the prior fiscal year.?Adjusted EPS is now expected to be between $5.45?and $5.65, or a decrease between 27% and 29%, respectively. This includes about 2 to 4 cents of dilution from GOJO acquisition, which reflects sales and earnings contribution for one quarter, as well as the higher interest expense associated with the debt financing for the deal. This compares to its prior expectation at the low end of?$5.95?and?$6.30 range. This outlook also?continues?to include the negative impact of about 90 cents related to the reversal of the impact from incremental shipments associated with the ERP transition in the prior fiscal year.
Net sales (percentage change versus the year ago period)
Fiscal year 2025
full year
Fiscal year 2026
full year outlook
Impact
Net sales growth / (decrease) (GAAP)0 %
(6) %Add: Foreign Exchange—
—Add/(Subtract): Divestitures/acquisitions5
(3)Organic sales growth / (decrease) (non-GAAP)5 %
(9) %
Note: Approximate impact from incremental shipments related to ERP transition 3.5 %
(7.5) %
Diluted earnings per share
Fiscal year 2025
full year
Fiscal year 2026
full year outlook
Impact
Low
HighAs estimated (GAAP)$ 6.52
$ 4.78
$ 4.98Loss on divestiture0.94
—
—Acquisition and integration costs—
0.30
0.30Cyberattack costs, net of insurance recoveries(0.42)
—
—Digital capabilities and productivity enhancements investment0.68
0.37
0.37As adjusted (non-GAAP)$ 7.72
$ 5.45
$ 5.65
Note: Approximate impact from incremental shipments related to
ERP transition $ 0.90
$ (0.90)
$ (0.90)Clorox Earnings Conference Call Schedule At approximately 4:15 p.m. ET today, Clorox will post prepared management remarks regarding its third quarter fiscal year 2026 results.At 5 p.m. ET today, the company will host a live Q&A audio webcast with Chair and CEO Linda Rendle and Chief Financial Officer Luc Bellet to discuss the results.Links to the live (and archived) webcast, press release and prepared remarks can be found at Clorox Quarterly Results.For More Detailed Financial Information Visit the company's Quarterly Results for the following: Supplemental unaudited volume and sales growth information Supplemental unaudited gross margin drivers information Supplemental unaudited cash flow information and adjusted free cash flow reconciliation Supplemental unaudited reconciliation of earnings before interest and taxes (EBIT) and adjusted EBITSupplemental unaudited reconciliation of adjusted earnings per share (EPS)Note: Percentage and basis-point, or point, changes noted in this press release are calculated based on rounded numbers, except for per-share data and the effective tax rate.About The Clorox CompanyThe Clorox Company (NYSE: CLX) champions people to be well and thrive every single day. Headquartered in Oakland, California since 1913, Clorox integrates sustainability into how it does business. Driven by consumer-centric innovation, the company is committed to delivering clearly superior experiences through its trusted brands including Brita®, Burt's Bees®, Clorox®, Fresh Step®, Glad®, Hidden Valley®, Kingsford®, Liquid-Plumr®, Pine-Sol® and Purell® as well as international brands such as Chux®, Clorinda® and Poett®. Visit thecloroxcompany.com to learn more.CLX-FForward-Looking Statements
This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including, among others, regarding the acquisition of GOJO, and any such forward-looking statements involve risks, assumptions and uncertainties. Except for historical information, statements about future volumes, sales, organic sales growth, foreign currencies, costs, cost savings, margins, earnings, earnings per share, including as a result of the GOJO acquisition, diluted earnings per share, foreign currency exchange rates, tax rates, cash flows, plans, objectives, expectations, growth or profitability are forward-looking statements based on management's estimates, beliefs, assumptions and projections. Words such as "could," "may," "expects," "anticipates," "targets," "goals," "projects," "intends," "plans," "believes," "seeks," "estimates," "will," "predicts," and variations on such words, and similar expressions that reflect our current views with respect to future events and operational, economic and financial performance are intended to identify such forward-looking statements. These forward-looking statements are only predictions, subject to risks and uncertainties, and actual results could differ materially from those discussed. Important factors that could affect performance and cause results to differ materially from management's expectations, are described in the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the company's Annual Report on Form 10-K for the fiscal year ended June 30, 2025, as updated from time to time in the company's Securities and Exchange Commission filings. These factors include, but are not limited to: the risks arising from the integration of the GOJO business; the uncertainty of rating agency actions; the risk that the anticipated benefits and synergies of the acquisition may not be realized when expected or at all; the risk of unexpected costs or expenses resulting from the acquisition, including the costs of financing; the risk of litigation related to the acquisition, including resulting expense; the risks related to disruption to ongoing business operations of the company and GOJO and diversion of time of management of the company and GOJO as a result of the acquisition; the risk that the acquisition may have an adverse effect on the ability of the company and GOJO to retain key personnel, customers and suppliers; the risk that the credit ratings of the company decline following the acquisition; the risk that the consummation of the acquisition has a negative effect on the market price of the common stock of the company or on the company's or GOJO's operating results; unfavorable general economic and geopolitical conditions beyond the company's control, including inflation, supply chain disruptions, labor shortages, wage pressures, fuel and energy costs, interest rate fluctuations, foreign currency exchange rate fluctuations, weather events or natural disasters, disease outbreaks or pandemics, terrorism, and unstable geopolitical conditions, including active armed conflicts and military hostilities in the Middle East, such as the ongoing conflict involving Iran, and rising tensions in various parts of the world, as well as macroeconomic and geopolitical volatility and uncertainty resulting from a number of these and other factors, such as actual and potential shifts in U.S. and foreign trade policies, escalating trade tensions between the U.S. and its trading partners, especially China, the potential expansion of sanctions regimes, and disruptions to global markets or transportation routes, particularly due to the imposition of U.S. and retaliatory tariffs; the impact of market and category declines, and the company's product and geographic mix on its ability to meet sales growth targets; the company's ability to successfully execute or realize the anticipated benefits of its strategic or transformational initiatives, including the ERP transition and the related timing and volume of shipment movement related to the ERP transition; the impact of the changing retail environment, including the growth of alternative retail channels and business models, and changing consumer preferences; intense competition in the company's markets; volatility and increases in the costs of raw materials, energy, transportation, labor and other necessary supplies or services; risks related to supply chain issues, product shortages and disruptions to the business, as a result of increased supply chain dependencies due to an expanded supplier network and a reliance on certain single-source suppliers; risks related to the company's use of and reliance on information technology systems, including potential and actual security breaches, cyberattacks, privacy breaches or data breaches that result in the unauthorized disclosure of consumer, customer, employee or company information, business, service or operational disruptions, or that impact the company's financial results or financial reporting, or any resulting unfavorable outcomes, increased costs or legal proceedings; the ability of the company to innovate and to develop and introduce commercially successful products, or expand into adjacent categories and countries; the ability of the company to successfully manage global political, legal, tax and regulatory risks, including due to regulatory uncertainty and lack of regulatory convergence among different jurisdictions; lower revenue, increased costs, other financial statement impacts or reputational harm resulting from government actions, compliance with regulations, or any material costs imposed by changes in regulation; the company's ability to maintain its business reputation and the reputation of its brands and products; dependence on key customers and risks related to customer consolidation and ordering patterns; the company's ability to attract and retain key personnel, which may continue to be impacted by challenges in the labor market, such as increasing labor costs and sustained labor shortages; changes to the company's processes and procedures as a result of its digital capabilities and productivity enhancements that may result in changes to the company's internal controls over financial reporting; risks related to the company's continued operation of the Glad business; risks related to international operations and international trade, including changing macroeconomic conditions as a result of inflation, volatile commodity prices and increases in raw and packaging materials prices, labor, energy and logistics; global economic or political instability; foreign currency fluctuations, such as devaluations, and foreign currency exchange rate controls; changes in governmental policies, including trade policy and tariffs, travel or immigration restrictions, new or additional tariffs, and price or other controls; labor claims and civil unrest; potential operational or supply chain disruptions from wars and military conflicts, including active armed conflicts and military hostilities in the Middle East, such as the ongoing conflict involving Iran, and/or Ukraine and rising tensions in various parts of the world, such as between China and Taiwan; potential negative impact and liabilities from the use, storage and transportation of chlorine in certain international markets where chlorine is used in the production of bleach; widespread health emergencies; and the possibility of nationalization, expropriation of assets or other government action or inaction, including the impacts of any prolonged U.S. government shutdown; the impact of climate change and other sustainability issues on sales, operating costs, reputation or stakeholder relationships; the impact of product liability claims, labor claims and other legal, governmental or tax proceedings, including in foreign jurisdictions and in connection with any product recalls; risks relating to acquisitions, new ventures and divestitures, and associated costs, including for asset impairment charges related to, among others, intangible assets, including trademarks and goodwill, and integration costs and potential contingent liabilities related to those transactions; the accuracy of the company's estimates and assumptions on which its financial projections, including any sales or earnings guidance or outlook it may provide from time to time, are based; risks related to the company's reliance on third-party service providers, including inability to meet cost savings or efficiencies, business or systems disruptions, and other liabilities, including legal or regulatory risk; environmental matters, including costs associated with the remediation and monitoring of past contamination, and possible increases in costs resulting from actions by relevant regulators, and the handling and/or transportation of hazardous substances; the company's ability to effectively utilize, assert and defend its intellectual property rights, and any infringement or claimed infringement by the company of third-party intellectual property rights; the effect of the company's indebtedness and credit rating on its business operations and financial results and the company's ability to access capital markets and other funding sources, as well as the cost of capital to the company; the company's ability to pay and declare dividends or repurchase its stock in the future; and the impacts of potential stockholder activism.The company's forward-looking statements in this press release are based on management's current views, beliefs, assumptions and expectations regarding future events and speak only as of the date of this press release. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by the federal securities laws.Non-GAAP Financial InformationThis press release contains non-GAAP financial information related to organic sales growth / (decrease), adjusted EPS and segment adjusted EBIT for the third quarter of fiscal year 2026, as well as organic sales growth/(decrease) and adjusted EPS outlook for fiscal year 2026. The reasons management believes these measures are useful to investors are described below. Certain non-GAAP financial measures may be considered in determining incentive compensation.Clorox defines organic sales growth / (decrease) as GAAP net sales growth / (decrease) excluding the effect of foreign exchange rate changes and any acquisitions or divestitures.Management believes that the presentation of organic sales growth / (decrease) is useful to investors because it excludes sales from any acquisitions and divestitures, which results in a comparison of sales only from the businesses that the company was operating and expects to continue to operate throughout the relevant periods, and the company's estimate of the impact of foreign exchange rate changes, which are difficult to predict and out of the control of the company and management. However, organic sales growth / (decrease) may not be the same as similar measures provided by other companies due to potential differences in methods of calculation or differences in which items are incorporated into these adjustments.Adjusted EPS is defined as diluted earnings per share that excludes or has otherwise been adjusted for significant items that are nonrecurring or unusual. The income tax effect on non-GAAP items is calculated based upon the tax laws and statutory income tax rates applicable in the tax jurisdiction(s) of the underlying non-GAAP adjustment.Adjusted EPS is supplemental information that management uses to help evaluate the company's historical and prospective financial performance on a consistent basis over time. Management believes that by adjusting for certain items affecting comparability of performance over time, such as the pension settlement charge, incremental costs and insurance recoveries related to the August 2023 cyberattack, asset impairments, charges related to the digital capabilities and productivity enhancements investment, transaction and integration costs related to acquisitions, significant losses related to divestitures and other nonrecurring or unusual items, investors and management are able to gain additional insight into the company's underlying operating performance on a consistent basis over time. However, adjusted EPS may not be the same as similar measures provided by other companies due to potential differences in methods of calculation or differences in which items are incorporated into these adjustments.Adjusted EBIT represents earnings (losses) before income taxes excluding interest income, interest expense and other significant items that are nonrecurring or unusual (such as the pension settlement charge, incremental costs, net of insurance recoveries, related to the August 2023 cyberattack, asset impairments, charges related to the digital capabilities and productivity enhancements investment, transaction and integration costs related to acquisitions, significant losses related to divestitures and other nonrecurring or unusual items impacting comparability during the period). The company uses this measure to assess the operating results and performance of its segments, perform analytical comparisons, identify strategies to improve performance, and allocate resources to each segment. Management believes that the presentation of adjusted EBIT excluding these items is useful to investors to assess operating performance on a consistent basis by removing the impact of the items that management believes do not directly reflect the performance of each segment's underlying operations. However, adjusted EBIT may not be the same as similar measures provided by other companies due to potential differences in methods of calculation or differences in which items are incorporated into these adjustments.The reconciliation tables below refer to the equivalent GAAP measures adjusted as applicable for the following items:Acquisition and Integration CostsOn April 1, 2026, the Company completed the previously announced acquisition of GOJO Industries. As a result?of this transaction,?various acquisition and integration-related costs were and will be incurred?related to the acquisition and efforts to integrate the recently?acquired?business to the Company's systems and processes. These costs?include?direct acquisition transaction costs and?legal-entity,?operational,?manufacturing, and information technology integration?costs. In future periods, additional costs are expected to be incurred including further integration costs, employee-related expenses, and inventory step-up charges representing expense recognition of fair value adjustments in excess of the historical cost basis of inventory obtained through the acquisition.Due to the nature, scope and magnitude of these costs and recoveries, the company's management believes presenting these costs as an adjustment in the non-GAAP results provides additional information to investors about trends in the company's operations and is useful for period over period comparisons. It also allows investors to view underlying operating results in the same manner as they are viewed by company management.Digital Capabilities and Productivity Enhancements InvestmentAs announced in August 2021, the company invested in transformative technologies and processes over a five-year period beginning in fiscal year 2022 and completed during the third quarter of fiscal year 2026. The investment included replacement of the company's ERP system and transitioning to a cloud-based platform as well as the implementation of a suite of other digital technologies. The total incremental transformational investment was approximately $580 million. It is expected that these implementations will generate efficiencies and transform the company's operations in the areas of supply chain, digital commerce, innovation, brand building and more over the long term.Of the total investment, approximately 75% represented incremental operating costs primarily recorded within selling and administrative expenses to be adjusted from reported EPS for purposes of disclosing adjusted EPS. About 70% of these operating costs were related to the implementation of the ERP, with the remaining costs primarily related to the implementation of complementary technologies.Due to the nature, scope and magnitude of this investment, these costs were considered by management to represent incremental transformational costs above the historical normal level of spending for information technology to support operations. Since these strategic investments, including incremental operating costs, ceased at the end of the investment period, are not expected to recur in the foreseeable future and are not considered representative of the company's underlying operating performance, the company's management believes presenting these costs as an adjustment in the non-GAAP results provides additional information to investors about trends in the company's operations and is useful for period-over-period comparisons. It also allows investors to view underlying operating results in the same manner as they are viewed by company management.The following table provides reconciliation of organic sales growth / (decrease) (non-GAAP) to net sales growth / (decrease), the most comparable GAAP measure:
Three months ended March 31, 2026
Percentage change versus the year-ago period
Health and
Wellness
Household
Lifestyle
International
Total
Company (1)Net sales growth / (decrease) (GAAP)— %
3 %
(9) %
8 %
— %Add: Foreign exchange—
—
—
(6)
(1)Organic sales growth / (decrease) (non-GAAP)— %
3 %
(9) %
2 %
(1) %(1)Total Company includes Corporate and Other. Corporate and Other includes the results of the Better Health VMS business through the date of divestiture.The following tables provide reconciliations of adjusted diluted earnings per share (non-GAAP) to diluted earnings per share, the most comparable GAAP measure:Adjusted Diluted Earnings Per Share (EPS)(Dollars in millions except per share data)
Diluted earnings per share
Three months ended
3/31/2026
3/31/2025
% Change
As reported (GAAP)
$ 1.54
$ 1.50
3 %
Acquisition and integration costs (1)
0.04
—
Cyberattack costs, net of insurance recoveries (2)
—
(0.21)
Digital capabilities and productivity enhancements investment (3)
0.06
0.16
As adjusted (non-GAAP)
$ 1.64
$ 1.45
13 %(1)During the three months ended March 31, 2026, the company incurred approximately $7 ($5 after tax) of costs related to the GOJO Industries acquisition.(2)During the three months ended March 31, 2025, the company recognized approximately $35 ($26 after tax) of insurance recoveries related to the cyberattack.(3)During the three months ended March 31, 2026, the company incurred approximately $10 ($7 after tax), and during the three months ended March 31, 2025, the company incurred approximately $26 ($20 after tax) of operating expenses related to its digital capabilities and productivity enhancements investment. The expenses relate to the following:
Three months ended
3/31/2026
3/31/2025
External consulting fees (a)
$ 7
$ 19
IT project personnel costs (b)
1
1
Other (c)
2
6
Total
$ 10
$ 26
(a)Comprised of third-party consulting fees incurred to assist in the project management and end-to-end systems integration of this transformative investment. The company relies on consultants for certain capabilities required for these programs that the company does not maintain internally. These costs support the implementation of these programs incremental to the company's normal IT costs and will not be incurred following implementation.(b)Comprised of labor costs associated with internal IT project management teams that are utilized to oversee the new system implementations. Given the magnitude and transformative nature of the implementations planned, the necessary project management costs are incremental to the historical levels of spend and will no longer be incurred subsequent to implementation. As a result of this long-term strategic investment, the company considers these costs not reflective of the ongoing costs to operate its business.(c)Comprised of various other expenses associated with the company's new system implementations, including company personnel dedicated to the project that have been backfilled with either permanent or temporary resources in positions that are considered part of normal operating expenses.
Full year 2026 outlook
(estimated range)
Diluted earnings per share
Low
High
As estimated (GAAP)
$ 4.78
$ 4.98
Acquisition and integration costs (4)
0.30
0.30
Digital capabilities and productivity enhancements investment (5)
0.37
0.37
As adjusted (non-GAAP)
$ 5.45
$ 5.65(4)In fiscal year 2026, the company expects to incur approximately $53 ($40 after tax) of costs related to the GOJO acquisition..(5)In fiscal year 2026, the company incurred $59 ($45 after tax) of operating expenses related to its digital capabilities and productivity enhancements investment.The following table provides reconciliation of adjusted EBIT (non-GAAP) to earnings before income taxes, the most comparable GAAP measure:
Reconciliation of earnings
before income taxes to
adjusted EBIT
Three months ended
3/31/2026
3/31/2025Earnings before income taxes$ 256
$ 254Interest income(4)
(2)Interest expense27
23Acquisition and integration costs7
—Cyberattack costs, net of insurance recoveries—
(35)Digital capabilities and productivity enhancements investment 10
26Adjusted EBIT$ 296
$ 266 Condensed Consolidated Statements of Earnings (Unaudited)
Dollars in millions, except per share data
Three months ended
3/31/2026
3/31/2025Net sales
$ 1,670
$ 1,668Cost of products sold
948
924Gross profit
722
744Selling and administrative expenses
229
267Advertising costs
177
207Research and development costs
27
27Interest expense
27
23Other (income) expense, net
6
(34)Earnings before income taxes
256
254Income tax expense
65
63Net earnings191
191Less: Net earnings attributable to noncontrolling interests4
5Net earnings attributable to Clorox
$ 187
$ 186
Net earnings per share attributable to Clorox
Basic net earnings per share
$ 1.54
$ 1.51Diluted net earnings per share
$ 1.54
$ 1.50
Weighted average shares outstanding (in thousands)
Basic
121,363
123,367Diluted
121,787
124,066 Reportable Segment Information
(Unaudited)
Dollars in millions
Net sales
Three months ended
3/31/2026
3/31/2025
% Change(1)Health and Wellness$ 629
$ 630
— %Household482
469
3Lifestyle277
306
(9)International 285
263
8Reportable segment total1,673
1,668
Corporate and Other(3)
—
(100)Total$ 1,670
$ 1,668
— %
Segment adjusted EBIT
Three months ended
3/31/2026
3/31/2025
% Change(1)Health and Wellness $ 158
$ 169
(7) %Household74
61
21 %Lifestyle60
60
— %International 36
31
16 %Reportable segment total328
321
Corporate and Other(32)
(55)
Interest income4
2
Interest expense(27)
(23)
Acquisition and integration costs (2)(7)
—
Cyberattack costs, net of insurance recoveries (3)—
35
Digital capabilities and productivity enhancements investment (4)(10)
(26)
Earnings before income taxes$ 256
$ 254
1 %
(1)Percentages based on rounded numbers.(2)Represents expenses related to the company's acquisition and integration of GOJO Industries of $7 ($5 after tax) for the three months ended March 31, 2026(3)Represents cyberattack insurance recoveries of $35 ($26 after tax) for the three months ended March 31, 2025.(4)Represents expenses related to the company's digital capabilities and productivity enhancements investment of $10 ($7 after tax) and $26 ($20 after tax) for the three months ended March 31, 2026 and 2025, respectively. Condensed Consolidated Balance Sheets
Dollars in millions
3/31/2026
6/30/2025
3/31/2025
(Unaudited)
(Unaudited)ASSETS
Current assets
Cash and cash equivalents$ 1,187
$ 167
$ 226
Receivables, net671
821
597
Inventories, net588
523
635
Prepaid expenses and other current assets205
97
132
Total current assets2,651
1,608
1,590Property, plant and equipment, net1,235
1,267
1,245Operating lease right-of-use assets355
333
349Goodwill1,229
1,229
1,222Trademarks, net502
502
501Other intangible assets, net49
64
68Other assets415
558
537Total assets$ 6,436
$ 5,561
$ 5,512
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Notes and loans payable$ 1,591
$ 4
$ 54
Current operating lease liabilities85
87
85
Accounts payable and accrued liabilities1,479
1,828
2,016
Total current liabilities3,155
1,919
2,155Long-term debt2,487
2,484
2,483Long-term operating lease liabilities323
305
322Other liabilities356
351
341Deferred income taxes23
20
21
Total liabilities6,344
5,079
5,322Commitments and contingencies
Stockholders' equity
Preferred stock—
—
—Common stock131
131
131Additional paid-in capital1,315
1,319
1,304Retained earnings223
432
99Treasury stock(1,584)
(1,404)
(1,331)Accumulated other comprehensive net (loss) income(152)
(157)
(176)
Total Clorox stockholders' (deficit) equity(67)
321
27Noncontrolling interests159
161
163Total stockholders' equity92
482
190Total liabilities and stockholders' equity$ 6,436
$ 5,561
$ 5,512
View original content to download multimedia:https://www.prnewswire.com/news-releases/clorox-reports-q3-fiscal-year-2026-results-updates-outlook-302759426.htmlSOURCE The Clorox Company
Original: Clorox Reports Q3 Fiscal Year 2026 Results, Updates Outlook
US Market News
5月前
/C O R R E C T I O N -- Fresh Step/February 3, 2026 4:30 PM
PR Newswire (US)
In the news release, Fresh Step and Ariana Madix Help Singles "Date Cats, Not Humans" This Valentine's Day with First-Ever Bumble Cat Adoption Takeover, issued 03-Feb-2026 by Fresh Step over PR Newswire, we are advised by the company that changes have been made. The complete, corrected release follows, with additional details at the end:
Fresh Step and Ariana Madix Help Singles "Date Cats, Not Humans" This Valentine's Day with First-Ever Dating App Cat Adoption Takeover
Starting February 3, dating app users can swipe right on adoptable cats from Best Friends Animal SocietyOAKLAND, Calif., Feb. 3, 2026 /PRNewswire/ -- This Valentine's Day, Fresh Step and self-professed cat lover Ariana Madix are inspiring singles to skip the drama that comes with dating humans and look for a love connection with an adoptable cat. In this new campaign, "Date Cats, Not Humans," singles are served the perfect solution to their Valentine's Day woes: starting Feb. 3, adoptable cats from leading national animal welfare organization Best Friends Animal Society will take over a dating platform in a first-of-its-kind partnership. Users will have the opportunity to "swipe right" and make a real connection with a feline friend, with Fresh Step providing free litter to new cat parents and covering cat adoption fees during Valentine's Day weekend.
New research from Fresh Step and YouGov* confirms what cat lovers already know: having a cat doesn't hurt your dating life. It helps. Cat owners are more willing to share their emotions and vulnerabilities, and more likely to get a "swipe right," especially from fellow cat owners. This Valentine's Day, to celebrate this connection between cats and their people, Fresh Step and Best Friends join forces to find homes for adoptable cats.Why are cats the key to dating happiness?
A new study commissioned by Fresh Step reveals that having a cat doesn't replace a romantic partner. It might actually make you a better one.Cat owners are more open to connection. Only 8% say they can't trust anyone with their emotions, compared to 16% of non-cat owners. They're also less likely to deal with emotions in isolation (11% vs. 19% of non-cat owners).They might even have a leg up in the dating world. Cat owners are more than five times as likely to have swiped right on someone specifically because they had a cat in their photos (11% vs. 2% of non-cat owners). And among dating app users, nearly 1 in 4 cat owners (24%) say a cat photo would make them more likely to match, compared to just 11% of overall dating app users.The takeaway? Date a cat, not a human… so you can be a better partner.How Can I Adopt?
Simply open your participating dating app or visit bestfriends.org/FreshStep starting Feb. 3, where you can view adoptable cats through Best Friends, as well as available cats in shelters nationwide.For the month of February, Fresh Step will provide a coupon for a month of free litter to everyone who adopts a cat with Best Friends, redeemable at Walmart or on Walmart.com, Fresh Step's clay clumping litter promises to keep your litter box smelling fresh with paw-activated odor control, so new cat parents can focus on the joys of bringing their new Valentine home. Plus, during Valentine's Day weekend (Feb. 13-16), Fresh Step will cover cat adoption fees for cats adopted through the organization's locations in Houston, Los Angeles, New York City, Northwest Arkansas, Salt Lake City, and the Best Friends Animal Sanctuary in Kanab, UT."Cat love is honest, constant, and deeply rewarding," said Deb Crandall, Marketing Lead for Fresh Step. "This Valentine's Day, Fresh Step is flipping the script on modern dating and helping singles find meaningful connection by adopting a cat. With Ariana Madix and Best Friends Animal Society, we're proving that some of the best matches aren't made over dinner – they're made at the rescue.""Best Friends is on a mission to take the country no-kill, which means saving every healthy, treatable pet in shelters," said Julie Castle, CEO, Best Friends Animal Society. "Our data shows that cat lifesaving is at an all-time high, but there's still work to be done. Every person who finds a feline match this Valentine's Day weekend will help us continue to move the needle until we reach a day where no cat unnecessarily dies."Where Can I Learn More?
Follow the "Date Cats, Not Humans" campaign as long-form content, 30s and 15s cutdowns, and social teasers via @FreshStep on TikTok and Instagram. For more information on adoptable cats featured in the campaign, visit bestfriends.org or open a participating dating app to start swiping with purpose. Not on the apps? Visit bestfriends.org/FreshStep to browse adoptable cats nationwide.How Is Fresh Step Modernizing for Today's Pet Owners?
The campaign is part of Fresh Step's brand refresh, focused on delivering a superior experience for today's pet owners. This includes packaging designed for easier in-store and online shopping, along with product updates informed by what matters most to pet parents: clearer benefits, easier navigation, and the same strong odor control and reliable performance they trust. Grounded in deep consumer insights, these improvements reflect what pet owners value most—clarity, convenience, and confidence in products that work.About Fresh Step | Fresh Step™ is a leading litter brand pursuing the well-being of cats and their people and strengthening the cat and human bond. As part of Fresh Step's commitment, the company has donated millions of dollars and over one million pounds of litter to over 1,400 shelters to help shelter cats feel more comfortable as they wait for their loving families. For more information, visit www.FreshStep.com. CLX CLX-B.About Best Friends Animal Society | Best Friends Animal Society is a leading animal welfare organization dedicated to saving the lives of dogs and cats in America's shelters and making the entire country no-kill. Founded in 1984, Best Friends runs lifesaving facilities and programs nationwide in partnership with more than 5,500 shelters and rescue organizations. From our headquarters in Kanab, Utah, we also operate the nation's largest no-kill animal sanctuary — a destination that brings our mission to life for thousands of visitors each year. We maintain the most comprehensive animal sheltering data in the country and make it accessible to the public — empowering communities with critical insights into the needs of their local shelters and how they can help. We believe every dog and cat deserves a home. And we believe that, by working together, we can Save Them All®.*All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 2,617 US adults, among whom 835 were cat owners. Fieldwork was undertaken between January 12–14, 2026. The survey was carried out online. The figures have been weighted and are representative of all US adults (aged 18+).** Cat adoption fees covered Feb. 13-16, up to $10,000 in total adoption-fee coverage. Free Litter offer provided via $20 digital coupon for each adoption in the month of February from Best Friends Animal Society, valid at Walmart or Walmart.com. Limit one per household.Correction: An earlier version of this release was updated to remove references to "Bumble."
View original content to download multimedia:https://www.prnewswire.com/news-releases/fresh-step-and-ariana-madix-help-singles-date-cats-not-humans-this-valentines-day-with-first-ever-bumble-cat-adoption-takeover-302677162.htmlSOURCE Fresh Step
Original: /C O R R E C T I O N -- Fresh Step/
US Market News
5月前
Fresh Step and Ariana Madix Help Singles "Date Cats, Not Humans" This Valentine's Day with First-Ever Bumble Cat Adoption TakeoverFebruary 3, 2026 9:00 AM
PR Newswire (US)
Starting February 3, Bumble users can swipe right on adoptable cats from Best Friends Animal SocietyOAKLAND, Calif., Feb. 3, 2026 /PRNewswire/ -- This Valentine's Day, Fresh Step and self-professed cat lover Ariana Madix are inspiring singles to skip the drama that comes with dating humans and look for a love connection with an adoptable cat. In this new campaign, "Date Cats, Not Humans," singles are served the perfect solution to their Valentine's Day woes: starting Feb. 3, adoptable cats from leading national animal welfare organization Best Friends Animal Society will take over Bumble in a first-of-its-kind partnership. Users will have the opportunity to "swipe right" and make a real connection with a feline friend, with Fresh Step providing free litter to new cat parents and covering cat adoption fees during Valentine's Day weekend.
New research from Fresh Step and YouGov* confirms what cat lovers already know: having a cat doesn't hurt your dating life. It helps. Cat owners are more willing to share their emotions and vulnerabilities, and more likely to get a "swipe right," especially from fellow cat owners. This Valentine's Day, to celebrate this connection between cats and their people, Fresh Step and Best Friends join forces to find homes for adoptable cats.Why are cats the key to dating happiness?
A new study commissioned by Fresh Step reveals that having a cat doesn't replace a romantic partner. It might actually make you a better one.Cat owners are more open to connection. Only 8% say they can't trust anyone with their emotions, compared to 16% of non-cat owners. They're also less likely to deal with emotions in isolation (11% vs. 19% of non-cat owners).They might even have a leg up in the dating world. Cat owners are more than five times as likely to have swiped right on someone specifically because they had a cat in their photos (11% vs. 2% of non-cat owners). And among dating app users, nearly 1 in 4 cat owners (24%) say a cat photo would make them more likely to match, compared to just 11% of overall dating app users.The takeaway? Date a cat, not a human… so you can be a better partner.How Can I Adopt?
Simply open your Bumble app or visit bestfriends.org/FreshStep starting Feb. 3, where you can view adoptable cats through Best Friends, as well as available cats in shelters nationwide.For the month of February, Fresh Step will provide a coupon for a month of free litter to everyone who adopts a cat with Best Friends, redeemable at Walmart or on Walmart.com, Fresh Step's clay clumping litter promises to keep your litter box smelling fresh with paw-activated odor control, so new cat parents can focus on the joys of bringing their new Valentine home. Plus, during Valentine's Day weekend (Feb. 13-16), Fresh Step will cover cat adoption fees for cats adopted through the organization's locations in Houston, Los Angeles, New York City, Northwest Arkansas, Salt Lake City, and the Best Friends Animal Sanctuary in Kanab, UT."Cat love is honest, constant, and deeply rewarding," said Deb Crandall, Marketing Lead for Fresh Step. "This Valentine's Day, Fresh Step is flipping the script on modern dating and helping singles find meaningful connection by adopting a cat. With Ariana Madix, Bumble, and Best Friends Animal Society, we're proving that some of the best matches aren't made over dinner – they're made at the rescue.""Best Friends is on a mission to take the country no-kill, which means saving every healthy, treatable pet in shelters," said Julie Castle, CEO, Best Friends Animal Society. "Our data shows that cat lifesaving is at an all-time high, but there's still work to be done. Every person who finds a feline match this Valentine's Day weekend will help us continue to move the needle until we reach a day where no cat unnecessarily dies."Where Can I Learn More?
Follow the "Date Cats, Not Humans" campaign as long-form content, 30s and 15s cutdowns, and social teasers via @FreshStep on TikTok and Instagram. For more information on adoptable cats featured in the campaign, visit bestfriends.org or open Bumble to start swiping with purpose. Not on the apps? Visit bestfriends.org/FreshStep to browse adoptable cats nationwide.How Is Fresh Step Modernizing for Today's Pet Owners?
The campaign is part of Fresh Step's brand refresh, focused on delivering a superior experience for today's pet owners. This includes packaging designed for easier in-store and online shopping, along with product updates informed by what matters most to pet parents: clearer benefits, easier navigation, and the same strong odor control and reliable performance they trust. Grounded in deep consumer insights, these improvements reflect what pet owners value most—clarity, convenience, and confidence in products that work.About Fresh Step | Fresh Step™ is a leading litter brand pursuing the well-being of cats and their people and strengthening the cat and human bond. As part of Fresh Step's commitment, the company has donated millions of dollars and over one million pounds of litter to over 1,400 shelters to help shelter cats feel more comfortable as they wait for their loving families. For more information, visit www.FreshStep.com. CLX CLX-B.About Best Friends Animal Society | Best Friends Animal Society is a leading animal welfare organization dedicated to saving the lives of dogs and cats in America's shelters and making the entire country no-kill. Founded in 1984, Best Friends runs lifesaving facilities and programs nationwide in partnership with more than 5,500 shelters and rescue organizations. From our headquarters in Kanab, Utah, we also operate the nation's largest no-kill animal sanctuary — a destination that brings our mission to life for thousands of visitors each year. We maintain the most comprehensive animal sheltering data in the country and make it accessible to the public — empowering communities with critical insights into the needs of their local shelters and how they can help. We believe every dog and cat deserves a home. And we believe that, by working together, we can Save Them All®.*All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 2,617 US adults, among whom 835 were cat owners. Fieldwork was undertaken between January 12–14, 2026. The survey was carried out online. The figures have been weighted and are representative of all US adults (aged 18+).** Cat adoption fees covered Feb. 13-16, up to $10,000 in total adoption-fee coverage. Free Litter offer provided via $20 digital coupon for each adoption in the month of February from Best Friends Animal Society, valid at Walmart or Walmart.com. Limit one per household.
View original content to download multimedia:https://www.prnewswire.com/news-releases/fresh-step-and-ariana-madix-help-singles-date-cats-not-humans-this-valentines-day-with-first-ever-bumble-cat-adoption-takeover-302677162.htmlSOURCE Fresh Step
Original: Fresh Step and Ariana Madix Help Singles "Date Cats, Not Humans" This Valentine's Day with First-Ever Bumble Cat Adoption Takeover
Drmicrocap
10年前
Clorox Reports 18 Percent EPS Growth in Q2; Raises Fiscal Year 2016 EPS Outlook
Marketwired The Clorox Company
February 4, 2016 6:30 AM
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OAKLAND, CA--(Marketwired - February 04, 2016) - The Clorox Company (CLX) today reported flat sales and 18 percent growth in diluted net earnings per share (EPS) from continuing operations for its second quarter, which ended Dec. 31, 2015. On a currency-neutral basis, second-quarter sales grew 3 percent.
"Our strategy continues to drive profitable growth," said Chief Executive Officer Benno Dorer. "We delivered 18 percent earnings growth supported by strong operational execution and commodity tailwinds, helping to drive gross margin expansion. Importantly, we also delivered sales increases in each of our U.S. segments behind continued strong investments in our brands."
All results in this press release are reported on a continuing operations basis, unless otherwise stated. As previously announced, Corporación Clorox de Venezuela S.A. (Clorox Venezuela) discontinued operations effective Sept. 22, 2014. For the current and year-ago quarters, the results from Clorox Venezuela are included in discontinued operations in the company's financial statements. Some information in this release is reported on a non-GAAP basis. See "Non-GAAP Financial Information" below and the tables toward the end of this press release for more information and reconciliations of key second-quarter fiscal year 2016 and fiscal year 2015 results to the most directly comparable financial measures calculated in accordance with generally accepted accounting principles in the U.S. (GAAP).
Fiscal Second-Quarter Results
Following is a summary of key second-quarter results. All comparisons are with the second quarter of fiscal year 2015, unless otherwise stated.
* $1.14 diluted EPS (18% increase)
* 1% volume growth
* Flat sales
In the second quarter, Clorox delivered earnings from continuing operations of $151 million, or $1.14 diluted EPS, compared to $128 million, or 97 cents diluted EPS, in the year-ago quarter. Second-quarter diluted EPS results were driven largely by gross margin expansion.
In the second quarter, sales were flat, reflecting volume growth and the benefits of price increases, offset by 3 percentage points of unfavorable foreign currency exchange rates and higher trade promotion spending. On a currency-neutral basis, sales grew 3 percent. Volume for the second quarter increased 1 percent, reflecting gains in Home Care and Natural Personal Care, partially offset by decreases in Laundry and Water Filtration.
The company's second-quarter gross margin increased 210 basis points to 44.6 percent from 42.5 percent in the year-ago quarter, driven primarily by the benefits of favorable commodity costs, cost savings and price increases. These factors were partially offset by higher manufacturing and logistics costs and the impact of unfavorable foreign currency exchange rates.
"This was the highest second-quarter gross margin we've delivered in more than five years," said Chief Financial Officer Steve Robb. "Strong cost savings programs and operational efficiencies contributed to margin increases in each of our U.S. segments, enabling us to continue investing strongly in our business. Importantly, our Go Lean strategy for our International business is delivering results. We grew market share in the six months ending November 2015 and maintained margin in International despite foreign currency and inflation headwinds."
Year-to-date net cash provided by continuing operations was $178 million, compared with $267 million in the year-ago period. The year-over-year change reflects higher working capital, including higher performance-based employee incentive compensation payments related to the company's strong fiscal year 2015 results and higher tax payments. These factors were partially offset by higher earnings from continuing operations in the first half of fiscal year 2016 and $25 million in prior-period payments to settle interest-rate hedges related to the company's issuance of long-term debt. The company continues to anticipate free cash flow to be about 10 percent of sales in fiscal year 2016.
Key Segment Results
Following is a summary of key second-quarter results from continuing operations by reportable segment. All comparisons are with the second-quarter of fiscal year 2015, unless otherwise stated.
Cleaning
(Laundry, Home Care, Professional Products)
2% volume growth
2% sales growth
15% pretax earnings growth
Segment volume growth was driven by gains across a number of Home Care brands, including continued strength of Clorox® disinfecting wipes, which delivered double-digit growth. These factors were partially offset by decreased shipments in Laundry largely due to the impact of a February 2015 price increase on Clorox® bleach as well as volume decreases in Professional Products driven by a comparison to strong year-ago growth behind Ebola and Enterovirus concerns. Pretax earnings growth reflected higher sales and the benefits of favorable commodity costs and cost savings, partially offset by higher manufacturing and logistics costs.
Household
(Bags and Wraps, Charcoal, Cat Litter)
Flat volume
1% sales growth
31% pretax earnings growth
Segment volume results reflected gains in Bags & Wraps and Charcoal, offset by decreases in Cat Litter. Bags & Wraps volume growth reflected increases across several Glad® products, including continued strength of premium trash bags supported by the launch of new Glad® with Clorox® trash bags and distribution gains, following last year's launch of Glad® OdorShield® with Gain®. Higher shipments in Charcoal were driven by distribution gains and increased merchandising activity. Lower shipments in Cat Litter were due to continued competitive activity. Segment sales outpaced volume due to the benefit of a November 2014 price increase in Bags & Wraps and favorable mix from consumers trading up to premium trash bags, partially offset by higher trade promotion spending primarily in Bags & Wraps. Pretax earnings growth reflected the benefits of favorable commodity costs, higher sales and cost savings, partially offset by higher manufacturing and logistics costs.
Lifestyle
(Dressings and Sauces, Water Filtration, Natural Personal Care)
2% volume growth
2% sales growth
1% pretax earnings decrease
Segment volume growth was driven primarily by double-digit increases in Natural Personal Care, on top of double-digit growth in the year-ago quarter. Natural Personal Care's strong results were driven primarily by the launch of Burt's Bees® lip color products, a strong holiday program and ongoing strength in facial towelettes. These factors were partially offset by lower shipments in Water Filtration, driven by soft consumption following strong first-quarter shipments in the fiscal year. Pretax earnings decreased largely due to significant incremental demand-building investments to drive trial behind innovation, partially offset by stronger sales growth.
International
(All sales outside of the U.S.)
Flat volume
7% sales decrease (6% growth, currency-neutral basis)
8% pretax earnings decrease
Segment volume was flat largely due to the impact of price increases taken to offset inflationary pressures. Sales decreased primarily driven by the impact of unfavorable foreign currency exchange rates, partially offset by the benefits of price increases and favorable mix. On a currency neutral basis, sales grew 6 percent despite slowing economic growth in international markets. Pretax earnings decreased, reflecting lower sales and higher manufacturing and logistics costs, primarily driven by continued inflation. These factors were partially offset by the benefit of cost savings.
Clorox Updates Fiscal Year 2016 Outlook
Flat to 1% sales growth, or 3% to 4% growth, currency-neutral basis (unchanged)
50-75 basis points of EBIT margin expansion (raised)
$4.75 to $4.90 diluted EPS range (raised)
Clorox continues to anticipate delivering flat to 1 percent sales growth, which reflects about 3 points of incremental sales growth from product innovation for the fiscal year. The company's sales outlook also includes the impact from slowing international economies as well as 3 percentage points of impact from unfavorable foreign currency exchange rates, including the recent significant devaluation of the Argentine peso. The company continues to anticipate fiscal year sales to reflect an increase in trade promotion investments to address expected competitive activity in key categories.
Clorox now anticipates EBIT margin expansion in the range of 50 to 75 basis points, reflecting the benefits of favorable commodity costs, partially offset by higher inflation in international markets impacting manufacturing and logistics costs and selling and administrative expenses. The company's EBIT margin also reflects higher advertising and sales promotion investments in the U.S. to support product innovation, particularly in the second half of the fiscal year.
Clorox continues to anticipate its effective fiscal year 2016 tax rate to be between 34 percent and 35 percent.
Net of all these factors, Clorox now anticipates fiscal year 2016 diluted EPS from continuing operations in the range of $4.75 to $4.90 versus the company's previous outlook of $4.68 to $4.83.
For More Detailed Financial Information
Visit the company's Financial Reporting: Financial Results section of the company's website at TheCloroxCompany.com for the following:
Supplemental unaudited volume and sales growth information
Supplemental unaudited gross margin driver information
Supplemental unaudited reconciliation of certain non-GAAP financial information, including earnings from continuing operations before interest and taxes (EBIT) and earnings from continuing operations before interest, taxes, depreciation and amortization (EBITDA)
Supplemental unaudited balance sheet and cash flow information and free cash flow reconciliation
Supplemental price-change information
Note: Percentage and basis-point changes noted in this press release are calculated based on rounded numbers. Supplemental materials are available in the Investors: Financial Reporting: Financial Results section of the company's website at TheCloroxCompany.com.
The Clorox Company
The Clorox Company (CLX) is a leading multinational manufacturer and marketer of consumer and professional products with about 7,700 employees worldwide and fiscal year 2015 sales of $5.7 billion. Clorox markets some of the most trusted and recognized consumer brand names, including its namesake bleach and cleaning products; Pine-Sol® cleaners; Liquid Plumr® clog removers; Poett® home care products; Fresh Step® cat litter; Glad® bags, wraps and containers; Kingsford® charcoal; Hidden Valley® dressings and sauces; Brita® water-filtration products and Burt's Bees® natural personal care products. The company also markets brands for professional services, including Clorox Healthcare® and Clorox Commercial Solutions®. More than 80 percent of the company's sales are generated from brands that hold the No. 1 or No. 2 market share positions in their categories.
Clorox is a signatory of the United Nations Global Compact, a community of global leaders committed to sustainability. The company has been broadly recognized for its corporate responsibility (CR) efforts, including, most recently, two U.S. EPA Climate Leadership Awards for Excellence and inclusion among the top 40 companies on the 2015 Newsweek Green Rankings and CR magazine's 100 Best Corporate Citizens 2015 list. The Clorox Company and The Clorox Company Foundation contributed approximately $15 million in combined cash grants, product donations, cause marketing and employee volunteerism in the past fiscal year. For more information, visit TheCloroxCompany.com, the CR Matters Blog and follow the company on Twitter at @CloroxCo.
CLX-F
Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and such forward-looking statements involve risks and uncertainties. Except for historical information, statements about future volumes, sales, foreign currencies, costs, cost savings, margins, earnings, earnings per share, diluted earnings per share, foreign currency exchange rates, cash flows, plans, objectives, expectations, growth, or profitability, are forward-looking statements based on management's estimates, assumptions and projections. Words such as "could," "may," "expects," "anticipates," "targets," "goals," "projects," "intends," "plans," "believes," "seeks," "estimates," and variations on such words, and similar expressions that reflect our current views with respect to future events and operational and financial performance, are intended to identify such forward-looking statements. These forward-looking statements are only predictions, subject to risks and uncertainties, and actual results could differ materially from those discussed. Important factors that could affect performance and cause results to differ materially from management's expectations are described in the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the company's Annual Report on Form 10-K for the fiscal year ended June 30, 2015, as updated from time to time in the company's SEC filings. These factors include, but are not limited to: intense competition in the company's markets; worldwide, regional and local economic conditions and financial market volatility; the ability of the company to drive sales growth, increase price and market share, grow its product categories and achieve favorable product and geographic mix; risks related to international operations, including political instability; government-imposed price controls or other regulations; foreign currency exchange rate controls, including periodic changes in such controls, fluctuations and devaluations; labor claims, labor unrest and inflationary pressures, particularly in Argentina; and potential harm and liabilities from the use, storage and transportation of chlorine in certain international markets where chlorine is used in the production of bleach; risks related to the possibility of nationalization, expropriation of assets or other government action in foreign jurisdictions; risks related to the company's discontinuation of operations in Venezuela; volatility and increases in commodity costs such as resin, sodium hypochlorite and agricultural commodities, and increases in energy, transportation or other costs; supply disruptions and other risks inherent in reliance on a limited base of suppliers; the ability of the company to develop and introduce commercially successful products; dependence on key customers and risks related to customer consolidation and ordering patterns; costs resulting from government regulations; the ability of the company to successfully manage global, political, legal, tax and regulatory risks, including changes in regulatory or administrative activity; risks related to reliance on information technology systems, including potential security breaches, cyber-attacks or privacy breaches that result in the unauthorized disclosure of consumer, customer, employee or company information, or service interruptions; risks relating to acquisitions, new ventures and divestitures, and associated costs, including the potential for asset impairment charges related to, among others, intangible assets and goodwill; the success of the company's business strategies; the ability of the company to implement and generate anticipated cost savings and efficiencies; the impact of product liability claims, labor claims and other legal proceedings, including in foreign jurisdictions; the company's ability to attract and retain key personnel; the company's ability to maintain its business reputation and the reputation of its brands; environmental matters, including costs associated with the remediation of past contamination and the handling and/or transportation of hazardous substances; the impact of natural disasters, terrorism and other events beyond the company's control; the company's ability to maximize, assert and defend its intellectual property rights; any infringement or claimed infringement by the company of third-party intellectual property rights; the effect of the company's indebtedness and credit rating on its operations and financial results; the company's ability to maintain an effective system of internal controls; uncertainties relating to tax positions, tax disputes and changes in the company's tax rate; the accuracy of the company's estimates and assumptions on which its financial statement projections are based; the company's ability to pay and declare dividends or repurchase its stock in the future; and the impacts of potential stockholder activism.
The company's forward-looking statements in this press release are based on management's current views and assumptions regarding future events and speak only as of their dates. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by the federal securities laws.
Non-GAAP Financial Information
This press release contains non-GAAP financial information relating to sales growth, diluted EPS, EBIT and EBIT margin. The company has included reconciliations of these non-GAAP financial measures to the most directly comparable financial measure calculated in accordance with GAAP. See the end of this press release for these reconciliations.
The company disclosed these non-GAAP financial measures to supplement its consolidated financial statements presented in accordance with GAAP. These non-GAAP financial measures exclude certain items that are included in the company's results reported in accordance with GAAP, including income taxes, interest income, interest expense and foreign exchange impact. The exclusion of foreign exchange impact is also referred to as currency-neutral. Management believes these non-GAAP financial measures provide useful additional information to investors about trends in the company's operations and are useful for period-over-period comparisons as they show currency-neutral sales comparisons. The company uses such financial measures in its budgeting process and as factors in determining compensation. These non-GAAP financial measures should not be considered in isolation or as a substitute for the comparable GAAP measures. In addition, these non-GAAP financial 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 be read in connection with the company's consolidated financial statements presented in accordance with GAAP.
For recent presentations made by company management and other investor materials, visit Investor Events on the company's website.
Condensed Consolidated Statements of Earnings
(Unaudited)
Dollars in millions, except per share amounts
Three Months Ended Six Months Ended
12/31/2015 12/31/2014 12/31/2015 12/31/2014
Net sales $ 1,345 $ 1,345 $ 2,735 $ 2,697
Cost of products sold 745 773 1,510 1,547
Gross profit 600 572 1,225 1,150
Selling and administrative expenses 191 191 377 371
Advertising costs 126 127 249 248
Research and development costs 34 33 64 63
Interest expense 22 26 45 52
Other income, net (3 ) (2 ) (4 ) 1
Earnings from continuing operations before income taxes 230 197 494 415
Income taxes on continuing operations 79 69 170 142
Earnings from continuing operations 151 128 324 273
Earnings (losses) from discontinued operations, net of tax (2 ) (3 ) (3 ) (58 )
Net earnings $ 149 $ 125 $ 321 $ 215
Net earnings (losses) per share
Basic
Continuing operations $ 1.16 $ 0.98 $ 2.50 $ 2.10
Discontinued operations (0.01 ) (0.02 ) (0.02 ) (0.44 )
Basic net earnings per share $ 1.15 $ 0.96 $ 2.48 $ 1.66
Diluted
Continuing operations $ 1.14 $ 0.97 $ 2.46 $ 2.07
Discontinued operations (0.01 ) (0.02 ) (0.02 ) (0.44 )
Diluted net earnings per share $ 1.13 $ 0.95 $ 2.44 $ 1.63
Weighted average shares outstanding (in thousands)
Basic 129,543 130,555 129,349 129,933
Diluted 131,546 132,819 131,477 132,203
Reportable Segment Information
(Unaudited)
Dollars in millions
Net sales Earnings (losses) from continuing operations before income taxes
Three Months Ended Three Months Ended
12/31/2015 12/31/2014 % Change (1) 12/31/2015 12/31/2014 % Change (1)
Cleaning $ 457 $ 447 2 % $ 123 $ 107 15 %
Household 375 371 1 % 67 51 31 %
Lifestyle 251 246 2 % 72 73 -1 %
International 262 281 -7 % 22 24 -8 %
Corporate - - - (54 ) (58 ) -7 %
Total $ 1,345 $ 1,345 0 % $ 230 $ 197 17 %
Net sales Earnings (losses) from continuing operations before income taxes
Six Months Ended Six Months Ended
12/31/2015 12/31/2014 % Change (1) 12/31/2015 12/31/2014 % Change (1)
Cleaning $ 954 $ 917 4 % $ 272 $ 231 18 %
Household 786 763 3 % 149 103 45 %
Lifestyle 482 462 4 % 131 129 2 %
International 513 555 -8 % 54 50 8 %
Corporate - - - (112 ) (98 ) 14 %
Total $ 2,735 $ 2,697 1 % $ 494 $ 415 19 %
(1) Percentages based on rounded numbers.
Condensed Consolidated Balance Sheets
Dollars in millions
12/31/2015 6/30/2015 12/31/2014
(Unaudited) (Unaudited)
ASSETS
Current assets
Cash and cash equivalents $ 390 $ 382 $ 819
Receivables, net 474 519 473
Inventories, net 450 385 446
Other current assets 176 143 167
Total current assets 1,490 1,429 1,905
Property, plant and equipment, net 878 918 933
Goodwill 1,051 1,067 1,080
Trademarks, net 532 535 537
Other intangible assets, net 47 50 55
Other assets 177 165 164
Total assets $ 4,175 $ 4,164 $ 4,674
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Notes and loans payable $ 500 $ 95 $ 2
Current maturities of long-term debt - 300 875
Accounts payable 366 431 375
Accrued liabilities 492 548 492
Income taxes payable - 31 -
Total current liabilities 1,358 1,405 1,744
Long-term debt 1,796 1,796 1,795
Other liabilities 740 750 773
Deferred income taxes 83 95 81
Total liabilities 3,977 4,046 4,393
Stockholders' equity
Common stock 159 159 159
Additional paid-in capital 823 775 726
Retained earnings 2,042 1,923 1,757
Treasury shares (2,265 ) (2,237 ) (1,908 )
Accumulated other comprehensive net losses (561 ) (502 ) (453 )
Stockholders' equity 198 118 281
Total liabilities and stockholders' equity $ 4,175 $ 4,164 $ 4,674
The tables below present the reconciliation of non-GAAP financial measures to the most directly comparable financial measures calculated in accordance with GAAP and other supplemental information. See "Non-GAAP Financial Information" above for further information regarding the company's use of non-GAAP financial measures.
The reconciliations below are on a continuing operations basis
Second-Quarter and Fiscal Year-to-Date Sales Growth Reconciliation
Q2 Fiscal 2016 Q2 Fiscal 2015 Q2 FYTD
Fiscal
2016 Q2 FYTD
Fiscal
2015
Total Sales Growth - GAAP 0.0 % 2.9 % 1.4 % 1.7 %
Less: Foreign exchange -2.7 % -2.8 % -2.8 % -2.4 %
Currency-Neutral Sales Growth - Non-GAAP 2.7 % 5.7 % 4.2 % 4.1 %
The reconciliations below for fiscal year 2015 are provided as a reference point for the fiscal year 2016 outlook.
Fiscal Year EBIT Margin(1) Reconciliation
Dollar in millions
FY
Fiscal
2015
Earnings from continuing operations $921
before income taxes - GAAP
Interest Income -$4
Interest Expense $100
EBIT (1) - non-GAAP $1,017
Net Sales $5,655
EBIT margin (1) - non-GAAP 18.0%
(1) EBIT represents earnings from continuing operations before interest and taxes. EBIT margin is the ratio of EBIT to net sales.
For Gross Margin Drivers, please refer to the Supplemental Information: Gross Margin Driver page in the Financial Results section of the company's website TheCloroxCompany.com.
Contact:
Media Relations
Aileen Zerrudo
(510) 271-3075
aileen.zerrudo@clorox.com
Kathryn Caulfield
(510) 271-7209
kathryn.caulfield@clorox.com
Investor Relations
Landon Dunn
(510) 271-7256
landon.dunn@clorox.com
Steve Austenfeld
(510) 271-2270
steve.austenfeld@clorox.com
Drmicrocap
11年前
OAKLAND, CA--(Marketwired - Feb 4, 2015) - The Clorox Company (NYSE: CLX) today reported 3 percent sales growth and 8 percent diluted net earnings per share (EPS) growth from continuing operations for its second quarter, which ended Dec. 31, 2014. On a currency-neutral basis, sales grew 6 percent.
"Clorox delivered solid first-half results," said Chief Executive Officer Benno Dorer. "In the second quarter, we delivered strong volume and sales growth, as well as improved market shares across several categories. Importantly, we continued to invest in incremental demand-building programs, which helped drive our topline results.
"While we anticipate increased impacts from unfavorable foreign exchange and other headwinds in the second half of the fiscal year, we'll remain focused on executing our 2020 Strategy, with the goal to accelerate profitable growth, including investing in our brands to grow our categories and overall market share."
All results in this press release are reported on a continuing operations basis, unless otherwise stated. As previously announced, Corporación Clorox de Venezuela S.A. (Clorox Venezuela) discontinued operations effective Sept. 22, 2014. For the current and year-ago quarters, the results from Clorox Venezuela are now included in discontinued operations in the company's financial statements. Some information in this release is reported on a non-GAAP basis. See "Non-GAAP Financial Information" below and the tables toward the end of this press release for more information and reconciliations of key second-quarter results to the most directly comparable financial measures calculated in accordance with generally accepted accounting principles in the U.S. (GAAP).
Fiscal Second-Quarter Results
Following is a summary of key second-quarter results. All comparisons are with the second quarter of fiscal year 2014, unless otherwise stated.
•97 cents diluted EPS (8% growth)
•4% volume growth
•3% sales growth
In the second quarter, Clorox delivered earnings from continuing operations of $128 million, or 97 cents diluted EPS, compared to $118 million, or 90 cents diluted EPS, in the year-ago quarter. Second-quarter results reflected higher sales and volume, the benefits of cost savings and price increases, as well as lower selling and administrative expenses. These factors were partially offset by the impact of unfavorable foreign currency exchange rates, incremental demand-building investments, higher commodity costs and increased manufacturing and logistics costs.
In the second quarter, sales grew 3 percent, reflecting double-digit growth in the Professional Products, Natural Personal Care and Bags and Wraps businesses. Total company sales growth was driven primarily by higher volume and the benefit of price increases, partially offset by the impact of 3 percentage points from unfavorable foreign currency exchange rates. Volume for the second quarter increased 4 percent, reflecting shipment growth in all four segments.
The company's second-quarter gross margin increased 10 basis points to 42.5 percent, reflecting the benefits of cost savings and price increases, which were largely offset by higher commodity costs, primarily from resin, as the benefits related to lower energy costs are not expected to be seen until the second half of the fiscal year. The company's gross margin was also affected by increased manufacturing and logistics costs, largely due to the impact of continued high inflation in International.
Year-to-date net cash provided by continuing operations was $267 million, compared with $222 million in the year-ago period. Contributing factors to the year-over-year change were lower employee incentive compensation payments and lower tax payments in the current quarter, as well as the initial funding of the company's non-qualified deferred compensation plan in the year-ago quarter. These factors were partially offset by $25 million in payments to settle interest-rate hedges related to the company's issuance of long-term debt. In December 2014, the company issued $500 million in senior notes, increasing the company's quarter-end cash balance, with proceeds subsequently used to pay down a portion of notes that matured on January 15th of this year.
Key Segment Results
Following is a summary of key second-quarter results from continuing operations by reportable segment. All comparisons are with the second quarter of fiscal 2014, unless otherwise stated.
Cleaning
(Laundry, Home Care, Professional Products)
•3% volume growth
•3% sales growth
•6% pretax earnings growth
Volume growth in the segment was driven by double-digit gains in Professional Products, reflecting increases in its cleaning and health care businesses, which were driven, in part, by Ebola and Enterovirus concerns. Volume for Home Care and Laundry was essentially flat. Home Care volume results reflected the distribution loss of Clorox® disinfecting wipes at a major club customer in calendar year 2014, offset by double-digit Clorox® disinfecting wipes gains at other retailers and volume growth across multiple Home Care brands. Laundry volume results reflected continued bleach category softness. Home Care and Laundry grew market share in total, with gains across multiple brands. Pretax earnings growth reflected higher sales, as well as the benefits of cost savings and price increases, partially offset by incremental demand-building investments and higher commodity costs.
Household
(Bags and Wraps, Charcoal, Cat Litter)
•3% volume growth
•5% sales growth
•24% pretax earnings growth
Segment volume growth was driven primarily by gains in Bags and Wraps behind innovation and increased distribution of Glad® OdorShield® trash bags. Cat Litter also grew volume behind new Fresh Step® extreme light weight cat litter. The variance between volume and sales results was due primarily to the benefit of price increases in Bags and Wraps. Pretax earnings growth reflected higher sales and the benefit of cost savings, partially offset by higher commodity costs and incremental demand-building investments.
Lifestyle
(Dressings and Sauces, Water Filtration, Natural Personal Care)
•5% volume growth
•4% sales growth
•6% pretax earnings growth
Volume results in the segment were driven by strong double-digit gains in Natural Personal Care, largely due to innovation in Burt's Bees® lip and face-care products, including continued growth in towelettes. Incremental demand-building programs, including the first-ever television campaign for the Burt's Bees® brand, also contributed to Natural Personal Care's strong sales results. Dressings and Sauces also grew volume primarily from increased merchandising of Hidden Valley® dry mixes and salad dressings. These results were partially offset by lower shipments in Water Filtration due to increased merchandising of private-label filter products. Volume growth outpaced sales growth primarily due to unfavorable mix. Pretax earnings growth reflected higher sales, lower commodity costs and the benefit of cost savings. These factors were partially offset by higher manufacturing costs and higher advertising spending.
International
(All countries outside of the U.S.)
•5% volume growth
•2% sales decrease (11% growth, currency-neutral basis)
•27% pretax earnings decrease
The segment's volume growth reflected gains primarily in Mexico, Canada, Europe and Argentina. Segment sales reflected the impact of unfavorable foreign currency exchange rates across most countries, partially offset by the benefit of price increases. On a currency-neutral basis, segment sales grew 11 percent. Pretax earnings declined $9 million primarily due to the impact of unfavorable foreign currency exchange rates and higher selling and administrative expenses, as well as increased manufacturing and logistics costs and higher commodity costs, largely driven by continued high inflation. These factors were partially offset by higher volume and the benefits of price increases and cost savings.
Clorox Updates Outlook for Fiscal Year 2015
•About 1% sales growth (previously sales about flat)
•EBIT margin about flat (unchanged)
•$4.40 to $4.55 diluted EPS range (previously $4.35 to $4.50)
The company now anticipates fiscal-year 2015 sales to grow about 1 percent, reflecting first-half sales results, product innovation and the benefit of price increases. The fiscal-year sales outlook also now anticipates a greater impact from unfavorable foreign exchange rates in the range of 2 percent to 3 percent. Other moderating factors include slowing economies in international markets and an increase in full-year trade-promotion spending to drive the company's core business and trial of new products in a highly competitive environment.
Clorox continues to anticipate moderate gross margin expansion in fiscal year 2015, reflecting the benefits of cost savings and price increases. The company now anticipates commodity costs to be about flat, due to energy cost declines, which are expected to be partially offset by higher logistics costs, as well as the aforementioned increase in full-year trade-promotion spending.
Clorox continues to anticipate EBIT margin to be about flat for fiscal year 2015, reflecting moderate gross margin expansion, offset by higher demand-building investments.
Clorox continues to anticipate its effective fiscal year 2015 tax rate to be about 34 percent.
Net of all these factors, Clorox now anticipates fiscal 2015 diluted EPS from continuing operations in the range of $4.40 to $4.55.
For More Detailed Financial Information
Visit the Investors: Financial Reporting: Financial Results section of the company's website at TheCloroxCompany.com for the following:
•Combined financial tables that include the schedules below
•Supplemental unaudited condensed volume and sales growth information
•Supplemental unaudited condensed gross margin driver information
•Supplemental unaudited reconciliation of certain non-GAAP financial information, including earnings from continuing operations before interest and taxes (EBIT) and earnings from continuing operations before interest, taxes, depreciation and amortization (EBITDA)
•Supplemental balance sheet and cash flow information and free cash flow reconciliation (unaudited)
•Supplemental price-change information
Note: Percentage and basis-point changes noted in this press release are calculated based on rounded numbers. Supplemental materials are available in the Investors: Financial Reporting: Financial Results section of the company's website at TheCloroxCompany.com.
The Clorox Company
The Clorox Company is a leading multinational manufacturer and marketer of consumer and professional products with about 7,700 employees worldwide and fiscal year 2014 sales of $5.5 billion. Clorox markets some of the most trusted and recognized consumer brand names, including its namesake bleach and cleaning products; Pine-Sol® cleaners; Liquid Plumr® clog removers; Poett® home care products; Fresh Step® cat litter; Glad® bags, wraps and containers; Kingsford® charcoal; Hidden Valley® and KC Masterpiece® dressings and sauces; Brita® water-filtration products and Burt's Bees® natural personal care products. The company also markets brands for professional services, including Clorox Healthcare®, HealthLink®, Aplicare® and Dispatch® infection control products for the healthcare industry. More than 80 percent of the company's brands hold the No. 1 or No. 2 market share positions in their categories. Clorox's commitment to corporate responsibility includes making a positive difference in its communities. In fiscal year 2014, The Clorox Company and The Clorox Company Foundation contributed more than $16 million in combined cash grants, product donations, cause marketing and employee volunteerism. For more information, visit TheCloroxCompany.com.
Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and such forward-looking statements involve risks and uncertainties. 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 forward-looking statements based on management's estimates, assumptions and projections. Words such as "could," "may," "expects," "anticipates," "targets," "goals," "projects," "intends," "plans," "believes," "seeks," "estimates," and variations on such words, and similar expressions, are intended to identify such forward-looking statements. These forward-looking statements are only predictions, subject to risks and uncertainties, and actual results could differ materially from those discussed above. Important factors that could affect performance and cause results to differ materially from management's expectations are described in the sections entitled "Risk Factors" in the company's Annual Report on Form 10-K for the fiscal year ended June 30, 2014, and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Exhibit 99.2 of the Company's Current Report on Form 8-K filed on December 4, 2014, as updated from time to time in the company's SEC filings. These factors include, but are not limited to: risks related to international operations, including political instability; government-imposed price controls or other regulations; foreign currency exchange rate controls, including periodic changes in such controls, fluctuations and devaluations; labor unrest and inflationary pressures, particularly in Argentina and other challenging markets; risks related to the possibility of nationalization, expropriation of assets, or other government action in foreign jurisdictions; risks related to the Company's discontinuation of operations in Venezuela; intense competition in the company's markets; changes in the company's leadership; worldwide, regional and local economic conditions and financial market volatility; volatility and increases in commodity costs such as resin, sodium hypochlorite and agricultural commodities and increases in energy, transportation or other costs; the ability of the company to drive sales growth, increase price and market share, grow its product categories and achieve favorable product and geographic mix; dependence on key customers and risks related to customer consolidation and ordering patterns; costs resulting from government regulations; the ability of the company to successfully manage global political, legal, tax and regulatory risks, including changes in regulatory or administrative activity; supply disruptions and other risks inherent in reliance on a limited base of suppliers; the ability of the company to implement and generate anticipated cost savings and efficiencies; the success of the company's business strategies; the impact of product liability claims, labor claims and other legal proceedings, including in foreign jurisdictions and the company's litigation related to its discontinued operations in Brazil; the ability of the company to develop and introduce commercially successful products; risks relating to acquisitions, new ventures and divestitures and associated costs, including the potential for asset impairment charges, related to, among others, intangible assets and goodwill; risks related to reliance on information technology systems, including potential security breaches, cyber attacks or privacy breaches that result in the unauthorized disclosure of consumer, customer, employee or company information, or service interruptions; the company's ability to attract and retain key personnel; the company's ability to maintain its business reputation and the reputation of its brands; environmental matters including costs associated with the remediation of past contamination and the handling and/or transportation of hazardous substances; the impact of natural disasters, terrorism and other events beyond the company's control; the company's ability to maximize, assert and defend its intellectual property rights; any infringement or claimed infringement by the company of third-party intellectual property rights; the effect of the company's indebtedness and credit rating on its operations and financial results; the company's ability to maintain an effective system of internal controls; uncertainties relating to tax positions, tax disputes and changes in the company's tax rate; the accuracy of the company's estimates and assumptions on which its financial statement projections are based; the company's ability to pay and declare dividends or repurchase its stock in the future; and the impacts of potential stockholder activism.
The company's forward-looking statements in this press release are based on management's current views and assumptions regarding future events and speak only as of their dates. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by the federal securities laws.
Non-GAAP Financial Information
This press release contains non-GAAP financial information relating to sales growth, diluted EPS, the debt to EBITDA ratio and EBIT margin. The company has included reconciliations of these non-GAAP financial measures to the most directly comparable financial measure calculated in accordance with GAAP. See the end of this press release for these reconciliations.
The company disclosed these non-GAAP financial measures to supplement its consolidated financial statements presented in accordance with GAAP. These non-GAAP financial measures exclude certain items that are included in the company's results reported in accordance with GAAP, including income taxes, interest income, interest expense and foreign exchange impact. The exclusion of foreign exchange impact is also referred to as currency-neutral. Management believes these non-GAAP financial measures provide useful additional information to investors about trends in the company's operations and are useful for period-over-period comparisons. These non-GAAP financial measures should not be considered in isolation or as a substitute for the comparable GAAP measures. In addition, these non-GAAP 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 be read in connection with the company's consolidated financial statements presented in accordance with GAAP.
For recent presentations made by company management and other investor materials, visit Investor Events on the company's website.
Condensed Consolidated Statements of Earnings (Unaudited)
Dollars in millions, except per share amounts
Three Months Ended Six Months Ended
12/31/2014 12/31/2013 12/31/2014 12/31/2013
Net sales $ 1,345 $ 1,308 $ 2,697 $ 2,651
Cost of products sold 773 753 1,547 1,512
Gross profit 572 555 1,150 1,139
Selling and administrative expenses 191 196 371 390
Advertising costs 127 122 248 242
Research and development costs 33 31 63 62
Interest expense 26 26 52 52
Other (income) expense, net (2 ) (4 ) 1 (2 )
Earnings from continuing operations before income taxes 197 184 415 395
Income taxes on continuing operations 69 66 142 138
Earnings from continuing operations 128 118 273 257
Losses from discontinued operations, net of tax (3 ) (3 ) (58 ) (6 )
Net earnings $ 125 $ 115 $ 215 $ 251
Net earnings (losses) per share
Basic
Continuing operations $ 0.98 $ 0.91 $ 2.10 $ 1.99
Discontinued operations (0.02 ) (0.02 ) (0.44 ) (0.06 )
Basic net earnings per share $ 0.96 $ 0.89 $ 1.66 $ 1.93
Diluted
Continuing operations $ 0.97 $ 0.90 $ 2.07 $ 1.95
Discontinued operations (0.02 ) (0.03 ) (0.44 ) (0.05 )
Diluted net earnings per share $ 0.95 $ 0.87 $ 1.63 $ 1.90
Weighted average shares outstanding (in thousands)
Basic 130,555 129,836 129,933 129,955
Diluted 132,819 132,278 132,203 132,276
Reportable Segment Information
(Unaudited)
Dollars in millions
Second Quarter Net Sales Earnings (Losses) from Continuing Operations Before Income Taxes
Three Months Ended Three Months Ended
12/31/14 12/31/13 (1) % Change (2) 12/31/14 12/31/13 (1) % Change (2)
Cleaning Segment $ 447 $ 432 3% $ 107 $ 101 6%
Household Segment 371 352 5% 51 41 24%
Lifestyle Segment 246 237 4% 73 69 6%
International Segment 281 287 -2% 24 33 -27%
Corporate - - - (58 ) (60 ) -3%
Total Company $ 1,345 $ 1,308 3% $ 197 $ 184 7%
Year-to-Date Net Sales Earnings (Losses) from Continuing Operations Before Income Taxes
Six Months Ended Six Months Ended
12/31/14 12/31/13 (1) % Change (2) 12/31/14 12/31/13 (1) % Change (2)
Cleaning Segment $ 917 $ 911 1% $ 231 $ 232 0%
Household Segment 763 724 5% 103 93 11%
Lifestyle Segment 462 455 2% 129 122 6%
International Segment 555 561 -1% 50 64 -22%
Corporate - - - (98 ) (116 ) -16%
Total Company $ 2,697 $ 2,651 2% $ 415 $ 395 5%
(1) As a result of Clorox Venezuela results being included in discontinued operations beginning in the first fiscal quarter of the current fiscal year, the prior comparative period has been reclassified to conform with current quarter presentation.
(2) Percentages based on rounded numbers.
Condensed Consolidated Balance Sheets
Dollars in millions
12/31/2014 6/30/2014 12/31/2013
(Unaudited) (Unaudited)
ASSETS
Current assets
Cash and cash equivalents $ 819 $ 329 $ 341
Receivables, net 473 546 499
Inventories, net 446 386 466
Other current assets 167 134 194
Total current assets 1,905 1,395 1,500
Property, plant and equipment, net 933 977 992
Goodwill 1,080 1,101 1,100
Trademarks, net 537 547 552
Other intangible assets, net 55 64 67
Other assets 164 174 177
Total assets $ 4,674 $ 4,258 $ 4,388
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Notes and loans payable $ 2 $ 143 $ 342
Current maturities of long-term debt 875 575 -
Accounts payable 375 440 359
Accrued liabilities 492 472 480
Income taxes payable - 8 -
Total current liabilities 1,744 1,638 1,181
Long-term debt 1,795 1,595 2,170
Other liabilities 773 768 765
Deferred income taxes 81 103 116
Total liabilities 4,393 4,104 4,232
Stockholders' equity
Common stock 159 159 159
Additional paid-in capital 726 709 693
Retained earnings 1,757 1,739 1,623
Treasury shares (1,908 ) (2,036 ) (1,932 )
Accumulated other comprehensive net losses (453 ) (417 ) (387 )
Stockholders' equity 281 154 156
Total liabilities and stockholders' equity $ 4,674 $ 4,258 $ 4,388
The tables below present the reconciliation of non-GAAP financial measures to the most directly comparable financial measures calculated in accordance with GAAP and other supplemental information. See "Non-GAAP Financial Information" above for further information regarding the company's use of non-GAAP financial measures.
The reconciliations below are on a continuing operations basis
Second-Quarter and Fiscal Year-to-Date Sales Growth Reconciliation
Q2 Fiscal 2015 Q2 Fiscal 2014 Q2 YTD Fiscal 2015 Q2 YTD Fiscal 2014
Total Sales Growth - GAAP 2.9% 0.5% 1.7% 1.4%
Less: Foreign exchange -2.8 -1.7 -2.4 -1.6
Currency Neutral Sales Growth - Non-GAAP 5.7% 2.2% 4.1% 3.0%
The reconciliations below for fiscal year 2014 are provided as a reference point for the fiscal year 2015 outlook, and reflect the reclassification of Clorox Venezuela to discontinued operations in Q1FY15.
Fiscal Year EBIT Margin(1) Reconciliation
FY
Fiscal
2014
Earnings from continuing operations $884
before income taxes - GAAP
Interest Income -3
Interest Expense 103
EBIT (1)- non-GAAP $984
Net Sales $5,514
EBIT margin (1)- non-GAAP 17.80%
(1) EBIT represents earnings from continuing operations before interest and taxes. EBIT margin is the ratio of EBIT to net sales.
For Gross Margin Drivers, please refer to the Supplemental Information: Gross Margin Driver page in the Financial Results section of the company's website TheCloroxCompany.com.
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Drmicrocap
12年前
The Clorox Company Reports Sales and Profit Growth for Its First Quarter; Confirms Outlook for Sales and EPS From Continuing Operations
The Clorox CompanyOctober 31, 2014 8:30 AM
OAKLAND, CA--(Marketwired - Oct 31, 2014) - For its first quarter, which ended Sept. 30, The Clorox Company (NYSE: CLX) today reported 1 percent sales growth and 5 percent growth in diluted net earnings per share (EPS) from continuing operations. This excludes the impact of the previously announced discontinued operations of Corporación Clorox de Venezuela S.A. (Clorox Venezuela). On a currency-neutral basis, sales grew nearly 3 percent.
"I'm pleased with our solid start to the fiscal year," said Chairman and CEO Don Knauss. "In the first quarter, we continued to invest in incremental demand-building programs to reinforce the value of our brands. As a result, despite continuing headwinds, we delivered sales and profit growth for the quarter and saw improved market shares in a number of our categories."
As previously announced, Clorox Venezuela discontinued operations effective Sept. 22, 2014. For the current and year-ago quarters, the results from Clorox Venezuela are now included in discontinued operations on the company's financial statements. All results in this press release are reported on a continuing operations basis, unless otherwise stated. Some information in this release is reported on a non-GAAP basis. See "Non-GAAP Financial Information" below and the tables toward the end of this press release for more information and reconciliations of key first-quarter results to the most directly comparable financial measures calculated in accordance with generally accepted accounting principles in the U.S. (GAAP).
Fiscal First-Quarter Results
Following is a summary of key first-quarter results. All comparisons are with the first quarter of fiscal year 2014, unless otherwise stated.
$1.10 diluted EPS1% volume growth1% sales growth (nearly 3% growth on currency-neutral basis)
In the first quarter, Clorox delivered earnings from continuing operations of $145 million, or $1.10 diluted EPS, compared to $139 million, or $1.05 diluted EPS, in the year-ago quarter. Current-quarter results reflect the benefit of strong cost savings, price increases and volume growth as well as a one-time benefit of approximately 5 cents diluted EPS related to a one-time change in the company's long-term disability plan to make it more consistent with the marketplace. These factors were partially offset by the impact of higher manufacturing and logistics costs, continued incremental demand-building initiatives of $16 million, or 8 cents diluted EPS, and the impact of unfavorable foreign currency exchange rates.
In the first quarter, sales grew 1 percent, primarily due to the benefit of price increases in international markets and higher volume. These results were partially offset by the impact of unfavorable foreign currency exchange rates as well as higher trade promotion spending. Excluding the impact of nearly 2 percentage points from unfavorable foreign currency exchange rates, sales grew nearly 3 percent. Volume for the first quarter was up 1 percent, reflecting increased shipments in the International Division, Charcoal and Natural Personal Care businesses, partially offset by decreases in the Home Care and Laundry businesses.
The company's first-quarter gross margin decreased 70 basis points to 42.8 percent versus 43.5 percent in the year-ago quarter. The benefits of cost savings and price increases were more than offset by significantly higher manufacturing and logistics costs, with about half coming from the international markets, primarily Argentina, and the other half from the United States.
Net cash provided by continuing operations was $234 million for the quarter, compared with $184 million in the year-ago quarter. The year-over-year increase of $50 million was due to favorable changes in working capital, primarily related to a lower incentive compensation payment in the current quarter, as well as the timing of tax payments.
Key Segment Results
Following is a summary of key first-quarter results from continuing operations by reportable segment. All comparisons are with the first quarter of fiscal 2014, unless otherwise stated.
Cleaning
(Laundry, Home Care, Professional Products)
1% volume decrease2% sales decrease5% pretax earnings decrease
Lower volume in the segment reflected reduced shipments of Home Care and Laundry products. In Home Care, the decrease in volume was primarily due to a distribution loss of Clorox® disinfecting wipes at a major club customer earlier this calendar year. Wipes continued to perform strongly with many other customers. These results were partially offset by higher shipments of Clorox® toilet bowl cleaner due to strong merchandising activities. In Laundry, Clorox® bleach lost volume compared to 11 percent volume growth in the year-ago quarter due to the earlier introduction of its concentrated formula. Both the Laundry and Home Care businesses saw solid market share increases. The variance between net sales and volume was primarily due to higher trade promotion spending, primarily on Clorox® disinfecting wipes. Pretax earnings results primarily reflected lower sales, incremental demand-building investments, and higher costs for commodities and manufacturing and logistics. These factors were partially offset by the benefit of cost savings.
Household
(Bags and Wraps, Charcoal, Cat Litter)
4% volume growth5% sales growthFlat pretax earnings
Segment volume growth was driven primarily by higher shipments of Kingsford® charcoal due to strong customer promotions and consumption related to the U.S. Labor Day holiday. Also contributing to volume growth were gains in Bags and Wraps due to incremental merchandising and distribution gains on OdorShield® trash bags. These results were partially offset by lower shipments of Glad® base trash bags due to a shift to premium trash bags. The variance between volume and sales results was due primarily to the benefit of price increases. Pretax earnings results reflected the benefit of higher sales, price increases and cost savings, offset by incremental demand-building investments, and higher costs for manufacturing and logistics and commodities.
Lifestyle
(Dressings and Sauces, Water Filtration, Natural Personal Care)
Flat volume1% sales decrease6% pretax earnings growth
Volume results in the segment were driven primarily by strong gains in Natural Personal Care, largely due to innovation in Burt's Bees® lip- and face-care products, offset by lower shipments of Hidden Valley® salad dressings and Brita® products. Pretax earnings growth reflected lower selling and administrative expenses related to investments in the year-ago quarter in systems and processes to support the long-term growth of the Burt's Bees business, as well as lower commodity costs, partially offset by higher costs for manufacturing and logistics.
International
(All countries outside of the U.S.)
5% volume growthFlat sales (10% growth on currency-neutral basis)16% pretax earnings decrease ($5 million decrease)
The segment's volume growth reflected gains primarily in Latin America, Europe and Asia. Segment sales reflected the impact of unfavorable foreign currency exchange rates, primarily in Argentina, related to a significant currency devaluation earlier in the calendar year. While segment sales were flat, on a currency-neutral basis, segment sales grew about 10 percent. The variance between volume and sales was primarily due to the impact of unfavorable foreign currency exchange rates, partially offset by the benefit of price increases. Pretax earnings decreased due to the impact of increased manufacturing and logistics costs, unfavorable foreign currencies and higher selling and administrative expenses. These factors were partially offset by the benefit of higher volume, price increases and cost savings.
Discontinued Operations in Venezuela
As previously announced, Clorox Venezuela discontinued operations effective Sept. 22, 2014, as a result of pricing and other operating restrictions imposed by the Venezuelan government and related conditions that caused Clorox Venezuela to no longer be financially viable. Operating results, and the impact of exit and other costs related to the termination of the business, are included in discontinued operations in the company's financial statements.
In the first quarter, losses from discontinued operations net of income taxes were $55 million, or 42 cents diluted EPS, including net operating losses through Sept. 22, 2014, and the impact of exit and other costs related to the termination of the business. Net operating losses for the first quarter, excluding the impact of exit and other costs associated with exiting Venezuela, were $6 million. In addition, the company recorded pre-tax charges for the write-down or impairment of assets of $37 million, recognition of deferred foreign currency translation losses of $30 million, and labor and other exit costs of $6 million. These charges were offset by income tax benefits of $24 million.
The Company expects to recognize in discontinued operations $60 million to $65 million in after-tax exit costs and other related expenses during fiscal year 2015. The Company also expects to recognize in discontinued operations approximately $10 million to $15 million in additional after-tax costs in fiscal years 2016 through 2018. Net of anticipated tax benefits, total exit costs and other termination related expenses are expected to be approximately $70 million to $80 million. Cash-related exit costs, net of expected tax benefits, are expected to be $5 million to $10 million.
Before exiting Venezuela, the company had anticipated only a modest loss from Clorox Venezuela in fiscal year 2015, as anticipated price increases were expected to reduce the current year loss versus the prior year loss of $23 million. These expectations were based on the Venezuelan government's representations that significant price increases would be forthcoming much earlier in the year; however, the price increases ultimately approved were insufficient and would have caused Clorox Venezuela to continue operating at a significant loss. Nonetheless, based on the company's earlier expectations, reflecting financial results from Clorox Venezuela as discontinued operations does not have a material impact on the company's outlook for diluted EPS from continuing operations.
Clorox Updates EBIT Margin Outlook for Fiscal Year 2015
Sales about flat, or 1% to 3% increase on currency-neutral basis (unchanged)EBIT margin about flat (previously 25 basis points to 50 basis points expansion)$4.35 to $4.50 diluted EPS range (unchanged)
The company continues to anticipate fiscal year 2015 sales to be about flat, with the benefits of innovation and price increases offset by continuing category softness and the impact of foreign currency declines across most international markets, particularly in Argentina. On a currency-neutral basis, the company continues to anticipate sales growth in the range of 1 percent to 3 percent for the fiscal year.
Clorox now anticipates EBIT margin to be about flat for the fiscal year, versus the previous outlook of 25 basis points to 50 basis points expansion, due to the results from Clorox Venezuela being included in discontinued operations, and moderately higher commodity costs. Excluding Clorox Venezuela fiscal year 2014 EBIT margin increased by 60 basis points to 17.8 percent from 17.2 percent previously reported for that period.
Clorox now anticipates its effective fiscal year 2015 tax rate to be closer to 34 percent than the previous outlook in the range of 34 percent to 35 percent.
Net of all these factors, Clorox continues to anticipate fiscal 2015 diluted EPS from continuing operations in the range of $4.35 to $4.50.
For More Detailed Financial Information
Visit the Investors: Financial Reporting: Financial Results section of the company's website at TheCloroxCompany.com for the following:
Supplemental unaudited condensed volume and sales growth information
Supplemental unaudited condensed gross margin driver information
Supplemental unaudited reconciliation of certain non-GAAP financial information, including earnings from continuing operations before interest and taxes (EBIT) and earnings from continuing operations before interest, taxes, depreciation and amortization (EBITDA)
Supplemental balance sheet and cash flow information and free cash flow reconciliation (unaudited)
Supplemental price-change information
Schedule of unaudited quarterly and fiscal year 2014 condensed consolidated data
Supplemental unaudited quarterly results from continuing operations by reportable segments for fiscal year 2014 (Adjusted to reflect Clorox Venezuela results reclassified to discontinued operations)
Supplemental unaudited condensed fiscal year to date free cash flow information
Note: Percentage and basis-point changes noted in this press release are calculated based on rounded numbers. Supplemental materials are available in the Investors: Financial Reporting: Financial Results section of the company's website at TheCloroxCompany.com.
The Clorox Company
The Clorox Company is a leading multinational manufacturer and marketer of consumer and professional products with about 7,700 employees worldwide and fiscal year 2014 sales of $5.5 billion. Clorox markets some of the most trusted and recognized consumer brand names, including its namesake bleach and cleaning products; Pine-Sol® cleaners; Liquid Plumr® clog removers; Poett® home care products; Fresh Step® cat litter; Glad® bags, wraps and containers; Kingsford®charcoal; Hidden Valley® and KC Masterpiece® dressings and sauces; Brita® water-filtration products and Burt's Bees® natural personal care products. The company also markets brands for professional services, including Clorox Healthcare®, HealthLink®, Aplicare® and Dispatch®infection control products for the healthcare industry. More than 80 percent of the company's brands hold the No. 1 or No. 2 market share positions in their categories. Clorox's commitment to corporate responsibility includes making a positive difference in its communities. In fiscal year 2014, The Clorox Company and The Clorox Company Foundation contributed more than $16 million in combined cash grants, product donations, cause marketing and employee volunteerism. For more information, visit TheCloroxCompany.com.
Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and such forward-looking statements involve risks and uncertainties. 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 forward-looking statements based on management's estimates, assumptions and projections. Words such as "could," "may," "expects," "anticipates," "targets," "goals," "projects," "intends," "plans," "believes," "seeks," "estimates," and variations on such words, and similar expressions, are intended to identify such forward-looking statements. These forward-looking statements are only predictions, subject to risks and uncertainties, and actual results could differ materially from those discussed above. Important factors that could affect performance and cause results to differ materially from management's expectations are described in the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the company's Annual Report on Form 10-K for the fiscal year ended June 30, 2014, as updated from time to time in the company's SEC filings. These factors include, but are not limited to: risks related to international operations, including political instability, particularly in Venezuela; government-imposed price controls or other regulations; foreign currency exchange rate controls, including periodic changes in such controls, fluctuations and devaluations; labor unrest and inflationary pressures, particularly in Argentina and other challenging markets; risks related to nationalization, further expropriation of assets, and other government action in Venezuela, and the possibility of similar actions in other foreign jurisdictions, including Argentina; intense competition in the company's markets; expectations or plans related to the announced changes in the company's leadership; worldwide, regional and local economic conditions and financial market volatility; volatility and increases in commodity costs such as resin, sodium hypochlorite and agricultural commodities and increases in energy, transportation or other costs; the ability of the company to drive sales growth, increase price and market share, grow its product categories and achieve favorable product and geographic mix; dependence on key customers and risks related to customer consolidation and ordering patterns; costs resulting from government regulations; the ability of the company to successfully manage global political, legal, tax and regulatory risks, including changes in regulatory or administrative activity; supply disruptions and other risks inherent in reliance on a limited base of suppliers; the ability of the company to implement and generate anticipated cost savings and efficiencies; the success of the company's business strategies; the impact of product liability claims, labor claims and other legal proceedings, including in foreign jurisdictions and the company's litigation related to its discontinued operations in Brazil; the ability of the company to develop and introduce commercially successful products; risks relating to acquisitions, new ventures and divestitures and associated costs, including the potential for asset impairment charges, including intangible assets and goodwill; risks related to reliance on information technology systems, including potential security breaches, cyber attacks or privacy breaches that result in the unauthorized disclosure of consumer, customer, employee or company information, or service interruptions; the company's ability to attract and retain key personnel; the company's ability to maintain its business reputation and the reputation of its brands; environmental matters including costs associated with the remediation of past contamination and the handling and/or transportation of hazardous substances; the impact of natural disasters, terrorism and other events beyond the company's control; the company's ability to maximize, assert and defend its intellectual property rights; any infringement or claimed infringement by the company of third-party intellectual property rights; the effect of the company's indebtedness and credit rating on its operations and financial results; the company's ability to maintain an effective system of internal controls; uncertainties relating to tax positions, tax disputes and changes in the company's tax rate; the accuracy of the company's estimates and assumptions on which its financial statement projections are based; the company's ability to pay and declare dividends or repurchase its stock in the future; and the impacts of potential stockholder activism.
The company's forward-looking statements in this press release are based on management's current views and assumptions regarding future events and speak only as of their dates. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by the federal securities laws.
Non-GAAP Financial Information
This press release contains non-GAAP financial information relating to sales growth, diluted EPS, the debt to EBITDA ratio and EBIT margin. The company has included reconciliations of these non-GAAP financial measures to the most directly comparable financial measure calculated in accordance with GAAP. See the end of this press release for these reconciliations.
The company disclosed these non-GAAP financial measures to supplement its consolidated financial statements presented in accordance with GAAP. These non-GAAP financial measures exclude certain items that are included in the company's results reported in accordance with GAAP, including income taxes, interest income, interest expense and foreign exchange impact. The exclusion of foreign exchange impact is also referred to as currency-neutral. Management believes these non-GAAP financial measures provide useful additional information to investors about trends in the company's operations and are useful for period-over-period comparisons. These non-GAAP financial measures should not be considered in isolation or as a substitute for the comparable GAAP measures. In addition, these non-GAAP 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 be read in connection with the company's consolidated financial statements presented in accordance with GAAP.
For recent presentations made by company management and other investor materials, visit Investor Events on the company's website.
Condensed Consolidated Statements of Earnings (Unaudited)
Dollars in millions, except per share amounts
Three Months Ended
9/30/2014 9/30/2013
Net sales $ 1,352 $ 1,343
Cost of products sold 774 759
Gross profit 578 584
Selling and administrative expenses 180 194
Advertising costs 121 120
Research and development costs 30 31
Interest expense 26 26
Other expense, net 3 2
Earnings from continuing operations before income taxes 218 211
Income taxes on continuing operations 73 72
Earnings from continuing operations 145 139
Losses from discontinued operations, net of tax (55 ) (3 )
Net earnings $ 90 $ 136
Net earnings (losses) per share
Basic
Continuing operations $ 1.12 $ 1.07
Discontinued operations (0.42 ) (0.03 )
Basic net earnings per share $ 0.70 $ 1.04
Diluted
Continuing operations $ 1.10 $ 1.05
Discontinued operations (0.42 ) (0.02 )
Diluted net earnings per share $ 0.68 $ 1.03
Weighted average shares outstanding (in thousands)
Basic 129,312 130,074
Diluted 131,369 132,237
Reportable Segment Information
(Unaudited)
Dollars in millions
First Quarter Net Sales Earnings (Losses) from Continuing Operations Before Income Taxes
Three Months Ended Three Months Ended
9/30/14 9/30/13 (2) % Change(1) 9/30/14 9/30/13 (2) % Change(1)
Cleaning Segment $ 470 $ 479 -2% $ 124 $ 131 -5%
Household Segment 392 372 5% 52 52 0%
Lifestyle Segment 216 218 -1% 56 53 6%
International Segment 274 274 0% 26 31 -16%
Corporate - - - (40) (56) -29%
Total Company $ 1,352 $ 1,343 1% $ 218 $ 211 3%
(1) Percentages based on rounded numbers.
(2) As a result of Clorox Venezuela results being included in discontinued operations in the current fiscal quarter, the prior comparative period has been reclassified to conform with current quarter presentation.
Condensed Consolidated Balance Sheets
Dollars in millions
9/30/2014 6/30/2014 9/30/2013
(Unaudited) (Unaudited)
ASSETS
Current assets
Cash and cash equivalents $ 355 $ 329 $ 323
Receivables, net 455 546 506
Inventories, net 397 386 439
Other current assets 144 134 152
Total current assets 1,351 1,395 1,420
Property, plant and equipment, net 947 977 1,007
Goodwill 1,087 1,101 1,108
Trademarks, net 539 547 553
Other intangible assets, net 60 64 70
Other assets 166 174 143
Total assets $ 4,150 $ 4,258 $ 4,301
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Notes and loans payable $ 53 $ 143 $ 286
Current maturities of long-term debt 575 575 -
Accounts payable 385 440 374
Accrued liabilities 478 472 468
Income taxes payable 42 8 42
Total current liabilities 1,533 1,638 1,170
Long-term debt 1,596 1,595 2,170
Other liabilities 762 768 762
Deferred income taxes 90 103 118
Total liabilities 3,981 4,104 4,220
Stockholders' equity
Common stock 159 159 159
Additional paid-in capital 702 709 673
Retained earnings 1,731 1,739 1,603
Treasury shares (2,007 ) (2,036 ) (1,986 )
Accumulated other comprehensive net losses (416 ) (417 ) (368 )
Stockholders' equity 169 154 81
Total liabilities and stockholders' equity $ 4,150 $ 4,258 $ 4,301
The tables below present the reconciliation of non-GAAP financial measures to the most directly comparable financial measures calculated in accordance with GAAP and other supplemental information. See "Non-GAAP Financial Information" above for further information regarding the company's use of non-GAAP financial measures.
The reconciliations below are on a continuing operations basis
First-Quarter Sales Growth Reconciliation
Q1 Fiscal 2015 Q1 Fiscal 2014
Total Sales Growth - GAAP 0.6% 2.2%
Less: Foreign exchange -1.9 -1.5
Currency Neutral Sales Growth -Non-GAAP 2.5% 3.7%
The reconciliations below for fiscal year 2014 are provided as a reference point for the fiscal year 2015 outlook, and reflect the reclassification of Clorox Venezuela to discontinued operations in Q1FY15.
Fiscal Year EBIT Margin(1) Reconciliation
FY
Fiscal
2014
(as adjusted for discontinued operations) FY
Fiscal
2014
(as previously reported)
Earnings from continuing operations before income taxes - GAAP $ 884 $ 861
Interest Income -3 -3
Interest Expense 103 103
EBIT(1)- non-GAAP $ 984 $ 961
Net Sales $ 5,514 $ 5,591
EBIT margin(1)- non-GAAP 17.8 % 17.2 %
(1) EBIT represents earnings from continuing operations before interest and taxes. EBIT margin is the ratio of EBIT to net sales.
For Gross Margin Drivers, please refer to the Supplemental Information: Gross Margin Driver page in the Financial Results section of the company's website TheCloroxCompany.com.
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12年前
The Clorox Company Reports Slight Sales Growth on Top of Strong Year-Ago Results; Updates Fiscal Year 2014 Outlook
Marketwired The Clorox Company
February 4, 2014 8:30 AM
OAKLAND, CA--(Marketwired - Feb 4, 2014) - The Clorox Company (NYSE: CLX) today reported about half a percentage point of net sales growth and 5 percent diluted net earnings per share (EPS) decline from continuing operations for its second quarter, which ended Dec. 31, 2013.
"I'm pleased we grew sales on top of 9 percent growth in the year-ago quarter. Excluding the impact of foreign currencies, sales for the quarter grew 2.3 percent," said Chairman and CEO Don Knauss. "I'm also pleased that our total demand-building plans, including product innovation and increased advertising, have positively impacted our results. Still, like many companies, we continue to face significant headwinds from foreign currency declines, sluggish category growth and increasing commodity costs. For the balance of the fiscal year, we remain focused on our plans to help mitigate these challenges, including executing our demand-building programs to improve our market shares and driving efficiencies throughout our operations to support our margins."
All results in this press release are reported on a continuing operations basis unless otherwise indicated. Some information in this release is reported on a non-GAAP basis. See "Non-GAAP Financial Information" below and the tables toward the end of this press release for more information and reconciliations of key second-quarter results to the most directly comparable financial measures calculated in accordance with generally accepted accounting principles in the U.S. (GAAP).
Fiscal Second-Quarter Results
Following is a summary of key second-quarter results. All comparisons are with the second quarter of fiscal year 2013, unless otherwise stated.
$0.88 diluted EPS (5% decrease)
1% volume increase
0.4% sales increase
In the second quarter, Clorox delivered earnings from continuing operations of $116 million, or 88 cents diluted EPS, compared to $123 million, or 93 cents diluted EPS, in the year-ago quarter. Current-quarter results reflect a comparison to the company's prior-year diluted EPS increase of 18 percent. Current-quarter results also reflect higher commodity costs, an increase in manufacturing and logistics costs, the impact of unfavorable foreign currency exchange rates and higher advertising and sales promotion expenses. In addition, a higher effective tax rate of 35.6 percent compared to 34.3 percent in the year-ago quarter resulted in a negative impact of 2 cents diluted EPS. These factors were partially offset by the benefits of strong cost savings and price increases, as well as higher volume.
In the second quarter, Clorox delivered 1 percent volume growth, primarily driven by gains in the company's Professional Products, Home Care and International businesses, partially offset by declines in the Charcoal and Brita businesses. Sales grew about half a percentage point, reflecting the benefit of price increases and higher volume, largely offset by the impact of unfavorable foreign currency exchange rates, as well as unfavorable mix. Excluding the impact of foreign currencies, sales grew 2.3 percent.
The company's current quarter gross margin was 41.9 percent, reflecting a decline of 60 basis points versus the year-ago quarter. In the current quarter, the benefits of strong cost savings and price increases were more than offset by higher commodity costs, as well as higher manufacturing and logistics costs largely due to inflation in international markets.
Year-to-date net cash provided by continuing operations was $212 million, compared with $325 million in the year-ago period. Contributing factors to the year-over-year change include higher tax payments of $67 million and the company's funding of liabilities under certain nonqualified deferred compensation plans of $26 million. The company anticipates first half fiscal year higher tax payments to be largely offset by lower tax payments over the balance of the fiscal year.
The company continues to anticipate free cash flow to be about 10 percent of sales for the fiscal year. The company defines free cash flow as net cash from operations less capital expenditures.
Key Segment Results
Following is a summary of key second-quarter results by reportable segment. All comparisons are with the second quarter of fiscal 2013, unless otherwise stated.
Cleaning
(Laundry, Home Care, Professional Products)
3% volume increase
2% sales increase
1% pretax earnings increase
Segment volume and sales grew on top of double-digit increases in the year-ago quarter, reflecting overall higher demand-building support as well as gains in the Professional Products and Home Care businesses. The Professional Products business delivered another quarter of double-digit volume growth supported by increased shipments across several brands. Home Care grew volume behind increased merchandising support for Clorox® disinfecting wipes. Laundry volume was flat largely driven by higher shipments of Clorox® bleach products behind increased merchandising support, partially offset by lower shipments of Green Works® laundry detergent due to category softness. Segment volume outpaced sales primarily due to the impact of unfavorable mix, partially offset by the benefit of price increases. Pretax earnings growth reflected continued margin expansion, supported by the benefit of cost savings from the company's year-ago conversion to concentrated bleach, and higher sales partially offset by higher commodity costs.
Household
(Bags and Wraps, Charcoal, Cat Litter)
1% volume decrease
1% sales decrease
27% pretax earnings decrease
Segment volume and sales declines were largely driven by lower volume and sales in Charcoal due to a comparison to double-digit increases in the year-ago period. For perspective, due to the seasonality of the Charcoal business, the second quarter typically represents approximately 10 percent of annual charcoal sales. Cat Litter grew volume behind increased merchandising support to offset heightened competitive activity. Volume in the Glad® business was essentially flat primarily from lower shipments of base trash offset by continued strength in OdorShield® products. The segment's pretax earnings decline of $15 million was largely due to higher commodity costs, as well as higher manufacturing and logistics costs, which more than offset the benefit of cost savings.
Lifestyle
(Dressings and Sauces, Water Filtration, Natural Personal Care)
1% volume decrease
Flat sales
1% pretax earnings decrease
Segment volume results were driven by declines in Water Filtration, primarily due to expanded distribution of competitive private-label filter products, partially offset by gains in the Food business from higher shipments of Hidden Valley® dry dips and salad dressings. Burt's Bees® volume was flat as the brand lapped the introduction of lip color innovation in the year-ago quarter. Sales outpaced volume due to the benefit of price increases and lower trade promotion spending. Pretax earnings declined primarily due to increased advertising and sales promotion spending for Burt's Bees lip care lines and product innovation.
International
(All countries outside of the U.S.)
2% volume increase
1% sales increase
20% pretax earnings growth
Segment volume growth reflected gains in Argentina, Canada and in the Middle East, partially offset by declines in Venezuela. Segment sales grew due to the benefit of price increases, favorable mix and higher volume, largely offset by unfavorable foreign currency exchange rates across multiple countries, including Argentina, Australia, Canada and Venezuela. Although segment sales increased 1 percent for the quarter, excluding the impact of 8 percentage points from foreign currency declines, segment sales grew about 9 percent. Volume outpaced segment sales due to foreign currency declines, partially offset by price increases and favorable mix. Pretax earnings growth reflects the benefits of price increases and cost savings, as well as a comparison to one-time costs associated with an IT systems implementation in Latin America in the year-ago quarter, which more than offset the impact of unfavorable foreign currency exchange rates and higher manufacturing and logistics costs from inflationary pressures.
Clorox Updates Fiscal Year 2014 Outlook
1%-2% sales growth
Flat to 25 basis points of EBIT margin expansion
$4.40-$4.55 diluted EPS range
"We've updated our outlook to reflect even more pressure from unfavorable foreign currency exchange rates, particularly in light of the significant devaluation of the Argentine peso that took place in January. In addition, our outlook reflects continued impact from sluggish category growth and higher commodity costs," said Chief Financial Officer Steve Robb. "We're committed to addressing these challenges through strong execution of our demand-building plans, which include delivering product innovation and higher trade promotion spending that will help grow our categories and support our brands, as well as strong cost savings across our operations."
Clorox now anticipates sales growth for fiscal 2014 to be in the range of 1 to 2 percent, reflecting a greater impact from unfavorable foreign currencies in Argentina and other countries, which are now expected to negatively affect fiscal year sales by more than 2 percentage points. This range reflects up to 3 percentage points of negative impact from foreign currency declines in the second half of the fiscal year. On a currency-neutral basis, the company's fiscal year sales outlook is about 3 to 4 percent growth.
Clorox continues to anticipate EBIT margin to be in the range of flat to up 25 basis points, driven by lower selling and administrative expense as a percentage of sales, partially offset by higher commodity costs, which are expected to negatively impact margins by more than 100 basis points, as well as continued inflation in some international markets. The company continues to anticipate offsetting these factors by delivering cost savings of about 150 basis points.
Clorox continues to anticipate an effective tax rate of about 34 percent for fiscal 2014.
Net of all these factors, Clorox now anticipates fiscal 2014 diluted EPS from continuing operations in the range of $4.40 to $4.55. This 5-cent reduction versus the previous outlook reflects the company's new foreign currency assumption primarily for Argentina.
Although potentially significant currency devaluations are likely to occur in Venezuela in the future, due to the unpredictability of the timing, form and amount, the company's outlook does not assume further currency devaluations in Venezuela beyond the February 2013 devaluation.
For More Detailed Financial Information
Visit the Investors: Financial Reporting: Financial Results section of the company's website at TheCloroxCompany.com for the following:
Supplemental volume and sales growth information
Supplemental gross margin driver information
Reconciliation of certain non-GAAP financial information, including earnings from continuing operations before interest and taxes (EBIT) and earnings from continuing operations before interest, taxes, depreciation and amortization (EBITDA)
Supplemental balance sheet and cash flow information and free cash flow reconciliation
Supplemental price-change information
Note: Percentage and basis-point changes noted in this press release are calculated based on rounded numbers. Supplemental materials are available in the Investors: Financial Reporting: Financial Results section of the company's website at TheCloroxCompany.com.
The Clorox Company
The Clorox Company is a leading multinational manufacturer and marketer of consumer and professional products with approximately 8,400 employees and fiscal year 2013 revenues of $5.6 billion. 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 products, Pine-Sol® 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® water-filtration 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. Clorox's commitment to corporate responsibility includes making a positive difference in its communities. In fiscal year 2013, The Clorox Company Foundation awarded about $4 million in cash grants, and Clorox made product donations valued at nearly $15 million. For more information, visit TheCloroxCompany.com.
Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and such forward-looking statements involve risks and uncertainties. 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 forward-looking statements based on management's estimates, assumptions and projections. Words such as "could," "may," "expects," "anticipates," "targets," "goals," "projects," "intends," "plans," "believes," "seeks," "estimates," and variations on such words, and similar expressions, are intended to identify such forward-looking statements. These forward-looking statements are only predictions, subject to risks and uncertainties, and actual results could differ materially from those discussed above. Important factors that could affect performance and cause results to differ materially from management's expectations are described in the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Annual Report on Form 10-K for the fiscal year ended June 30, 2013, as updated from time to time in the company's SEC filings. These factors include, but are not limited to: worldwide, regional and local economic conditions and financial market volatility; risks related to international operations, including political instability, foreign currency exchange rate controls, fluctuations and devaluations, government-imposed price controls or other regulations, labor unrest and inflationary pressures, particularly in Venezuela, as well as Argentina and other challenging markets; risks related to the possibility of nationalization, expropriation of assets or other government action in foreign jurisdictions, especially in Venezuela; intense competition in the company's markets; volatility and increases in commodity costs such as resin, sodium hypochlorite and agricultural commodities and increases in energy or transportation costs; the ability of the company to drive sales growth, increase market share and grow its product categories, and achieve favorable product and geographic mix; dependence on key customers and risks related to customer ordering patterns; the ability of the company to implement and generate anticipated cost savings and efficiencies; costs resulting from government regulations; the ability of the company to successfully manage global political, legal, tax and regulatory risks, including changes in regulatory or administrative activity; the impact of product liability claims, labor claims and other legal proceedings, including in foreign jurisdictions and the company's litigation related to its discontinued operations in Brazil; the success of the company's business strategies; the ability of the company to develop and introduce commercially successful products; risks relating to acquisitions, new ventures and divestitures and associated costs; supply disruptions and other risks inherent in reliance on a limited base of suppliers; the company's ability to attract and retain key personnel; the company's ability to maintain its business reputation and the reputation of its brands; environmental matters including costs associated with the remediation of past contamination and the handling and/or transportation of hazardous substances; the impact of natural disasters, terrorism and other events beyond the company's control; the company's ability to maximize, assert and defend its intellectual property rights; any infringement by the company of third-party intellectual property rights; the effect of the company's indebtedness on its operations and financial results; changes to the company's credit rating; the sufficiency of the company's cash flow; the company's ability to maintain an effective system of internal controls; risks related to reliance on information technology systems, including potential security breaches or cyber attacks that result in the unauthorized disclosure of consumer, customer, employee or company information, or service interruptions; uncertainties relating to tax positions, tax disputes and changes in the company's tax rate; the potential for asset impairment charges, including intangible assets and goodwill; the accuracy of the company's estimates and assumptions on which its financial statement projections are based; and the company's ability to declare dividends or repurchase its stock in the future.
The company's forward-looking statements in this press release are based on management's current views and assumptions regarding future events and speak only as of their dates. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by the federal securities laws.
Non-GAAP Financial Information
This press release contains non-GAAP financial information relating to sales growth, EBIT margin and free cash flow. The company has included reconciliations of these non-GAAP financial measures to the most directly comparable financial measure calculated in accordance with GAAP. See the end of this press release for these reconciliations.
The company disclosed these non-GAAP financial measures to supplement its condensed consolidated financial statements presented in accordance with GAAP. These non-GAAP financial measures exclude certain items that are included in the company's results reported in accordance with GAAP, including income taxes, interest income, interest expense and foreign exchange impact. Management believes these non-GAAP financial measures provide useful additional information to investors about trends in the company's operations and are useful for period-over-period comparisons. Management uses free cash flow and free cash flow as a percent of sales to help assess the cash generation ability of the business and funds available for investing activities, such as acquisitions, investing in the business to drive growth, and financing activities, including debt payments, dividend payments and share repurchases. Free cash flow does not represent cash available only for discretionary expenditures, since the company has mandatory debt service requirements and other contractual and non-discretionary expenditures. These non-GAAP financial measures should not be considered in isolation or as a substitute for the comparable GAAP measures. In addition, these non-GAAP 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 be read in connection with the company's condensed consolidated financial statements presented in accordance with GAAP.
For recent presentations made by company management and other investor materials, visit Investor Events.
Condensed Consolidated Statements of Earnings (Unaudited)
Dollars in millions, except per share amounts
Three Months Ended Six Months Ended
12/31/2013 12/31/2012 12/31/2013 12/31/2012
Net sales $ 1,330 $ 1,325 $ 2,694 $ 2,663
Cost of products sold 773 762 1,552 1,526
Gross profit 557 563 1,142 1,137
Selling and administrative expenses 200 204 398 399
Advertising costs 123 116 243 238
Research and development costs 31 31 62 61
Interest expense 26 33 52 66
Other income, net (4 ) (9 ) (2 ) (9 )
Earnings from continuing operations before income taxes 181 188 389 382
Income taxes on continuing operations 65 65 136 126
Earnings from continuing operations 116 123 253 256
Losses from discontinued operations, net of tax (1 ) - (2 ) -
Net earnings $ 115 $ 123 $ 251 $ 256
Net earnings (losses) per share
Basic
Continuing operations $ 0.90 $ 0.94 $ 1.95 $ 1.96
Discontinued operations (0.01 ) - (0.02 ) -
Basic net earnings per share $ 0.89 $ 0.94 $ 1.93 $ 1.96
Diluted
Continuing operations $ 0.88 $ 0.93 $ 1.92 $ 1.94
Discontinued operations (0.01 ) - (0.02 ) -
Diluted net earnings per share $ 0.87 $ 0.93 $ 1.90 $ 1.94
Weighted average shares outstanding (in thousands)
Basic 129,836 130,991 129,955 130,630
Diluted 132,278 132,444 132,276 132,120
Reportable Segment Information
(Unaudited)
Dollars in millions
Second Quarter Net Sales Earnings (Losses) from Continuing Operations Before Income Taxes
Three Months Ended Three Months Ended
12/31/13 12/31/12 % Change (1) 12/31/13 12/31/12 % Change (1)
Cleaning Segment $ 432 $ 425 2 % $ 101 $ 100 1 %
Household Segment 352 357 -1 % 41 56 -27 %
Lifestyle Segment 237 237 0 % 69 70 -1 %
International Segment 309 306 1 % 30 25 20 %
Corporate - - - (60 ) (63 ) -5 %
Total Company $ 1,330 $ 1,325 0 % $ 181 $ 188 -4 %
Year-to-Date Net Sales Earnings (Losses) from Continuing Operations Before Income Taxes
Six Months Ended Six Months Ended
12/31/13 12/31/12 % Change (1) 12/31/13 12/31/12 % Change (1)
Cleaning Segment $ 911 $ 897 2 % $ 232 $ 220 5 %
Household Segment 724 712 2 % 93 106 -12 %
Lifestyle Segment 455 445 2 % 122 126 -3 %
International Segment 604 609 -1 % 58 53 9 %
Corporate - - - (116 ) (123 ) -6 %
Total Company $ 2,694 $ 2,663 1 % $ 389 $ 382 2 %
(1) Percentages based on rounded numbers.
Condensed Consolidated Balance Sheets
Dollars in millions
12/31/2013 6/30/2013 12/31/2012
(Unaudited) (Unaudited)
ASSETS
Current assets
Cash and cash equivalents $ 341 $ 299 $ 445
Receivables, net 499 580 511
Inventories, net 466 394 444
Other current assets 194 147 152
Total current assets 1,500 1,420 1,552
Property, plant and equipment, net 992 1,021 1,051
Goodwill 1,100 1,105 1,119
Trademarks, net 552 553 556
Other intangible assets, net 67 74 79
Other assets 177 138 145
Total assets $ 4,388 $ 4,311 $ 4,502
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Notes and loans payable $ 342 $ 202 $ 5
Current maturities of long-term debt - - 500
Accounts payable 359 413 365
Accrued liabilities 480 490 493
Income taxes payable - 29 10
Total current liabilities 1,181 1,134 1,373
Long-term debt 2,170 2,170 2,169
Other liabilities 765 742 788
Deferred income taxes 116 119 116
Total liabilities 4,232 4,165 4,446
Stockholders' equity
Common stock 159 159 159
Additional paid-in capital 693 661 644
Retained earnings 1,623 1,561 1,430
Treasury shares (1,932 ) (1,868 ) (1,801 )
Accumulated other comprehensive net losses (387 ) (367 ) (376 )
Stockholders' equity 156 146 56
Total liabilities and stockholders' equity $ 4,388 $ 4,311 $ 4,502
The tables below present the reconciliation of non-GAAP financial measures to the most directly comparable financial measures calculated in accordance with GAAP and other supplemental information. See "Non-GAAP Financial Information" above for further information regarding the company's use of non-GAAP financial measures.
Second-Quarter and Fiscal Year-to-Date Sales Growth Reconciliation
Q2 Fiscal 2014 Q2 Fiscal 2013 Q2 YTD Fiscal 2014 Q2 YTD
Fiscal 2013
Non-GAAP Sales Growth 2.3 % 7.1 % 3.0 % 4.3 %
Foreign exchange -1.9 -0.1 -1.8 -0.4
Acquisitions -- 1.5 -- 1.5
Total sales growth -- GAAP 0.4 % 8.5 % 1.2 % 5.4 %
Fiscal Year 2013 EBIT(1) Margin Reconciliation
FY
Fiscal
2013
Earnings from continuing operations before income taxes -- GAAP $ 853
Interest Income -3
Interest Expense 122
EBIT (1)-- non-GAAP $ 972
EBIT margin(2) -- non-GAAP 17.3 %
Net Sales $ 5,623
(1) EBIT represents earnings from continuing operations before interest and taxes.
(2) EBIT margin is the ratio of EBIT to net sales.
Fiscal Year 2013 Free Cash Flow Reconciliation
FY
Fiscal
2013
Net cash provided by continuing operations -- GAAP $ 777
Less: Capital expenditures 194
Free cash flow -- non-GAAP $ 583
Free cash flow as a percent of sales -- non-GAAP 10.4 %
Net sales $ 5,623
For Gross Margin Drivers, please refer to the Supplemental Information: Gross Margin Driver page in the Financial Results section of the company's website TheCloroxCompany.com.
Drmicrocap
13年前
The Clorox Company Reports Solid Q4 and Fiscal Year 2013 Earnings Growth; Confirms Outlook for Fiscal 2014
MarketwiredPress Release: The Clorox Company – Thu, Aug 1, 2013 OAKLAND, CA--(Marketwired - Aug 1, 2013) - The Clorox Company (NYSE: CLX) today reported results for its fourth quarter and fiscal year 2013, which ended June 30. For the full fiscal year, the company delivered 3 percent sales growth, 80 basis points of gross margin expansion and $4.31 diluted earnings per share (EPS) from continuing operations. For the fourth quarter, the company reported a slight increase in sales, gross margin expansion of 130 basis points and $1.38 diluted EPS from continuing operations.
"Clorox people around the world delivered solid results this fiscal year," said Chairman and CEO Don Knauss. "We grew sales in all four segments behind product innovation across multiple brands and delivered strong gross margin expansion."
Commenting on the company's fourth-quarter results, Knauss said, "In Q4 we delivered strong margin expansion and diluted EPS growth from continuing operations of 5 percent. Excluding the impact of foreign currencies, sales grew nearly 1.5 percent in the quarter. While sales results came in slightly lower than anticipated, I feel good about our plans to address the competitive pressures we're facing, including increased merchandising activity as well as product innovation scheduled to launch in fiscal year 2014."
All results in this press release are on a continuing operations basis unless otherwise indicated. Some information in this release is reported on a non-GAAP basis. See "Non-GAAP Financial Information" below and the tables toward the end of this press release for more information and a reconciliation of key fourth-quarter results.
Fiscal Fourth-Quarter Results
Following is a summary of key fourth-quarter results. All comparisons are with the fourth quarter of fiscal year 2012, unless otherwise stated.
•$1.38 diluted earnings per share (5% increase)
•3% volume decrease
•Slight increase in sales
Clorox reported fourth-quarter earnings of $184 million, or $1.38 diluted EPS. This compares with $174 million, or $1.32 diluted EPS, in the year-ago quarter, an increase of 5 percent diluted EPS. Current-quarter results reflect the benefit of strong cost savings and price increases, partially offset by higher manufacturing and logistics costs, including the impact of inflationary pressures, and unfavorable foreign currency exchange rates.
Volume for the fourth quarter decreased 3 percent, primarily driven by declines in the company's Home Care, Charcoal and International businesses. Sales were up slightly, reflecting the benefit of price increases, favorable product mix and lower trade spending, largely offset by lower volume and unfavorable foreign currency exchange rates. Excluding the impact of foreign currency declines, sales grew nearly 1.5 percent.
Gross margin increased 130 basis points to 44 percent, compared to 42.7 percent in the year-ago quarter. The increase in gross margin was driven primarily by the benefit of strong cost savings and price increases, partially offset by higher manufacturing and logistics costs.
Advertising spending for the quarter was 8.4 percent of sales, a modest increase versus the year-ago period. The rate of advertising spending for Clorox's U.S. retail business was above 9 percent of sales, but lower for the company's International business in response to continued economic challenges and price controls in Venezuela and Argentina.
EBIT margin increased 60 basis points, driven primarily by gross margin expansion, partially offset by slightly higher advertising and sales promotion and other expenses.
Key Segment Results
Following is a summary of key fourth-quarter results by reportable segment. All comparisons are with the fourth quarter of fiscal 2012, unless otherwise stated.
Cleaning
(Laundry, Home Care, Professional Products)
•4% volume decrease
•1% sales decrease
•7% pretax earnings increase
Volume declines for the segment were driven primarily by lower shipments of Clorox® disinfecting wipes due to increased competitive activity and the resulting decrease in merchandising support. Laundry volume was flat reflecting increased shipments of Clorox® bleach, driven by strong category growth following last year's conversion to a new, concentrated formula, offset by lower shipments of Clorox 2® due to declines in market share. The Professional Products business continued to deliver strong volume growth primarily driven by record shipments of cleaning products. The variance between volume and sales reflects the benefits of favorable product mix and price increases implemented earlier this fiscal year behind innovation in spray cleaners. Pretax earnings growth reflected significant gross margin improvement, supported by cost savings stemming from the company's conversion to concentrated bleach.
Household
(Bags and Wraps, Charcoal, Cat Litter)
•1% volume decrease
•2% sales increase
•6% pretax earnings increase
The segment's volume decrease was driven primarily by declines in Charcoal, due to continued cold weather in the early part of the quarter, with significantly improving trends in June from better weather and Kingsford market share gains. Cat Litter volume grew behind new products and increased merchandising support. Glad volume was also up, largely due to continued strong growth and innovation in premium trash bags. The variance between volume and sales was due to the impact of earlier price increases on cat litter and charcoal products. Pretax earnings increased driven primarily by higher sales and the benefit of strong cost savings resulting in gross margin expansion.
Lifestyle
(Dressings and Sauces, Water Filtration, Natural Personal Care)
•Flat volume
•2% sales increase
•5% pretax earnings decrease
Volume in the segment was flat. Food business volume was up, driven primarily by Hidden Valley base business growth and higher shipments of new Hidden Valley® pasta salad kits. Volume declined in Water Filtration primarily due to increased competitive activity, earlier price increases and a comparison to strong volume in the year-ago quarter behind the pipeline build of Brita Bottle®. Burt's Bees volume was flat due to a comparison to double-digit growth in the year-ago quarter behind the pipeline build of güd® products. Retail consumption for Burt's Bees® products was up double-digits in the quarter. Segment sales outpaced volume primarily driven by the benefit of prior-year price increases on Brita® products. Pretax earnings declined primarily due to investments in systems and processes to support long-term growth for the Burt's Bees business.
International
(All countries outside of the U.S.)
•6% volume decrease
•1% sales decrease
•8% pretax earnings decrease
Volume decreased primarily due to the exit from nonstrategic export businesses, and declines in Canada and Argentina. Segment sales decreased due to lower volume and declines in foreign currencies, partially offset by the benefit of favorable mix and price increases. Pretax earnings decreased primarily due to higher manufacturing and logistics costs, including inflationary pressures, and lower sales. These factors were partially offset by the benefit of cost savings.
Fiscal Year 2013 Results
Following is a summary of key fiscal year 2013 results.
•$4.31 diluted EPS (5% increase)
•Flat volume
•3% sales increase
For fiscal year 2013, Clorox reported earnings of $574 million, or $4.31 diluted EPS, versus $543 million, or $4.10 diluted EPS in fiscal year 2012, an increase of 5 percent. Fiscal year results were primarily driven by the benefit of price increases and strong cost savings, partially offset by higher manufacturing and logistics costs, other supply chain costs and unfavorable foreign currency exchange rates.
Volume for fiscal year 2013 was flat versus the year-ago period, reflecting gains in the Professional Products, Food, Burt's Bees and Homecare businesses, offset by declines in the Charcoal, International and Brita businesses. Sales grew 3 percent with gains in all four segments, reflecting strong product innovation and the benefit of price increases, partially offset by unfavorable foreign currency exchange rates.
Gross margin increased 80 basis points to 42.9 percent from 42.1 percent in fiscal year 2012. The year-over-year increase was driven primarily by the benefit of cost savings and price increases, partially offset by higher manufacturing and logistics costs.
EBIT margin increased 60 basis points, primarily driven by gross margin expansion and lower selling and administrative expenses as a percentage of sales, partially offset by foreign currency declines.
Net cash provided by continuing operations increased to $777 million from $620 million in fiscal year 2012. The increase was due primarily to favorable changes in working capital, the prior period settlement of interest-rate forward contracts and higher earnings.
Clorox continues to use its strong cash flow to invest in the business, maintain debt leverage within its target range and return excess cash to shareholders through dividends and share repurchases. In the fourth quarter, the company increased its dividend by 11 percent and repurchased about 1.5 million shares of its common stock at a cost of approximately $128 million.
In addition to repurchasing company stock, Clorox reduced its debt to EBITDA ratio to 2.1 at the end of fiscal year 2013, near the lower end of its target range of 2.0 to 2.5.
Clorox Confirms Fiscal Year 2014 Financial Outlook
•2-4% sales growth
•EBIT margin up 25-50 basis points
•Diluted EPS in the range of $4.55-$4.70
Clorox continues to anticipate sales growth for fiscal 2014 in the range of 2 percent to 4 percent, with the first half of the fiscal year at the lower end or potentially below that range. Moderating factors include a challenging comparison to about 5.5 percent sales growth in the first half of fiscal 2013; the near-term effects of unfavorable foreign currencies; and heightened competitive pressure on laundry additives and disinfecting wipes. In addition, the company continues to anticipate a negative impact of 1 percentage point from foreign currency declines in Argentina and other countries. This outlook also reflects about 3 percentage points of incremental sales growth from product innovation.
Clorox continues to anticipate EBIT margin to increase in the range of 25-50 basis points, reflecting cost savings of about 150 basis points and lower selling and administrative expenses as a percentage of sales. We anticipate these benefits to be moderated by about 100 basis points of higher commodity costs and high inflation in some international markets.
The company's outlook continues to reflect an impact of about 5-10 cents diluted EPS related to continued market challenges in Argentina and Venezuela, including the effect of high inflation on manufacturing and logistics costs and price controls, as well as the currency devaluation in Venezuela that took place in February of this year. This outlook does not include a contingency for any additional currency devaluation in Venezuela.
Clorox continues to anticipate a higher effective tax rate of 34 to 35 percent for fiscal 2014.
Net of all these factors, Clorox continues to anticipate fiscal 2014 diluted EPS from continuing operations in the range of $4.55 to $4.70.
The recent rise of the U.S. dollar and volatility in some commodity prices are pressuring Clorox's sales and margins in the near term. If these factors remain elevated, the company's full-year results will be negatively affected. Our current outlook assumes about a percentage point of impact from foreign currency declines and another percentage point from commodity cost increases, with oil prices in the range of $90 to $100 per barrel.
For More Detailed Financial Information
Visit the Investors: Financial Reporting: Financial Results section of the company's website at TheCloroxCompany.com for the following:
•Supplemental volume and sales growth information
•Supplemental gross margin driver information
•Reconciliation of certain non-GAAP financial information, including earnings from continuing operations before interest and taxes (EBIT) and earnings from continuing operations before interest, taxes, depreciation and amortization (EBITDA)
•Reconciliation of economic profit (EP)
•Supplemental balance sheet and cash flow information and free cash flow reconciliation
•Supplemental price-change information
•Calculation of return on invested capital (ROIC)
Note: Percentage and basis-point changes noted in this press release are calculated based on rounded numbers. Supplemental materials are available in the Investors: Financial Reporting: Financial Results section of the company's website at TheCloroxCompany.com.
The Clorox Company
The Clorox Company is a leading multinational manufacturer and marketer of consumer and professional products with approximately 8,400 employees and fiscal year 2013 revenues of $5.6 billion. 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 products, Pine-Sol® 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® water-filtration 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. Clorox's commitment to corporate responsibility includes making a positive difference in its communities. In fiscal year 2013, The Clorox Company Foundation awarded $4.1 million in cash grants, and Clorox made product donations valued at nearly $10 million. For more information, visit TheCloroxCompany.com.
Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended (the Securities Act), and Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act), and such forward-looking statements involve risks and uncertainties. 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 forward-looking statements based on management's estimates, assumptions and projections. Words such as "will," "could," "may," "expects," "anticipates," "targets," "goals," "projects," "intends," "plans," "believes," "seeks," "estimates," and variations on such words, and similar expressions, are intended to identify such forward-looking statements. These forward-looking statements are only predictions, subject to risks and uncertainties, and actual results could differ materially from those discussed above. Important factors that could affect performance and cause results to differ materially from management's expectations are described in the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Annual Report on Form 10-K 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 volatility and increases in commodity costs such as resin, diesel, chlor-alkali, sodium hypochlorite, high-strength bleach, agricultural commodities and other raw materials; increases in energy costs; the ability of the company to implement and generate expected savings from its programs to reduce costs, including its supply chain restructuring and other restructuring plans; supply disruptions or any future supply constraints that may affect key commodities or product inputs; risks inherent in relationships with suppliers, including sole-source or single-source 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 manage and realize the benefits of joint ventures and other cooperative relationships, including the company's joint venture regarding the company's Glad® plastic bags, wraps and containers business, and the agreements relating to the provision of information technology, procure to pay and other key services by third parties; risks relating to acquisitions, mergers and divestitures, and the costs associated therewith; risks inherent in maintaining an effective system of internal controls, including the potential impact of acquisitions or the use of third-party service providers, and the need to refine controls to adjust for accounting, financial reporting and other organizational changes or business conditions; the ability of the company to successfully manage tax, regulatory, product liability, intellectual property, environmental and other legal matters, including the risk resulting from joint and several liability for environmental contingencies and risks inherent in litigation, including class action litigation and International litigation; risks related to maintaining and updating the company's information systems, including potential disruptions, costs and the ability of the company to implement adequate information systems in order to support the current business and to support the company's potential growth; the ability of the company to develop commercially successful products that delight the consumer; consumer and customer reaction to price changes; actions by competitors; risks related to customer concentration; customer-specific ordering patterns and trends; risks arising out of natural disasters; the impact of disease outbreaks, or pandemics on the company's suppliers' or customers' operations; changes in the company's tax rate; unfavorable worldwide, regional or local general economic and marketplace conditions and events, including consumer confidence and consumer spending levels, the rate of economic growth, the rate of inflation or deflation, and the financial condition of the company's customers, suppliers and service providers; foreign currency exchange rate fluctuations and other risks of international operations, including government-imposed price controls; unfavorable political conditions in the countries where the company does business and other operational risks in such countries; the impact of the volatility of the debt and equity markets on the company's cost of borrowing, cost of capital and access to funds, including commercial paper and its credit facility; risks relating to changes in the company's capital structure, including risks related to the company's ability to implement share repurchase plans and the impact thereof on the company's capital structure and earnings per share; the impact of any unanticipated restructuring or asset-impairment charges and the ability of the company to successfully implement restructuring plans; risks arising from declines in cash flow, whether resulting from declining sales, declining product categories, 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 costs and availability of shipping and transport services; potential costs in the event of stockholder activism; and the company's ability to maintain its business reputation and the reputation of its brands.
The company's forward-looking statements in this press release are based on management's current views and assumptions regarding future events and speak only as of their dates. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by the federal securities laws.
Non-GAAP Financial Information
This press release contains non-GAAP financial information relating to EBIT margin, the debt to EBITDA ratio and sales growth. The company has included reconciliations of non-GAAP financial information related to sales growth, EBIT margin and the debt to EBITDA ratio to the most directly comparable financial measure calculated in accordance with generally accepted accounting principles in the U.S. (GAAP). See the end of this press release for these reconciliations.
The company has disclosed information related to these non-GAAP financial measures to supplement its condensed consolidated financial statements presented in accordance with GAAP. These non-GAAP financial measures exclude certain items that are included in the company's results reported in accordance with GAAP, including interest income, interest expense, depreciation and amortization, the impact of foreign currency exchange transactions and acquisitions. Management believes these non-GAAP financial measures provide useful additional information to investors about trends in the company's operations and are useful for period-over-period comparisons. These non-GAAP financial measures should not be considered in isolation or as a substitute for the comparable GAAP measures. In addition, these non-GAAP 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 financial statements presented in accordance with GAAP.
For recent presentations made by company management and other investor materials, visit Investor Events.
Condensed Consolidated Statements of Earnings
Dollars in millions, except per share amounts
Three Months Ended Twelve Months Ended
6/30/2013 6/30/2012 6/30/2013 6/30/2012
(Unaudited) (Unaudited) (Unaudited)
Net sales $ 1,547 $ 1,541 $ 5,623 $ 5,468
Cost of products sold 867 883 3,211 3,164
Gross profit 680 658 2,412 2,304
Selling and administrative expenses 212 213 807 798
Advertising costs 130 123 500 482
Research and development costs 35 34 130 121
Interest expense 26 33 122 125
Other expense (income), net 8 4 - (13 )
Earnings from continuing operations before income taxes 269 251 853 791
Income taxes on continuing operations 85 77 279 248
Earnings from continuing operations 184 174 574 543
Losses from discontinued operations, net of tax (1 ) - (2 ) (2 )
Net earnings $ 183 $ 174 $ 572 $ 541
Net earnings (losses) per share
Basic
Continuing operations $ 1.40 $ 1.34 $ 4.38 $ 4.15
Discontinued operations (0.01 ) - (0.01 ) (0.01 )
Basic net earnings per share $ 1.39 $ 1.34 $ 4.37 $ 4.14
Diluted
Continuing operations $ 1.38 $ 1.32 $ 4.31 $ 4.10
Discontinued operations (0.01 ) - (0.01 ) (0.01 )
Diluted net earnings per share $ 1.37 $ 1.32 $ 4.30 $ 4.09
Weighted average shares outstanding (in thousands)
Basic 131,422 130,061 131,075 130,852
Diluted 133,612 131,395 132,969 132,310
Reportable Segment Information
(Unaudited)
Dollars in millions
Fourth Quarter Net Sales Earnings (Losses) from Continuing Operations Before Income Taxes
Three Months Ended Three Months Ended
6/30/13 6/30/12 % Change (1) 6/30/13 6/30/12 % Change (1)
Cleaning Segment $ 432 $ 436 -1 % $ 101 $ 94 7 %
Household Segment 568 559 2 % 154 145 6 %
Lifestyle Segment 239 235 2 % 62 65 -5 %
International Segment 308 311 -1 % 23 25 -8 %
Corporate - - - (71 ) (78 ) -9 %
Total Company $ 1,547 $ 1,541 0 % $ 269 $ 251 7 %
Year-to-Date Net Sales Earnings (Losses) from Continuing Operations Before Income Taxes
Twelve Months Ended Twelve Months Ended
6/30/13 6/30/12 % Change (1) 6/30/13 6/30/12 % Change (1)
Cleaning Segment $ 1,783 $ 1,692 5 % $ 420 $ 381 10 %
Household Segment 1,693 1,676 1 % 336 298 13 %
Lifestyle Segment 929 901 3 % 259 265 -2 %
International Segment 1,218 1,199 2 % 96 119 -19 %
Corporate - - - (258 ) (272 ) -5 %
Total Company $ 5,623 $ 5,468 3 % $ 853 $ 791 8 %
(1) Percentages based on rounded numbers.
Condensed Consolidated Balance Sheets
Dollars in millions
6/30/2013 6/30/2012
(Unaudited)
ASSETS
Current assets
Cash and cash equivalents $ 299 $ 267
Receivables, net 580 576
Inventories, net 394 384
Other current assets 147 149
Total current assets 1,420 1,376
Property, plant and equipment, net 1,021 1,081
Goodwill 1,105 1,112
Trademarks, net 553 556
Other intangible assets, net 74 86
Other assets 138 144
Total assets $ 4,311 $ 4,355
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current liabilities
Notes and loans payable $ 202 $ 300
Current maturities of long-term debt - 850
Accounts payable 413 412
Accrued liabilities 490 494
Income taxes payable 29 5
Total current liabilities 1,134 2,061
Long-term debt 2,170 1,571
Other liabilities 742 739
Deferred income taxes 119 119
Total liabilities 4,165 4,490
Stockholders' equity (deficit)
Common stock 159 159
Additional paid-in capital 661 633
Retained earnings 1,561 1,350
Treasury shares (1,868 ) (1,881 )
Accumulated other comprehensive net losses (367 ) (396 )
Stockholders' equity (deficit) 146 (135 )
Total liabilities and stockholders' equity (deficit) $ 4,311 $ 4,355
The tables below present the reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures and other supplemental information. See "Non-GAAP Financial Information" above for further information regarding the company's use of non-GAAP financial measures.
Fourth-Quarter Sales Growth Reconciliation
Q4
Fiscal
2013 Q4
Fiscal
2012
Base sales growth - non-GAAP 1.3 % 3.2 %
Foreign exchange -0.9 -0.8
Acquisitions -- 1.6
Total sales growth - GAAP 0.4 % 4.0 %
Fiscal Year Sales Growth Reconciliation
Fiscal
2013 Fiscal
2012
Base sales growth - non-GAAP 2.7 % 3.8 %
Foreign exchange -0.6 -0.2
Acquisitions 0.7 0.9
Total sales growth - GAAP 2.8 % 4.5 %
Fourth-Quarter EBIT(1) Margin Reconciliation
Q4
Fiscal
2013 Q4
Fiscal
2012
Earnings from continuing operations before income taxes - GAAP $ 269 $ 251
Interest Income -1 -1
Interest Expense 26 33
EBIT (1)- non-GAAP $ 294 $ 283
EBIT margin(2) - non-GAAP 19.0 % 18.4 %
Net Sales $ 1,547 $ 1,541
Fiscal Year EBIT(1) Margin Reconciliation
Fiscal
2013 Fiscal
2012
Earnings from continuing operations before income taxes - GAAP $ 853 $ 791
Interest Income -3 -3
Interest Expense 122 125
EBIT (1) - non-GAAP $ 972 $ 913
EBIT margin(2) - non-GAAP 17.3 % 16.7 %
Net Sales $ 5,623 $ 5,468
Depreciation and Amortization $ 182 $ 178
EBITDA(3)- non-GAAP $ 1,154 $ 1,091
Debt to EBITDA(4) 2.1 2.5
Total Debt(5) $ 2,372 $ 2,721
(1) EBIT represents Earnings from Continuing Operations Before Interest and Taxes
(2) EBIT margin is a measure of EBIT as a percentage of net sales.
(3) EBITDA represents Earnings from Continuing Operations Before Interest, Taxes and Depreciation and Amortization.
(4) Debt to EBITDA represents total debt divided by EBITDA.
Note: The Company calculates EBITDA for compliance with its debt covenants using earnings from continuing operations for the trailing four quarters, as contractually defined.
(5) Total debt represents the sum of notes and loans payable, current maturities of long-term debt, and long-term debt.
For Gross Margin Drivers, please refer to the Supplemental Information: Gross Margin Driver page in the Financial Results section of the company's website TheCloroxCompany.com.
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