clorox company (CLX) Key Developments
The Clorox Company Reports Unaudited Consolidated Earnings Results for Third Quarter and Nine Months Ended March 31, 2015; Revised Earnings Outlook for the year 2015
May 1 15
The Clorox Company reported unaudited consolidated earnings results for third quarter and nine months ended March 31, 2015. For the quarter, the company’s net sales were $1,401 million against $1,366 million a year ago. Earnings from continuing operations before income tax were $217 million against $226 million a year ago. Earnings from continuing operations were $144 million against $151 million a year ago. Net earnings were $174 million against $137 million a year ago. Diluted net earnings per share from continuing operations were $1.08 against $1.14 a year ago. Diluted net earnings per share were $1.30 against $1.04 a year ago. EBIT was $241 million against $250 million a year ago. EBITDA was $282 million against $293 million a year ago.
For the nine months, the company’s net sales were $4,098 million against $4,017 million a year ago. Earnings from continuing operations before income tax were $632 million against $621 million a year ago. Earnings from continuing operations were $417 million against $408 million a year ago. Net earnings were $389 million against $388 million a year ago. Diluted net earnings per share from continuing operations were $3.14 against $3.10 a year ago. Diluted net earnings per share were $2.93 against $2.94 a year ago. Net cash provided by continuing operations – GAAP was $481 million against $444 million a year ago. Capital expenditures were $83 million against $87 million a year ago.
For the fiscal year 2015, the company now anticipates sales to grow in the range of 1% to 2%. Clorox's updated sales outlook reflects stronger results through the third quarter and more than 2 percentage points of impact from unfavorable foreign currency exchange rates. Other moderating factors include slowing economies in international markets and an increase in 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 benefit of cost savings and price increases. The company continues to anticipate commodity costs to be about flat due to energy cost declines. Offsetting factors to gross margin expansion include higher logistics costs, as well as the aforementioned increase in 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 performance-based incentive compensation costs. The company's fiscal-year EBIT margin also reflects higher demand-building investments. Clorox continues to anticipate its effective fiscal year 2015 tax rate to be about 34%. Net of all these factors, the company now anticipates fiscal year 2015 diluted EPS from continuing operations in the range of $4.45 to $4.55 against $4.40 to $4.55 as previously expected.
The Clorox Company to Report Q3, 2015 Results on May 01, 2015
Apr 29 15
The Clorox Company announced that they will report Q3, 2015 results at 10:30 AM, Pacific Standard Time on May 01, 2015
Federal Magistrate Judge Declines to Dismiss Lawsuit Brought by Woodman's Food Market against Clorox
Apr 29 15
A federal magistrate judge declined to dismiss a lawsuit brought by Woodman's Food Market against Clorox, after Clorox had claimed the lawsuit was moot because it had stopped selling its products to Woodman's. U.S. Magistrate Judge Stephen Crocker wrote in his ruling that Woodman's could still be considered a customer and purchaser of Clorox products under the law because the Janesville-based grocery store chain still buys Clorox products through wholesalers. Woodman's filed a price discrimination lawsuit against Clorox in October after it was told by Clorox that the company would no longer sell large packs of its products to Woodman's, but would sell them only to member-only warehouse clubs like Costco and Sam's Club. In February, Clorox told Woodman's it would end all business dealings with the store chain and asked the court to dismiss Woodman's lawsuit as moot because Woodman's was no longer a purchaser and could not suffer any further discrimination. But because Woodman's still purchases Clorox products through wholesalers, Crocker wrote, it's still possible that Woodman's can be considered a customer and purchaser with standing to proceed with its lawsuit, at least at this early stage in the litigation.
The Clorox Company Announces Retirement of Daniel Boggan as Directors, Effective May 13, 2015
Apr 24 15
On April 21, 2015, Daniel Boggan, Jr., notified the board of directors of The Clorox Company that he is retiring from the Board effective May 13, 2015. Mr. Boggan has served as a director
of the Company since 1990. Mr. Boggan's decision to retire is not as a result of any disagreement with the company.
Xenex Files Suit Against Clorox
Apr 7 15
Xenex Disinfection Services LLC and Clorox Co. has landed in court. Xenex recently filed a lawsuit in Bexar County District Court seeking a ruling declaring that the San Antonio company is not falsely advertising its Germ-Zapping Robots as the Oakland. The two sides are scheduled to meet outside of court to try to resolve their spat. Xenex sells portable robots that sanitize hospital rooms using pulsating rays of xenon ultraviolet light. The technology helps reduce infections by eliminating pathogens and germs from a room in five minutes, the company boasts. The robots have been placed in more than 300 hospital systems. Clorox took exception to various claims made by Xenex, including that its Germ-Zapping Robots are nine times more effective against bacteria in five minutes than mercury devices. The Clorox system uses "low-pressure mercury lamps". Xenex also claimed the following: "Mercury bulbs contain elemental mercury, which means they are classified as hazardous and toxic." Clorox argued the claim "exaggerated the potential health hazards associated with mercury bulbs". But before NAD could issue its decision, Xenex informed it that the company was discontinuing its claims. The reason was unrelated to the challenge.