Clorox Posts Earnings Gains for Fourth Quarter, Year

The Clorox Co., makers of Fresh Step and Scoop Away cat litter, reported net earnings of $171 million on sales of $1.52 billion for the fourth quarter of fiscal year 2010 ended June 30, compared to net earnings of $170 million on net sales of $1.5 billion in the year-ago period.

The company's Household business unit, which includes cat litter, charcoal and bags and wraps, reported $136 million in pretax earnings on net sales of $540 million for the fourth quarter, compared to $122 million in pretax earnings on net sales of $528 million.

Higher pretax earnings were primarily due to strong cost savings and lower advertising expense, partially offset by higher commodity cost, according to the Oakland, Calif.-based company. Volume, which increased 1 percent, was primarily driven by record shipments of Kingsford charcoal and increased shipments of Glad trash bags. These factors were partially offset by lower shipments of Glad food-storage products.

For fiscal year 2010, the company reported overall net earnings of $603 million on net sales of $5.53 billion, compared to $537 million net earnings on net sales of $5.45 billion in fiscal year 2009.

The Household business unit's pretax earnings and net sales remained essentially flat for the year at about $290 million and $1.7 billion, respectively.

For fiscal year 2011, Clorox anticipates sales growth in the range of 2 to 4 percent, most likely at the lower end of the range. The company expects volume to grow at a faster rate than sales.