The Clorox Company (CLX) filed Quarterly Report for the period ended 2009-09-30.
Clorox Company's business operations represented by the aggregate of its U.S. Household Products and Canada U.S. Specialty Products and International segments include the production and marketing of non-durable consumer products sold primarily through grocery and other retail stores. The Clorox Company has a market cap of $8.17 billion; its shares were traded at around $58.66 with a P/E ratio of 15 and P/S ratio of 1.5. The dividend yield of The Clorox Company stocks is 3.4%. The Clorox Company had an annual average earning growth of 12.1% over the past 5 years.
Highlight of Business Operations:
The Company reported net earnings of $157 and diluted net earnings per share of $1.11 based on weighted average diluted shares outstanding of approximately 141 million for the three months ended September 30, 2009. This compares to net earnings for the three months ended September 30, 2008, of $128 and diluted net earnings per share of $0.90 based on weighted average diluted shares outstanding of approximately 140 million. Restructuring-related charges were $0.03 per diluted share for the three months ended September 30, 2009 and 2008 (See “Restructuring and asset impairment costs” below). Foreign currency transaction losses were $0.04 and $0.02 per diluted share for the three months ended September 30, 2009 and 2008, respectively. Also included in the Company’s results for the three months ended September 30, 2008, were costs of $0.01 per diluted share related to the Company’s acquisition of Burt’s Bees, Inc. which was acquired on November 30, 2007.
During the three months ended September 30, 2009, the Company recognized $2 of restructuring costs in Corporate. Additionally, the Company recognized restructuring-related costs associated with the Supply Chain and Other restructuring plan of $1 and $3, included in selling and administrative expenses and cost of products sold, respectively. Of these amounts, $2, $1 and $1 were related to the Cleaning and Household segments and Corporate, respectively.
During the three months ended September 30, 2008, the Company recognized $1 of restructuring costs in the Cleaning segment. In addition, the Company recognized in cost of products sold restructuring-related costs associated with the Supply Chain and Other restructuring plan of $5. Of these amounts, $1, $3 and $1 were related to the Cleaning, Household and International segments, respectively.
Total costs associated with the Supply Chain and Other restructuring plan since inception through September 30, 2009, were $104, of which $31, $41, $12 and $20 related to the Cleaning, Household, International segments and Corporate, respectively.
The Company anticipates incurring approximately $18 to $25 of Supply Chain and Other restructuring-related charges in fiscal year 2010, of which approximately $2 are expected to be noncash related. The Company anticipates approximately $5 to $8 of the fiscal year 2010 charges to be in Corporate and $9 to $11 to be in the Cleaning segment, of which approximately $7 to $9 are expected to be recognized as cost of products sold charges. The remaining estimated charges of $4 to $6 are expected to be recognized as cost of products sold in the Household segment. The total anticipated charges related to the Supply Chain and Other restructuring plan for the fiscal years 2011 and 2012 are estimated to be approximately $10 to $12.
The Company’s working capital, defined in this context as total current assets net of total current liabilities, increased by $92 from June 30, 2009 to September 30, 2009, principally due to a decrease in accounts payable and accrued liabilities. The decrease in accounts payable and accrued liabilities was primarily due to $43 related to the payment of the fiscal year 2009 annual incentive program and value sharing awards, net of fiscal year 2010 first quarter annual incentive and value sharing accruals, $13 due to the timing of interest payments, $9 due to an increase in the fair value of commodity contracts, and the remainder relating to timing of vendor payments and a decrease in the volume of information technology related purchases.
CLX is in the portfolios of John Hussman of Hussman Economtrics Advisors, Inc., John Hussman of Hussman Economtrics Advisors, Inc., John Rogers of ARIEL CAPITAL MANAGEMENT LLC, Mark Hillman of Hillman Capital Management, Donald Yacktman of Yacktman Asset Management Co., Donald Yacktman of Yacktman Asset Management Co., Kenneth Fisher of Fisher Asset Management, LLC, Kenneth Fisher of Fisher Asset Management, LLC, Arnold Van Den Berg of Century Management.
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