Clorox 1Q Profit Improves as Prices Grow

Led by higher prices, Clorox (NYSE:CLX) said first-quarter profit and sales grew during the quarter but revenue fell short of expectations as volumes slumped.

Clorox also stood by its fiscal 2013 profit view.

The maker of Clorox disinfecting wipes and Pine-Sol products posted earnings of $133 million, or $1.01 a share, compared with a year-earlier $130 million, or 98 cents.

Analysts in a Thomson Reuters poll were looking for earnings of 95 cents.

Revenue for the three months ended Sept. 30 grew 3% to $1.34 billion from $1.3 billion a year ago, narrowly missing the Street’s view of $1.35 billion.

Sales growth was led by higher prices, particularly in its cleaning segment, offset by a 1% decline in volumes and softer household segment demand.

“We're off to a good start in the fiscal year," Clorox CEO Don Knauss said in a statement. "We saw strong margin improvement in the quarter, which is a particular focus for the company, even as we continue to invest in systems and facilities infrastructure."

Clorox continues to expect sales growth for fiscal 2013 in the range of 2% to 4%, reflecting category growth and product innovation in many of its brands, with earnings in the range of $4.20 to $4.35 a share, bracketing the consensus’ $4.29 a share.

Analysts in a Thomson Reuters poll are looking for sales of $5.66 billion.

Actual results could be impacted by continued uncertainty in some international markets, particularly Europe, as well as foreign exchange impacts, Clorox said.