Key Segment Results
Following is a summary of key second-quarter results by reportable segment. All comparisons are with the second quarter of fiscal 2012, unless otherwise stated.
(Laundry, Home Care, Professional Products)
•13% volume increase •15% sales increase •28% pretax earnings increase
Volume growth in the segment was up double-digits, with strong results in all three business units. Home Care delivered gains on almost every brand, with the biggest contribution from Clorox® disinfecting wipes. Due to the severity of this year's flu season, the Home Care business saw strong retailer buy-in and significant consumption of disinfecting wipes, as well as other Clorox-branded cleaning products. Laundry volume increased driven by retailer shelf resets and strong consumer acceptance of new concentrated Clorox® regular bleach. Gains on bleach were partially offset by lower shipments of Clorox 2® stain fighter and color booster due to continued weak category trends. Also contributing to the segment's results were strong double-digit volume increases in the Professional Products Division behind the benefit of acquisitions made in fiscal 2012, as well as double-digit base business growth. Sales outpaced volume due to the benefit of price increases. Pretax earnings growth was driven by higher sales and margin expansion primarily from strong cost savings and favorable commodity costs, partially offset by higher manufacturing and logistics costs.
(Bags and Wraps, Charcoal, Cat Litter)
•1% volume increase •7% sales increase •65% pretax earnings increase
The segment's volume growth was driven primarily by an increase in early shipments in the Charcoal business ahead of the upcoming grilling season. Cat Litter volume was flat primarily due to the negative volume impact of last May's price increases. Glad® sales were up, but volume was down primarily driven by decreased shipments in base trash bags and food bags. Volume declines were partially offset by continued strong growth in premium trash bag products such as Glad® OdorShield® trash bags with Febreze®. Segment sales growth outpaced volume growth primarily due to the benefit of previous price increases across all three businesses, as well as favorable product mix. Pretax earnings growth was driven largely by higher sales and margin expansion primarily from strong cost savings of more than $9 million and favorable product mix.
(Dressings and Sauces, Water Filtration, Natural Personal Care)
•7% volume increase •8% sales increase •1% pretax earnings increase
Volume growth in the segment was driven by double-digit shipment gains in the Burt's Bees business, reflecting base business growth, new product innovation in lip care and increased shipments of face products during the holiday season. The Food business also saw strong volume growth primarily from higher shipments of Hidden Valley® products due to strong base business growth and the launch of new non-ranch dressings. Volume declined in the Water Filtration business due to category softness. Segment sales outpaced volume due to previous price increases. Pretax earnings growth reflected higher sales and strong cost savings, offset by higher selling and administrative expenses, unfavorable product mix and higher advertising investments.
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