Clorox Posts Profitable 2nd Quarter, Despite Stagnant Growth In Sales

Despite stagnant sales growth, Clorox posted an 18 percent rise in second quarter profit. Ignoring currency fluctuations, sales grew three percent. Company earnings totaled $151 million, or $1.14 diluted EPS from continuing operations, compared to $128 million, or 97 cents diluted EPS, a year ago. The company said second quarter diluted EPS results were driven largely by gross margin expansion. Flat sales reflected volume growth and price increases, offset by negative foreign currency exchange rates and higher trade promotion spending. Volume for the second quarter was up one percent, due to gains in home care and natural personal care, partially offset by decreases in laundry and water filtration. "Our strategy continues to drive profitable growth," said CEO Benno Dore.