Attached files
file | filename |
---|---|
8-K - CURRENT REPORT - CLOROX CO /DE/ | clorox_8k.htm |
EX-99.2 - SUPPLEMENTAL INFORMATION - CLOROX CO /DE/ | exhibit99-2.htm |
The Clorox Company News Release
|
||
Clorox Delivers 26 Percent EPS
Growth in Q2, Driven by Strong Volume, Sales and Gross
Margin Increases
OAKLAND, Calif., Feb. 4, 2010 – The Clorox Company (NYSE: CLX) today
reported strong earnings growth, driven by robust increases in volume, sales and
gross margin, for its second quarter, which ended Dec. 31, 2009.
“We had a very good second quarter, especially given the continued
challenging economic environment,” said Chairman and CEO Don Knauss. “Our
businesses performed well, with volume and sales growth in three of our four
segments. We increased the
investment in our brands, with more advertising to build long-term brand equity
and higher trade spending to impact short-term competitive price gaps at the
shelf. We delivered strong
earnings growth and marked our fourth consecutive quarter of significant gross
margin improvement.”
Fiscal second-quarter results
Following is a summary of key second-quarter results. All comparisons are with the second quarter of fiscal year 2009, unless otherwise stated.
- 77 cents diluted earnings per
share (26% growth)
- 5% volume
growth
- 5% sales growth
Clorox reported second-quarter net earnings of $110 million, or 77 cents
diluted earnings per share (EPS), versus $86 million, or 61 cents diluted EPS,
in the year-ago quarter, an increase of 26 percent. Earnings in the current
quarter benefited from higher U.S. and International sales of disinfecting
products in response to demand associated with the H1N1 flu pandemic, strong
overall volume and sales growth, favorable foreign exchange rates and robust
gross margin expansion. These positive factors were partially offset by $19
million in pretax losses, or 9 cents diluted EPS, in “Other expense, net,”
related to the company’s Venezuela operations. (See “Non-GAAP financial
information” below and the last page of this press release for information and a
reconciliation of key second-quarter results.)
Total volume increased 5 percent due to higher shipments of disinfecting
products, Brita® water-filtration products and several
other major brands.
Sales for the second quarter of fiscal 2010 increased 5 percent to $1.28
billion, on top of 3 percent sales growth in the year-ago quarter. Favorable
foreign exchange rates increased sales by 1.7 percentage points, but the
increase was largely offset by increased trade promotion spending in response to
competitive activity.
Gross margin increased 390 basis points to 43.9 percent from 40 percent.
The year-over-year increase was primarily due to lower commodity costs, cost
savings and price increases in International markets, partially offset by higher
manufacturing and logistics costs and trade promotion spending.
Net cash provided by operations increased 55 percent to $152 million from
$98 million in the year-ago quarter. The increase was primarily due to higher
net earnings and the positive cash impact of changes in working capital.
Page 1 of 12
On Dec. 31, 2009, Clorox
had a debt to EBITDA (earnings before interest, taxes, depreciation and
amortization) ratio, as defined in the company’s lending agreement, of 2.45 to
1. In November, the company issued $300 million of six-year senior notes at a
fixed interest rate of 3.55 percent. Those notes were issued, in part, to
refinance $575 million of 4.2 percent notes that matured in January 2010.
Impact of Venezuela currency devaluation on
second-quarter results and fiscal year outlook
As noted above, Clorox’s
second-quarter earnings reflected pretax losses of $19 million, or 9 cents
diluted EPS, associated with its Venezuela operations. There were two components
to this expense. First, Clorox recorded $7 million in pretax foreign currency
transaction losses, or 3 cents diluted EPS, as a result of converting local
currency to U.S. dollars through the parallel currency exchange market for
inventory purchases. This impact had already been assumed in the company’s
previous financial outlook. Second, as of Dec. 31, 2009, Clorox decided to begin
using the parallel market currency exchange rate to account for its Venezuela
business, resulting in $12 million in pretax currency losses, or 6 cents diluted
EPS, for the remeasurement of certain assets and liabilities in Venezuela. This
pretax loss had not been assumed in the prior outlook.
The Venezuela currency
devaluation had no impact on second-quarter sales.
On Jan. 11, 2010, the
Venezuela government devalued its currency and introduced a two-tier official
currency exchange system (2.6 to 1 for essential goods and services, 4.3 to 1
for nonessential). Clorox anticipates having no access to the 2.6 exchange rate
and very limited access to the 4.3 exchange rate. Therefore, the company will
translate its Venezuela business results at the parallel market currency
exchange rate.
Clorox anticipates that
accounting for Venezuela using the parallel market currency exchange rate will
reduce total company sales by nearly 2 percentage points in the second half of
the fiscal year and by nearly 1 percentage point on a full fiscal year basis.
Clorox expects this devaluation to reduce second-half pretax earnings by
approximately $20 million, or 9 cents diluted EPS, which the company had already
largely accounted for in its prior financial outlook. Clorox also anticipates a
small negative impact on gross margin, because the contribution from this
higher-margin business will be reduced as a result of the devaluation. These
impacts are reflected in the company’s updated financial outlook (below).
Previously, Clorox had
reflected transaction losses from Venezuela in “Other income/expense, net.”
Going forward, the company anticipates these costs will be primarily reflected
in “Cost of goods sold.”
Key segment results
Following is a summary
of key second-quarter results by reportable segment. All comparisons are with
the second quarter of fiscal year 2009, unless otherwise stated.
Cleaning
(Laundry, home care,
auto, away from home)
- 8% volume growth
- 3% sales growth
- 9% pretax earnings growth
Page 2 of
12
The segment’s volume
increase was driven by increased shipments of disinfecting products to retail
and institutional customers to meet demand associated with the H1N1 flu
pandemic. Also contributing to the volume growth were increased shipments of
Clorox®
toilet and bathroom cleaners and Armor
All® auto-care products. The variance between
volume and sales growth was primarily driven by unfavorable product mix and
higher trade-promotion spending in response to competitive activity. Pretax
earnings reflected sales growth, lower commodity costs and cost savings.
On Jan. 8, Clorox
acquired Caltech Industries, a leading provider of disinfectants for the health
care industry, for $23 million. While the sales and diluted EPS impact of the
acquisition are not material, Caltech provides a platform of products and
capability that will enhance Clorox’s ability to expand its presence in this
rapidly growing channel.
Household
(Bags and wraps,
charcoal, cat litter)
- Flat volume
- 6% sales decline
- Flat pretax earnings
The segment’s volume
results were primarily driven by all-time record shipments of Fresh Step® scoopable cat litter and higher shipments of
Glad® trash bags, offset primarily by lower
shipments of Glad®
food storage products. The
variance between changes in volume and sales was primarily driven by price
declines on Glad®
trash bags in the previous fiscal
year to bring pricing in-line with resin costs, which have dropped below
year-ago levels. Pretax earnings
results were primarily due to lower commodity costs and cost savings, offset by
lower sales of Glad® products.
Lifestyle
(Dressings and sauces,
water filtration, global natural personal care)
- 12% volume growth
- 10% sales growth
- 16% pretax earnings growth
The segment’s volume and
sales growth were driven by increased shipments of Brita water-filtration
products, as well as increased shipments of Hidden Valley® salad dressing and Burt’s Bees® products. Pretax earnings reflected higher
sales and lower commodity costs versus the year-ago quarter.
Page 3 of
12
International
(All countries outside
of the U.S., excluding natural personal care)
- 1% volume growth
- 21% sales growth
- 11% pretax earnings growth
Volume growth was driven
by increased shipments of bleach and other disinfecting products in Latin
America due to increased demand as a result of the H1N1 flu pandemic. Sales
growth benefited from price increases and favorable foreign exchange rates.
Pretax earnings reflected sales growth and cost savings, partially offset by
foreign currency transaction and translation losses due to Venezuela.
Clorox raises fiscal 2010 outlook for diluted
EPS, gross margin
- 1-2 percent sales growth
(unchanged)
- 150-175 basis points gross margin
improvement
- Diluted EPS in the range of $4.10-$4.25 (8-12 percent growth versus prior year)
Clorox continues to
anticipate fiscal year 2010 sales growth in the range of 1-2 percent, although
likely at the lower end of the range due to the anticipated impact of accounting
for the company’s Venezuela business at the parallel market currency exchange
rate, which is expected to have a negative impact of nearly 1 percentage point
for the fiscal year.
Second-half sales are anticipated to be
up slightly, despite the second-half impact from Venezuela,
which is anticipated to be just less than 2 percentage points. The second-half outlook continues to assume
an anticipated decrease in disinfecting product sales as concerns about H1N1 flu
diminish and consumers and retailers work through their inventories, and higher
trade-promotion spending in response to competitive activity. Clorox now
anticipates that foreign currencies, other than the bolivar fuerte, will be
slightly positive to sales during the second half of the fiscal
year.
Clorox now anticipates
gross margin improvement in the range of 150-175 basis points for the fiscal
year, on top of 180 basis points of improvement in fiscal year 2009, reflecting
the company’s strong gross margin performance in the first half of the fiscal
year and the continued benefit from cost-reduction initiatives. This new outlook
includes updated assumptions for commodity costs. Clorox continues to believe
commodity costs will be favorable for the full fiscal year, but less so than
previously anticipated. The outlook continues to assume modest gross margin
declines in the second half of the fiscal year due to a comparison with strong
gross margin improvement in the year-ago period, as well as the negative impact
of Venezuela and higher trade-promotion spending in the current year.
Page 4 of 12
Net of all of these
factors, Clorox has raised its full year diluted EPS outlook to the range of
$4.10-$4.25, versus the previous range of $4.05-$4.20.
For more detailed financial information
Visit the Investors:
Financial Results section of the company’s Web site at www.TheCloroxCompany.com for the following unaudited information:
- Supplemental volume and sales
growth information
- Supplemental gross margin driver
information
- Reconciliation of certain non-GAAP
financial information, including earnings before interest and taxes (EBIT) and
earnings before interest, taxes, depreciation and amortization
(EBITDA)
- Supplemental balance sheet and
cash flow information
- Supplemental price-increase information
Note: Percentage and
basis-point changes noted in this news release are calculated based on rounded
numbers.
Today’s webcast
Today at 10:30 a.m.
Pacific time (1:30 p.m. Eastern time), Clorox will host a live audio webcast of
a discussion with the investment community regarding the company’s
second-quarter results. The webcast can be accessed at http://investors.thecloroxcompany.com. Following a live discussion, a replay of the
webcast will be archived for one week on the company’s Web site.
The Clorox Company
The Clorox Company is a
leading manufacturer and marketer of consumer products with fiscal year 2009
revenues of $5.5 billion. Clorox markets some of consumers' most trusted and
recognized brand names, including its namesake bleach and cleaning products,
Green Works®
natural cleaners, Armor All® and STP® auto-care products, Fresh Step® and Scoop Away® cat litter, Kingsford® charcoal, Hidden Valley® and K C Masterpiece® dressings and sauces, Brita® water-filtration systems, Glad® bags, wraps and containers, and Burt’s
Bees® natural personal care products. With
approximately 8,300 employees worldwide, the company manufactures products in
more than two dozen countries and markets them in more than 100 countries.
Clorox is committed to making a positive difference in the communities where its
employees work and live. Founded in 1980, The Clorox Company Foundation has
awarded cash grants totaling more than $77 million to nonprofit organizations,
schools and colleges. In fiscal 2009 alone, the foundation awarded $3.6 million
in cash grants, and Clorox made product donations valued at $7.8 million. For
more information about Clorox, visit www.TheCloroxCompany.com.
Page 5 of
12
Forward-looking statements
This
press release contains “forward looking statements” within the meaning of
Section 27A of the Securities Act of 1933, as amended (the Securities Act), and
Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange
Act), and such forward looking statements involve risks and uncertainties.
Except for historical information, matters discussed above, including statements
about future volume, sales, costs, cost savings, earnings, cash flows, plans,
objectives, expectations, growth, or profitability, are forward looking
statements based on management’s estimates, assumptions and projections. Words
such as “expects,” “anticipates,” “targets,” “goals,” “projects,” “intends,”
“plans,” “believes,” “seeks,” “estimates,” and variations on such words, and
similar expressions, are intended to identify such forward looking statements.
These forward looking statements are only predictions, subject to risks and
uncertainties, and actual results could differ materially from those discussed
above. Important factors that could affect performance and cause results to
differ materially from management’s expectations are described in the sections
entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial
Condition and Results of Operations” in the company’s Annual Report on Form 10-K
for the year ended June 30, 2009, as updated from time to time in the company’s
SEC filings. These factors include, but are not limited to: unfavorable general
economic and marketplace conditions and events, including consumer confidence
and consumer spending levels, the rate of economic growth, the rate of
inflation, and the financial condition of our customers, suppliers and service
providers; foreign currency exchange rate and interest rate fluctuations;
unfavorable political conditions in international markets and risks relating to
international operations; the company’s costs, including volatility and
increases in commodity costs such as resin, diesel, chlor-alkali, agricultural
commodities and other raw materials; increases in energy costs; the impact of
the volatility of the debt markets on the company’s cost of borrowing and access
to funds, including commercial paper and its credit facility; risks relating to
changes in the company’s capital structure; risks arising from declines in cash
flow, whether resulting from tax payments, debt payments, share repurchases,
interest cost increases greater than management’s expectations, or increases in
debt or changes in credit ratings, or otherwise; changes in the company’s tax
rate; the success of the company’s strategies, including its previously
announced Centennial Strategy; risks relating to acquisitions, mergers and
divestitures, including the company’s ability to achieve the projected strategic
and financial benefits from the Burt’s Bees acquisition; the ability of the
company to implement and generate expected savings from its programs to reduce
costs, including its Supply Chain Restructuring and Other restructuring plan
changes; the need for any unanticipated restructuring or asset-impairment
charges; the success of new products and the ability of the company to develop
products that delight the consumer; consumer and customer reaction to price
increases; risks related to customer concentration; customer-specific ordering
patterns and trends; competitive actions; supply disruptions or any future
supply constraints that may affect key commodities or product inputs; risks
inherent in supplier relationships, including sole-supplier relationships; risks
related to the handling and/or transportation of hazardous substances, including
but not limited to chlorine; risks related to the conversion of the company’s
information systems, including potential disruptions and costs; risks arising
out of natural disasters; the impact of disease outbreaks, epidemics or
pandemics on the company’s operations; risks inherent in litigation; risks
inherent in maintaining an effective system of internal controls, including the
potential impact of acquisitions or the use of third-party service providers;
the ability to manage and realize the benefit of joint ventures and other
cooperative relationships, including the company’s joint venture regarding the
company’s Glad®
plastic bags, wraps and containers business, and the agreements relating to the
provision of information technology and related services by third parties; the
ability of the company to successfully manage tax, regulatory, product
liability, intellectual property, environmental and other legal matters,
including the risk resulting from joint and several liability for environmental
contingencies and risks inherent in litigation including class action
litigation; and the company’s ability to maintain its business reputation and
the reputation of its brands.
The
company’s forward looking statements in this report are based on management’s
current views and assumptions regarding future events and speak only as of their
dates. The company undertakes no obligation to publicly update or revise any
forward looking statements, whether as a result of new information, future
events or otherwise, except as required by the federal securities
laws.
Non-GAAP financial information
This press release
contains non-GAAP financial information relating to diluted EPS, sales growth
and gross margin. Included on the last page of this release is a reconciliation
of these non-GAAP financial measures to the most directly comparable financial
measure calculated in accordance with generally accepted accounting principles
in the U.S. (GAAP).
Page 6 of
12
The company has
disclosed information related to diluted EPS, sales and gross margin on a
non-GAAP basis to supplement its condensed consolidated statements of earnings
presented in accordance with GAAP. These non-GAAP financial measures exclude
certain items that are included in the company’s EPS, sales and gross margin
reported in accordance with GAAP, including:
- Charges associated with
simplification of the company’s supply chain, operating model implementation
and other restructuring-related charges.
- The impact of the company’s
acquisition of Burt’s Bees, Inc., completed on Nov. 30, 2007.
- The impact of foreign exchange and
foreign currency transactions.
- The impact of the company’s exit from its private label food bags business.
Management believes that
these non-GAAP financial measures provide useful additional information to
investors about current trends in the company’s operations and are useful for
period over period comparisons of operations. These non-GAAP financial measures
should not be considered in isolation or as a substitute for the comparable GAAP
measures. In addition, these non-GAAP measures may not be the same as similar
measures provided by other companies due to potential differences in methods of
calculation and items being excluded. They should only be read in connection
with the company’s condensed consolidated statements of earnings presented in
accordance with GAAP.
See the following pages for these unaudited
second-quarter results:
- Condensed Consolidated Statements
of Earnings
- Reportable Segment
Information
- Condensed Consolidated Balance
Sheets
- Second-quarter sales growth
reconciliation
- Second-quarter gross margin
reconciliation
- Second-quarter diluted EPS reconciliation
Page 7 of
12
Media relations
Dan Staublin 510-271-1622,
dan.staublin@clorox.com
Kathryn Caulfield
510-271-7209
Investor relations
Li-Mei Johnson 510-271-3396,
li-mei.johnson@clorox.com
Steve Austenfeld 510-271-2270
Page 8 of 12
The Clorox Company | ||
Condensed Consolidated Statements of Earnings
(Unaudited)
Dollars in millions, except per share amounts
Dollars in millions, except per share amounts
Three Months Ended | Six Months Ended | ||||||||||
12/31/2009 | 12/31/2008 | 12/31/2009 | 12/31/2008 | ||||||||
Net sales | $ | 1,279 | $ | 1,216 | $ | 2,651 | $ | 2,600 | |||
Cost of products sold | 718 | 730 | 1,471 | 1,552 | |||||||
Gross profit | 561 | 486 | 1,180 | 1,048 | |||||||
Selling and administrative expenses | 187 | 172 | 362 | 356 | |||||||
Advertising costs | 127 | 107 | 254 | 226 | |||||||
Research and development costs | 29 | 27 | 56 | 54 | |||||||
Restructuring costs | 2 | 1 | 4 | 2 | |||||||
Interest expense | 37 | 44 | 73 | 86 | |||||||
Other expense, net | 16 | 4 | 24 | 7 | |||||||
Earnings before income taxes | 163 | 131 | 407 | 317 | |||||||
Income taxes | 53 | 45 | 140 | 103 | |||||||
Net earnings | $ | 110 | $ | 86 | $ | 267 | $ | 214 | |||
Earnings per share* | |||||||||||
Basic | $ | 0.78 | $ | 0.62 | $ | 1.89 | $ | 1.53 | |||
Diluted | $ | 0.77 | $ | 0.61 | $ | 1.88 | $ | 1.51 | |||
Weighted average shares outstanding (in thousands) | |||||||||||
Basic | 140,303 | 139,086 | 140,023 | 138,772 | |||||||
Diluted | 141,528 | 140,349 | 141,211 | 140,109 |
* | As disclosed in Clorox’s first-quarter Form 10-Q filing, the company adopted a new accounting standard regarding calculation of earnings per share. Prior year earnings per share have been adjusted to reflect the new accounting standard. Further details will be available in the second-quarter Form 10-Q filing. |
Page 9 of
12
The Clorox Company | ||
Reportable Segment
Information
(Unaudited)
Dollars in millions
(Unaudited)
Dollars in millions
Second Quarter
Net Sales | Earnings/(Losses) Before Income Taxes | ||||||||||||||||||
Three Months Ended | % | Three Months Ended | % | ||||||||||||||||
12/31/2009 | 12/31/2008 | Change(1) | 12/31/2009 | 12/31/2008 | Change(1) | ||||||||||||||
Cleaning | $ | 424 | $ | 413 | 3 | % | $ | 85 | $ | 78 | 9 | % | |||||||
Household | 334 | 354 | -6 | % | 27 | 27 | 0 | % | |||||||||||
Lifestyle | 212 | 193 | 10 | % | 78 | 67 | 16 | % | |||||||||||
International | 309 | 256 | 21 | % | 39 | 35 | 11 | % | |||||||||||
Corporate(2) | - | - | 0 | % | (66 | ) | (76 | ) | -13 | % | |||||||||
Total Company | $ | 1,279 | $ | 1,216 | 5 | % | $ | 163 | $ | 131 | 24 | % | |||||||
Year To Date |
Net Sales | Earnings/(Losses) Before Income Taxes | ||||||||||||||||||
Six Months Ended | % | Six Months Ended | % | ||||||||||||||||
12/31/2009 | 12/31/2008 | Change(1) | 12/31/2009 | 12/31/2008 | Change(1) | ||||||||||||||
Cleaning | $ | 927 | $ | 900 | 3 | % | $ | 222 | $ | 193 | 15 | % | |||||||
Household | 715 | 781 | -8 | % | 82 | 88 | -7 | % | |||||||||||
Lifestyle | 412 | 387 | 6 | % | 144 | 123 | 17 | % | |||||||||||
International | 597 | 532 | 12 | % | 86 | 69 | 25 | % | |||||||||||
Corporate(2) | - | - | 0 | % | (127 | ) | (156 | ) | -19 | % | |||||||||
Total Company | $ | 2,651 | $ | 2,600 | 2 | % | $ | 407 | $ | 317 | 28 | % | |||||||
(1) | Percentages based on rounded numbers. | |
(2) | The Corporate segment included $37 and $44 of interest expense for the three months ended Dec. 31, 2009 and 2008, respectively, and $73 and $86 interest expense for the six months ended Dec. 31, 2009 and 2008, respectively. |
Page 10 of 12
The Clorox Company | ||
Condensed Consolidated Balance Sheets
(Unaudited)
Dollars in millions
Dollars in millions
12/31/2009 | 6/30/2009 | 12/31/2008 | |||||||||
Assets | |||||||||||
Current assets | |||||||||||
Cash and equivalents | $ | 154 | $ | 206 | $ | 97 | |||||
Receivables, net | 423 | 486 | 409 | ||||||||
Inventories, net | 409 | 366 | 405 | ||||||||
Other current assets | 117 | 122 | 130 | ||||||||
Total current assets | 1,103 | 1,180 | 1,041 | ||||||||
Property, plant and equipment, net | 937 | 955 | 929 | ||||||||
Goodwill | 1,646 | 1,630 | 1,611 | ||||||||
Trademarks, net | 559 | 557 | 555 | ||||||||
Other Intangible assets, net | 98 | 105 | 112 | ||||||||
Other assets | 146 | 149 | 150 | ||||||||
Total assets | $ | 4,489 | $ | 4,576 | $ | 4,398 | |||||
Liabilities and Stockholders’ Equity (Deficit) | |||||||||||
Current liabilities | |||||||||||
Notes and loans payable | $ | 25 | $ | 421 | $ | 637 | |||||
Current maturities of long-term debt | 575 | 577 | 1 | ||||||||
Accounts payable | 301 | 381 | 330 | ||||||||
Accrued liabilities | 436 | 472 | 430 | ||||||||
Income taxes payable | 35 | 86 | 32 | ||||||||
Total current liabilities | 1,372 | 1,937 | 1,430 | ||||||||
Long-term debt | 2,435 | 2,151 | 2,718 | ||||||||
Other liabilities | 626 | 640 | 587 | ||||||||
Deferred income taxes | 29 | 23 | 66 | ||||||||
Total liabilities | 4,462 | 4,751 | 4,801 | ||||||||
Contingencies | |||||||||||
Stockholders’ equity (deficit) | |||||||||||
Common stock | 159 | 159 | 159 | ||||||||
Additional paid-in capital | 576 | 579 | 548 | ||||||||
Retained earnings | 753 | 640 | 457 | ||||||||
Treasury shares | (1,144 | ) | (1,206 | ) | (1,214 | ) | |||||
Accumulated other comprehensive net losses | (317 | ) | (347 | ) | (353 | ) | |||||
Stockholders’ equity (deficit) | 27 | (175 | ) | (403 | ) | ||||||
Total liabilities and stockholders’ equity (deficit) | $ | 4,489 | $ | 4,576 | $ | 4,398 | |||||
Page 11 of 12
The Clorox Company | ||
The tables below present the unaudited reconciliation of non-GAAP
financial measures to the most directly comparable GAAP financial measures and
other supplemental information. See “Non-GAAP Financial Information” above for
further information regarding the company’s use of non-GAAP financial
measures.
Second-Quarter Sales Growth
Reconciliation
Fiscal | Fiscal | |||||
2010 | 2009 | |||||
Base sales growth | 3.6 | % | 3.2 | % | ||
Foreign exchange | 1.7 | -2.8 | ||||
Exit from private label business | -- | -0.8 | ||||
Sales growth before acquisitions | 5.3 | % | -0.4 | % | ||
Burt's Bees acquisition | -- | 2.9 | ||||
Total sales growth | 5.3 | % | 2.5 | % | ||
The Burt’s Bees acquisition closed on Nov. 30, 2007. |
Second-Quarter Gross Margin Reconciliation
Q2 fiscal 2009 gross margin | 40.0 | % | Q2 fiscal 2008 gross margin | 40.4 | % | |
Commodities | 3.0 | Commodities | -4.5 | |||
Pricing | 0.8 | Pricing | 3.5 | |||
Cost savings | 1.6 | Cost savings | 2.1 | |||
Manufacturing & logistics | -0.8 | Manufacturing & logistics | -1.2 | |||
Other | -0.6 | Other | -0.9 | |||
Q2 fiscal 2010 gross margin before | Q2 fiscal 2009 gross margin before | |||||
impact of charges | 44.0 | % | impact of charges | 39.4 | % | |
Burt’s Bees inventory step-up | -- | Burt’s Bees inventory step-up | 0.5 | |||
Restructuring-related charges | -0.1 | Restructuring-related charges | 0.1 | |||
Q2 fiscal 2010 gross margin | 43.9 | % | Q2 fiscal 2009 gross margin | 40.0 | % | |
Second-Quarter Diluted EPS Reconciliation
Fiscal | Fiscal | |||||
2010 | 2010 | |||||
Diluted EPS before charges | $ | 0.89 | $ | 0.60 | ||
Foreign exchange translation impact | ||||||
(Venezuela) | -0.06 | -- | ||||
Foreign exchange transaction impact | -0.03 | 0.01 | ||||
Restructuring-related charges | -0.03 | -0.01 | ||||
Burt's Bees | -- | 0.01 | ||||
Diluted EPS – GAAP | $ | 0.77 | $ | 0.61 | ||
Page 12 of 12