WASHINGTON (dpa-AFX) - The Clorox Company (CLX) said it would refresh its strategy, extending the horizon to 2020. The company's preliminary expectations are for annual sales growth in the range of 3-5 percent, reflecting anticipated modest category growth and continued strong innovation.
Moving forward, capital expenditures are expected to return to historical levels, equal to or less than depreciation and amortization by fiscal year 2014.
Consumer products provider Clorox said it continues to expect full year 2012 earnings of $4.00 to $4.10 per share and sales growth of 4 percent. Analysts currently expect earnings of $4.04 per share.
The company noted that it still anticipates that sales growth in the fourth quarter would be solidly positive but not as strong as the 7 percent growth in the third quarter, due to a comparison against the company's highest sales quarter of last fiscal year, when sales grew 4 percent.
Gross margin for full year 2012 is expected to decrease in the range of 125 to 150 basis points compared to prior fiscal year.
In addition, for fiscal year 2012, Clorox anticipates delivering more than 3 percentage points of incremental sales growth from innovation. The company continues to build on its well-established cost-saving program and anticipates 2012 cost savings around the high end of the range of $90 million to $100 million.
The company's fiscal year 2012 outlook continues to include $50 million to $55 million in combined infrastructure and restructuring-related expenses, including the systems and facilities enhancements.
For the full year 2013, Oakland, California-based Clorox expects earnings of $4.20 to $4.35 per share, while analysts expect $4.27 per share. Sales is expected to grow 2 percent - 4 percent, reflecting continued category and market share momentum supported by about 3 percentage points of incremental sales from innovation across the company's brands, and modest benefit from price increases.
The company's outlook for fiscal year 2013 includes a negative impact of around 5 cents diluted EPS related to continuing economic uncertainty in Venezuela.
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