Clorox’s Profit Rises More Than Sixfold

Clorox Co., the world’s largest household-bleach maker, said Monday that fiscal second-quarter profit rose more than sixfold, helped by the biggest revenue jump in more than five years and by the sale of some brands to German manufacturing giant Henkel.

The Oakland-based company said net income increased to $699 million, or $3.68 a share, from $109 million, or 51 cents, a year earlier. Sales in the period ended Dec. 31 rose 8.7% to $1 billion.

Clorox posted a $563-million gain from selling brands including Combat pesticides to Henkel for its 29% stake in Clorox. Chief Executive Gerald Johnston is boosting marketing and adding products such as BathWand to fend off Procter & Gamble Co. and lower-price brands from retailers including Wal-Mart Stores Inc.

“They’re doing a good job with new products,” said Nancy Crouse of Philadelphia-based Delaware Investments. “They have done a lot in the last two years to gain insight into what consumers want.”

Clorox in December said earnings would rise to 51 cents to 55 cents, excluding gains related to the transfer of businesses to Henkel. Excluding those gains, the company earned 59 cents, or 6 cents more than the 53-cent average estimate of 14 analysts surveyed by Thomson First Call.

Clorox shares rose 58 cents to $59.18 on the New York Stock Exchange. Before Monday, they had gained 18% in the last year.

The company in November repurchased 61.4 million shares from Henkel with $2.1 billion in cash, businesses including Soft Scrub cleanser and Combat pest-control products, and a stake in a joint venture. The transaction unwound a 30-year partnership.

International sales surged 16%, boosted by new products in Latin America and Clorox cleaning items in Australia and New Zealand.

Third-quarter sales are expected to rise 3% to 5%, and profit will be 62 cents to 68 cents a share, Clorox said. Analysts expect earnings to increase to 67 cents.