Clorox Co.'s fiscal second-quarter net income slid 81 percent on a charge to write down the value of its Burt's Bees business. It also cut its full-year earnings outlook.
Clorox's stock fell 98 cents to $62.77 in premarket trading on Friday.
The maker of Hidden Valley Ranch salad dressing, its namesake cleaners and other products earned $21 million, or 15 cents per share, for the three months ended Dec. 31. That's down from $110 million, or 77 cents per share, a year earlier.
Excluding a $258 million charge tied to Burt's Bees, adjusted earnings rose to 68 cents per share from 66 cents per share. Analysts polled by FactSet expected 46 cents per share.
Revenue fell 3 percent to $1.18 billion, narrowly missing Wall Street's $1.19 billion.
Clorox said revenue declined for both its cleaning and household segments. The cleaning business dealt with lower shipments of disinfecting wipes and other disinfecting products, absent swine flu virus concerns.
The household segment, which includes bags and wraps, charcoal and cat litter, was pinched by higher trade-promotion spending on Glad products and price cuts on litter.
International revenue dipped 1 percent.
One bright spot was the lifestyle business, which reported a 3 percent revenue increase. The segment — which includes dressing and sauces, water filtration and global natural personal care — was helped by both its Hidden Valley and Burt's Bees products.
The quarterly performance was not unexpected. Last month Clorox said in a preliminary financial report that its results for the second quarter were hurt by the devaluation of Venezuela's currency, higher spending on trade promotions, an expanded customer product pickup program and an unfavorable comparison with a year ago, when the swine flu virus boosted sales of disinfectants.
Clorox, based in Oakland, Calif., now expects 2011 adjusted earnings of $3.85 to $4 per share. In November the company predicted earnings between $4.20 and $4.35 per share.
Analysts anticipate $3.99 per share for the year.
The company maintained its guidance for full-year revenue to be flat to up 1 percent.
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