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Clorox falls on warning
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December 15, 2000: 1:03 p.m. ET
Household product maker's shares fall 11 percent on earnings warning
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NEW YORK (CNNfn) - Shares of Clorox Co. fell sharply on Friday after the household products maker warned that it will miss its fiscal second-quarter financial targets, and also plans to restructure its manufacturing operations.
 In early afternoon trade, the troubled stock traded down $3.88, or about 11 percent, to $30.13, after earlier touching a session low of $28.38, its lowest levels since mid-1997. Volume was 5.3 million more than five times its daily average.
The Oakland, Calif.-based company, known for such products as Clorox bleach and Fresh Step cat litter, has struggled with slowing sales and problems created by its acquisition of First Brands, which was announced in 1998.
On Friday, Clorox said it would take $150 million to $200 million in write-offs and other charges in calendar year 2001, aimed at improving its business. Karen Rose, Clorox's chief financial officer, told analysts on Friday that two-thirds of that amount would be used to streamline manufacturing.
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The announcement follows Clorox's warning on Thursday that earnings in its current second quarter will fall 3 cents a share below year-ago levels, on lower volume and declining sales. Analysts surveyed by First Call had expected the company to earn 38 cents a share for the quarter before the
warning, up from the 33 cents a share Clorox posted last year.
The company also said it expected to post flat earnings for all of fiscal 2001, which ends in June, compared with a year ago. Analysts on average expected fiscal year earnings of $1.95 a share, up from $1.75 a share last year, according to First Call.
In addition, Clorox (CLX: Research, Estimates) expects to write off inventory in its Black Flag pesticide business and other lines, Rose said.
-- from staff and wire reports 
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Clorox
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