Helped By Swine Flu, Clorox 1Q Profit Rises 23 Pct

BETSY VERECKEY

CHICAGO (AP) — Higher prices and germ-wary shoppers who rushed to stock up on disinfectants helped The Clorox Co. earn 23 percent more in the first quarter this year than last, the company said Monday.

"The upside related to the H1N1 flu was well above our forecast given the rapid spread of the virus," said Larry Peiros, chief operating officer of Clorox North America.

The flu pandemic drove shipments of Clorox disinfectant wipes to an all-time record, said Jefferies analyst Douglas M. Lane, who rates shares of Clorox "Buy."

But executives said the company's commodity costs will be higher than expected later this year because the price of oil is rising.

"Commodity costs remain unpredictable, and the consumer still remains under pressure," Chief Executive Don Knauss said on a conference call with analysts.

Less expensive private-label brands are still providing tough competition for Clorox, especially in trash bags. Clorox previously raised prices on trash bags because it was paying more for plastic resin.