beat Wall Street's estimates for its second quarter, increasing profit six-fold.
The consumer products company said Monday that it earned $699 million for the quarter, or $3.68 a share, compared with $109 million, or 51 cents a share, in the same quarter last year. Earnings from continuing operations totaled $136 million, or 72 cents a share, from $101 million, or 47 cents a share, in the year-ago period.
The disparity arises from a deal in which a German soap company,
, shed its 29% stake in Clorox to pursue its purchase of
, an American soap company. The deal gave Henkel ownership of some Clorox brands and Clorox's 20% stake in Henkel Iberica.
Excluding one-time items related to the Henkel deal, Clorox said it earned 59 cents a share, beating expectations for earnings of 53 cents a share, according to consensus estimates reported by Thomson First Call. Shares of Clorox were recently up $1.28, or 2.2%, to $59.88.
Sales rose 9% to $1 billion, from last year's $920 million, outpacing 8% growth in volume, thanks to currency gains resulting from the weaker dollar. Sales were boosted by strong sales in Glad trash bags and better-than-expected results from the company's Latin American division.
Gross margin widened by 40 basis points from the year-ago period to 43.1%, due to stronger-than-expected cost savings, partially offset by increased raw-material costs. Clorox generated $189 million of cash provided by operations for the quarter, compared with last year's $188 million.
Looking ahead, the company reiterated its previous earnings guidance, calling for third-quarter earnings between 62 cents and 68 cents a share. It said its third-quarter results should not be affected by the Henkel deal. For the full year, Clorox anticipates earnings of $5.93 to $6.03 a share.