Clorox Falls on Weaker Forecast

NEW YORK ( TheStreet) -- Shares of Clorox ( CLX) have been falling after the company announced expectations of a second-quarter revenue decline and lower-than expected second-quarter earnings.

Clorox expects that sales will decline 3% to 4% and that second-quarter earnings per share from continuing operations, excluding a noncash goodwill impairment charge related to its acquisition of Burt's Bees, will come in at 57 cents to 63 cents. On average, analysts have been expecting EPS of 73 cents.

The company will record an estimated after-tax, noncash goodwill impairment charge of $250 million to $255 million, or earnings per share of about $1.78 to $1.82, related to its Burt's Bees business.

Clorox says the financial projections reflect the impact of the Venezuela currency devaluation, tough comparison with strong increases in H1N1-related shipments of disinfecting products in the year-ago quarter, and planned higher promotional spending.

Clorox adds that slowing consumption in the company's fiscal first quarter continued to hurt shipments in the second quarter.

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For the full fiscal year, the company anticipates sales in the range of flat to 1% growth compared with previously-expected growth of flat to 2%.

Meanwhile, Clorox anticipates recording an after-tax gain on the sale of its global auto care businesses of about $171 million.

Shares of Clorox have fallen 3.6% to $60.98, while peer Church & Dwight ( CHD) has inched up 0.1% to $69.10. Meanwhile, Procter & Gamble ( PG) is lower by 0.4% to $64.06.

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-- Written by Andrea Tse in New York.

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