Clorox Profit Falls 20%, but Results Beat Estimates

Clorox Co., the largest U.S. household-bleach maker, said fiscal second-quarter profit fell 20% because of the costs of eliminating as many as 585 jobs.

Net income in the quarter ended Dec. 31 dropped to $51 million, or 22 cents a share, from $64 million, or 27 cents, a year earlier, the maker of Glad bags and Kingsford charcoal said. Sales rose 2.9% to $901 million from $876 million.

Full-year earnings are estimated at $1.84 to $1.87 a share, the upper end of a previous forecast range, because of cost cutting. Clorox said it sold its Maxforce professional insecticide business as part of a year-old review of the company’s 100 brands. Chief Executive Craig Sullivan also is increasing advertising to try to accelerate sales.

“They are making progress,” said research director Franklin Morton, who helps manage $7.5 billion at Ariel Capital Management, which holds 1.5 million Clorox shares. “The majority of their businesses are going in the right direction, which wasn’t true 12 months ago.”

Before special charges, earnings were 39 cents a share. Analysts had expected 35 cents.

Shares of Oakland-based Clorox rose 95 cents to $42.35 on the New York Stock Exchange.

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Other California companies reporting earnings:

* Cardiovascular device maker Edwards Lifesciences Corp. said earnings rose 8%, benefiting from higher profit margins and lower interest expense. The Irvine company’s net income for the fourth quarter jumped to $17.2 million, or 28 cents a share, from $15.9 million, or 26 cents, a year earlier. Sales fell 15% to $160.1 million.

* TriZetto Group Inc., a Newport Beach provider of information technology products and services for the health-care industry, posted a fourth-quarter net loss of $16.6million, or 38 cents a share, narrower than a year-earlier loss of $18 million, or 53 cents. Revenue rose 80% to $61.6 million.