OAKLAND, Calif., May 24, 2018 /PRNewswire/ -- The Clorox
Company (NYSE: CLX) today announced its board of directors has
authorized the company to repurchase its stock in the open market
for an aggregate purchase price of up to $2
billion. This stock repurchase program is designed to return
value to Clorox stockholders and is in addition to the company's
evergreen repurchase program to reduce or eliminate dilution in
connection with issuances of stock under the company's stock
incentive plans. It replaces the company's existing $750 million open market repurchase program.
"The company is initiating this stock repurchase program, which
demonstrates our commitment to driving value for our stockholders
while maintaining a strong balance sheet," said Chairman and CEO
Benno Dorer. "Importantly, the
program reflects our confidence in our 2020 Strategy and our
continued ability to generate strong cash flows."
With this program, the company anticipates maintaining a debt to
EBITDA ratio within its targeted range of 2.0-2.5 times.
Repurchases may be made at the company's discretion from time to
time on the open market depending on market conditions. The
repurchase program has no time limit, does not obligate the company
to make any repurchases and may be suspended for periods or
discontinued at any time.
The Clorox Company
The Clorox Company (NYSE: CLX) is a leading
multinational manufacturer and marketer of consumer and
professional products with approximately 8,700 employees worldwide
and fiscal year 2017 sales of $6 billion. Clorox markets some
of the most trusted and recognized consumer brand names, including
its namesake bleach and cleaning products;
Pine-Sol® cleaners; Liquid
Plumr® clog removers; Poett® home
care products; Fresh Step® cat litter;
Glad® bags, wraps and containers;
Kingsford® charcoal; Hidden
Valley® dressings and sauces;
Brita® water-filtration products; Burt's
Bees® natural personal care products;
RenewLife® digestive health products; and Rainbow
Light®, Natural Vitality®,
Neocell® and Stop Aging Now® dietary
supplements. The company also markets brands for professional
services, including Clorox Healthcare® and Clorox
Commercial Solutions®. More than 80 percent of the
company's sales are generated from brands that hold the No.
1 or No. 2 market share positions in their categories.
Clorox is a signatory of the United Nations Global Compact, a
community of global leaders committed to sustainability. The
company has been broadly recognized for its corporate
responsibility efforts, most notably being named to the Drucker
Institute's 2017 Management Top 250 list, The Just 100: America's
Top Corporate Citizens list, CR Magazine's 2018 Best Corporate
Citizens list and the first sector-neutral Bloomberg Gender
Equality Index in 2018. In support of its communities, The Clorox
Company and its foundations contributed
about $11 million in combined cash grants,
product donations and cause marketing in fiscal
year 2017. For more information, visit TheCloroxCompany.com,
including the Good Growth blog, and follow the company on
Twitter at @CloroxCo.
CLX-F
Forward-Looking Statements
This press release contains "forward-looking statements" within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, and such forward-looking statements involve risks and
uncertainties. Except for historical information, statements about
future volumes, sales, foreign currencies, costs, cost savings,
margins, earnings, earnings per share, including as a result of the
Nutranext acquisition, diluted earnings per share, foreign currency
exchange rates, tax rates, cash flows, plans, objectives,
expectations, growth or profitability are forward-looking
statements based on management's estimates, beliefs, assumptions
and projections. Words such as "could," "may," "expects,"
"anticipates," "targets," "goals," "projects," "intends," "plans,"
"believes," "seeks," "estimates," "predicts," and variations on
such words, and similar expressions that reflect our current views
with respect to future events and operational, economic and
financial performance are intended to identify such forward-looking
statements. These forward-looking statements are only predictions,
subject to risks and uncertainties, and actual results could differ
materially from those discussed. Important factors that could
affect performance and cause results to differ materially from
management's expectations are described in the sections entitled
"Risk Factors" and "Management's Discussion and Analysis of
Financial Condition and Results of Operations" in the Company's
Annual Report on Form 10-K for the fiscal year ended June 30,
2017, as updated from time to time in the Company's Securities
and Exchange Commission filings, including the Company's
Quarterly Report on Form 10-Q for the fiscal quarter
ended December 31, 2017. These factors include, but are not
limited to: intense competition in the Company's markets;
volatility and increases in commodity costs such as resin, sodium
hypochlorite and agricultural commodities, and increases in energy,
transportation or other costs; the ability of the Company to drive
sales growth, increase prices and market share, grow its product
categories and manage favorable product and geographic mix;
dependence on key customers and risks related to customer
consolidation and ordering patterns; the impact of increases in
sales of consumer products through alternative retail channels;
risks related to reliance on information technology systems,
including potential security breaches, cyber-attacks, privacy
breaches or data breaches that result in the unauthorized
disclosure of consumer, customer, employee or Company information,
or service interruptions; lower revenue or increased costs
resulting from government actions and regulations; the ability of
the Company to successfully manage global political, legal, tax and
regulatory risks, including changes in regulatory or administrative
activity and as a result of the Nutranext acquisition; risks
relating to acquisitions, new ventures and divestitures, and
associated costs, including the potential for asset impairment
charges related to, among others, intangible assets and goodwill;
and the ability to complete announced transactions and, if
completed, integration costs and potential contingent liabilities
related to those transactions, including those related to the
Nutranext acquisition; worldwide, regional and local economic and
financial market conditions; risks related to international
operations and international trade, including political
instability; government-imposed price controls or other
regulations; foreign currency exchange rate controls, including
periodic changes in such controls, fluctuations and devaluations;
changes in trade, tax or U.S. immigration policies, labor claims,
labor unrest and inflationary pressures, particularly
in Argentina; potential negative impact and liabilities from
the use, storage and transportation of chlorine in certain
international markets where chlorine is used in the production of
bleach; and the possibility of nationalization, expropriation of
assets or other government action; the ability of the Company to
innovate and to develop and introduce commercially successful
products; the ability of the Company to implement and generate cost
savings and efficiencies; the success of the Company's business
strategies; the Company's ability to maintain its business
reputation and the reputation of its brands; risks related to the
effects of the Tax Cuts and Jobs Act (Tax Act) on the Company as
the Company continues to assess and analyze such effects as well as
its current interpretation, assumptions and expectations relating
to the Tax Act, and the possibility that the final impact of the
Tax Act on the Company may be materially different from the
Company's current estimates based on the Company's actual results
for future periods, the Company's further assessment and analysis
of the Tax Act, any additional Congressional, administrative and
FASB actions, or other guidance related to the Tax Act and any
actions that the Company may take as a result of the Tax Act; risks
related to additional increases in the estimated fair value of
P&G's interest in the Glad® business, such as
the significant increase over the first half of fiscal year 2018
primarily due to the recent Tax Act and the recent extension of the
venture agreement with, and the related R&D support provided
by, P&G; supply disruptions and other risks inherent in
reliance on a limited base of suppliers; the impact of product
liability claims, labor claims and other legal or tax proceedings,
including in foreign jurisdictions; the Company's ability to
attract and retain key personnel; environmental matters, including
costs associated with the remediation and monitoring of past
contamination, and possible increases in costs resulting from
actions by relevant regulators, and the handling and/or
transportation of hazardous substances; the impact of natural
disasters, terrorism and other events beyond the Company's control;
the Company's ability to maximize, assert and defend its
intellectual property rights; any infringement or claimed
infringement by the Company of third-party intellectual property
rights; the effect of the Company's indebtedness and credit rating
on its business operations and financial results; the Company's
ability to pay and declare dividends or repurchase its stock in the
future; the Company's ability to maintain an effective system of
internal controls; uncertainties relating to tax positions, tax
disputes and changes in the Company's tax rate; the accuracy of the
Company's estimates and assumptions on which its financial
projections are based; risks related to the Company's
discontinuation of operations in Venezuela; and the impacts of
potential stockholder activism.
The Company's forward-looking statements in this press release
are based on management's current views, beliefs and assumptions
regarding future events and speak only as of the dates when made.
The Company undertakes no obligation to publicly update or revise
any forward-looking statements, whether as a result of new
information, future events or otherwise, except as required by the
federal securities laws.
For recent presentations made by company management and other
investor materials, visit Investor Events on the
company's website.
View original content with
multimedia:http://www.prnewswire.com/news-releases/clorox-announces-new-2-billion-stock-repurchase-program-300654176.html
SOURCE The Clorox Company