Clorox Doesn't See Need To Rollback Prices
February 19 2009 - 4:32PM
Dow Jones News
Clorox (CLX) doesn't see the need for a broad reduction in
prices at this time despite the drop in consumer spending, Chief
Executive Don Knauss said at the Consumer Analyst Group of New York
conference in Floriday.
"We believe pricing will hold," said Knauss. "We don't
anticipate talking a lot more pricing but on the other hand we
don't intend to take pricing down."
Investors have been concerned that consumer manufacturers may
have to cut prices for their products under pressure from retailers
looking to drive sales. Lower prices would hurt margins and
profitability for branded manufacturers, who are already seeing
sales pressures from rival private-label goods.
Clorox echoed comments by other food and consumer product
companies through the conference this week.
"We don't think our pricing has been over aggressive. We never
priced at the peak of these commodities," Knauss said. "We haven't
had any gun fights with any retailers over the issue."
The company said it is "cautiously optimistic" about the balance
of its fiscal year 2009 which ends in June. The company is poised
for a "solid year" in fiscal 2010, Knauss said, but he also pointed
to headwinds like pension expenses that will continue into next
year.
The company said if there were an opportunity to cut prices it
was most likely look at plastic bags and wraps.
-Anjali Cordeiro; Dow Jones Newswires; 201-938-2408;
anjali.cordeiro@dowjones.com