OAKLAND, Calif., Sept. 25, 2017 /PRNewswire/ -- The Clorox Company (NYSE: CLX) released its fiscal year 2017 integrated annual report, highlighting how key stakeholders, including consumers, communities and employees, spur progress against its 2020 Strategy and commitment to good growth — growth that is profitable, sustainable and responsible.
"This report shows how our stakeholders serve as the inspiration for long-term value creation, whether that's through innovation, addressing local and global needs, or fostering a more inclusive work environment," said Chairman and CEO Benno Dorer. "Building world-class brands, strong communities and an engaged workforce are critical to achieving our goal of good growth."
The following are highlights from Clorox's 2017 fiscal year performance and progress against its 2020 Strategy:
- $6.0 billion in net sales, including 3 percent incremental sales from product innovation.
- $5.35 diluted EPS from continuing operations, a 9 percent increase versus fiscal year 2016.
- $871 million net cash from continuing operations, a 13 percent increase versus fiscal year 2016.
- 88 percent employee engagement, higher than peer consumer goods companies and high-performing companies globally.1
- Diversity in corporate governance, including 33 percent minority board members, 33 percent female board members and 36 percent female Clorox Executive Committee members.
- Product sustainability improvements to 34 percent of the global product portfolio by the 2016 calendar year, achieved cumulatively since 2011.
In showcasing its corporate responsibility results, for the first time the report highlights Clorox's progress throughout the current goal period or strategy period in the areas of diversity, environmental sustainability and social impact. The sustainability focus areas detail the company's successes and challenges as well as where it stands in meeting its public goals. The following are highlights from those progress updates:
- 26 percent U.S. minority nonproduction managers, up from 24 percent in the 2013 fiscal year, and 31 percent U.S. minority nonproduction employees, up from 30 percent in the 2013 fiscal year.
- $23 million in grants from the company's foundations since the 2013 fiscal year.
- $44 million in product donations since the 2013 fiscal year.
- 18 percent reduction in greenhouse gas emissions in calendar year 2016 (per case of product sold), from 10 percent in 2012 (on track to meet 2020 goal of 20 percent).
As part of Clorox's ongoing efforts to enhance its corporate responsibility reporting, an independent accounting firm provided review-level assurance for 14 key nonfinancial metrics. These performance indicators are shown with an "A" symbol throughout the report.
In preparing this report, Clorox followed the Global Reporting Initiative G4 Guidelines, which provide a recommended framework and indicators for reporting. It also features a corporate responsibility overview, including a matrix, which highlights the company's 17 priorities in this area. Incorporated into the GRI Index is the company's Communication on Progress, which describes the company's actions in implementing the Ten Principles of the United Nations Global Compact. In 2015, the company became a signatory to the United Nations Global Compact, the world's largest organization bringing together companies, nongovernmental organizations, governments and other stakeholders to advance the most important global sustainability issues.
The 2017 Clorox integrated annual report is available online at annualreport.thecloroxcompany.com. The annual report website offers animated content, video, downloadable versions of the printed executive summary and full online report, and an opportunity to share feedback.
The Clorox Company
The Clorox Company (NYSE: CLX) is a leading multinational manufacturer and marketer of consumer and professional products with approximately 8,100 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; and RenewLife® digestive health products. 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 also has been broadly recognized for its corporate responsibility efforts, most notably receiving a Safer Choice Partner of the Year Award in 2016 and 2017 from the U.S. Environmental Protection Agency as well as being named to CR Magazine's 2017 Best Corporate Citizens list and included in the 2016 Newsweek Green Rankings. 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.
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, diluted earnings per share, foreign currency exchange 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 SEC filings. 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 price 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 increase 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; 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; 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 potential increase in the Company's purchase price for The Procter & Gamble Company's (P&G) interest in the Glad® business and the impact from the decision on whether or not to extend the term of the related agreement with 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 date 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.
1 The Willis Towers Watson global high-performance companies norm consists of over 142,506 employees at 26 companies. Companies qualify for the norm by meeting two criteria: 1) superior financial performance, defined by net profit margin and/or return on invested capital that exceeds industry averages; and 2) superior human resources practices, defined by employee opinion scores near the top among the most financially successful companies surveyed by Willis Towers Watson.
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