Total volume increased 1 percent, primarily due to higher shipments of Clorox?® disinfecting wipes and Hidden Valley?® bottled salad dressing, largely offset by lower shipments of Glad?® trash bags and the company's exit from its private-label food bags business.

Sales for the first quarter of fiscal 2010 declined 1 percent to $1.4 billion, compared to 12 percent sales growth in the year-ago quarter. Unfavorable foreign exchange rates reduced sales by 1.5 percentage points. The change in sales lagged volume growth primarily due to the impact of unfavorable foreign exchange rates, unfavorable product mix and higher trade-promotion spending. These factors were partially offset by the benefit of price increases, primarily in International.

Gross margin increased 450 basis points to 45.1 percent from 40.6 percent. The year-over-year increase was primarily due to the benefit of lower commodity costs, strong cost savings and price increases.

Net cash provided by operations was $94 million, flat to the year-ago period. These results reflect higher net earnings, offset by a voluntary $33 million pension plan contribution.

The company's debt to EBITDA (earnings before interest, taxes, depreciation and amortization) ratio, as defined in our lending agreement, was 2.6 to 1 at Sept. 30, 2009.

SOURCE: The Clorox Company