A BMO Capital Markets analyst says sales of Clorox products are being hurt by high fuel costs, and recent price increases may lead to a sharper decline.
Analyst Connie Maneaty said surging oil, energy and commodities prices have pushed companies like Clorox to raise prices. Clorox's Glad trash bags have lost market share to private-label brands as a result, she said. Maneaty expects more price increases and said that may hurt sales further when they go into effect.
She downgraded shares of Oakland, Calif.-based Clorox Co. to "Market Perform" from "Outperform" and lowered her fiscal 2009 profit estimates.
On May 1, Clorox said it expected to earn between $3.75 and $3.90 per share with revenue growth of 6 percent to 8 percent. Maneaty said that forecast will be "difficult to achieve."
The company did not immediately return calls seeking comment.
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