Release vs. Reuters
Clorox Co. announced its fiscal first quarter results this week, putting a cheerful release out on BusinessWire:
"The Clorox Company today announced that top-line growth and cost savings contributed to strong operating results for the company’s fiscal first quarter, which ended Sept. 30, 2007.
"'I’m delighted with our first-quarter results,' said Chairman and CEO Don Knauss. 'We delivered strong sales and volume growth in our North America and International operating segments. In addition, recent price increases and aggressive cost savings are helping us mitigate the difficult commodity cost environment. And the plans we’ve put in place to address competitive activity are paying off.'"
Hip-hip hooray!
But then here's the lead of the Reuters story that came out the same day:
"Clorox Co. posted a lower quarterly profit on Wednesday as higher costs offset sales growth in its higher-margin businesses."
Usually companies avoid such contradictory press release/press reports, anticipating how the media will interpret their results and callibrating their release accordingly. Not Clorox, not this quarter ....
Calling all financial communicators: How does this happen?