Oil-Dri Income Down on New Cat Litter Promotion

Oil-Dri Corp of America of Chicago, IL has announced a second quarter net income of US$2.1 million on net sales of US$61.1 million for the three months ended January 31, 2013 compared with US$3.2 million on sales of US$60.2 million in the prior year period. Net sales for Oil-Dri’’s Business-to-Business Products segment in the quarter were 2% higher at US$21.7 million and segment income increased 10% to US$7.1 million. The increase was due to volume growth of bleaching clays and animal health products. Sales of the segment’s animal health products grew in volume and dollars. Net sales of co-packaged coarse cat litters were also up during the quarter. Sales declined for products used as agricultural carriers sold to corn rootworm producers and products used in other horticultural applications. Oil-Dri’’s Retail and Wholesale Products segment generated income of US$1.9 million on net sales of US$39.4 million compared with US$3.1 million on sales of US$38.9 million in the corresponding period of 2011/12. The decrease in income was due to increased costs incurred to encourage consumer trial and expanded distribution of Cat’s Pride Fresh & Light cat litter introduced in 2011. Net sales of industrial and automotive products were down while sales by foreign subsidiaries were up from the same quarter a year ago.

Volume 27 issue 6

Leave a Reply