UPDATE 2-Clorox forecast eases investor fears, stock jumps

(Adds analysts' comments, stock activity, byline)

By Brad Dorfman

CHICAGO, May 1 (Reuters) - Clorox Co (CLX.N: Quote, Profile, Research) on Thursday issued a forecast for next year's earnings that was in line with analysts' estimates, easing investor fears and rallying its shares more than 9 percent.

The forecast came even as Clorox -- hammered by rising costs for fuel, the resin used to make its Glad plastic storage bags and the oil in its Hidden Valley salad dressing -- posted a nearly 23 percent drop in quarterly profit.

"There were widespread fears that the fiscal year 2009 numbers would have to come down much more due to commodity inflation," Andrew Sawyer, analyst at Goldman Sachs, said in a research note.

Sawyer also said Clorox stood by its forecast for fiscal 2008, which ends in June, and that sales were better than expected, excluding the acquisition of the Burt's Bees personal care products business.

The company, which also makes Clorox bleach, said profit was $100 million, or 71 cents a share, in the fiscal third quarter ended March 31, compared with $129 million, or 84 cents a share, a year earlier.

Excluding one-time items in both periods, earnings fell to 84 cents a share from 90 cents a share a year earlier.

Third-quarter sales rose 9 percent to $1.35 billion. Excluding acquisitions, it said sales growth in the quarter was 5 percent.