Clorox 4Q net income dips on increasing costs

CEO Don Knauss would only reiterate during a conference call to discuss the earnings report that Icahn’s bids were not credible and undervalued the company.

CFO Dan Heinrich did not address Sanford C. Bernstein analyst Ali Dibadj’s request to name the company’s value, saying instead that Clorox can “generate shareholder value over time’’ because of its name recognition, investment in new products and success cutting costs.

Icahn has urged Clorox to try selling itself to a rival, such as Procter & Gamble Co. or Kimberly-Clark Corp. P&G, which makes many competing products, actually owned Clorox for a decade starting in 1957 but sold it after regulators raised questions about a possible monopoly.

A P&G spokesman declined to comment, saying it doesn’t address rumors or speculation. The CEO of Kimberly-Clark said on a call with analysts last week that its business plan “doesn’t call for big, transformational’’ mergers and acquisitions.

The price increases Clorox outlined, which take effect this month, include 5 percent on Clorox toilet bowl cleaner and 7 percent on Hidden Valley Ranch salad dressing. Heinrich said the company also will raise prices worldwide this year, which he acknowledged might lead some shoppers to buy less.

“It’s not going to be easy, especially in the first half (of the fiscal year),’’ Heinrich said. “But we’ve been through these cycles before and we’re confident in our ability to successfully manage through these kinds of challenges.’’

The company said its fourth-quarter net income fell to $169 million because it spent more on ads to entice customers to keep buying and to promote new products and because it invested in “infrastructure improvements.’’