DALLAS, April 21, 2015 /PRNewswire/ -- Kimberly-Clark
Corporation (NYSE: KMB) today reported first quarter 2015 results
and confirmed its previous guidance for full-year 2015 adjusted
earnings per share.
Executive Summary
- First quarter 2015 net sales of $4.7 billion decreased 4 percent compared to the
year-ago period, as changes in foreign currency exchange rates
reduced sales 9 percent. Organic sales rose 5 percent, including an
11 percent increase in developing and emerging markets.
- Diluted net income per share for the first quarter was
$1.27 in 2015 compared to diluted net
income per share from continuing operations of $1.26 in 2014. Including earnings from the health
care business (discontinued operations) that was spun off at the
end of October 2014, diluted net
income per share was $1.41 for the
first quarter of 2014.
- First quarter adjusted earnings per share were
$1.42 in 2015 compared to adjusted
earnings per share from continuing operations of $1.32 in the prior year. Performance benefited
from organic sales growth, cost savings and a lower share count.
Comparisons were negatively impacted by unfavorable foreign
currency exchange rate effects and a higher adjusted effective tax
rate. Adjusted earnings per share in both years exclude certain
items described later in this news release.
- The company continues to expect that adjusted earnings
per share in 2015 will be between $5.60 and
$5.80.
Chairman and Chief Executive Officer Thomas J. Falk said, "We are off to a very good
start to the year. We delivered mid-single digit organic sales
growth, significant cost savings and margin improvements and
healthy growth in adjusted earnings per share from continuing
operations despite substantial headwinds from foreign currencies.
We also made further progress with targeted growth initiatives,
launched product innovations and allocated capital in
shareholder-friendly ways. We are executing our Global Business
Plan strategies well in a volatile environment and we are
maintaining our full-year target for adjusted earnings per share
despite a more negative currency outlook. We continue to be
optimistic about our future and our prospects to generate
attractive returns to shareholders."
First Quarter 2015 Operating Results
Sales of $4.7 billion in the first
quarter of 2015 were down 4 percent compared to the year-ago
period. Changes in foreign currency exchange rates reduced sales 9
percent as a result of the weakening of most currencies relative to
the U.S. dollar. Organic sales rose 5 percent, as volumes increased
3 percent and net selling prices and product mix/other were each
favorable by 1 percent.
First quarter operating profit was $748
million in 2015 and $711
million in 2014. Adjusted operating profit was $815 million in the first quarter of 2015
compared to $760 million in the
year-ago period. Adjusted results in 2015 exclude a $45 million charge for a balance sheet
remeasurement in Venezuela,
$13 million of 2014 Organization
Restructuring costs and $9 million of
charges for pension settlements. Adjusted results in 2014 exclude a
$39 million charge related to a
regulatory dispute in the Middle
East and $10 million of
restructuring costs for European strategic changes.
The year-over-year adjusted operating profit comparison
benefited from organic sales growth, $90 million in cost savings from the
company's FORCE (Focused On Reducing Costs Everywhere) program and
$10 million of savings from the 2014
Organization Restructuring. Input costs decreased $10 million overall, as slightly lower costs for
energy and raw materials other than fiber were mostly offset by
slightly higher fiber costs. Translation effects due to changes in
foreign currency exchange rates lowered operating profit by
$75 million and transaction effects
also negatively impacted comparisons. The currency impacts were
most significant in Latin America
and Eastern Europe. On an adjusted
basis, other (income) and expense, net was expense of $13 million in 2015 and $19 million in 2014, as results in both periods
were driven by foreign currency transaction losses.
The first quarter effective tax rate was 33.8 percent in 2015
and 30.5 percent in 2014. The first quarter 2015 adjusted effective
tax rate, which excludes the effects of the previously mentioned
items excluded from adjusted earnings per share, was 32.3 percent,
consistent with company expectations for a full-year rate between
31.5 and 33.5 percent. The first quarter 2014 adjusted effective
tax rate was 29.0 percent.
Kimberly-Clark's share of net income of equity companies in the
first quarter was $36 million in 2015
and $43 million in 2014. At
Kimberly-Clark de Mexico, S.A.B.,
results were negatively impacted by a weaker Mexican peso and input
cost increases, partially offset by organic sales growth and cost
savings. On an adjusted basis, first quarter net income
attributable to noncontrolling interests was $18 million in 2015 and $28 million in 2014. The change was driven by the
redemption of $0.5 billion of
preferred securities in December
2014.
Cash Flow and Balance Sheet
Cash provided by operations in the first quarter of 2015 was
$20 million compared to $437 million in 2014. The decrease was driven by
higher pension contributions, increased operating working capital
and the impact of the spin-off of the health care business in 2014.
First quarter pension contributions were $435 million in 2015 and $180 million in 2014. Capital spending for the
first quarter was $284 million in
2015 and $258 million in 2014.
First quarter 2015 share repurchases were 1.8 million shares at
a cost of $200 million. During the
first quarter of 2015, the company acquired the remaining 49.9
percent interest in its subsidiary in Israel for approximately $150 million. As a result, the company is now
targeting full-year 2015 share repurchases of $0.7 to $0.9 billion compared to the previous
target of $0.8 to $1.0 billion. Total
debt was $7.7 billion at March 31, 2015 and $7.0
billion at the end of 2014.
First Quarter 2015 Business Segment Results
Personal Care Segment
First quarter sales of $2.3
billion decreased 3 percent. Currency rates were unfavorable
by 10 percent, while volumes increased 4 percent and net selling
prices improved 2 percent. First quarter operating profit of
$455 million was essentially even
with the year-ago period. The comparison benefited from organic
sales growth and cost savings, offset by unfavorable effects from
changes in currency rates and higher marketing, research and
general expenses.
Sales in North America
decreased 2 percent. Net selling prices and currency were each
unfavorable 1 percent, while volumes were even with the prior year.
Adult care volumes increased high-single digits, with growth on
both the Poise and Depend brands. Huggies baby wipes volumes rose
high-single digits, including benefits from innovation and market
share gains. Child care volumes were off mid-single digits due to
lower Pull-Ups training pants volumes. Huggies diaper volumes fell
mid-single digits and were impacted by lower market shares and
competitive promotion activity.
Sales in developing and emerging markets decreased 4 percent,
including a 20 point negative impact from changes in currency
rates. Volumes increased 10 percent and net selling prices improved
6 percent, driven by increases in Latin
America and Eastern Europe
in response to weaker currency rates. The volume growth included
gains in Brazil, China, Colombia, Eastern
Europe and South
Africa.
Sales in developed markets outside North America (Australia, South
Korea and Western/Central
Europe) decreased 5 percent. Currency rates were unfavorable
by 8 percent. Volumes improved 3 percent and product mix was up 2
percent, while net selling prices were off 2 percent. The volume
growth was primarily due to increases in South Korea.
Consumer Tissue Segment
First quarter sales of $1.6
billion decreased 7 percent. Currency rates were unfavorable
by 8 percent and net selling prices were down 1 percent, while
volumes were up 2 percent. First quarter operating profit of
$291 million increased 13 percent.
The comparison benefited from cost savings, lower
manufacturing-related costs and reduced marketing, research and
general expenses, partially offset by unfavorable currencies.
Sales in North America
increased 2 percent. Volumes increased 5 percent, while net selling
prices were off 2 percent and product mix was unfavorable 1
percent. Volumes were up mid-single digits in bathroom tissue,
including benefits from increased promotion shipments on
Cottonelle, and up high-single digits in paper towels.
Sales in developing and emerging markets decreased 19 percent,
including a 21 point negative impact from currency rates. Volumes,
net selling prices and product mix were each up approximately 1
percent.
Sales in developed markets outside North America decreased 12 percent, including
a 9 point drag from currency rates. Volumes decreased 3 percent,
while product mix improved 1 percent. The volume decline was mostly
due to results in Western/Central
Europe.
K-C Professional (KCP) Segment
First quarter sales of $0.8
billion decreased 1 percent. Changes in currency rates
reduced sales 7 percent. Volumes rose 3 percent and product
mix/other was favorable by 3 percent, mostly due to sales of
nonwovens to Halyard Health, Inc. in conjunction with a near-term
supply agreement. First quarter operating profit of $134 million decreased 1 percent. The comparison
was negatively impacted by unfavorable currency effects, mostly
offset by benefits from organic sales growth and cost savings.
Sales in North America
increased 3 percent. Volumes increased 4 percent, while currency
was unfavorable 1 percent. Volumes were up high-single digits in
wipers, mid-single digits in safety products and low-single digits
in washroom products compared to soft performance in the year-ago
period.
Sales in developing and emerging markets decreased 9 percent,
including a 17 point drag from currency rates. Volumes rose 6
percent and the combined impact of higher net selling prices and
improved product mix benefited sales by 2 percent. The volume
growth was driven by increases in Latin
America and Asia.
Sales in developed markets outside North America were down 12 percent, primarily
due to negative impacts from currency rates.
2014 Organization Restructuring
In October 2014, Kimberly-Clark
initiated a restructuring program in order to improve organization
efficiency and offset the impact of stranded overhead costs
resulting from the spin-off of the company's health care business.
The restructuring is intended to improve underlying profitability
and increase flexibility to invest in targeted growth initiatives,
brand building and other capabilities critical to delivering future
growth.
The restructuring is expected to be completed by the end of
2016, with total costs anticipated to be $130 to $160 million after tax ($190 to $230 million pre-tax). Cumulative pre-tax
savings from the restructuring are expected to be $120 to $140 million by the end of 2017. First
quarter 2015 restructuring costs were $5
million after tax ($13 million
pre-tax), bringing cumulative costs to $100
million after tax ($146
million pre-tax). First quarter 2015 savings were
$10 million, bringing cumulative
savings to $15 million.
Defined Benefit Pension Plan Changes
Effective January 2015, the
company amended its U.S. pension plan to include a lump-sum pension
benefit payout option for certain plan participants. In addition,
as previously announced in February
2015, Kimberly-Clark entered into agreements to purchase
group annuity contracts that will transfer to two insurance
companies the pension benefit obligations for approximately 21,000
Kimberly-Clark retirees in the United
States. Assuming all closing conditions are satisfied, these
transactions are expected to be completed in the second quarter of
2015.
In connection with these transactions, during the first quarter
of 2015 the company made a $410
million contribution to its U.S. pension plan in order to
maintain the plan's funded status. The company now expects that
full-year 2015 total defined benefit plan contributions will be in
a range of $450 to $500 million
compared to the previous target of up to $100 million.
As a result of these pension plan changes, the company expects
to recognize total pension settlement charges of $0.8 billion after tax ($1.3 billion pre-tax) in 2015, mostly in the
second quarter. These charges are excluded from the company's 2015
outlook for adjusted results.
Venezuela
Following the Venezuelan government's elimination of the SICAD
II floating exchange rate in February
2015, the company remeasured its local currency-denominated
balance sheet during the first quarter of 2015 at the new SIMADI
floating exchange rate. As a result, the company recorded an after
tax remeasurement charge of $45
million in the first quarter of 2015 and moved to using the
SIMADI rate to translate local currency income statements into U.S.
dollars. The company continues to expect that changes in foreign
currency exchange rates in Venezuela will reduce total company sales and
adjusted operating profit in 2015 by approximately 3 and 4 percent,
respectively.
2015 Outlook and Key Planning Assumptions
The company updated the following key planning and guidance
assumptions for full-year 2015:
- Foreign currency translation effects are expected to
negatively impact net sales by 9 to 10 percent and operating profit
by 10 to 11 percent. Both of these ranges are 1 point more negative
than prior assumptions.
- Deflation in key cost inputs is more likely to be
$50 to $150 million compared to the
prior estimate of $0 to $150. This
reflects some improvement in the outlook for oil-based costs, along
with modestly lower pulp costs. The company is assuming North
American market prices of $820 to
$850 per metric ton for eucalyptus pulp and $45 to $55 per barrel for oil. Prior assumptions
were for eucalyptus pulp prices of $840 to
$870 per metric ton and oil prices of $50 to $60 per barrel.
Non-GAAP Financial Measures
This press release and the accompanying tables include the
following financial measures that have not been calculated in
accordance with accounting principles generally accepted in the
U.S., or GAAP, and are therefore referred to as non-GAAP financial
measures:
- Adjusted earnings and earnings per share (including
continuing operations)
- Adjusted gross and operating profit
- Adjusted other (income) and expense, net
- Adjusted effective tax rate
These non-GAAP financial measures exclude the following items
for the relevant time periods as indicated in the accompanying
non-GAAP reconciliations to the comparable GAAP financial
measures:
- Venezuelan balance sheet remeasurement charge, pension
settlement charges and 2014 Organization Restructuring. See
previous discussion in this news release.
- Charge related to regulatory dispute in the Middle East. In the first quarter of 2014, the
company recorded a non-deductible charge as a result of an adverse
court ruling regarding the treatment of capital contributions in
prior years to an affiliate in the Middle
East.
- Western and Central
Europe strategic changes and related restructuring charges.
In October 2012, the company
initiated strategic changes and a related restructuring in its
Western and Central European businesses. The restructuring was
completed at the end of 2014.
In addition, this press release includes information regarding
organic sales, which exclude the impact of changes in foreign
currency rates.
The company provides these non-GAAP financial measures as
supplemental information to our GAAP financial measures. Management
and the company's Board of Directors use adjusted earnings,
adjusted earnings per share and adjusted gross and operating profit
to (a) evaluate the company's historical and prospective financial
performance and its performance relative to its competitors, (b)
allocate resources and (c) measure the operational performance of
the company's business units and their managers. Management also
believes that the use of an adjusted effective tax rate provides
improved insight into the tax effects of our ongoing business
operations.
Additionally, the Management Development and Compensation
Committee of the company's Board of Directors has used certain of
the non-GAAP financial measures when setting and assessing
achievement of incentive compensation goals. These goals are based,
in part, on the company's adjusted earnings per share and
improvement in the company's adjusted return on invested capital
and adjusted operating profit return on sales determined by
excluding certain of the charges that are used in calculating these
non-GAAP financial measures.
Conference Call
A conference call to discuss this news release and other matters
of interest to investors and analysts will be held at 9 a.m. (CDT) today. The conference call will be
simultaneously broadcast over the World Wide Web. Stockholders and
others are invited to listen to the live broadcast or a playback,
which can be accessed by following the instructions set out in the
Investors section of the company's Web site
(www.kimberly-clark.com).
About Kimberly-Clark
Kimberly-Clark and its well-known global brands are an
indispensable part of life for people in more than 175 countries.
Every day, nearly a quarter of the world's population trust K-C
brands and the solutions they provide to enhance their health,
hygiene and well-being. With brands such as Kleenex, Scott,
Huggies, Pull-Ups, Kotex and Depend, Kimberly-Clark holds No. 1 or
No. 2 share positions in 80 countries. To keep up with the latest
K-C news and to learn more about the company's 143-year history of
innovation, visit www.kimberly-clark.com.
Copies of Kimberly-Clark's Annual Report to Stockholders and its
proxy statements and other SEC filings, including Annual Reports on
Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on
Form 8-K, are made available free of charge on the company's Web
site on the same day they are filed with the SEC. To view these
filings, visit the Investors section of the company's Web site.
Certain matters contained in this news release concerning the
outlook, anticipated financial and operating results, raw material,
energy and other input costs, anticipated currency rates and
exchange risks, net income from equity companies, sources and uses
of cash, the effective tax rate, the anticipated costs, scope,
timing and financial and other effects of the 2014 organization
restructuring, growth initiatives, contingencies and anticipated
transactions of the company constitute forward-looking statements
and are based upon management's expectations and beliefs concerning
future events impacting the company. There can be no assurance that
these future events will occur as anticipated or that the company's
results will be as estimated. Forward-looking statements speak only
as of the date they were made, and we undertake no obligation to
publicly update them. For a description of certain factors, such as
currency rates and exchange risks, cost savings and reductions, raw
material, energy and other input costs, competition, market demand
and economic and political conditions, that could cause the
company's future results to differ from those expressed in any such
forward-looking statements, see Item 1A of the company's Annual
Report on Form 10-K for the year ended December 31, 2014 entitled "Risk
Factors."
KIMBERLY-CLARK
CORPORATION
CONSOLIDATED INCOME
STATEMENT
(Millions, except per
share amounts)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
March 31
|
|
|
|
2015
|
|
2014
|
|
Change
|
Net
Sales
|
$
|
4,691
|
|
$
|
4,887
|
|
-4.0%
|
Cost of products
sold
|
3,032
|
|
3,222
|
|
-5.9%
|
Gross
Profit
|
1,659
|
|
1,665
|
|
-0.4%
|
Marketing, research
and general expenses
|
849
|
|
896
|
|
-5.2%
|
Other (income) and
expense, net
|
62
|
|
58
|
|
+6.9%
|
Operating
Profit
|
748
|
|
711
|
|
+5.2%
|
Interest
income
|
4
|
|
3
|
|
+33.3%
|
Interest
expense
|
(72)
|
|
(71)
|
|
+1.4%
|
Income From
Continuing Operations Before Income Taxes and Equity
Interests
|
680
|
|
643
|
|
+5.8%
|
Provision for income
taxes
|
(230)
|
|
(196)
|
|
+17.3%
|
Income From
Continuing Operations Before Equity Interests
|
450
|
|
447
|
|
+0.7%
|
Share of net income
of equity companies
|
36
|
|
43
|
|
-16.3%
|
Income From
Continuing Operations
|
486
|
|
490
|
|
-0.8%
|
Income from
discontinued operations, net of income taxes
|
—
|
|
56
|
|
N.M.
|
Net
Income
|
486
|
|
546
|
|
-11.0%
|
Net income
attributable to noncontrolling interests in continuing
operations
|
(18)
|
|
(8)
|
|
+125.0%
|
Net Income
Attributable to Kimberly-Clark Corporation
|
$
|
468
|
|
$
|
538
|
|
-13.0%
|
|
|
|
|
|
|
Per Share
Basis
|
|
|
|
|
|
Net Income
Attributable to Kimberly-Clark Corporation
|
|
|
|
|
|
Basic
|
|
|
|
|
|
Continuing
operations
|
$
|
1.28
|
|
$
|
1.27
|
|
+0.8%
|
Discontinued
operations
|
—
|
|
0.15
|
|
N.M.
|
Net income
|
$
|
1.28
|
|
$
|
1.42
|
|
-9.9%
|
|
|
|
|
|
|
Diluted
|
|
|
|
|
|
Continuing
operations
|
$
|
1.27
|
|
$
|
1.26
|
|
+0.8%
|
Discontinued
operations
|
—
|
|
0.15
|
|
N.M.
|
Net income
|
$
|
1.27
|
|
$
|
1.41
|
|
-9.9%
|
|
|
|
|
|
|
Cash Dividends
Declared
|
$
|
0.88
|
|
$
|
0.84
|
|
+4.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Shares
Outstanding
|
March
31
|
|
|
|
2015
|
|
2014
|
|
|
Outstanding shares as
of
|
364.3
|
|
377.2
|
|
|
Average diluted
shares for three months ended
|
367.9
|
|
382.1
|
|
|
|
|
|
|
|
|
|
N.M. – Not
Meaningful
|
Unaudited
|
KIMBERLY-CLARK
CORPORATION
NON-GAAP
RECONCILIATIONS
(Millions, except per
share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31, 2015
|
|
As
Reported
|
|
Charges
for
Pension
Settlements
|
|
Charges for
2014
Organization
Restructuring
|
|
Charge for
Venezuelan
Balance Sheet
Remeasurement
|
|
As
Adjusted
Non-GAAP
|
Cost of products
sold
|
$
|
3,032
|
|
$
|
—
|
|
$
|
8
|
|
$
|
5
|
|
$
|
3,019
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
1,659
|
|
—
|
|
(8)
|
|
(5)
|
|
1,672
|
|
|
|
|
|
|
|
|
|
|
Marketing, research
and general expenses
|
849
|
|
—
|
|
5
|
|
—
|
|
844
|
|
|
|
|
|
|
|
|
|
|
Other (income) and
expense, net
|
62
|
|
9
|
|
—
|
|
40
|
|
13
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
748
|
|
(9)
|
|
(13)
|
|
(45)
|
|
815
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations before income taxes and equity
interests
|
680
|
|
(9)
|
|
(13)
|
|
(45)
|
|
747
|
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
(230)
|
|
3
|
|
8
|
|
—
|
|
(241)
|
|
|
|
|
|
|
|
|
|
|
Effective tax
rate
|
33.8%
|
|
—
|
|
—
|
|
—
|
|
32.3%
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Kimberly-Clark Corporation
|
468
|
|
(6)
|
|
(5)
|
|
(45)
|
|
524
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
1.27
|
|
(0.02)
|
|
(0.01)
|
|
(0.12)
|
|
1.42
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31, 2014
|
|
|
|
As
Reported
|
|
Charges
for
European
Strategic
Changes
|
|
Charge
Related to
Regulatory
Dispute in
Middle East
|
|
As
Adjusted
Non-GAAP
|
Cost of products
sold
|
|
|
$
|
3,222
|
|
$
|
6
|
|
$
|
—
|
|
$
|
3,216
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
|
1,665
|
|
(6)
|
|
—
|
|
1,671
|
|
|
|
|
|
|
|
|
|
|
Marketing, research
and general expenses
|
|
|
896
|
|
4
|
|
—
|
|
892
|
|
|
|
|
|
|
|
|
|
|
Other (income) and
expense, net
|
|
|
58
|
|
—
|
|
39
|
|
19
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
|
711
|
|
(10)
|
|
(39)
|
|
760
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations before income taxes and equity
interests
|
|
|
643
|
|
(10)
|
|
(39)
|
|
692
|
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
|
|
(196)
|
|
5
|
|
—
|
|
(201)
|
|
|
|
|
|
|
|
|
|
|
Effective tax
rate
|
|
|
30.5%
|
|
—
|
|
—
|
|
29.0%
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations
|
|
|
490
|
|
(5)
|
|
(39)
|
|
534
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to noncontrolling interests in continuing
operations
|
|
|
(8)
|
|
—
|
|
20
|
|
(28)
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations attributable to Kimberly-Clark
Corporation
|
|
|
482
|
|
(5)
|
|
(19)
|
|
506
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share from continuing operations
|
|
|
1.26
|
|
(0.01)
|
|
(0.05)
|
|
1.32
|
|
|
Non-GAAP financial
measures are not meant to be considered in isolation or as a
substitute for the comparable GAAP measures, and they should be
read only in conjunction with the company's consolidated financial
statements prepared in accordance with GAAP. There are limitations
to these non-GAAP financial measures because they are not prepared
in accordance with GAAP and may not be comparable to similarly
titled measures of other companies due to potential differences in
methods of calculation and items being excluded. The company
compensates for these limitations by using these non-GAAP financial
measures as a supplement to the GAAP measures and by providing
reconciliations of the non-GAAP and comparable GAAP financial
measures.
|
|
Unaudited
|
KIMBERLY-CLARK
CORPORATION
CONSOLIDATED BALANCE
SHEET
(Millions)
|
|
|
|
|
|
|
|
March 31,
2015
|
|
December 31,
2014
|
ASSETS
|
|
|
|
Current
Assets
|
|
|
|
Cash and cash
equivalents
|
$
|
587
|
|
$
|
789
|
Accounts receivable,
net
|
2,244
|
|
2,223
|
Inventories
|
1,893
|
|
1,892
|
Other current
assets
|
659
|
|
655
|
Total Current
Assets
|
5,383
|
|
5,559
|
Property, Plant
and Equipment, Net
|
7,160
|
|
7,359
|
Investments in
Equity Companies
|
290
|
|
257
|
Goodwill
|
1,538
|
|
1,628
|
Other
Assets
|
682
|
|
723
|
TOTAL
ASSETS
|
$
|
15,053
|
|
$
|
15,526
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
Liabilities
|
|
|
|
Debt payable within
one year
|
$
|
1,612
|
|
$
|
1,326
|
Trade accounts
payable
|
2,502
|
|
2,616
|
Accrued
expenses
|
1,751
|
|
1,974
|
Dividends
payable
|
321
|
|
310
|
Total Current
Liabilities
|
6,186
|
|
6,226
|
Long-Term
Debt
|
6,119
|
|
5,630
|
Noncurrent
Employee Benefits
|
1,286
|
|
1,693
|
Deferred Income
Taxes
|
663
|
|
587
|
Other
Liabilities
|
315
|
|
319
|
Redeemable
Preferred Securities of Subsidiaries
|
72
|
|
72
|
Stockholders'
Equity
|
|
|
|
Kimberly-Clark
Corporation
|
193
|
|
729
|
Noncontrolling
Interests
|
219
|
|
270
|
Total
Stockholders' Equity
|
412
|
|
999
|
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY
|
$
|
15,053
|
|
$
|
15,526
|
KIMBERLY-CLARK
CORPORATION
CONSOLIDATED CASH
FLOW STATEMENT
(Millions)
|
|
|
|
|
|
|
|
Three Months
Ended
March 31
|
|
2015
|
|
2014
|
Operating
Activities
|
|
|
|
Net income
|
$
|
486
|
|
$
|
546
|
Depreciation and
amortization
|
194
|
|
218
|
Stock-based
compensation
|
15
|
|
9
|
Deferred income
taxes
|
171
|
|
51
|
Equity companies'
earnings (in excess of) less than dividends paid
|
(35)
|
|
(43)
|
(Increase) decrease
in operating working capital
|
(446)
|
|
(210)
|
Postretirement
benefits
|
(414)
|
|
(156)
|
Charge for Venezuelan
balance sheet remeasurement
|
45
|
|
—
|
Other
|
4
|
|
22
|
Cash Provided by
Operations
|
20
|
|
437
|
Investing
Activities
|
|
|
|
Capital
spending
|
(284)
|
|
(258)
|
Investments in time
deposits
|
(46)
|
|
(38)
|
Maturities of time
deposits
|
73
|
|
157
|
Other
|
(24)
|
|
5
|
Cash Used for
Investing
|
(281)
|
|
(134)
|
Financing
Activities
|
|
|
|
Cash dividends
paid
|
(310)
|
|
(309)
|
Change in short-term
debt
|
291
|
|
654
|
Debt
proceeds
|
497
|
|
1
|
Debt
repayments
|
(4)
|
|
(101)
|
Proceeds from
exercise of stock options
|
41
|
|
37
|
Acquisitions of
common stock for the treasury
|
(248)
|
|
(441)
|
Shares purchased from
noncontrolling interest
|
(151)
|
|
—
|
Other
|
(12)
|
|
(21)
|
Cash Provided by
(Used for) Financing
|
104
|
|
(180)
|
Effect of Exchange
Rate Changes on Cash and Cash Equivalents
|
(45)
|
|
(12)
|
Increase
(Decrease) in Cash and Cash Equivalents
|
(202)
|
|
111
|
Cash and Cash
Equivalents - Beginning of Period
|
789
|
|
1,054
|
Cash and Cash
Equivalents - End of Period
|
$
|
587
|
|
$
|
1,165
|
KIMBERLY-CLARK
CORPORATION
SELECTED BUSINESS
SEGMENT DATA
(Millions)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
March 31
|
|
|
|
2015
|
|
2014
|
|
Change
|
NET
SALES
|
|
|
|
|
|
|
|
|
|
|
|
Personal
Care
|
$
|
2,308
|
|
$
|
2,382
|
|
-3.1%
|
Consumer
Tissue
|
1,574
|
|
1,689
|
|
-6.8%
|
K-C
Professional
|
795
|
|
800
|
|
-0.6%
|
Corporate &
Other
|
14
|
|
16
|
|
N.M.
|
TOTAL NET
SALES
|
$
|
4,691
|
|
$
|
4,887
|
|
-4.0%
|
|
|
|
|
|
|
OPERATING
PROFIT
|
|
|
|
|
|
|
|
|
|
|
|
Personal
Care
|
$
|
455
|
|
$
|
457
|
|
-0.4%
|
Consumer
Tissue
|
291
|
|
257
|
|
+13.2%
|
K-C
Professional
|
134
|
|
135
|
|
-0.7%
|
Corporate &
Other(a)
|
(70)
|
|
(80)
|
|
N.M.
|
Other (income) and
expense, net
|
62
|
|
58
|
|
+6.9%
|
TOTAL OPERATING
PROFIT
|
$
|
748
|
|
$
|
711
|
|
+5.2%
|
|
|
(a)
|
Corporate & Other
includes charges related to the 2014 Organization Restructuring and
the remeasurement of the Venezuelan balance sheet of $13 and $5,
respectively, for the three months ended March 31, 2015. In
addition, Corporate & Other includes charges related to the
European strategic changes of $10 for the three months ended March
31, 2014.
|
PERCENTAGE CHANGE IN
NET SALES VERSUS PRIOR YEAR
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31, 2015
|
|
Total
|
|
Volume
|
|
Net
Price
|
|
Mix/
Other(a)
|
|
Currency
|
|
|
|
|
|
|
|
|
|
|
Personal
Care
|
(3.1)
|
|
4
|
|
2
|
|
1
|
|
(10)
|
Consumer
Tissue
|
(6.8)
|
|
2
|
|
(1)
|
|
—
|
|
(8)
|
K-C
Professional
|
(0.6)
|
|
3
|
|
—
|
|
3
|
|
(7)
|
TOTAL
CONSOLIDATED
|
(4.0)
|
|
3
|
|
1
|
|
1
|
|
(9)
|
|
(a) Mix/Other includes rounding.
|
|
N.M. – Not
Meaningful
|
|
Unaudited
|
KIMBERLY-CLARK
CORPORATION
OUTLOOK FOR
2015
|
|
|
|
|
|
|
|
|
|
|
|
Estimated
Range
|
|
|
|
|
|
|
|
ESTIMATED FULL YEAR
2015 DILUTED EARNINGS PER SHARE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings per
share
|
|
$
|
5.60
|
|
-
|
|
$
|
5.80
|
Adjustments
for:
|
|
|
|
|
|
|
Charges related to
the 2014 Organization Restructuring
|
|
(0.14)
|
|
-
|
|
(0.08)
|
Charge for Venezuelan
balance sheet remeasurement
|
|
(0.12)
|
|
-
|
|
(0.12)
|
Charges for pension
settlements
|
|
(2.32)
|
|
-
|
|
(2.18)
|
Per share basis –
diluted net income attributable to Kimberly-Clark
Corporation
|
|
$
|
3.02
|
|
-
|
|
$
|
3.42
|
|
|
|
|
|
|
|
ESTIMATED FULL YEAR
2015 EFFECTIVE TAX RATE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted effective
tax rate
|
|
31.5%
|
|
-
|
|
33.5%
|
Adjustments
for:
|
|
|
|
|
|
|
Charges related to
the 2014 Organization Restructuring
|
|
—
|
|
-
|
|
—
|
Charge for Venezuelan
balance sheet remeasurement
|
|
0.5
|
|
-
|
|
0.5
|
Charges for pension
settlements
|
|
(4.9)
|
|
-
|
|
(4.4)
|
Effective tax
rate
|
|
27.1%
|
|
-
|
|
29.6%
|
[KMB-F]
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SOURCE Kimberly-Clark Corporation