Kimberly-Clark Revenue Falls
January 25 2016 - 9:20AM
Dow Jones News
By Austen Hufford
Kimberly-Clark Corp.'s revenue slid in the fourth quarter as
currency volatility continued to affect results and it took a
multimillion-dollar write-down of its Venezuelan business.
The maker of Huggies diapers, Kleenex tissue and Scott toilet
paper also said it expects adjusted full-year earnings per share of
between $5.95 and $6.15 and revenue to land between a decline 3% to
flat. Analysts polled by Thomson Reuters had expected $6.14 in
earnings per share and flat revenue.
Excluding currency rates, Kimberly-Clark expects organic sales
to be up 3% to 5%. Analysts see revenue up 1%. In the third
quarter, organic sales--which exclude acquisitions, divestments and
the effect of currency moves--grew 5% as it notched gains in both
adult and baby diapers.
In all, Kimberly-Clark reported a profit of $333 million, or 91
cents a share, up from a loss of $83 million, or 22 cents a share,
a year earlier. Excluding special items and the Venezuelan
accounting change, per-share earnings fell a penny to $1.42 from
$1.43 a year earlier.
Sales fell 6% to $4.54 billion.
Analysts polled by Thomson Reuters forecast $1.43 a share in
earnings on $4.57 billion in revenue.
In the U.S., Kimberly-Clark has struggled recently to claw back
market share in Huggies diapers, which have lost ground to Procter
& Gamble Co.'s Pampers and Luvs brands. Volumes on Huggies
diapers rose mid-single digits.
The company's adult-incontinence products, sold under the Depend
and Poise brands, also have been under assault from P&G, which
re-entered the incontinence business in mid-2014. Volumes increased
double-digits from both market share gains and category
expansion.
In the latest quarter, sales at Kimberly Clark's personal-care
segment, which includes both baby and adult diapers, slid 4.4% to
$2.2 billion, as a 12% currency impact offset 6% volume growth.
Sales at the consumer-tissue segment, which includes Cottonelle
and Kleenex, fell 6.2% to $1.5 billion. A currency impact of 9%
offset 4% volume growth.
Shares of the company, which have risen 4.5% in the last three
months, fell 2.6% in light premarket trading.
Write to Austen Hufford at austen.hufford@wsj.com
(END) Dow Jones Newswires
January 25, 2016 09:05 ET (14:05 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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