DALLAS, July 25, 2016 /PRNewswire/ -- Kimberly-Clark
Corporation (NYSE: KMB) today reported second quarter 2016 results
and confirmed its previous guidance for full-year 2016 adjusted
earnings per share.
Executive Summary
- Second quarter 2016 net sales of $4.6
billion decreased 1 percent compared to the year-ago period,
as changes in foreign currency exchange rates reduced sales 4
percent. Organic sales rose 3 percent, including a 7 percent volume
increase in North American consumer products and 5 percent organic
growth in developing and emerging markets.
- Diluted net income per share for the second quarter was
$1.56 in 2016 and a loss of
$0.83 in 2015, driven by non-cash
pension settlement charges. The comparison benefited from organic
sales growth, cost savings, a lower effective tax rate and the
prior-year pension settlement charges. The comparison was
negatively impacted by unfavorable foreign currency exchange rate
effects.
- Second quarter adjusted earnings per share were $1.53 in 2016 and $1.41 in 2015. Adjusted earnings per share
exclude certain items described later in this news release.
- Cash provided by operations in the second quarter of 2016 was
$860 million, up 11 percent compared
to the prior year.
- The company anticipates full-year 2016 diluted net income per
share of $5.92 to $6.15 and continues
to expect 2016 adjusted earnings per share of $5.95 to $6.15.
Chairman and Chief Executive Officer Thomas J. Falk said, "We delivered a good
quarter of results in a challenging environment while we continue
to execute our long-term Global Business Plan strategies. In the
second quarter, we achieved a 4 percent increase in sales volumes,
with benefits from targeted growth initiatives and product
innovations. We also delivered $110
million of cost savings, which helped improve our
profitability and increase our adjusted earnings per share. Cash
flow was strong in the quarter and we continued to allocate capital
in shareholder-friendly ways. Half way through the year, we are
broadly on track with our plans and are confirming our bottom-line
earnings guidance for 2016."
Second Quarter 2016 Operating Results
Sales of $4.6 billion in the
second quarter of 2016 were down 1 percent compared to the year-ago
period. Changes in foreign currency exchange rates reduced sales 4
percent. Organic sales rose 3 percent, as volumes increased 4
percent, while product mix/other was off 1 percent.
Second quarter operating profit was $838
million in 2016 and a loss of $544 million in 2015.
Results in 2015 included $1,322
million of pension settlement charges. Adjusted operating
profit of $828 million in the second
quarter of 2016 increased 5 percent compared to $790 million in the year-ago period. Items
excluded from adjusted operating profit are described later in this
release.
The year-over-year operating profit comparison included benefits
from organic sales growth, $95
million in cost savings from the company's FORCE (Focused On
Reducing Costs Everywhere) program and $15
million of savings from the 2014 Organization Restructuring.
Input costs decreased $20 million,
mostly due to lower fiber costs. Translation effects due to changes
in foreign currency exchange rates lowered operating profit by
$25 million and transaction effects
also negatively impacted the comparison.
The second quarter effective tax rate was 28.6 percent in 2016
and 45.8 percent in 2015. The second quarter adjusted effective tax
rate was 28.9 percent in 2016, down from 32.2 percent in 2015 due
to resolution of certain tax matters. The company expects the
full-year 2016 effective tax rate and the adjusted effective tax
rate will both be in the lower half of the 30.5 to 32.5 percent
target range.
Kimberly-Clark's share of net income of equity companies in the
second quarter was $35 million in
2016 and $39 million in 2015. At
Kimberly-Clark de Mexico, results
were impacted by a weaker Mexican peso, mostly offset by benefits
from organic sales growth, lower input costs and cost savings.
Cash Flow and Balance Sheet
Cash provided by operations in the second quarter of 2016 was
$860 million, up 11 percent versus
$772 million in the year-ago period. The increase included
benefits from higher cash earnings and improved working capital.
Capital spending for the second quarter was $177 million in
2016 and $243 million in 2015. Second quarter 2016 share
repurchases were 1.1 million shares at a cost of $150 million. The company now expects full-year
share repurchases of $700 to $800
million (prior target $600 to $900
million). Total debt was $7.7
billion at June 30, 2016 and
$7.8 billion at the end of 2015.
Second Quarter 2016 Business Segment Results
Personal Care Segment
Second quarter sales of $2.3
billion decreased 1 percent. Changes in currency rates
reduced sales 6 percent. Volumes increased 6 percent while net
selling prices were off 1 percent. Second quarter operating profit
of $455 million decreased 4 percent.
The comparison was impacted by unfavorable currency effects and
increased marketing, research and general spending on a local
currency basis, partially offset by organic sales growth and cost
savings.
Sales in North America
increased 4 percent. Volumes improved 8 percent. Net selling prices
were down 3 percent, including increased promotion activity to
support product innovations, and product mix was off 1 percent.
Adult care, child care and feminine care volumes each rose
approximately 10 percent and diaper volumes increased mid-single
digits. Overall volumes benefited from innovations, market share
improvements and promotion activity, along with category growth in
adult care.
Sales in developing and emerging markets decreased 7 percent,
including a 13 point drag from unfavorable currency rates. Volumes
increased 6 percent and net selling prices were up 1 percent, while
product mix was off 1 percent. The volume growth included gains in
Brazil, China, Eastern
Europe and South Africa.
The higher net selling prices were driven by Latin America in response to weaker currency
rates and local cost inflation, mostly offset by declines in
China due to increased promotion
activity.
Sales in developed markets outside North America (Australia, South
Korea and Western/Central
Europe) decreased 2 percent, including a 4 point
negative impact from currency rates. Volumes rose 4 percent, driven
by Australia, while net selling
prices were off 2 percent.
Consumer Tissue Segment
Second quarter sales of $1.5 billion were essentially even with the
prior year. Volumes increased 3 percent, while currency rates were
unfavorable by 2 percent and product mix was off 1 percent. Second
quarter operating profit of $275 million increased 6 percent.
The comparison benefited from organic sales growth, cost savings
and input cost deflation, partially offset by unfavorable
currencies.
Sales in North America
increased 4 percent. Volumes were up 6 percent, with mid-to-high
single-digit increases in all product categories, led by facial
tissue. Product mix was unfavorable 2 percent.
Sales in developing and emerging markets decreased 8 percent,
including a 9 point negative impact from currency rates. Net
selling prices rose 3 percent and product mix improved 1 percent,
while volumes fell about 4 percent. The changes in net selling
prices and volumes mostly occurred in Latin America.
Sales in developed markets outside North America fell 2 percent. Currency rates
were unfavorable 2 percent. The combined impact of changes in net
selling prices and product mix reduced sales approximately 2
percent, while volumes improved 1 percent.
K-C Professional (KCP) Segment
Second quarter sales of $0.8
billion decreased 2 percent. Changes in currency rates
reduced sales 2 percent. Net selling prices rose 1 percent, while
volumes were off 1 percent. Product mix/other was even year-on-year
despite an approximate 1 percent impact from lower sales of
nonwovens to Halyard Health, Inc. Second quarter operating profit
of $150 million increased 3 percent. The comparison
benefited from cost savings, mostly offset by unfavorable currency
effects.
Sales in North America
increased 1 percent. The combined impact of changes in net selling
prices and product mix increased sales 2 percent, while volumes
were off 1 percent.
Sales in developing and emerging markets decreased
4 percent, including a 10 point drag from currency rates. Net
selling prices rose 5 percent and product mix improved 1
percent.
Sales in developed markets outside North America were down 2 percent. Changes in
currency rates reduced sales 1 percent and the combined impact of
changes in net selling prices and product mix lowered sales 1
percent.
Year-To-Date Results
For the first six months of 2016, sales of $9.1 billion decreased 3 percent compared to the
year-ago period, as changes in foreign currency exchange rates
reduced sales by more than 5 percent. Organic sales rose
approximately 3 percent due to higher volumes.
Year-to-date operating profit was $1,642
million in 2016 versus $204
million in 2015. Results in 2015 included $1,331 million of pension settlement charges.
Adjusted operating profit of $1,646
million in 2016 increased 3 percent compared to $1,605 million in 2015. Results in 2016 included
$190 million of FORCE cost savings
and $30 million of savings from the
2014 Organization Restructuring. In addition, input costs were
$50 million lower. Translation
effects due to changes in foreign currency exchange rates lowered
operating profit by $75 million and
transaction effects also negatively impacted results.
Through six months, diluted net income per share was
$3.06 in 2016 and $0.44 in 2015. Adjusted earnings per share of
$3.06 in 2016 increased 8 percent
versus $2.83 in 2015.
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 toward the high end of the
previously communicated range of $130 to
$160 million after tax ($190 to $230
million pre-tax). Cumulative pre-tax savings from the
restructuring are expected to be toward the high end of the
previously communicated range of $120 to
$140 million by the end of 2017. Second quarter 2016
restructuring costs were $1 million
after tax ($1 million pre-tax),
bringing cumulative costs to $148
million after tax ($211
million pre-tax). Second quarter 2016 savings were
$15 million, bringing cumulative
savings to $100 million.
2016 Outlook and Key Planning Assumptions
The company updated the following key planning and guidance
assumptions for full-year 2016:
- Negative foreign currency translation effects on net sales and
operating profit are expected to be 4 to 5 percent (prior
assumption toward the low end of the 5 to 6 percent range).
- Organic sales growth is anticipated to be at the low end of the
previously assumed range of 3 to 5 percent. This reflects lower
expected benefits from selling price increases, primarily due to
the improved currency outlook.
- Cost savings from the company's FORCE program are anticipated
to be $350 to $400 million (previous
assumption of at least $350
million).
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
- 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:
- 2014 Organization Restructuring. See previous discussion in
this news release.
- Venezuelan operations. In the first quarter of 2015, following
the Venezuelan government's elimination of the SICAD II exchange
rate, the company recorded a charge for remeasuring the local
currency balance sheet in Venezuela at the SIMADI floating exchange
rate. In the second quarter of 2016, the company recorded a modest
amount of income related to an updated assessment of the impact of
deconsolidating the company's Venezuelan business at the end of
2015.
- Pension settlement charges. In 2015, the company started to
offer a lump-sum pension benefit payout option for certain plan
participants. In addition, Kimberly-Clark purchased group annuity
contracts that transferred to two insurance companies the pension
benefit obligations for certain Kimberly-Clark retirees. As a
result, the company recognized pension settlement charges in 2015,
mostly in the second quarter.
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.
This news release includes information regarding organic sales
growth, which describes the impact of changes in volume, net
selling prices and product mix on net sales. Changes in foreign
currency exchange rates also impact the year-over-year change in
net sales.
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 144-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, the anticipated cost savings from the company's
FORCE program, 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, 2015 entitled "Risk
Factors."
KIMBERLY-CLARK
CORPORATION
|
CONSOLIDATED INCOME
STATEMENT
|
(Millions, except per
share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30
|
|
|
|
2016
|
|
2015
|
|
Change
|
Net
Sales
|
$
|
4,588
|
|
|
$
|
4,643
|
|
|
-1.2
|
%
|
Cost of products
sold
|
2,924
|
|
|
2,986
|
|
|
-2.1
|
%
|
Gross
Profit
|
1,664
|
|
|
1,657
|
|
|
+0.4
|
%
|
Marketing, research
and general expenses
|
847
|
|
|
869
|
|
|
-2.5
|
%
|
Other (income) and
expense, net
|
(21)
|
|
|
1,332
|
|
|
N.M.
|
|
Operating Profit
(Loss)
|
838
|
|
|
(544)
|
|
|
N.M.
|
|
Interest
income
|
3
|
|
|
4
|
|
|
-25.0
|
%
|
Interest
expense
|
(81)
|
|
|
(73)
|
|
|
+11.0
|
%
|
Income (Loss)
Before Income Taxes and Equity Interests
|
760
|
|
|
(613)
|
|
|
N.M.
|
|
Provision for income
taxes
|
(217)
|
|
|
281
|
|
|
N.M.
|
|
Income (Loss)
Before Equity Interests
|
543
|
|
|
(332)
|
|
|
N.M.
|
|
Share of net income
of equity companies
|
35
|
|
|
39
|
|
|
-10.3
|
%
|
Net Income
(Loss)
|
578
|
|
|
(293)
|
|
|
N.M.
|
|
Net income
attributable to noncontrolling interests
|
(12)
|
|
|
(12)
|
|
|
—
|
|
Net Income (Loss)
Attributable to Kimberly-Clark Corporation
|
$
|
566
|
|
|
$
|
(305)
|
|
|
N.M.
|
|
|
|
|
|
|
|
Per Share
Basis
|
|
|
|
|
|
Net Income (Loss)
Attributable to Kimberly-Clark Corporation
|
|
|
|
|
|
Basic
|
$
|
1.57
|
|
|
$
|
(0.84)
|
|
|
N.M.
|
|
Diluted
|
$
|
1.56
|
|
|
$
|
(0.83)
|
|
|
N.M.
|
|
|
|
|
|
|
|
Cash Dividends
Declared
|
$
|
0.92
|
|
|
$
|
0.88
|
|
|
+4.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Common share
outstanding
|
June
30
|
|
|
|
2016
|
|
2015
|
|
|
Outstanding shares as
of
|
359.7
|
|
|
364.3
|
|
|
|
Average diluted
shares for three months ended
|
362.4
|
|
|
366.7
|
|
|
|
|
|
|
|
|
|
|
N.M. - Not
Meaningful
|
Unaudited
|
KIMBERLY-CLARK
CORPORATION
|
CONSOLIDATED INCOME
STATEMENT
|
(Millions, except per
share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months
Ended
June 30
|
|
|
|
2016
|
|
2015
|
|
Change
|
Net
Sales
|
$
|
9,064
|
|
|
$
|
9,334
|
|
|
-2.9
|
%
|
Cost of products
sold
|
5,761
|
|
|
6,018
|
|
|
-4.3
|
%
|
Gross
Profit
|
3,303
|
|
|
3,316
|
|
|
-0.4
|
%
|
Marketing, research
and general expenses
|
1,672
|
|
|
1,718
|
|
|
-2.7
|
%
|
Other (income) and
expense, net
|
(11)
|
|
|
1,394
|
|
|
N.M.
|
|
Operating
Profit
|
1,642
|
|
|
204
|
|
|
N.M.
|
|
Interest
income
|
7
|
|
|
8
|
|
|
-12.5
|
%
|
Interest
expense
|
(157)
|
|
|
(145)
|
|
|
+8.3
|
%
|
Income Before
Income Taxes and Equity Interests
|
1,492
|
|
|
67
|
|
|
N.M.
|
|
Provision for income
taxes
|
(424)
|
|
|
51
|
|
|
N.M.
|
|
Income Before
Equity Interests
|
1,068
|
|
|
118
|
|
|
N.M.
|
|
Share of net income
of equity companies
|
70
|
|
|
75
|
|
|
-6.7
|
%
|
Net
Income
|
1,138
|
|
|
193
|
|
|
N.M.
|
|
Net income
attributable to noncontrolling interests
|
(27)
|
|
|
(30)
|
|
|
-10.0
|
%
|
Net Income
Attributable to Kimberly-Clark Corporation
|
$
|
1,111
|
|
|
$
|
163
|
|
|
N.M.
|
|
|
|
|
|
|
|
Per Share
Basis
|
|
|
|
|
|
Net Income
Attributable to Kimberly-Clark Corporation
|
|
|
|
|
|
Basic
|
$
|
3.08
|
|
|
$
|
0.45
|
|
|
N.M.
|
|
Diluted
|
$
|
3.06
|
|
|
$
|
0.44
|
|
|
N.M.
|
|
|
|
|
|
|
|
Cash Dividends
Declared
|
$
|
1.84
|
|
|
$
|
1.76
|
|
|
+4.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Common share
outstanding
|
June
30
|
|
|
|
2016
|
|
2015
|
|
|
Average diluted
shares for six months ended
|
362.9
|
|
|
367.3
|
|
|
|
|
|
|
|
|
|
|
N.M. - Not
Meaningful
|
Unaudited
|
KIMBERLY-CLARK
CORPORATION
|
|
NON-GAAP
RECONCILIATIONS
|
|
(Millions, except per
share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30, 2016
|
|
|
|
As
Reported
|
|
Charges for
2014
Organization
Restructuring
|
|
Adjustment
Related to
Venezuelan
Operations
|
|
As Adjusted Non-GAAP
|
|
Cost of products
sold
|
|
$
|
2,924
|
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
2,922
|
|
|
Gross
profit
|
|
1,664
|
|
|
(2)
|
|
|
—
|
|
|
1,666
|
|
|
Marketing, research
and general expenses
|
|
847
|
|
|
(1)
|
|
|
—
|
|
|
848
|
|
|
Other (income) and
expense, net
|
|
(21)
|
|
|
—
|
|
|
(11)
|
|
|
(10)
|
|
|
Operating
profit
|
|
838
|
|
|
(1)
|
|
|
11
|
|
|
828
|
|
|
Income before income
taxes and equity interests
|
|
760
|
|
|
(1)
|
|
|
11
|
|
|
750
|
|
|
Provision for income
taxes
|
|
(217)
|
|
|
—
|
|
|
—
|
|
|
(217)
|
|
|
Effective tax
rate
|
|
28.6
|
%
|
|
—
|
|
|
—
|
|
|
28.9
|
%
|
|
Net income
attributable to Kimberly-Clark Corporation
|
|
566
|
|
|
(1)
|
|
|
11
|
|
|
556
|
|
|
Diluted earnings per
share
|
|
1.56
|
|
|
—
|
|
|
0.03
|
|
|
1.53
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30, 2015
|
|
|
|
As
Reported
|
|
Charges
for
Pension
Settlements
|
|
Charges for
2014
Organization
Restructuring
|
|
As
Adjusted
Non-GAAP
|
|
Cost of products
sold
|
|
$
|
2,986
|
|
|
$
|
—
|
|
|
$
|
7
|
|
|
$
|
2,979
|
|
|
Gross
profit
|
|
1,657
|
|
|
—
|
|
|
(7)
|
|
|
1,664
|
|
|
Marketing, research
and general expenses
|
|
869
|
|
|
—
|
|
|
5
|
|
|
864
|
|
|
Other (income) and
expense, net
|
|
1,332
|
|
|
1,322
|
|
|
—
|
|
|
10
|
|
|
Operating profit
(loss)
|
|
(544)
|
|
|
(1,322)
|
|
|
(12)
|
|
|
790
|
|
|
Income (loss) before
income taxes and equity interests
|
|
(613)
|
|
|
(1,322)
|
|
|
(12)
|
|
|
721
|
|
|
Provision for income
taxes
|
|
281
|
|
|
509
|
|
|
4
|
|
|
(232)
|
|
|
Effective tax
rate
|
|
45.8
|
%
|
|
—
|
|
|
—
|
|
|
32.2
|
%
|
|
Net income (loss)
attributable to Kimberly-Clark Corporation
|
|
(305)
|
|
|
(813)
|
|
|
(8)
|
|
|
516
|
|
|
Diluted earnings
(loss) per share
|
|
(0.83)
|
|
|
(2.22)
|
|
|
(0.02)
|
|
|
1.41
|
|
|
|
|
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
|
|
NON-GAAP
RECONCILIATIONS
|
|
(Millions, except per
share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30, 2016
|
|
|
|
As
Reported
|
|
Charges for
2014
Organization
Restructuring
|
|
Adjustment
Related to
Venezuelan
Operations
|
|
As
Adjusted
Non-GAAP
|
|
Cost of products
sold
|
|
$
|
5,761
|
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
5,759
|
|
|
Gross
profit
|
|
3,303
|
|
|
(2)
|
|
|
—
|
|
|
3,305
|
|
|
Marketing, research
and general expenses
|
|
1,672
|
|
|
13
|
|
|
—
|
|
|
1,659
|
|
|
Other (income) and
expense, net
|
|
(11)
|
|
|
—
|
|
|
(11)
|
|
|
—
|
|
|
Operating
profit
|
|
1,642
|
|
|
(15)
|
|
|
11
|
|
|
1,646
|
|
|
Income before income
taxes and equity interests
|
|
1,492
|
|
|
(15)
|
|
|
11
|
|
|
1,496
|
|
|
Provision for income
taxes
|
|
(424)
|
|
|
4
|
|
|
—
|
|
|
(428)
|
|
|
Effective tax
rate
|
|
28.4
|
%
|
|
—
|
|
|
—
|
|
|
28.6
|
%
|
|
Net income
attributable to Kimberly-Clark Corporation
|
|
1,111
|
|
|
(11)
|
|
|
11
|
|
|
1,111
|
|
|
Diluted earnings per
share
|
|
3.06
|
|
|
(0.03)
|
|
|
0.03
|
|
|
3.06
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30, 2015
|
|
|
|
As
Reported
|
|
Charges
for
Pension
Settlements
|
|
Charges for
2014
Organization
Restructuring
|
|
Charge Related
to
Venezuelan Operations
|
|
As
Adjusted
Non-GAAP
|
|
Cost of products
sold
|
|
$
|
6,018
|
|
|
$
|
—
|
|
|
$
|
15
|
|
|
$
|
5
|
|
|
$
|
5,998
|
|
|
Gross
profit
|
|
3,316
|
|
|
—
|
|
|
(15)
|
|
|
(5)
|
|
|
3,336
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marketing, research
and general expenses
|
|
1,718
|
|
|
—
|
|
|
10
|
|
|
—
|
|
|
1,708
|
|
|
Other (income) and
expense, net
|
|
1,394
|
|
|
1,331
|
|
|
—
|
|
|
40
|
|
|
23
|
|
|
Operating
profit
|
|
204
|
|
|
(1,331)
|
|
|
(25)
|
|
|
(45)
|
|
|
1,605
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes and equity interests
|
|
67
|
|
|
(1,331)
|
|
|
(25)
|
|
|
(45)
|
|
|
1,468
|
|
|
Provision for income
taxes
|
|
51
|
|
|
512
|
|
|
12
|
|
|
—
|
|
|
(473)
|
|
|
Effective tax
rate
|
|
N.M.
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
32.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Kimberly-Clark Corporation
|
|
163
|
|
|
(819)
|
|
|
(13)
|
|
|
(45)
|
|
|
1,040
|
|
|
Diluted earnings per
share
|
|
0.44
|
|
|
(2.23)
|
|
|
(0.04)
|
|
|
(0.12)
|
|
|
2.83
|
|
|
|
N.M. - Not
Meaningful
|
Unaudited
|
KIMBERLY-CLARK
CORPORATION
|
CONSOLIDATED BALANCE
SHEET
|
(Millions)
|
|
|
|
|
|
|
|
|
|
June 30,
2016
|
|
December 31,
2015
|
ASSETS
|
|
|
|
Current
Assets
|
|
|
|
Cash and cash
equivalents
|
$
|
656
|
|
|
$
|
619
|
|
Accounts receivable,
net
|
2,249
|
|
|
2,281
|
|
Inventories
|
1,807
|
|
|
1,909
|
|
Other current
assets
|
402
|
|
|
617
|
|
Total Current
Assets
|
5,114
|
|
|
5,426
|
|
Property, Plant
and Equipment, Net
|
7,188
|
|
|
7,104
|
|
Investments in
Equity Companies
|
287
|
|
|
247
|
|
Goodwill
|
1,507
|
|
|
1,446
|
|
Other
Assets
|
674
|
|
|
619
|
|
TOTAL
ASSETS
|
$
|
14,770
|
|
|
$
|
14,842
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
Liabilities
|
|
|
|
Debt payable within
one year
|
$
|
772
|
|
|
$
|
1,669
|
|
Trade accounts
payable
|
2,448
|
|
|
2,612
|
|
Accrued
expenses
|
1,677
|
|
|
1,750
|
|
Dividends
payable
|
331
|
|
|
318
|
|
Total Current
Liabilities
|
5,228
|
|
|
6,349
|
|
Long-Term
Debt
|
6,905
|
|
|
6,106
|
|
Noncurrent
Employee Benefits
|
1,192
|
|
|
1,137
|
|
Deferred Income
Taxes
|
626
|
|
|
766
|
|
Other
Liabilities
|
331
|
|
|
380
|
|
Redeemable
Preferred Securities of Subsidiaries
|
64
|
|
|
64
|
|
Stockholders'
Equity (Deficit)
|
|
|
|
Kimberly-Clark
Corporation
|
196
|
|
|
(174)
|
|
Noncontrolling
Interests
|
228
|
|
|
214
|
|
Total
Stockholders' Equity
|
424
|
|
|
40
|
|
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY
|
$
|
14,770
|
|
|
$
|
14,842
|
|
KIMBERLY-CLARK
CORPORATION
|
CONSOLIDATED CASH
FLOW STATEMENT
|
(Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
June 30
|
|
Six Months
Ended
June 30
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Operating
Activities
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
578
|
|
|
$
|
(293)
|
|
|
$
|
1,138
|
|
|
$
|
193
|
|
Depreciation and
amortization
|
177
|
|
|
189
|
|
|
349
|
|
|
383
|
|
Stock-based
compensation
|
30
|
|
|
36
|
|
|
45
|
|
|
51
|
|
Deferred income
taxes
|
37
|
|
|
(517)
|
|
|
3
|
|
|
(346)
|
|
Equity companies'
earnings (in excess of) less than dividends paid
|
—
|
|
|
(2)
|
|
|
(30)
|
|
|
(37)
|
|
(Increase) decrease
in operating working capital
|
57
|
|
|
29
|
|
|
(48)
|
|
|
(417)
|
|
Postretirement
benefits
|
12
|
|
|
1,322
|
|
|
(4)
|
|
|
908
|
|
Adjustments related
to Venezuelan operations
|
(11)
|
|
|
—
|
|
|
(11)
|
|
|
45
|
|
Other
|
(20)
|
|
|
8
|
|
|
(29)
|
|
|
12
|
|
Cash Provided by
Operations
|
860
|
|
|
772
|
|
|
1,413
|
|
|
792
|
|
Investing
Activities
|
|
|
|
|
|
|
|
Capital
spending
|
(177)
|
|
|
(243)
|
|
|
(397)
|
|
|
(527)
|
|
Proceeds from sales
of investments
|
28
|
|
|
—
|
|
|
28
|
|
|
—
|
|
Investments in time
deposits
|
(14)
|
|
|
(36)
|
|
|
(73)
|
|
|
(82)
|
|
Maturities of time
deposits
|
—
|
|
|
18
|
|
|
42
|
|
|
91
|
|
Other
|
8
|
|
|
16
|
|
|
16
|
|
|
(8)
|
|
Cash Used for
Investing
|
(155)
|
|
|
(245)
|
|
|
(384)
|
|
|
(526)
|
|
Financing
Activities
|
|
|
|
|
|
|
|
Cash dividends
paid
|
(332)
|
|
|
(321)
|
|
|
(650)
|
|
|
(631)
|
|
Change in short-term
debt
|
353
|
|
|
(108)
|
|
|
(322)
|
|
|
183
|
|
Debt
proceeds
|
—
|
|
|
13
|
|
|
796
|
|
|
510
|
|
Debt
repayments
|
(589)
|
|
|
(40)
|
|
|
(591)
|
|
|
(44)
|
|
Proceeds from
exercise of stock options
|
27
|
|
|
41
|
|
|
58
|
|
|
82
|
|
Acquisitions of
common stock for the treasury
|
(153)
|
|
|
(110)
|
|
|
(293)
|
|
|
(358)
|
|
Shares purchased from
noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
(151)
|
|
Other
|
6
|
|
|
17
|
|
|
(1)
|
|
|
5
|
|
Cash Used for
Financing
|
(688)
|
|
|
(508)
|
|
|
(1,003)
|
|
|
(404)
|
|
Effect of Exchange
Rate Changes on Cash and Cash Equivalents
|
4
|
|
|
(3)
|
|
|
11
|
|
|
(48)
|
|
Increase
(Decrease) in Cash and Cash Equivalents
|
21
|
|
|
16
|
|
|
37
|
|
|
(186)
|
|
Cash and Cash
Equivalents - Beginning of Period
|
635
|
|
|
587
|
|
|
619
|
|
|
789
|
|
Cash and Cash
Equivalents - End of Period
|
$
|
656
|
|
|
$
|
603
|
|
|
$
|
656
|
|
|
$
|
603
|
|
KIMBERLY-CLARK
CORPORATION
|
SELECTED BUSINESS
SEGMENT DATA
|
(Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30
|
|
|
|
Six Months Ended
June 30
|
|
|
|
|
2016
|
|
2015
|
|
Change
|
|
2016
|
|
2015
|
|
Change
|
NET
SALES
|
|
|
|
|
|
|
|
|
|
|
|
|
Personal
Care
|
|
$
|
2,279
|
|
|
$
|
2,306
|
|
|
-1.2
|
%
|
|
$
|
4,486
|
|
|
$
|
4,614
|
|
|
-2.8
|
%
|
Consumer
Tissue
|
|
1,494
|
|
|
1,499
|
|
|
-0.3
|
%
|
|
2,990
|
|
|
3,073
|
|
|
-2.7
|
%
|
K-C
Professional
|
|
806
|
|
|
822
|
|
|
-1.9
|
%
|
|
1,569
|
|
|
1,617
|
|
|
-3.0
|
%
|
Corporate &
Other
|
|
9
|
|
|
16
|
|
|
N.M.
|
|
|
19
|
|
|
30
|
|
|
N.M.
|
|
TOTAL NET
SALES
|
|
$
|
4,588
|
|
|
$
|
4,643
|
|
|
-1.2
|
%
|
|
$
|
9,064
|
|
|
$
|
9,334
|
|
|
-2.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
PROFIT
|
|
|
|
|
|
|
|
|
|
|
|
|
Personal
Care
|
|
$
|
455
|
|
|
$
|
473
|
|
|
-3.8
|
%
|
|
$
|
904
|
|
|
$
|
928
|
|
|
-2.6
|
%
|
Consumer
Tissue
|
|
275
|
|
|
260
|
|
|
+5.8
|
%
|
|
555
|
|
|
551
|
|
|
+0.7
|
%
|
K-C
Professional
|
|
150
|
|
|
145
|
|
|
+3.4
|
%
|
|
300
|
|
|
279
|
|
|
+7.5
|
%
|
Corporate &
Other(a)
|
|
(63)
|
|
|
(90)
|
|
|
N.M.
|
|
|
(128)
|
|
|
(160)
|
|
|
N.M.
|
|
Other (income) and
expense, net(a)
|
|
(21)
|
|
|
1,332
|
|
|
N.M.
|
|
|
(11)
|
|
|
1,394
|
|
|
N.M.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL OPERATING
PROFIT (LOSS)
|
|
$
|
838
|
|
|
$
|
(544)
|
|
|
N.M.
|
|
|
$
|
1,642
|
|
|
$
|
204
|
|
|
N.M.
|
|
|
|
(a)
|
Segment Operating
Profit excludes other (income) and expense, net and expenses not
associated with the business segments, including charges as
indicated in the Non-GAAP Reconciliations.
|
PERCENTAGE CHANGE
IN NET SALES VERSUS PRIOR YEAR
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30, 2016
|
|
|
Total
|
|
Volume
|
|
Net
Price
|
|
Mix/
Other(a)
|
|
Currency
|
Personal
Care
|
|
(1.2)
|
|
|
6
|
|
|
(1)
|
|
|
—
|
|
|
(6)
|
|
Consumer
Tissue
|
|
(0.3)
|
|
|
3
|
|
|
—
|
|
|
(1)
|
|
|
(2)
|
|
K-C
Professional
|
|
(1.9)
|
|
|
(1)
|
|
|
1
|
|
|
—
|
|
|
(2)
|
|
TOTAL
CONSOLIDATED
|
|
(1.2)
|
|
|
4
|
|
|
—
|
|
|
(1)
|
|
|
(4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30, 2016
|
|
|
Total
|
|
Volume
|
|
Net
Price
|
|
Mix/
Other(a)
|
|
Currency
|
Personal
Care
|
|
(2.8)
|
|
|
5
|
|
(1)
|
|
|
—
|
|
|
(7)
|
|
Consumer
Tissue
|
|
(2.7)
|
|
|
1
|
|
—
|
|
|
—
|
|
|
(4)
|
|
K-C
Professional
|
|
(3.0)
|
|
|
—
|
|
1
|
|
|
—
|
|
|
(4)
|
|
TOTAL
CONSOLIDATED
|
|
(2.9)
|
|
|
3
|
|
—
|
|
|
(1)
|
|
|
(5)
|
|
|
(a)
Mix/Other includes rounding.
|
|
N.M. - Not
Meaningful
|
Unaudited
|
KIMBERLY-CLARK
CORPORATION
|
OUTLOOK FOR
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Estimated
Range
|
|
|
|
|
|
|
|
ESTIMATED FULL
YEAR 2016 DILUTED EARNINGS PER SHARE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings per
share
|
|
$
|
5.95
|
|
|
-
|
|
$
|
6.15
|
|
Adjustment for
charges related to the 2014 Organization Restructuring
|
|
(0.06)
|
|
|
-
|
|
(0.03)
|
|
Adjustment related to
Venezuelan Operations
|
|
0.03
|
|
|
-
|
|
0.03
|
|
Per share basis –
diluted net income attributable to Kimberly-Clark
Corporation
|
|
$
|
5.92
|
|
|
-
|
|
$
|
6.15
|
|
|
|
|
|
|
|
|
[KMB-F]
Logo -
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To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/kimberly-clark-announces-second-quarter-2016-results-300302927.html
SOURCE Kimberly-Clark Corporation