DALLAS, Oct. 24, 2016 /PRNewswire/ -- Kimberly-Clark
Corporation (NYSE: KMB) today reported third quarter 2016 results
and updated its full-year 2016 outlook.
Executive Summary
- Third quarter 2016 net sales of $4.6
billion decreased approximately 3 percent compared to the
year-ago period, as changes in foreign currency exchange rates
reduced sales by more than 2 percent. Organic sales were
essentially even with the prior year. Organic sales increased 3
percent in developing and emerging markets but were down
elsewhere.
- Diluted net income per share for the third quarter was
$1.52 in 2016 and $1.41 in 2015. The comparison benefited from cost
savings and restructuring charges in 2015, but was negatively
impacted by unfavorable foreign currency exchange rate
effects.
- Third quarter adjusted earnings per share were $1.52 in 2016 and $1.51 in 2015. Adjusted earnings per share
exclude certain items described later in this news release.
- Cash provided by operations in the third quarter of 2016 was
$948 million, up 12 percent compared
to the prior year.
- Full-year 2016 organic sales growth is expected to be 2 percent
compared to the company's prior expectation for growth at the low
end of the 3 to 5 percent range. Diluted net income per share for
2016 is anticipated to be $5.92 to
$6.05 (prior outlook $5.92 to
$6.15). Adjusted earnings per share are expected to be
$5.95 to $6.05 (previous guidance
$5.95 to $6.15).
Chairman and Chief Executive Officer Thomas J. Falk said, "We experienced a more
challenging economic and competitive environment in the third
quarter. Nonetheless, our market share positions are broadly
healthy. We achieved strong cost savings, improved margins and
increased cash flow in the quarter. We also allocated capital in
shareholder-friendly ways. Our focus remains on continuing to
compete effectively in the near-term as we execute our Global
Business Plan strategies for long-term success."
Third Quarter 2016 Operating Results
Sales of $4.6 billion in the third
quarter of 2016 were down approximately 3 percent compared to the
year-ago period. Changes in foreign currency exchange rates reduced
sales by more than 2 percent. Organic sales were essentially even
with the prior year.
Third quarter operating profit was $836
million in 2016 and $779 million in 2015. Results in
2015 included $17 million of charges
for restructuring the company's business in Turkey and $11
million of 2014 Organization Restructuring costs. Adjusted
operating profit of $836 million in
the third quarter of 2016 increased 1 percent compared to
$826 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 $105 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 $10 million, mostly due to
lower fiber costs. Translation effects due to changes in foreign
currency exchange rates lowered operating profit by $10 million and transaction effects also
negatively impacted the comparison. Results in 2016 were also
impacted by slightly lower net selling prices and unfavorable
product mix, along with ongoing manufacturing-related cost
increases.
The third quarter effective tax rate was 30.0 percent in 2016
and 30.6 percent in 2015. The third quarter adjusted effective tax
rate was 29.9 percent in 2016 and 30.3 percent in 2015. The company
expects the full-year 2016 effective tax rate and the adjusted
effective tax rate will both be approximately at the low end of the
30.5 to 32.5 percent target range.
Kimberly-Clark's share of net income of equity companies in the
third quarter was $33 million in 2016
and $37 million in 2015. At
Kimberly-Clark de Mexico, results
were impacted by a weaker Mexican peso and higher input costs,
mostly offset by benefits from organic sales growth and cost
savings.
Cash Flow and Balance Sheet
Cash provided by operations in the third quarter of 2016 was
$948 million, up 12 percent versus
$849 million in the year-ago period, primarily due to improved
working capital. Capital spending for the third quarter was
$185 million in 2016 and $271 million in 2015. The
company expects that full-year 2016 spending will be somewhat below
the previous target range of $950 to $1,050
million.
Third quarter 2016 share repurchases were 1.7 million shares at
a cost of $225 million. The company
now expects full-year share repurchases of $750 million (prior target $700 to $800 million). Total debt was
$7.6 billion at September 30, 2016 and $7.8 billion at the end of 2015.
Third Quarter 2016 Business Segment Results
Personal Care Segment
Third quarter sales of $2.3
billion decreased 2 percent. Changes in currency rates
reduced sales 3 percent. Volumes increased approximately 3 percent
while net selling prices were off 1 percent. Third quarter
operating profit of $458 million
decreased 5 percent. The comparison was impacted by unfavorable
currencies, changes in net selling prices and product mix and
increased marketing, research and general spending on a local
currency basis, partially offset by volume growth and cost
savings.
Sales in North America
decreased 1 percent. Net selling prices were down 2 percent, while
volumes improved 1 percent compared to 10 percent growth in the
base period. Child care volumes rose double-digits, with benefits
from innovations and category growth. Baby wipes volumes also
increased double-digits and market shares improved. Huggies diaper
and adult care volumes were down low single-digits and mid-single
digits, respectively, compared to double-digit growth in the
year-ago period that included benefits from innovation launches and
increased promotion shipments. Adult care volumes in 2016 were also
impacted by competitive promotion activity.
Sales in developing and emerging markets decreased 4 percent,
including an 8 point drag from unfavorable currency rates. Volumes
increased 4 percent, with gains in China, Eastern
Europe and the Middle
East/Africa, and declines
in Argentina and Brazil. Overall net selling prices were even
year-on-year, as increases in response to weaker currency rates and
local cost inflation, primarily in Latin
America, were offset by decreases in China.
Sales in developed markets outside North America (Australia, South
Korea and Western/Central
Europe) increased 1 percent. Volumes advanced 2 percent
and product mix improved slightly, while net selling prices fell 2
percent.
Consumer Tissue Segment
Third quarter sales of $1.5 billion decreased 4 percent. Currency
rates were unfavorable by 2 percent and volumes were off 2 percent.
Third quarter operating profit of $267 million increased 3
percent. The comparison benefited from cost savings and input cost
deflation, partially offset by unfavorable currencies and lower
organic sales.
Sales in North America
decreased 4 percent. Volumes were down 3 percent and product mix
was unfavorable 1 percent. The volume comparison included impacts
from changes in the timing of promotion shipments and strong growth
in the year-ago period.
Sales in developing and emerging markets decreased 4 percent,
including a 4 point negative impact from currency rates. Net
selling prices rose 3 percent, offset by lower volumes.
Sales in developed markets outside North America fell 4 percent, with currency
rates unfavorable by 3 percent. Net selling prices were down 2
percent, while volumes were up 1 percent.
K-C Professional (KCP) Segment
Third quarter sales of $0.8
billion decreased 3 percent. Changes in currency rates
reduced sales 2 percent. Volumes declined 2 percent, while net
selling prices rose 1 percent. Product mix/other was down slightly,
including an approximate 1 percent impact from lower sales of
nonwovens to Halyard Health, Inc. Third quarter operating profit of
$157 million increased 2 percent. The comparison
benefited from higher net selling prices and cost savings, mostly
offset by unfavorable currency effects and lower volumes.
Sales in North America
increased 1 percent due to higher net selling prices. Overall
volumes were even year-on-year, as growth in washroom products was
offset by declines in other categories.
Sales in developing and emerging markets decreased
1 percent, including a 5 point drag from currency rates. Net
selling prices rose 4 percent, primarily in Latin America, and product mix improved 1
percent, while volumes fell 2 percent.
Sales in developed markets outside North America were down 6 percent. Changes in
currency rates reduced sales 2 percent. Volumes fell 6 percent,
while the combined impact of changes in net selling prices and
product mix increased sales 1 percent. The volume decline was
driven by results in Western/Central
Europe.
Year-To-Date Results
For the first nine months of 2016, sales of $13.7 billion decreased approximately 3 percent
compared to the year-ago period, as changes in foreign currency
exchange rates reduced sales by more than 4 percent. Organic sales
rose about 2 percent due to higher volumes.
Year-to-date operating profit was $2,478
million in 2016 versus $983
million in 2015. Results in 2015 included $1,350 million of pension settlement charges.
Adjusted operating profit of $2,482
million in 2016 increased 2 percent compared to $2,431 million in 2015. Results in 2016 included
$295 million of FORCE cost savings
and $45 million of savings from the
2014 Organization Restructuring. In addition, input costs were
$60 million lower. Translation
effects due to changes in foreign currency exchange rates lowered
operating profit by $85 million and
transaction effects also negatively impacted results.
Through nine months, diluted net income per share was
$4.58 in 2016 and $1.85 in 2015. Adjusted earnings per share of
$4.59 in 2016 increased 6 percent
versus $4.34 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. Through the end of the
third quarter of 2016, cumulative restructuring costs were
$149 million after tax ($211 million pre-tax) and cumulative savings were
$115 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 percent and 3 percent,
respectively (prior assumption 4 to 5 percent range for each).
- Organic sales growth is expected to be 2 percent compared to
the company's prior expectation for growth at the low end of the 3
to 5 percent range.
- Adjusted earnings per share are expected to be $5.95 to $6.05 compared to the previous guidance
range of $5.95 to $6.15.
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.
- Turkey Restructuring. In the third quarter of 2015, the company
initiated actions to restructure its business in Turkey, including the closing of a
manufacturing facility.
- 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
September 30
|
|
|
|
2016
|
|
2015
|
|
Change
|
Net
Sales
|
$
|
4,594
|
|
|
$
|
4,718
|
|
|
-2.6
|
%
|
Cost of products
sold
|
2,924
|
|
|
3,036
|
|
|
-3.7
|
%
|
Gross
Profit
|
1,670
|
|
|
1,682
|
|
|
-0.7
|
%
|
Marketing, research
and general expenses
|
833
|
|
|
868
|
|
|
-4.0
|
%
|
Other (income) and
expense, net
|
1
|
|
|
35
|
|
|
-97.1
|
%
|
Operating
Profit
|
836
|
|
|
779
|
|
|
+7.3
|
%
|
Interest
income
|
2
|
|
|
4
|
|
|
-50.0
|
%
|
Interest
expense
|
(81)
|
|
|
(74)
|
|
|
+9.5
|
%
|
Income Before
Income Taxes and Equity Interests
|
757
|
|
|
709
|
|
|
+6.8
|
%
|
Provision for income
taxes
|
(227)
|
|
|
(217)
|
|
|
+4.6
|
%
|
Income Before
Equity Interests
|
530
|
|
|
492
|
|
|
+7.7
|
%
|
Share of net income
of equity companies
|
33
|
|
|
37
|
|
|
-10.8
|
%
|
Net
Income
|
563
|
|
|
529
|
|
|
+6.4
|
%
|
Net income
attributable to noncontrolling interests
|
(13)
|
|
|
(12)
|
|
|
+8.3
|
%
|
Net Income
Attributable to Kimberly-Clark Corporation
|
$
|
550
|
|
|
$
|
517
|
|
|
+6.4
|
%
|
|
|
|
|
|
|
Per Share
Basis
|
|
|
|
|
|
Net Income
Attributable to Kimberly-Clark Corporation
|
|
|
|
|
|
Basic
|
$
|
1.53
|
|
|
$
|
1.42
|
|
|
+7.7
|
%
|
Diluted
|
$
|
1.52
|
|
|
$
|
1.41
|
|
|
+7.8
|
%
|
|
|
|
|
|
|
Cash Dividends
Declared
|
$
|
0.92
|
|
|
$
|
0.88
|
|
|
+4.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares
outstanding
|
September
30
|
|
|
|
2016
|
|
2015
|
|
|
Outstanding shares as
of
|
358.4
|
|
|
363.3
|
|
|
|
Average diluted
shares for three months ended
|
361.5
|
|
|
366.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited
|
|
|
|
|
|
KIMBERLY-CLARK
CORPORATION
|
CONSOLIDATED INCOME
STATEMENT
|
(Millions, except per
share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended
September 30
|
|
|
|
2016
|
|
2015
|
|
Change
|
Net
Sales
|
$
|
13,658
|
|
|
$
|
14,052
|
|
|
-2.8
|
%
|
Cost of products
sold
|
8,685
|
|
|
9,054
|
|
|
-4.1
|
%
|
Gross
Profit
|
4,973
|
|
|
4,998
|
|
|
-0.5
|
%
|
Marketing, research
and general expenses
|
2,505
|
|
|
2,586
|
|
|
-3.1
|
%
|
Other (income) and
expense, net
|
(10)
|
|
|
1,429
|
|
|
N.M.
|
|
Operating
Profit
|
2,478
|
|
|
983
|
|
|
N.M.
|
|
Interest
income
|
9
|
|
|
12
|
|
|
-25.0
|
%
|
Interest
expense
|
(238)
|
|
|
(219)
|
|
|
+8.7
|
%
|
Income Before
Income Taxes and Equity Interests
|
2,249
|
|
|
776
|
|
|
N.M.
|
|
Provision for income
taxes
|
(651)
|
|
|
(166)
|
|
|
N.M.
|
|
Income Before
Equity Interests
|
1,598
|
|
|
610
|
|
|
N.M.
|
|
Share of net income
of equity companies
|
103
|
|
|
112
|
|
|
-8.0
|
%
|
Net
Income
|
1,701
|
|
|
722
|
|
|
N.M.
|
|
Net income
attributable to noncontrolling interests
|
(40)
|
|
|
(42)
|
|
|
-4.8
|
%
|
Net Income
Attributable to Kimberly-Clark Corporation
|
$
|
1,661
|
|
|
$
|
680
|
|
|
N.M.
|
|
|
|
|
|
|
|
Per Share
Basis
|
|
|
|
|
|
Net Income
Attributable to Kimberly-Clark Corporation
|
|
|
|
|
|
Basic
|
$
|
4.61
|
|
|
$
|
1.87
|
|
|
N.M.
|
|
Diluted
|
$
|
4.58
|
|
|
$
|
1.85
|
|
|
N.M.
|
|
|
|
|
|
|
|
Cash Dividends
Declared
|
$
|
2.76
|
|
|
$
|
2.64
|
|
|
+4.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares
outstanding
|
September
30
|
|
|
|
2016
|
|
2015
|
|
|
Average diluted
shares for nine months ended
|
362.4
|
|
|
366.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
N.M. - Not
Meaningful
|
|
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
KIMBERLY-CLARK
CORPORATION
|
|
NON-GAAP
RECONCILIATIONS
|
|
(Millions, except per
share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30, 2016
|
|
|
|
As
Reported
|
|
Charges for
2014
Organization
Restructuring
|
|
As
Adjusted
Non-GAAP
|
|
Cost of products
sold
|
|
$
|
2,924
|
|
|
$
|
1
|
|
|
$
|
2,923
|
|
|
Gross
profit
|
|
1,670
|
|
|
(1)
|
|
|
1,671
|
|
|
Marketing, research
and general expenses
|
|
833
|
|
|
2
|
|
|
831
|
|
|
Other (income) and
expense, net
|
|
1
|
|
|
(3)
|
|
|
4
|
|
|
Operating
profit
|
|
836
|
|
|
—
|
|
|
836
|
|
|
Income before income
taxes and equity interests
|
|
757
|
|
|
—
|
|
|
757
|
|
|
Provision for income
taxes
|
|
(227)
|
|
|
(1)
|
|
|
(226)
|
|
|
Effective tax
rate
|
|
30.0
|
%
|
|
—
|
|
|
29.9
|
%
|
|
Net income
attributable to Kimberly-Clark Corporation
|
|
550
|
|
|
(1)
|
|
|
551
|
|
|
Diluted earnings per
share
|
|
1.52
|
|
|
—
|
|
|
1.52
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30, 2015
|
|
|
As
Reported
|
|
Charges
for
Pension
Settlements
|
|
Charges for
2014
Organization
Restructuring
|
|
Charges for
Turkey
Restructuring
|
|
As
Adjusted
Non-GAAP
|
|
Cost of products
sold
|
$
|
3,036
|
|
|
$
|
—
|
|
|
$
|
4
|
|
|
$
|
16
|
|
|
$
|
3,016
|
|
|
Gross
profit
|
1,682
|
|
|
—
|
|
|
(4)
|
|
|
(16)
|
|
|
1,702
|
|
|
Marketing, research
and general expenses
|
868
|
|
|
—
|
|
|
7
|
|
|
1
|
|
|
860
|
|
|
Other (income) and
expense, net
|
35
|
|
|
19
|
|
|
—
|
|
|
—
|
|
|
16
|
|
|
Operating
profit
|
779
|
|
|
(19)
|
|
|
(11)
|
|
|
(17)
|
|
|
826
|
|
|
Income before income
taxes and equity interests
|
709
|
|
|
(19)
|
|
|
(11)
|
|
|
(17)
|
|
|
756
|
|
|
Provision for income
taxes
|
(217)
|
|
|
8
|
|
|
4
|
|
|
—
|
|
|
(229)
|
|
|
Effective tax
rate
|
30.6
|
%
|
|
—
|
|
|
—
|
|
|
—
|
|
|
30.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Kimberly-Clark Corporation
|
517
|
|
|
(11)
|
|
|
(7)
|
|
|
(17)
|
|
|
552
|
|
|
Diluted earnings per
share
|
1.41
|
|
|
(0.03)
|
|
|
(0.02)
|
|
|
(0.05)
|
|
|
1.51
|
|
|
|
|
|
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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30, 2016
|
|
|
As
Reported
|
|
Charges for
2014
Organization
Restructuring
|
|
Adjustment
Related to
Venezuelan
Operations
|
|
As
Adjusted
Non-GAAP
|
|
Cost of products
sold
|
$
|
8,685
|
|
|
$
|
3
|
|
|
$
|
—
|
|
|
$
|
8,682
|
|
|
Gross
profit
|
4,973
|
|
|
(3)
|
|
|
—
|
|
|
4,976
|
|
|
Marketing, research
and general expenses
|
2,505
|
|
|
15
|
|
|
—
|
|
|
2,490
|
|
|
Other (income) and
expense, net
|
(10)
|
|
|
(3)
|
|
|
(11)
|
|
|
4
|
|
|
Operating
profit
|
2,478
|
|
|
(15)
|
|
|
11
|
|
|
2,482
|
|
|
Income before income
taxes and equity interests
|
2,249
|
|
|
(15)
|
|
|
11
|
|
|
2,253
|
|
|
Provision for income
taxes
|
(651)
|
|
|
3
|
|
|
—
|
|
|
(654)
|
|
|
Effective tax
rate
|
28.9
|
%
|
|
—
|
|
|
—
|
|
|
29.0
|
%
|
|
Net income
attributable to Kimberly-Clark Corporation
|
1,661
|
|
|
(12)
|
|
|
11
|
|
|
1,662
|
|
|
Diluted earnings per
share(a)
|
4.58
|
|
|
(0.03)
|
|
|
0.03
|
|
|
4.59
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30, 2015
|
|
|
As
Reported
|
|
Charges
for
Pension
Settlements
|
|
Charges for
2014
Organization
Restructuring
|
|
Charge
Related to
Venezuelan
Operations
|
|
Charges for
Turkey
Restructuring
|
|
As
Adjusted
Non-
GAAP
|
|
Cost of products
sold
|
$
|
9,054
|
|
|
$
|
—
|
|
|
$
|
19
|
|
|
$
|
5
|
|
|
$
|
16
|
|
|
$
|
9,014
|
|
|
Gross
profit
|
4,998
|
|
|
—
|
|
|
(19)
|
|
|
(5)
|
|
|
(16)
|
|
|
5,038
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marketing, research
and general expenses
|
2,586
|
|
|
—
|
|
|
17
|
|
|
—
|
|
|
1
|
|
|
2,568
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other (income) and
expense, net
|
1,429
|
|
|
1,350
|
|
|
—
|
|
|
40
|
|
|
—
|
|
|
39
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
983
|
|
|
(1,350)
|
|
|
(36)
|
|
|
(45)
|
|
|
(17)
|
|
|
2,431
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes and equity interests
|
776
|
|
|
(1,350)
|
|
|
(36)
|
|
|
(45)
|
|
|
(17)
|
|
|
2,224
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
(166)
|
|
|
520
|
|
|
16
|
|
|
—
|
|
|
—
|
|
|
(702)
|
|
|
Effective tax
rate
|
21.4
|
%
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
31.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Kimberly-Clark Corporation
|
680
|
|
|
(830)
|
|
|
(20)
|
|
|
(45)
|
|
|
(17)
|
|
|
1,592
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share(a)
|
1.85
|
|
|
(2.26)
|
|
|
(0.05)
|
|
|
(0.12)
|
|
|
(0.05)
|
|
|
4.34
|
|
|
|
|
(a)
|
"As Adjusted
Non-GAAP" does not equal "As Reported" plus "Charges" as a result
of rounding.
|
|
|
|
|
|
Unaudited
|
|
KIMBERLY-CLARK
CORPORATION
|
CONSOLIDATED BALANCE
SHEET
|
(Millions)
|
|
|
|
|
|
|
|
|
|
|
September 30,
2016
|
|
December 31,
2015
|
ASSETS
|
|
|
|
Current
Assets
|
|
|
|
Cash and cash
equivalents
|
$
|
884
|
|
|
$
|
619
|
|
Accounts receivable,
net
|
2,222
|
|
|
2,281
|
|
Inventories
|
1,736
|
|
|
1,909
|
|
Other current
assets
|
418
|
|
|
617
|
|
Total Current
Assets
|
5,260
|
|
|
5,426
|
|
Property, Plant
and Equipment, Net
|
7,198
|
|
|
7,104
|
|
Investments in
Equity Companies
|
289
|
|
|
247
|
|
Goodwill
|
1,518
|
|
|
1,446
|
|
Other
Assets
|
634
|
|
|
619
|
|
TOTAL
ASSETS
|
$
|
14,899
|
|
|
$
|
14,842
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
Liabilities
|
|
|
|
Debt payable within
one year
|
$
|
1,205
|
|
|
$
|
1,669
|
|
Trade accounts
payable
|
2,454
|
|
|
2,612
|
|
Accrued
expenses
|
1,731
|
|
|
1,750
|
|
Dividends
payable
|
330
|
|
|
318
|
|
Total Current
Liabilities
|
5,720
|
|
|
6,349
|
|
Long-Term
Debt
|
6,443
|
|
|
6,106
|
|
Noncurrent
Employee Benefits
|
1,195
|
|
|
1,137
|
|
Deferred Income
Taxes
|
594
|
|
|
766
|
|
Other
Liabilities
|
332
|
|
|
380
|
|
Redeemable
Preferred Securities of Subsidiaries
|
64
|
|
|
64
|
|
Stockholders'
Equity (Deficit)
|
|
|
|
Kimberly-Clark
Corporation
|
299
|
|
|
(174)
|
|
Noncontrolling
Interests
|
252
|
|
|
214
|
|
Total
Stockholders' Equity
|
551
|
|
|
40
|
|
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY
|
$
|
14,899
|
|
|
$
|
14,842
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2016 Data is
Unaudited
|
KIMBERLY-CLARK
CORPORATION
|
CONSOLIDATED CASH
FLOW STATEMENT
|
(Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
MonthsEnded
September 30
|
|
Nine Months
Ended
September 30
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Operating
Activities
|
|
|
|
|
|
|
|
Net income
|
$
|
563
|
|
|
$
|
529
|
|
|
$
|
1,701
|
|
|
$
|
722
|
|
Depreciation and
amortization
|
179
|
|
|
182
|
|
|
528
|
|
|
565
|
|
Stock-based
compensation
|
19
|
|
|
17
|
|
|
64
|
|
|
68
|
|
Deferred income
taxes
|
(16)
|
|
|
(32)
|
|
|
(13)
|
|
|
(378)
|
|
Equity companies'
earnings (in excess of) less than dividends paid
|
(1)
|
|
|
(1)
|
|
|
(31)
|
|
|
(38)
|
|
(Increase) decrease
in operating working capital
|
197
|
|
|
101
|
|
|
149
|
|
|
(316)
|
|
Postretirement
benefits
|
8
|
|
|
33
|
|
|
4
|
|
|
941
|
|
Adjustments related
to Venezuelan operations
|
—
|
|
|
—
|
|
|
(11)
|
|
|
45
|
|
Other
|
(1)
|
|
|
20
|
|
|
(30)
|
|
|
32
|
|
Cash Provided by
Operations
|
948
|
|
|
849
|
|
|
2,361
|
|
|
1,641
|
|
Investing
Activities
|
|
|
|
|
|
|
|
Capital
spending
|
(185)
|
|
|
(271)
|
|
|
(582)
|
|
|
(798)
|
|
Investments in time
deposits
|
(60)
|
|
|
(18)
|
|
|
(133)
|
|
|
(100)
|
|
Maturities of time
deposits
|
22
|
|
|
9
|
|
|
64
|
|
|
100
|
|
Other
|
31
|
|
|
(17)
|
|
|
75
|
|
|
(25)
|
|
Cash Used for
Investing
|
(192)
|
|
|
(297)
|
|
|
(576)
|
|
|
(823)
|
|
Financing
Activities
|
|
|
|
|
|
|
|
Cash dividends
paid
|
(331)
|
|
|
(321)
|
|
|
(981)
|
|
|
(952)
|
|
Change in short-term
debt
|
(515)
|
|
|
(292)
|
|
|
(837)
|
|
|
(109)
|
|
Debt
proceeds
|
494
|
|
|
587
|
|
|
1,290
|
|
|
1,097
|
|
Debt
repayments
|
(5)
|
|
|
(305)
|
|
|
(596)
|
|
|
(349)
|
|
Proceeds from
exercise of stock options
|
39
|
|
|
20
|
|
|
97
|
|
|
102
|
|
Acquisitions of
common stock for the treasury
|
(219)
|
|
|
(145)
|
|
|
(512)
|
|
|
(503)
|
|
Shares purchased from
noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
(151)
|
|
Other
|
3
|
|
|
1
|
|
|
2
|
|
|
6
|
|
Cash Used for
Financing
|
(534)
|
|
|
(455)
|
|
|
(1,537)
|
|
|
(859)
|
|
Effect of Exchange
Rate Changes on Cash and Cash Equivalents
|
6
|
|
|
(57)
|
|
|
17
|
|
|
(105)
|
|
Increase
(Decrease) in Cash and Cash Equivalents
|
228
|
|
|
40
|
|
|
265
|
|
|
(146)
|
|
Cash and Cash
Equivalents - Beginning of Period
|
656
|
|
|
603
|
|
|
619
|
|
|
789
|
|
Cash and Cash
Equivalents - End of Period
|
$
|
884
|
|
|
$
|
643
|
|
|
$
|
884
|
|
|
$
|
643
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
KIMBERLY-CLARK
CORPORATION
|
SELECTED BUSINESS
SEGMENT DATA
|
(Millions)
|
|
|
|
|
Three Months
Ended September
30
|
|
|
|
Nine Months
Ended
September 30
|
|
|
|
|
2016
|
|
2015
|
|
Change
|
|
2016
|
|
2015
|
|
Change
|
NET
SALES
|
|
|
|
|
|
|
|
|
|
|
|
|
Personal
Care
|
|
$
|
2,312
|
|
|
$
|
2,357
|
|
|
-1.9
|
%
|
|
$
|
6,798
|
|
|
$
|
6,971
|
|
|
-2.5
|
%
|
Consumer
Tissue
|
|
1,472
|
|
|
1,528
|
|
|
-3.7
|
%
|
|
4,462
|
|
|
4,601
|
|
|
-3.0
|
%
|
K-C
Professional
|
|
802
|
|
|
826
|
|
|
-2.9
|
%
|
|
2,371
|
|
|
2,443
|
|
|
-2.9
|
%
|
Corporate &
Other
|
|
8
|
|
|
7
|
|
|
N.M.
|
|
|
27
|
|
|
37
|
|
|
N.M.
|
|
TOTAL NET
SALES
|
|
$
|
4,594
|
|
|
$
|
4,718
|
|
|
-2.6
|
%
|
|
$
|
13,658
|
|
|
$
|
14,052
|
|
|
-2.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
PROFIT
|
|
|
|
|
|
|
|
|
|
|
|
|
Personal
Care
|
|
$
|
458
|
|
|
$
|
484
|
|
|
-5.4
|
%
|
|
$
|
1,362
|
|
|
$
|
1,412
|
|
|
-3.5
|
%
|
Consumer
Tissue
|
|
267
|
|
|
260
|
|
|
+2.7
|
%
|
|
822
|
|
|
811
|
|
|
+1.4
|
%
|
K-C
Professional
|
|
157
|
|
|
154
|
|
|
+1.9
|
%
|
|
457
|
|
|
433
|
|
|
+5.5
|
%
|
Corporate &
Other(a)
|
|
(45)
|
|
|
(84)
|
|
|
N.M.
|
|
|
(173)
|
|
|
(244)
|
|
|
N.M.
|
|
Other (income) and
expense, net(a)
|
|
1
|
|
|
35
|
|
|
N.M.
|
|
|
(10)
|
|
|
1,429
|
|
|
N.M.
|
|
TOTAL OPERATING
PROFIT
|
|
$
|
836
|
|
|
$
|
779
|
|
|
+7.3
|
%
|
|
$
|
2,478
|
|
|
$
|
983
|
|
|
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
September 30, 2016
|
|
|
Total
|
|
Volume
|
|
Net
Price
|
|
Mix/
Other(a)
|
|
Currency
|
Personal
Care
|
|
(1.9)
|
|
|
3
|
|
|
(1)
|
|
|
(1)
|
|
|
(3)
|
|
Consumer
Tissue
|
|
(3.7)
|
|
|
(2)
|
|
|
—
|
|
|
—
|
|
|
(2)
|
|
K-C
Professional
|
|
(2.9)
|
|
|
(2)
|
|
|
1
|
|
|
—
|
|
|
(2)
|
|
TOTAL
CONSOLIDATED
|
|
(2.6)
|
|
|
—
|
|
|
—
|
|
|
(1)
|
|
|
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30, 2016
|
|
|
Total
|
|
Volume
|
|
Net
Price
|
|
Mix/
Other(a)
|
|
Currency
|
Personal
Care
|
|
(2.5)
|
|
|
4
|
|
|
(1)
|
|
|
1
|
|
|
(6)
|
|
Consumer
Tissue
|
|
(3.0)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3)
|
|
K-C
Professional
|
|
(2.9)
|
|
|
(1)
|
|
|
1
|
|
|
—
|
|
|
(3)
|
|
TOTAL
CONSOLIDATED
|
|
(2.8)
|
|
|
2
|
|
|
—
|
|
|
(1)
|
|
|
(4)
|
|
|
|
(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
|
|
|
-
|
|
$
|
6.05
|
|
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
|
|
|
-
|
|
$
|
6.05
|
|
|
|
|
|
|
|
|
Logo -
http://photos.prnewswire.com/prnh/20110928/DA76879LOGO
[KMB-F]
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/kimberly-clark-announces-third-quarter-2016-results-300349432.html
SOURCE Kimberly-Clark Corporation