DALLAS, Jan. 24, 2017 /PRNewswire/ -- Kimberly-Clark
Corporation (NYSE: KMB) today reported year-end 2016 results and
provided its 2017 outlook and related key planning assumptions.
Executive Summary
- Fourth quarter 2016 net sales of $4.5
billion were even with the prior year. Organic sales
increased 1 percent, including 3 percent growth in developing and
emerging markets. Changes in foreign currency exchange rates
reduced sales by 1 percent.
- Diluted net income per share for the fourth quarter was
$1.40 in 2016 and $0.91 in 2015. The comparison benefited from cost
savings and a charge in 2015 related to deconsolidating the
company's Venezuelan business at the end of 2015.
- Full-year diluted net income per share was $5.99 in 2016 and $2.77 in 2015.
- Fourth quarter adjusted earnings per share were $1.45 in 2016 and $1.42 in 2015. Adjusted earnings per share
exclude certain items described later in this news release.
- Full-year adjusted earnings per share were $6.03 in 2016, up 5 percent compared to
$5.76 in 2015. The company's previous
guidance for adjusted earnings per share was $5.95 to $6.05.
- Full-year 2016 cash provided by operations was $3.2 billion, up 40 percent year-on-year.
- Net sales in 2017 are expected to be similar to 2016, including
organic sales growth of approximately 2 percent. Diluted net income
per share for 2017 is anticipated to be $6.20 to $6.35.
- The company's Board of Directors has approved a 5.4 percent
increase in the quarterly dividend, taking the dividend to
97 cents per share, up from
92 cents per share in 2016. This is
the 45th consecutive annual increase in the company's dividend. The
dividend will be payable on April 4,
2017, to stockholders of record on March 10, 2017.
Chairman and Chief Executive Officer Thomas J. Falk said, "Our full-year results were
consistent with our previous outlook. While we experienced a
challenging economic and competitive environment in 2016, our
market share positions remained broadly healthy. We also achieved
record cost savings, which helped us improve our margins and
deliver bottom-line earnings in line with our guidance for the
year. In addition, we generated strong cash flow and returned
$2.1 billion to shareholders through
dividends and share repurchases."
Falk added, "Looking to 2017, we will execute our Global
Business Plan strategies in what we expect will be a continued
difficult environment. Our teams will invest in innovation,
marketing and targeted growth initiatives to keep our brands strong
and help us compete effectively. We will also continue to manage
our company with financial discipline, with a focus on cost
savings, cash flow and shareholder-friendly capital allocation. We
remain optimistic about our opportunities to create long-term
shareholder value."
Fourth Quarter 2016 Operating Results
Sales of $4.5 billion in the
fourth quarter of 2016 were even with the year-ago period. Organic
sales were up 1 percent, as volumes increased 2 percent, while the
combined impact of changes in net selling prices and product mix
reduced sales by 1 percent. Changes in foreign currency exchange
rates lowered sales 1 percent.
Fourth quarter operating profit was $839
million in 2016 and $630 million in 2015. Results in
2015 included $108 million of charges
for the Venezuelan deconsolidation. Adjusted operating profit of
$859 million in the fourth quarter of
2016 increased 10 percent compared to $779
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 $140 million in cost
savings from the company's FORCE (Focused On Reducing Costs
Everywhere) program and $25 million
of savings from the 2014 Organization Restructuring. Input costs
decreased $5 million, driven by lower
fiber costs. Negative foreign currency translation effects reduced
operating profit by $5 million. Other
manufacturing-related cost increases and foreign currency
transaction effects also negatively impacted the operating profit
comparison.
The fourth quarter effective tax rate was 35.7 percent in 2016
compared to 45.1 percent in 2015, which included the impact of a
$49 million charge as a result of an
updated assessment of uncertain tax positions. The fourth quarter
adjusted effective tax rate was 35.4 percent in 2016 and 30.6
percent in 2015. The full-year 2016 effective tax rate and adjusted
effective tax rate of 30.6 percent and 30.7 percent, respectively,
were both relatively consistent with the company's previous
estimate for a rate approximately at the low end of the 30.5 to
32.5 percent range.
Kimberly-Clark's share of net income of equity companies in the
fourth quarter was $29 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,
partially offset by benefits from organic sales growth and cost
savings.
Cash Flow and Balance Sheet
Cash provided by operations in the fourth quarter of 2016 was
$871 million, up 31 percent versus
$665 million in the year-ago period. Full-year cash provided
by operations was $3,232 million in
2016, an increase of 40 percent compared to $2,306 million in 2015. The increase was driven
by improved working capital and lower pension contributions.
Full-year defined benefit pension plan contributions were
$108 million in 2016 and $485 million in 2015.
Capital spending for the fourth quarter was $189 million in
2016 and $258 million in 2015. Full-year spending was
$771 million in 2016 and $1,056 million in 2015. Fourth quarter 2016 share
repurchases were 1.9 million shares at a cost of $225 million, bringing full-year repurchases to
6.0 million shares at a cost of $750
million. Total debt was $7.6
billion at the end of 2016 and $7.8
billion at the end of 2015.
Fourth Quarter 2016 Business Segment Results
Personal Care Segment
Fourth quarter sales of $2.2
billion increased 1 percent. Volumes increased 3 percent,
while the combined impact of changes in net selling prices and
product mix reduced sales 1 percent. Changes in currency rates
reduced sales 1 percent. Fourth quarter operating profit of
$495 million increased 5 percent. The
comparison benefited from cost savings, partially offset by
manufacturing-related cost increases and unfavorable currency
effects.
Sales in North America
increased 1 percent. Volumes were up 2 percent, while net selling
prices were off 1 percent. Child care and adult volumes each rose
high-single digits, with benefits from category growth and
innovations launched in the last 12 months. Baby wipes volumes
increased mid-single digits and market shares improved. Huggies
diaper volumes were down high-single digits compared to mid-single
digit growth in the year-ago period, as comparisons were impacted
by the timing of promotion shipments and lower category demand.
Sales in developing and emerging markets increased approximately
1 percent despite a 4 point drag from unfavorable currency rates.
Volumes increased 5 percent, while the combined impact of changes
in net selling prices and product mix reduced sales 1 percent. The
volume increase included gains in China, Eastern
Europe and Central America,
while volumes declined in Argentina and Brazil. Net selling prices increased in
Latin America, primarily in
Argentina, but decreased in
China.
Sales in developed markets outside North America (Australia, South
Korea and Western/Central
Europe) increased 1 percent due to favorable currency
rates.
Consumer Tissue Segment
Fourth quarter sales of $1.5 billion decreased 1 percent, as
currency rates were unfavorable 1 percent. Fourth quarter operating
profit of $295 million increased 13 percent. The comparison
benefited from cost savings and input cost deflation, partially
offset by slightly lower net selling prices and unfavorable
currencies.
Sales in North America were
essentially even with year-ago levels. Volumes were up slightly
year-on-year, including an increase in paper towels, compared to 8
percent growth in the base period. Net selling prices were down
slightly.
Sales in developing and emerging markets decreased 3 percent.
Volumes fell 4 percent, while net selling prices improved 1
percent.
Sales in developed markets outside North America fell 1 percent, including a 4
point drag from unfavorable currency rates. Volumes were up 3
percent, mostly in Australia and
Western/Central Europe.
K-C Professional (KCP) Segment
Fourth quarter sales of $0.8
billion were essentially even year-on-year. Volumes
increased 1 percent, while changes in currency rates reduced sales
1 percent. Fourth quarter operating profit of $146 million
decreased 7 percent. The comparison was impacted by input cost
inflation and higher marketing, research and general spending,
partially offset by organic sales growth and cost savings.
Sales in North America
increased 1 percent. Volumes rose 2 percent, with growth in most
product categories, while net selling prices declined 1
percent.
Sales in developing and emerging markets increased about
5 percent despite an approximate 2 point drag from currency
rates. Net selling prices rose 4 percent and volumes were up 2
percent.
Sales in developed markets outside North America were down 3 percent, including a
2 point negative impact from changes in currency rates. Net selling
prices fell 2 percent, while product mix improved 1 percent.
Full Year 2016 Results
Sales of $18.2 billion decreased 2
percent compared to the year-ago period, as changes in foreign
currency exchange rates reduced sales by about 4 percent. Organic
sales rose approximately 2 percent due to higher volumes.
Operating profit was $3,317
million in 2016 versus $1,613
million in 2015. Results in 2015 included $1,358 million of pension settlement charges and
$153 million of charges related to
the company's Venezuelan operations. Adjusted operating profit of
$3,341 million in 2016 increased 4
percent compared to $3,210 million in
2015. Results in 2016 included benefits from organic sales growth,
$435 million of FORCE cost savings
and $70 million of savings from the
2014 Organization Restructuring. In addition, input costs were
$65 million lower. Translation
effects due to changes in foreign currency exchange rates lowered
operating profit by $90 million and
transaction effects also negatively impacted results.
Diluted net income per share was $5.99 in 2016 and $2.77 in 2015. Adjusted earnings per share of
$6.03 in 2016 increased 5 percent
versus $5.76 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 was intended to improve underlying profitability
and increase flexibility to invest in targeted growth initiatives,
brand building and other capabilities critical to delivering future
growth.
Charges for the restructuring were completed at the end of 2016,
as expected. Total costs were $164
million after tax ($231
million pre-tax) compared to the original estimate of
$130 to $160 million after tax
($190 to $230 million pre-tax). The
company achieved its total restructuring savings objective one year
ahead of target, as annualized pre-tax savings from the
restructuring amounted to $140
million through the end of 2016 compared to the original
estimate for savings of $120 to $140
million by the end of 2017.
2017 Outlook and Key Planning Assumptions
The company's key planning and guidance assumptions for 2017 are
as follows:
- Net sales similar to the prior year.
- Organic sales growth of approximately 2 percent, driven by
higher volumes. Net selling prices and product mix expected to be
similar, or up slightly, year-on-year.
- Negative foreign currency exchange rate impact of 2
percent.
- Operating profit up 2 to 4 percent compared to adjusted
operating profit in 2016.
- Cost savings of at least $400
million from the company's FORCE program.
- Negative foreign currency translation effects of 2 percent.
Currency transaction effects are also anticipated to negatively
impact comparisons.
- Impact of changes in key cost inputs between $50 and $200 million of inflation, primarily due
to inflation in international markets. The company is assuming
North American market prices of $830 to
$850 per metric ton for eucalyptus pulp and $50 to $60 per barrel for oil.
- Interest expense down slightly compared to 2016.
- Effective tax rate similar to 2016's adjusted effective tax
rate of 30.7 percent.
- Net income from equity companies expected to decline due to
lower income at K-C de Mexico as a
result of a weaker Mexican peso.
- Diluted net income per share of $6.20 to
$6.35 compared to $5.99 in
2016, and up 3 to 5 percent versus adjusted earnings per share of
$6.03 in 2016.
- Capital spending of $850 to $950
million.
- Defined benefit pension plan contributions of up to
$100 million.
- Dividend increase of 5.4 percent (approved by the Board of
Directors and mentioned previously in this release).
- Share repurchases between $800 and
$1,000 million, subject to market conditions.
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 fourth quarter of 2015, the company recorded a charge
related to deconsolidating the company's Venezuelan business at the
end of 2015. In the second quarter of 2016, the company recorded a
modest amount of income related to an updated assessment of the
impact of the deconsolidation.
- 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.
- Uncertain tax positions. In the fourth quarter of 2015, the
company recognized a charge, related to prior years, as a result of
an updated assessment of uncertain tax positions for certain
international operations.
- Turkey Restructuring. In 2015, the company initiated actions to
restructure its business in Turkey, including the closing of a
manufacturing facility.
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. (CST) 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 145-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 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
December 31
|
|
|
|
2016
|
|
2015
|
|
Change
|
Net
Sales
|
$
|
4,544
|
|
|
$
|
4,539
|
|
|
+0.1
|
%
|
Cost of products
sold
|
2,866
|
|
|
2,913
|
|
|
-1.6
|
%
|
Gross
Profit
|
1,678
|
|
|
1,626
|
|
|
+3.2
|
%
|
Marketing, research
and general expenses
|
821
|
|
|
857
|
|
|
-4.2
|
%
|
Other (income) and
expense, net
|
18
|
|
|
139
|
|
|
-87.1
|
%
|
Operating
Profit
|
839
|
|
|
630
|
|
|
+33.2
|
%
|
Interest
income
|
2
|
|
|
5
|
|
|
-60.0
|
%
|
Interest
expense
|
(81)
|
|
|
(76)
|
|
|
+6.6
|
%
|
Income Before
Income Taxes and Equity Interests
|
760
|
|
|
559
|
|
|
+36.0
|
%
|
Provision for income
taxes
|
(271)
|
|
|
(252)
|
|
|
+7.5
|
%
|
Income Before
Equity Interests
|
489
|
|
|
307
|
|
|
+59.3
|
%
|
Share of net income
of equity companies
|
29
|
|
|
37
|
|
|
-21.6
|
%
|
Net
Income
|
518
|
|
|
344
|
|
|
+50.6
|
%
|
Net income
attributable to noncontrolling interests
|
(13)
|
|
|
(11)
|
|
|
+18.2
|
%
|
Net Income
Attributable to Kimberly-Clark Corporation
|
$
|
505
|
|
|
$
|
333
|
|
|
+51.7
|
%
|
|
|
|
|
|
|
Per Share
Basis
|
|
|
|
|
|
Net Income
Attributable to Kimberly-Clark Corporation
|
|
|
|
|
|
Basic
|
$
|
1.41
|
|
|
$
|
0.92
|
|
|
+53.3
|
%
|
Diluted
|
$
|
1.40
|
|
|
$
|
0.91
|
|
|
+53.8
|
%
|
|
|
|
|
|
|
Cash Dividends
Declared
|
$
|
0.92
|
|
|
$
|
0.88
|
|
|
+4.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares
outstanding
|
December
31
|
|
|
|
2016
|
|
2015
|
|
|
Outstanding shares as
of
|
356.6
|
|
|
360.9
|
|
|
|
Average diluted
shares for three months ended
|
359.6
|
|
|
364.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited
|
|
|
|
|
|
KIMBERLY-CLARK
CORPORATION
|
CONSOLIDATED INCOME
STATEMENT
|
(Millions, except per
share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months
Ended December
31
|
|
|
|
2016
|
|
2015
|
|
Change
|
Net
Sales
|
$
|
18,202
|
|
|
$
|
18,591
|
|
|
-2.1
|
%
|
Cost of products
sold
|
11,551
|
|
|
11,967
|
|
|
-3.5
|
%
|
Gross
Profit
|
6,651
|
|
|
6,624
|
|
|
+0.4
|
%
|
Marketing, research
and general expenses
|
3,326
|
|
|
3,443
|
|
|
-3.4
|
%
|
Other (income) and
expense, net
|
8
|
|
|
1,568
|
|
|
-99.5
|
%
|
Operating
Profit
|
3,317
|
|
|
1,613
|
|
|
+105.6
|
%
|
Interest
income
|
11
|
|
|
17
|
|
|
-35.3
|
%
|
Interest
expense
|
(319)
|
|
|
(295)
|
|
|
+8.1
|
%
|
Income Before
Income Taxes and Equity Interests
|
3,009
|
|
|
1,335
|
|
|
+125.4
|
%
|
Provision for income
taxes
|
(922)
|
|
|
(418)
|
|
|
+120.6
|
%
|
Income Before
Equity Interests
|
2,087
|
|
|
917
|
|
|
+127.6
|
%
|
Share of net income
of equity companies
|
132
|
|
|
149
|
|
|
-11.4
|
%
|
Net
Income
|
2,219
|
|
|
1,066
|
|
|
+108.2
|
%
|
Net income
attributable to noncontrolling interests
|
(53)
|
|
|
(53)
|
|
|
—
|
|
Net Income
Attributable to Kimberly-Clark Corporation
|
$
|
2,166
|
|
|
$
|
1,013
|
|
|
+113.8
|
%
|
|
|
|
|
|
|
Per Share
Basis
|
|
|
|
|
|
Net Income
Attributable to Kimberly-Clark Corporation
|
|
|
|
|
|
Basic
|
$
|
6.03
|
|
|
$
|
2.78
|
|
|
+116.9
|
%
|
Diluted
|
$
|
5.99
|
|
|
$
|
2.77
|
|
|
+116.2
|
%
|
|
|
|
|
|
|
Cash Dividends
Declared
|
$
|
3.68
|
|
|
$
|
3.52
|
|
|
+4.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares
outstanding
|
December
31
|
|
|
|
2016
|
|
2015
|
|
|
Average diluted
shares for twelve months ended
|
361.7
|
|
|
366.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2016 Data is
Unaudited
|
|
|
|
|
|
KIMBERLY-CLARK
CORPORATION
|
NON-GAAP
RECONCILIATIONS
|
(Millions, except per
share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31, 2016
|
|
|
As Reported
|
|
Charges for
2014
Organization
Restructuring
|
|
As Adjusted Non-GAAP
|
Cost of products
sold
|
|
$
|
2,866
|
|
|
$
|
3
|
|
|
$
|
2,863
|
|
Gross
profit
|
|
1,678
|
|
|
(3)
|
|
|
1,681
|
|
Marketing, research
and general expenses
|
|
821
|
|
|
17
|
|
|
804
|
|
Operating
profit
|
|
839
|
|
|
(20)
|
|
|
859
|
|
Income before income
taxes and equity interests
|
|
760
|
|
|
(20)
|
|
|
780
|
|
Provision for income
taxes
|
|
(271)
|
|
|
5
|
|
|
(276)
|
|
Effective tax
rate
|
|
35.7
|
%
|
|
—
|
|
|
35.4
|
%
|
Net income
attributable to Kimberly-Clark Corporation
|
|
505
|
|
|
(15)
|
|
|
520
|
|
Diluted earnings per
share(a)
|
|
1.40
|
|
|
(0.04)
|
|
|
1.45
|
|
|
|
Three Months Ended
December 31, 2015
|
|
|
As
Reported
|
|
Charges
Related to
Venezuelan
Operations
|
|
Uncertain
Tax
Positions
Adjustment
|
|
Charges for Pension Settlements
|
|
Charges for
2014
Organization
Restructuring
|
|
Charges for
Turkey Restructuring
|
|
As
Adjusted Non-
GAAP
|
Cost of products
sold
|
|
$
|
2,913
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4
|
|
|
$
|
6
|
|
|
$
|
2,903
|
|
Gross
profit
|
|
1,626
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4)
|
|
|
(6)
|
|
|
1,636
|
|
Marketing, research
and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
general
expenses
|
|
857
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
23
|
|
|
—
|
|
|
834
|
|
Other (income) and
expense,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
net
|
|
139
|
|
|
108
|
|
|
—
|
|
|
8
|
|
|
—
|
|
|
—
|
|
|
23
|
|
Operating
profit
|
|
630
|
|
|
(108)
|
|
|
—
|
|
|
(8)
|
|
|
(27)
|
|
|
(6)
|
|
|
779
|
|
Income before income
taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and equity
interests
|
|
559
|
|
|
(108)
|
|
|
—
|
|
|
(8)
|
|
|
(27)
|
|
|
(6)
|
|
|
708
|
|
Provision for income
taxes
|
|
(252)
|
|
|
6
|
|
|
(49)
|
|
|
3
|
|
|
5
|
|
|
—
|
|
|
(217)
|
|
Effective tax
rate
|
|
45.1
|
%
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
30.6
|
%
|
Net income
attributable to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Kimberly-Clark
Corporation
|
|
333
|
|
|
(102)
|
|
|
(49)
|
|
|
(5)
|
|
|
(22)
|
|
|
(6)
|
|
|
517
|
|
Diluted earnings per
share(a)
|
|
0.91
|
|
|
(0.28)
|
|
|
(0.13)
|
|
|
(0.01)
|
|
|
(0.06)
|
|
|
(0.02)
|
|
|
1.42
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) "As
Adjusted Non-GAAP" does not equal "As Reported" plus "Charges" as a
result of rounding.
|
|
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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months
Ended December 31, 2016
|
|
|
As Reported
|
|
Charges for
2014
Organization
Restructuring
|
|
Adjustment
Related to
Venezuelan
Operations
|
|
As Adjusted Non-GAAP
|
Cost of products
sold
|
|
$
|
11,551
|
|
|
$
|
6
|
|
|
$
|
—
|
|
|
$
|
11,545
|
|
Gross
profit
|
|
6,651
|
|
|
(6)
|
|
|
—
|
|
|
6,657
|
|
Marketing, research
and general expenses
|
|
3,326
|
|
|
32
|
|
|
—
|
|
|
3,294
|
|
Other (income) and
expense, net
|
|
8
|
|
|
(3)
|
|
|
(11)
|
|
|
22
|
|
Operating
profit
|
|
3,317
|
|
|
(35)
|
|
|
11
|
|
|
3,341
|
|
Income before income
taxes and equity interests
|
|
3,009
|
|
|
(35)
|
|
|
11
|
|
|
3,033
|
|
Provision for income
taxes
|
|
(922)
|
|
|
8
|
|
|
—
|
|
|
(930)
|
|
Effective tax
rate
|
|
30.6
|
%
|
|
—
|
|
|
—
|
|
|
30.7
|
%
|
Net income
attributable to Kimberly-Clark Corporation
|
|
2,166
|
|
|
(27)
|
|
|
11
|
|
|
2,182
|
|
Diluted earnings per
share
|
|
5.99
|
|
|
(0.07)
|
|
|
0.03
|
|
|
6.03
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months
Ended December 31, 2015
|
|
|
As Reported
|
|
Charges
Related to
Venezuelan Operations
|
|
Uncertain
Tax
Positions
Adjustment
|
|
Charges for Pension Settlements
|
|
Charges for
2014
Organization
Restructuring
|
|
Charges for
Turkey
Restructuring
|
|
As Adjusted Non-GAAP
|
Cost of products
sold
|
|
$
|
11,967
|
|
|
$
|
5
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
23
|
|
|
$
|
22
|
|
|
$
|
11,917
|
|
Gross
profit
|
|
6,624
|
|
|
(5)
|
|
|
—
|
|
|
—
|
|
|
(23)
|
|
|
(22)
|
|
|
6,674
|
|
Marketing, research
and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
general
expenses
|
|
3,443
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
40
|
|
|
1
|
|
|
3,402
|
|
Other (income) and
expense,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
net
|
|
1,568
|
|
|
148
|
|
|
—
|
|
|
1,358
|
|
|
—
|
|
|
—
|
|
|
62
|
|
Operating
profit
|
|
1,613
|
|
|
(153)
|
|
|
—
|
|
|
(1,358)
|
|
|
(63)
|
|
|
(23)
|
|
|
3,210
|
|
Income before income
taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and equity
interests
|
|
1,335
|
|
|
(153)
|
|
|
—
|
|
|
(1,358)
|
|
|
(63)
|
|
|
(23)
|
|
|
2,932
|
|
Provision for income
taxes
|
|
(418)
|
|
|
6
|
|
|
(49)
|
|
|
523
|
|
|
21
|
|
|
—
|
|
|
(919)
|
|
Effective tax
rate
|
|
31.3
|
%
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
31.3
|
%
|
Net income
attributable to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Kimberly-Clark
Corporation
|
|
1,013
|
|
|
(147)
|
|
|
(49)
|
|
|
(835)
|
|
|
(42)
|
|
|
(23)
|
|
|
2,109
|
|
Diluted earnings per
share(a)
|
|
2.77
|
|
|
(0.40)
|
|
|
(0.13)
|
|
|
(2.28)
|
|
|
(0.11)
|
|
|
(0.06)
|
|
|
5.76
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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)
|
|
|
|
|
|
|
|
|
|
|
December
31
|
|
2016
|
|
2015
|
ASSETS
|
|
|
|
Current
Assets
|
|
|
|
Cash and cash
equivalents
|
$
|
923
|
|
|
$
|
619
|
|
Accounts receivable,
net
|
2,176
|
|
|
2,281
|
|
Inventories
|
1,679
|
|
|
1,909
|
|
Other current
assets
|
337
|
|
|
617
|
|
Total Current
Assets
|
5,115
|
|
|
5,426
|
|
Property, Plant
and Equipment, Net
|
7,169
|
|
|
7,104
|
|
Investments in
Equity Companies
|
257
|
|
|
247
|
|
Goodwill
|
1,480
|
|
|
1,446
|
|
Other
Assets
|
581
|
|
|
619
|
|
TOTAL
ASSETS
|
$
|
14,602
|
|
|
$
|
14,842
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
Liabilities
|
|
|
|
Debt payable within
one year
|
$
|
1,133
|
|
|
$
|
1,669
|
|
Trade accounts
payable
|
2,609
|
|
|
2,612
|
|
Accrued
expenses
|
1,775
|
|
|
1,750
|
|
Dividends
payable
|
329
|
|
|
318
|
|
Total Current
Liabilities
|
5,846
|
|
|
6,349
|
|
Long-Term
Debt
|
6,439
|
|
|
6,106
|
|
Noncurrent
Employee Benefits
|
1,301
|
|
|
1,137
|
|
Deferred Income
Taxes
|
532
|
|
|
766
|
|
Other
Liabilities
|
309
|
|
|
380
|
|
Redeemable
Preferred Securities of Subsidiaries
|
58
|
|
|
64
|
|
Stockholders'
Equity (Deficit)
|
|
|
|
Kimberly-Clark
Corporation
|
(102)
|
|
|
(174)
|
|
Noncontrolling
Interests
|
219
|
|
|
214
|
|
Total
Stockholders' Equity
|
117
|
|
|
40
|
|
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY
|
$
|
14,602
|
|
|
$
|
14,842
|
|
|
|
|
|
|
|
|
|
2016 Data is
Unaudited
|
KIMBERLY-CLARK
CORPORATION
|
CONSOLIDATED CASH
FLOW STATEMENT
|
(Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December 31
|
|
Twelve Months
Ended
December 31
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Operating
Activities
|
|
|
|
|
|
|
|
Net income
|
$
|
518
|
|
|
$
|
344
|
|
|
$
|
2,219
|
|
|
$
|
1,066
|
|
Depreciation and
amortization
|
177
|
|
|
181
|
|
|
705
|
|
|
746
|
|
Stock-based
compensation
|
13
|
|
|
7
|
|
|
77
|
|
|
75
|
|
Deferred income
taxes
|
(2)
|
|
|
123
|
|
|
(15)
|
|
|
(255)
|
|
Equity companies'
earnings (in excess of) less than dividends paid
|
27
|
|
|
28
|
|
|
(4)
|
|
|
(10)
|
|
Decrease (increase)
in operating working capital
|
185
|
|
|
(129)
|
|
|
334
|
|
|
(445)
|
|
Postretirement
benefits
|
(54)
|
|
|
(11)
|
|
|
(50)
|
|
|
930
|
|
Adjustments related
to Venezuelan operations
|
—
|
|
|
108
|
|
|
(11)
|
|
|
153
|
|
Other
|
7
|
|
|
14
|
|
|
(23)
|
|
|
46
|
|
Cash Provided by
Operations
|
871
|
|
|
665
|
|
|
3,232
|
|
|
2,306
|
|
Investing
Activities
|
|
|
|
|
|
|
|
Capital
spending
|
(189)
|
|
|
(258)
|
|
|
(771)
|
|
|
(1,056)
|
|
Proceeds from sales
of investments
|
—
|
|
|
—
|
|
|
28
|
|
|
—
|
|
Investments in time
deposits
|
(88)
|
|
|
(46)
|
|
|
(221)
|
|
|
(146)
|
|
Maturities of time
deposits
|
124
|
|
|
64
|
|
|
188
|
|
|
164
|
|
Other
|
(3)
|
|
|
13
|
|
|
44
|
|
|
(12)
|
|
Cash Used for
Investing
|
(156)
|
|
|
(227)
|
|
|
(732)
|
|
|
(1,050)
|
|
Financing
Activities
|
|
|
|
|
|
|
|
Cash dividends
paid
|
(330)
|
|
|
(320)
|
|
|
(1,311)
|
|
|
(1,272)
|
|
Change in short-term
debt
|
(71)
|
|
|
412
|
|
|
(908)
|
|
|
303
|
|
Debt
proceeds
|
3
|
|
|
3
|
|
|
1,293
|
|
|
1,100
|
|
Debt
repayments
|
(2)
|
|
|
(204)
|
|
|
(598)
|
|
|
(553)
|
|
Proceeds from
exercise of stock options
|
10
|
|
|
38
|
|
|
107
|
|
|
140
|
|
Acquisitions of
common stock for the treasury
|
(227)
|
|
|
(358)
|
|
|
(739)
|
|
|
(861)
|
|
Shares purchased from
noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
(151)
|
|
Other
|
(31)
|
|
|
(10)
|
|
|
(29)
|
|
|
(4)
|
|
Cash Used for
Financing
|
(648)
|
|
|
(439)
|
|
|
(2,185)
|
|
|
(1,298)
|
|
Effect of Exchange
Rate Changes on Cash and Cash Equivalents
|
(28)
|
|
|
(23)
|
|
|
(11)
|
|
|
(128)
|
|
Increase
(Decrease) in Cash and Cash Equivalents
|
39
|
|
|
(24)
|
|
|
304
|
|
|
(170)
|
|
Cash and Cash
Equivalents - Beginning of Period
|
884
|
|
|
643
|
|
|
619
|
|
|
789
|
|
Cash and Cash
Equivalents - End of Period
|
$
|
923
|
|
|
$
|
619
|
|
|
$
|
923
|
|
|
$
|
619
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited
|
KIMBERLY-CLARK
CORPORATION
|
SELECTED BUSINESS
SEGMENT DATA
|
(Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December 31
|
|
|
|
Twelve Months
Ended
December 31
|
|
|
|
|
2016
|
|
2015
|
|
Change
|
|
2016
|
|
2015
|
|
Change
|
NET
SALES
|
|
|
|
|
|
|
|
|
|
|
|
|
Personal
Care
|
|
$
|
2,248
|
|
|
$
|
2,233
|
|
|
+0.7
|
%
|
|
$
|
9,046
|
|
|
$
|
9,204
|
|
|
-1.7
|
%
|
Consumer
Tissue
|
|
1,505
|
|
|
1,520
|
|
|
-1.0
|
%
|
|
5,967
|
|
|
6,121
|
|
|
-2.5
|
%
|
K-C
Professional
|
|
779
|
|
|
776
|
|
|
+0.4
|
%
|
|
3,150
|
|
|
3,219
|
|
|
-2.1
|
%
|
Corporate &
Other
|
|
12
|
|
|
10
|
|
|
N.M.
|
|
|
39
|
|
|
47
|
|
|
N.M.
|
|
TOTAL NET
SALES
|
|
$
|
4,544
|
|
|
$
|
4,539
|
|
|
+0.1
|
%
|
|
$
|
18,202
|
|
|
$
|
18,591
|
|
|
-2.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
PROFIT
|
|
|
|
|
|
|
|
|
|
|
|
|
Personal
Care
|
|
$
|
495
|
|
|
$
|
473
|
|
|
+4.7
|
%
|
|
$
|
1,857
|
|
|
$
|
1,885
|
|
|
-1.5
|
%
|
Consumer
Tissue
|
|
295
|
|
|
262
|
|
|
+12.6
|
%
|
|
1,117
|
|
|
1,073
|
|
|
+4.1
|
%
|
K-C
Professional
|
|
146
|
|
|
157
|
|
|
-7.0
|
%
|
|
603
|
|
|
590
|
|
|
+2.2
|
%
|
Corporate &
Other(a)
|
|
(79)
|
|
|
(123)
|
|
|
N.M.
|
|
|
(252)
|
|
|
(367)
|
|
|
N.M.
|
|
Other (income) and
expense, net(a)
|
|
18
|
|
|
139
|
|
|
-87.1
|
%
|
|
8
|
|
|
1,568
|
|
|
-99.5
|
%
|
TOTAL OPERATING
PROFIT
|
|
$
|
839
|
|
|
$
|
630
|
|
|
+33.2
|
%
|
|
$
|
3,317
|
|
|
$
|
1,613
|
|
|
+105.6
|
%
|
|
|
(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
December 31, 2016
|
|
|
Total
|
|
Volume
|
|
Net Price
|
|
Mix/ Other(a)
|
|
Currency
|
|
Organic(b)
|
Personal
Care
|
|
0.7
|
|
|
3
|
|
—
|
|
|
(1)
|
|
|
(1)
|
|
|
2
|
|
Consumer
Tissue
|
|
(1.0)
|
|
|
—
|
|
—
|
|
|
—
|
|
|
(1)
|
|
|
—
|
|
K-C
Professional
|
|
0.4
|
|
|
1
|
|
—
|
|
|
—
|
|
|
(1)
|
|
|
1
|
|
TOTAL
CONSOLIDATED
|
|
0.1
|
|
|
2
|
|
—
|
|
|
(1)
|
|
|
(1)
|
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months
Ended December 31, 2016
|
|
|
Total
|
|
Volume
|
|
Net Price
|
|
Mix/ Other(a)
|
|
Currency
|
|
Organic(b)
|
Personal
Care
|
|
(1.7)
|
|
|
4
|
|
|
(1)
|
|
|
—
|
|
|
(5)
|
|
|
3
|
Consumer
Tissue
|
|
(2.5)
|
|
|
—
|
|
|
—
|
|
|
(1)
|
|
|
(2)
|
|
|
—
|
K-C
Professional
|
|
(2.1)
|
|
|
—
|
|
|
1
|
|
|
(1)
|
|
|
(2)
|
|
|
—
|
TOTAL
CONSOLIDATED
|
|
(2.1)
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
(4)
|
|
|
2
|
|
|
(a)
|
Mix/Other
includes rounding.
|
(b)
|
Combined impact of
changes in volume, net price and mix/other.
|
|
|
N.M. - Not
Meaningful
|
|
Unaudited
|
[KMB-F]
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/kimberly-clark-announces-year-end-2016-results-and-2017-outlook-300395200.html
SOURCE Kimberly-Clark Corporation