Kimberly-Clark Records Small Sales Gain Amid More Competition
January 24 2017 - 08:35AM
Dow Jones News
By Joshua Jamerson
Kimberly-Clark Corp. reported organic sales growth for the
latest quarter as the maker of Kleenex tissues and Huggies diapers,
facing increased competition, eked out a small gain in net
sales.
Chairman and Chief Executive Thomas Falk said the company
expects to operate in a continued difficult environment in 2017,
adding that Kimberly-Clark will have to "invest in innovation,
marketing and targeted growth initiatives to keep our brands strong
and help us compete effectively." Mr. Falk said that the company
confronted a challenging competitive environment in 2016 but that
its market share positions remained broadly healthy.
The Dallas company reported organic sales increased 1%,
including 3% growth in developing and emerging markets. Foreign
currency headwinds dented sales by 1%
Over all for the quarter, Kimberly-Clark reported a profit of
$505 million, or $1.40 a share, up from $333 million, or 91 cents a
share, a year earlier.
The comparison benefited from cost savings and a charge in 2015
related to deconsolidating the company's Venezuelan business at the
end of that year. Excluding certain items, earnings were $1.45 a
share, up from $1.42 in the prior-year period.
Revenue edged up 0.1% to $4.54 billion. Analysts polled by
Thomson Reuters forecast earnings of $1.42 a share on $4.55 billion
in revenue.
For 2017, Kimberly-Clark projects earnings per share in a range
of $6.20 to $6.35; analysts expect $6.28. Kimberly-Clark expects
net sales in 2017 similar to the $18.2 billion reported for 2016;
analysts expected 2% annual growth.
The company also said Tuesday that it plans to raise its
quarterly dividend to 97 cents a share from 92 cents. The dividend
will be payable April 4 to shareholders of record March 10.
Kimberly-Clark shares, which have risen 2.7% in the past three
months but are still 7.7% lower than a year ago, were inactive in
premarket trading.
Write to Joshua Jamerson at joshua.jamerson@wsj.com
(END) Dow Jones Newswires
January 24, 2017 08:20 ET (13:20 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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