Mexico's Kimber profit up despite weak revenue
Jan 25, 2008. Mexican paper product company Kimberly-Clark de Mexico (Kimber) posted an 8.7% rise in fourth-quarter net profit despite weaker sales and operating profits, informed Reuters.
Jan 25, 2008. /Lesprom Network/. Mexican paper product company Kimberly-Clark de Mexico (Kimber) posted an 8.7% rise in fourth-quarter net profit despite weaker sales and operating profits, informed Reuters.
Kimber said it had a net profit of 1.027 billion pesos ($94 million) in the quarter ended in December. Full-year 2007 profit came in at 3.728 billion pesos ($341 million), just 1.7% higher than the previous year.
"The 4Q 2007 can best be described as a poor quarter. The company experienced an important demand decrease by wholesalers, who decided to reduce their inventories in anticipation of the effects of a new tax," Kimber said.
As part of a tax overhaul approved in September, Mexican companies will be charged higher for inventories starting this year.
Kimber's operating profit fell by 15% in the October-December period, and earnings before interest, tax, depreciation and amortization (EBITDA), a key performance gauge, dropped 13%.