Kimberly-Clark reported 1Q operating profit of $700 million
Apr 20, 2012. Kimberly-Clark Corporation reported 1Q 2012 results and reconfirmed its previous guidance for full-year 2012 adjusted earnings per share. Operating profit was $700 million in the 1Q 2012, up 29% from $544 million in 2011.
Apr 20, 2012. /Lesprom Network/. Kimberly-Clark Corporation reported 1Q 2012 results and reconfirmed its previous guidance for full-year 2012 adjusted earnings per share.
Chairman and CEO Thomas J. Falk said, "We are off to a very good start to the year. We achieved mid-single digit organic sales growth, led by outstanding performance in K-C International. We also generated a 250 basis point improvement in adjusted gross margin and delivered double-digit growth in adjusted earnings per share. In addition, we launched a number of innovations in the quarter and supported our brands with a $45 million increase in strategic marketing. Finally, we delivered a healthy level of cost savings, improved cash flow and continued to allocate capital in shareholder-friendly ways. All-in-all, I'm encouraged by our progress in the first quarter."
Falk added, "Looking ahead, we expect to build on our first quarter achievements as we execute our Global Business Plan strategies. We will leverage the innovation we've already introduced and will bring more to market going forward. We will continue to increase strategic marketing faster than sales and pursue our targeted growth initiatives, with a special focus on K-C International. And while most input costs are expected to rise sequentially from current levels, we will continue to generate cost savings through our ongoing FORCE program and our restructuring efforts. Overall, our 1Q performance and our plans going forward have us well-positioned to deliver on our targets for the year and generate strong returns to shareholders."
Sales of $5.2 billion increased 4% compared with the 1Q 2011. Organic sales rose 6%, with higher net selling prices of 3%, increased sales volumes of 2% and favorable product mix of 1%. Changes in foreign currency rates decreased sales by 1% and lost sales from exiting non-strategic products in conjunction with pulp and tissue restructuring actions reduced sales volumes by an additional 1%.
Operating profit was $700 million in the 1Q 2012, up 29% from $544 million in 2011. Adjusted operating profit was $735 million in the 1Q 2012, a 12% increase compared to $658 million in the year-ago period. Adjusted results in 2012 exclude $35 million of costs for pulp and tissue restructuring actions, while adjusted results in 2011 exclude $82 million of costs for pulp and tissue restructuring and a $32 million non-deductible charge due to a legislative change in the assessment of a business tax in Colombia.
Kimberly-Clark is an American corporation that produces mostly paper-based consumer products.