Jan 28, 2014. /Lesprom Network/. Kimberly-Clark Corporation reported year-end 2013 results and provided its 2014 outlook and related key planning assumptions. Sales of $5.3 billion in the 4Q 2013 were even with the year-ago period. Organic sales rose 5%, with increased sales volumes of 4% and higher net selling prices of 1%. Lost sales in conjunction with European strategic changes and pulp and tissue restructuring actions reduced sales by 3% and foreign currency exchange rates were unfavorable by 2%, as the company said in the press release received by Lesprom Network.

Operating profit was $822 million in the 4Q 2013 versus $449 million in 2012. Adjusted operating profit was $836 million in the 4Q 2013, up 5% compared to $798 million in the year-ago period. Adjusted results exclude restructuring costs for European strategic changes of $14 million in 2013 and $299 million in 2012. Adjusted results in 2012 also exclude $50 million of costs for pulp and tissue restructuring actions.

The increase in year-over-year adjusted operating profit included benefits from organic sales growth and $75 million in cost savings from the company's FORCE (Focused On Reducing Costs Everywhere) program. Input costs increased $85 million overall, with $45 million of increased costs for raw materials other than fiber, $35 million of higher fiber costs, and $5 million of higher distribution costs. Foreign currency translation effects, as a result of the weakening of several currencies relative to the U.S. dollar, reduced operating profit by $25 million. Currency transaction effects also negatively impacted the operating profit comparison.

The 4Q effective tax rate was 32.4% in 2013 compared to 38.5% in 2012. The 4Q adjusted effective tax rate, which does not include the effects of the previously mentioned items excluded from adjusted earnings per share calculations, was 31.8% in 2013 and 30.6% in 2012. The full-year adjusted effective tax rate in 2013 was 31.2%, in line with the company's expectation for an adjusted rate between 30% and 32%.

Chairman and CEO Thomas J. Falk said, "Our 4Q results capped off another year of excellent performance for Kimberly-Clark. For the full year of 2013, we delivered organic sales growth of 4%, with 9% growth in K-C International and benefits from product innovations around the world. We improved adjusted operating profit margin by 90 basis points, aided by $310 million of cost savings from our ongoing FORCE program. We grew adjusted earnings per share by 10%, well above our original plan for the year and slightly higher than the top-end of our long-range target. Finally, we generated strong cash flow and returned $2.4 billion to shareholders through dividends and share repurchases. Overall, we had a very good year of financial performance and I'm encouraged by the progress we made in 2013."

Falk added, "The strength of our results this past year gives us added confidence that we will continue to execute our Global Business Plan well going forward. In 2014, we will pursue targeted growth initiatives, launch innovations and support our growth opportunities with increased advertising and research spending. We expect to achieve a healthy level of cost savings, which should help fund brand investments and improve margins. We will also focus on cash generation and allocate capital in shareholder-friendly ways. And while we expect significant currency headwinds and higher commodity costs this year, we plan to deliver solid bottom-line growth. We remain optimistic about our prospects to drive profitable growth and generate attractive returns to shareholders."

Sales of $21.2 billion in 2013 were essentially even with the prior year. Organic sales rose 4%, with higher sales volumes of 3% and increased net selling prices of 1%. Changes in foreign currency rates, and lost sales in conjunction with European strategic changes and pulp and tissue restructuring actions, each reduced sales by approximately 2%.

Operating profit of $3,208 million in 2013 increased 19% compared to $2,686 million in 2012. Adjusted operating profit was $3,325 million in 2013, up 7% versus $3,120 million in 2012. Adjusted operating profit comparisons benefited from organic sales growth and FORCE cost savings of $310 million. On the other hand, input costs were $205 million higher overall versus 2012. Foreign currency translation effects reduced operating profit by $70 million. Currency transaction effects also negatively impacted the operating profit comparison.

Diluted net income per share was $5.53 in 2013 and $4.42 in 2012. Adjusted earnings per share were $5.77 in 2013, up 10% compared to $5.25 in 2012. The increase in adjusted earnings per share was primarily due to higher adjusted operating profit, along with increased equity income and a lower share count.

Kimberly-Clark Corporation is an American personal care corporation that produces mostly paper-based consumer products.