Organic sales rose 3%, with increased sales volumes of 2% and higher net selling prices of 1%. Foreign currency exchange rates were unfavorable by 1% and lost sales in conjunction with European strategic changes and pulp and tissue restructuring actions reduced sales by 1%.
Operating profit was $783 million in the 1Q 2013, up 12% from $700 million in 2012. Adjusted operating profit was $850 million in the 1Q 2013, up 16% compared to $735 million in the year-ago period.
Adjusted results in 2013 exclude a $36 million charge for the remeasurement of the local currency-denominated balance sheet due to the February 2013 devaluation of the Venezuelan bolivar and $31 million of restructuring costs for European strategic changes. Adjusted results in 2012 exclude $35 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 $85 million in cost savings from the company's FORCE (Focused On Reducing Costs Everywhere) program. Input costs were $35 million higher overall versus 2012, with $15 million of higher fiber costs, a $10 million increase for other raw materials and $10 million of higher distribution costs.
Overall marketing, research and general expenses increased versus the year-ago period, driven by higher administrative costs, while strategic marketing was down slightly compared to a high level of spending in the year-ago period.
Other (income) and expense, net was $12 million of expense in the 1Q 2013 and $8 million of expense in the prior year. Current period results were negatively impacted by the previously-mentioned balance sheet remeasurement charge due to the February 2013 devaluation of the Venezuelan bolivar, partially offset by a gain on the sale of some non-core assets.
Adjusted earnings per share for 2013 are expected to be $5.60 to $5.75, up 7% to 10% compared to adjusted earnings per share of $5.25 in 2012. The previous target for 2013 adjusted earnings per share was $5.50 to $5.65 per share.
Chairman and CEO Thomas J. Falk said, "We are off to an excellent start to the year. We achieved solid organic sales growth compared to a strong year-ago result, including benefits from targeted growth initiatives and product innovations. We improved adjusted gross margin by 140 basis points and adjusted operating profit margin by 200 basis points. We delivered all-time record adjusted earnings per share, reflecting continued momentum in K-C International, $85 million of cost savings from our ongoing FORCE program and above-plan volume growth in North American consumer tissue. Finally, we improved cash flow and returned $0.8 billion to shareholders through dividends and share repurchases. As a result of our strong 1Q performance, we are raising our full-year outlook for adjusted earnings per share while we continue to invest for long-term success. We are optimistic about our plans and believe that execution of our Global Business Plan strategies will generate attractive returns to shareholders."
Kimberly-Clark is an American corporation that produces mostly paper-based consumer products.