Kimberly-Clark reports 3Q operating profit of $662 million
Oct 24, 2011. Kimberly-Clark Corporation reported 3Q 2011 results and updated its full-year 2011 key planning assumptions. Operating profit was $662 million in the 3Q 2011, down 5% from $698 million in 2010.
Oct 24, 2011. /Lesprom Network/. Kimberly-Clark Corporation reported 3Q 2011 results and updated its full-year 2011 key planning assumptions. Total company sales of $5.4 billion increased 8% compared with the 3Q 2010. Organic sales rose 4%, driven by higher net selling prices of 3% and slightly improved product mix and sales volumes, as the company said in a press release received by Lesprom Network.
Volumes benefited from product innovations and targeted growth initiatives, but were negatively impacted by softer-than-expected demand in portions of North America and Europe. Changes in foreign currency exchange rates increased sales by 4%.
Operating profit was $662 million in the 3Q 2011, down 5% from $698 million in 2010. Adjusted operating profit was $757 million in the 3Q 2011. Adjusted results in the 3Q 2011 exclude $95 million of costs for the pulp and tissue restructuring. Results benefited from sales growth and $90 million in cost savings from the company's FORCE (Focused On Reducing Costs Everywhere) program. Meanwhile, inflation in key cost inputs amounted to approximately $150 million overall versus 2010, including $110 million for raw materials other than fiber, primarily polymer resin and other oil-based materials, $20 million for energy, $15 million in distribution costs and $5 million in fiber costs.
Lower production volumes in 2011 to manage inventory levels adversely affected operating profit comparisons by $30 million. Marketing, research and general expenses in the 3Q 2011 increased somewhat compared to 2010, but fell as a percent of net sales, reflecting the company's focus on reducing overhead spending, along with significant year-ago marketing spending.
Chairman and CEO Thomas J. Falk said, "While we are not on track with all of our goals this year, I'm encouraged that execution of our Global Business Plan strategies enabled us to deliver four percent growth in organic sales and double-digit growth in adjusted earnings per share in the 3Q. Our focus on targeted growth initiatives, revenue realization and cost reduction allowed us to overcome significant input cost inflation and softer-than-expected demand in portions of the developed markets. Our market positions remain solid overall and our innovation and marketing programs are on track. We also continue to generate strong cash flow."
Kimberly-Clark is an American corporation that produces mostly paper-based consumer products.