Jan 24, 2012. /Lesprom Network/. Kimberly-Clark Corporation reported 4Q and year-end 2011 results. 4Q sales of $5.2 billion increased 2% compared with the 4Q 2010. Organic sales rose 3%, driven by higher net selling prices of 2% and increased sales volumes of 1%. Changes in foreign currency rates had no overall impact on sales, while the combined impact of a 3Q 2011 divestiture in Latin America and lost sales from exiting non-strategic products in conjunction with pulp and tissue restructuring actions reduced sales volumes by approximately 1%. Volumes benefited from product innovations and targeted growth initiatives, but were negatively impacted by soft demand in portions of North America and strategies to increase net realized revenue. Operating profit was $611 million in the 4Q 2011, down 13% from $699 million in 2010. Excluding $148 million of pulp and tissue restructuring costs, adjusted operating profit was $759 million in the 4Q 2011, up 9% compared to operating profit in the prior year. The improvement was driven by sales growth and $70 million in cost savings from the company's FORCE (Focused On Reducing Costs Everywhere) program. Inflation in key cost inputs was approximately $55 million overall versus 2010. That included increases of $75 million for raw materials other than fiber, primarily polymer resin and other oil-based materials, $15 million in distribution costs and $5 million for energy, partially offset by $40 million of lower fiber costs. Lower production volumes in 2011 to manage inventory levels adversely affected operating profit comparisons by $30 million. Other (income) and expense, net was $24 million of income in the fourth quarter of 2011, driven by a gain on the sale of a small venture investment in a health care start-up company. Prior year other (income) and expense, net was $8 million of income, primarily due to foreign currency transaction gains. Full-year 2011 sales of $20.8 billion increased 6%, including a favorable currency benefit of 3%. Organic sales rose 3%, driven by higher net selling prices of 2% and increased sales volumes of 1%. Full year operating profit of $2,442 million declined 12% compared to $2,773 million in 2010. Adjusted operating profit in 2011 of $2,889 million increased 1% compared to $2,871 million in 2010. Adjusted operating profit comparisons benefited from sales growth, FORCE cost savings of $265 million and improved other (income) and expense, net. On the other hand, comparisons were negatively impacted by inflation in key cost inputs of $580 million and the negative effect of lower production volumes to manage inventory levels. Chairman and CEO Thomas J. Falk said, "We delivered solid improvements in organic sales, adjusted operating profit margin and adjusted earnings per share in the 4Q despite a continued challenging environment. Reflecting on the full year, bottom-line results were somewhat below our original goal for the year, mostly due to higher-than-expected cost inflation and soft demand in portions of the developed markets. Nonetheless, we introduced successful product innovations, executed targeted growth initiatives and improved our market position in several businesses. In addition, we delivered benefits from revenue realization strategies and cost saving programs, made progress with pulp and tissue restructuring actions and allocated approximately $2.3 billion to dividends and share repurchases. I am optimistic that we will build further on these accomplishments going forward." Falk added, "Looking ahead to 2012, we expect economic conditions to remain difficult in the near term, particularly in developed markets. And while we expect a much more benign commodity cost environment, foreign currency exchange rates remain volatile and should be a headwind this year. Nonetheless, we plan to deliver improved growth in adjusted earnings per share in 2012 compared to our 2011 performance while we further improve our company for the long term. We will bring a healthy pipeline of innovation to market, invest behind our brands and growth initiatives and continue to achieve strong levels of cost savings. We will also continue to allocate capital in shareholder-friendly ways, with plans for at least $2 billion of dividends and share repurchases. All-in-all, we remain focused on executing our Global Business Plan in order to improve shareholder value."