Kimberly-Clark 1Q Profits, Sales Rise On Overseas Gains

on April 20 2012 4:26 PM
Kleenex
Kimberly-Clark Corp. saw increase in revenue and profits, as the maker of tissue and diaper-maker a boost in overseas sales and shrinking costs overcame a tough domestic market. Wikicommons

Kimberly-Clark Corp. (NYSE: KMB), which makes Scott brand tissues, reported on Friday an increase in revenue and profits in its first quarter as cost-cutting and a boost in overseas sales made up for slow growth in the domestic market.

The Dallas, Texas, company's net income rose 30.9 percent in the quarter ended March 31, to $487 million, or $1.18 per share, from $372 million, or 86 cents per share, in the same quarter last year.

The results fell short of analysts' estimates of $492 million in net income, or $1.24 per share, according to Reuters consensus figures.

Operating income was $700 million, up 29 percent from $544 million in 2011. Excluding one-time charges, operating income was $735 million.

Net sales rose 4.2 percent, to $5.24 billion from $5.03 billion in the year-earlier period. U.S. sales rose 1 percent.

The company doubled-down on trimming operations, shedding $60 million in costs. Sales in Europe were better than expected, increasing 4 percent.

Low birth rates in the developed world put a damper on sales of Huggies diapers.

Kimberly-Clark maintained its earnings forecast of $5 to $5.15 a share for 2012, excluding restructuring costs.

The company's shares were up $1.21 to $76.48 in late afternoon trading.