Kimberly-Clark Corp said higher costs for materials and other factors will weigh on profit this year as it posted lower first-quarter earnings.
The company, known for Kleenex tissues and Huggies diapers, earned $384 million, or 92 cents per share, in the first quarter, after earning $407 million, or 98 cents per share, a year earlier.
Sales rose 7.6 percent to $4.84 billion.
Kimberly-Clark previously expected to pay $300 million to $400 million more for pulp, oil-based materials and other raw materials this year and now sees such costs up $600 million to $700 million.
In March, it expected to earn $4.80 to $5.00 per share in 2010 with sales up 5 percent to 6 percent as it ramps up marketing spending behind new products such as U by Kotex tampons and Kleenex hand towels in the United States.
Now, earnings are more likely to come in toward the low end of that range with sales up 4 percent to 6 percent, it said.
(Reporting by Jessica Wohl; Editing by Derek Caney)