Kimberly-Clark net income slides 32.2% in Q4 2012

Consumer products company Kimberly Clark has reported a 32.2% decrease in net income to $286m for the fourth quarter ended 31 December 2012, down from $422m during the same quarter in 2011.

The firm posted net sales of $5.3bn for the present quarter, an increase of 2.5% as against $5.17bn in the corresponding period of the previous year.

Kimberly Clark’s operating profit for the fourth quarter has declined by 26.5% to $449m, compared to $611m in fourth quarter of 2011.

The company’s organic sales grew 5%, with higher net selling prices of more than 2% and increased sales volumes of 3%.

The firm’s personal care segment sales increased by 8% to $2.4bn, which was primarily driven by organic sales growth, cost savings and input cost deflation, negated to some extent by increased marketing, research and general expenses.

Kimberly Clark’s chairman and chief executive officer Thomas Falk said the firm for the full year of 2012 delivered organic sales growth of 5%, which was gained by 10% growth in K-C International.

"We launched a number of product innovations and increased strategic marketing spending by $115 million and research and development spending at a double-digit rate. We improved adjusted gross margin by 230 basis points and adjusted operating profit margin by 90 basis points, aided by $335 million of cost savings from our ongoing FORCE program and restructuring actions." Falk added.

US-based Kimberly Clark is a paper-based consumer products company, which operates in Personal Care, Consumer Tissue, Health Care and Professional care segments.

The firm’s brands include Kleenex facial tissue, Kotex feminine hygiene products, Cottonelle, Scott and Andrex toilet paper, Wypall utility wipes, KimWipes scientific cleaning wipes, and Huggies disposable diapers.