Kimberly-Clark net income surges by 17.2% in Q3 2012

Consumer products company Kimberly Clark has reported a 17.2% rise in net income to $537m for the third quarter 2012, compared to $458m for the same quarter in 2011.

The firm posted net sales of $5.2bn for the present quarter, a decrease of 3% as against $5.38bn in the corresponding period for the previous year.

Kimberly Clark’s operating profit for the second quarter has increased by 18.3% to $783m, compared to $662m in third quarter of 2011.

The company’s organic sales grew 3%, with higher net selling prices of more than 2%, increased sales volumes of 1% and slightly favourable product mix.

The firm’s personal care segment sales increased by 1% to $2.4bn, which was primarily driven by organic sales growth, cost savings and input cost deflation, partially offset by increased marketing, research and general expenses.

Kimberly Clark’s chairman and chief executive officer Thomas Falk said the firm achieved 3% organic sales growth, led by its performance in K-C International. It also strengthened its brands by launching innovations and increasing strategic marketing spending by $25m.

"The strategic changes we will be making in Europe should allow us to better focus on our best market positions and growth opportunities, improve our underlying profitability and enable more sustainable returns going forward in this part of the world. These moves are further evidence of the portfolio management approach we use to run our company and the financial discipline embedded in our Global Business Plan," Falk added.

US-based Kimberly Clark is a paper-based consumer products company, whose portfolio includes Kleenex facial tissue, Kotex feminine hygiene products, Cottonelle, Scott and Andrex toilet paper, Wypall utility wipes, KimWipes scientific cleaning wipes, and Huggies disposable diapers.