Kimberly-Clark’s profit rises 33.7% for first quarter of 2012

Personal care company Kimberly-Clark’s profit rose by 33.7% in the first quarter of 2012 to $468m as against $350m in the same period a year ago, owing to increased net selling prices and sales volumes.

The firm’s sales for the quarter increased by 4.2% to 5.24bn, up from 5.029bn during the corresponding period of the previous year.
Kimberly-Clark’s chairman and CEO Thomas J. Falk said the firm achieved mid-single digit organic sales growth, led by outstanding performance in K-C International.

He added that they also generated a 250 basis point improvement in adjusted gross margin and delivered double-digit growth in adjusted earnings per share.

"Overall, our first quarter performance and our plans going forward have us well-positioned to deliver on our targets for the year and generate strong returns to shareholders," said Falk.

While the sales of personal care, K-C Professional and health care segment rose by 8%, 4% and 4%, respectively, the sales of its consumer tissue business decreased by 1%.

In January, this year, the company restructured its pulp and tissue segment in order to exit its remaining integrated pulp manufacturing operations.

This was taken up by the company to improve its basic profitability and return on invested capital of its consumer tissue and K-C Professional segments, the company said.

Going forward, the company expects that the impact of changes in key commodity cost inputs will range from $50m of deflation to $50m of inflation.

Kimberly-Clark’s products reach customers in more than 150 countries. Their major brands include Kleenex tissues, Huggies diapers, Scott, Pull-Ups, Kotex and Depend.