Please ensure Javascript is enabled for purposes of website accessibility

Kimberly-Clark Reports First-Quarter Earnings

By Rich Duprey - Apr 19, 2013 at 12:19PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Adjusted EPS comes in at a record for the quarter as effect of European restructuring charges are felt.

Consumer products manufacturer Kimberly-Clark (KMB 0.77%) reported first-quarter earnings today that came in $0.02 short of consensus estimates while generally meeting top-line expectations.

Kimberly-Clark recorded revenues of $5.32 billion in the quarter that ended March 31, a 1.5% increase over last year's $5.24 billion, and pretty much in line with Wall Street's estimates of $5.36 billion. On the bottom line, the company generated $531 million, or $1.36 per share, up 15% from the year-ago figure but just shy of the $1.38-per-share estimate on a GAAP basis.

On an adjusted basis, however, excluding charges for costs related to its pulp and tissue restructuring actions, earnings per share were $1.48, a first-quarter record. Last year the company undertook changes to its consumer and professional businesses in western and central Europe where it will exit the diaper business while divesting or exiting some lower-margin businesses, mostly in the consumer tissue market. Italy's diaper business will remain unaffected.

Kimberly-Clark chairman and CEO Thomas J. Falk believes the consumer products company is off to a good start for the year, and noted, "As a result of our strong first quarter performance, we are raising our full-year outlook for adjusted earnings per share while we continue to invest for long-term success.  We are optimistic about our plans and believe that execution of our global business plan strategies will generate attractive returns to shareholders."

Kimberly-Clark now anticipates adjusted earnings for 2013 to be $5.60 to $5.75 per share, up 7% to 10% compared to adjusted earnings per share of $5.25 in 2012. It previously targeted adjusted per-share earnings of $5.50 to $5.65 for 2013.

In the first quarter, personal care segment sales rose 1% and were up 3% organically, while consumer tissue sales were up 4%. Both segments rose as a result of rising volumes and improved pricing, offset in part by the European changes noted above. Its K-C professional segment saw sales fall both here and abroad, and the health care division suffered a 2% decline in sales as higher manufacturing costs and increased expenses pushed the business lower.

link

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Kimberly-Clark Corporation Stock Quote
Kimberly-Clark Corporation
KMB
$133.43 (0.77%) $1.02

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
356%
 
S&P 500 Returns
124%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/28/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.