Kimberly-Clark (NYSE:KMB) reported first-quarter results on April 22. The maker of Huggies diapers and Kleenex tissues saw its revenue dented by negative foreign exchange movements, but management remains confident that the consumer-products giant can hit its full-year profit forecast.

Kimberly-Clark results: The raw numbers


Q1 2016

Q1 2015

Growth (YOY)


$4.476 billion

$4.691 billion


Net income

$545 million

$468 million


Earnings per share




Source: Kimberly-Clark Q1 2016 earnings press release.

What happened with Kimberly-Clark this quarter?

  • Sales fell 5% to $4.5 billion, as a 7% negative impact from foreign exchange fluctuations more than offset organic sales growth of 2%. The sales weakness was across the board, with Kimberly-Clark's personal care, consumer tissue, and K-C Professional business segments reporting revenue declines of 4%, 5%, and 4%, respectively. 
  • Adjusted operating profit -- which excludes restructuring costs, pension settlement charges, and other nonrecurring items -- rose less than 1% to $818 million, as cost savings related to Kimberly-Clark's FORCE (Focused On Reducing Costs Everywhere) program and lower raw material costs boosted results.
  • Adjusted net income, which benefited from a lower effective tax rate, increased 5.9% to $555 million. And adjusted earnings per share, aided by share buybacks, rose 7.7% to $1.53.

What management had to say
"In the first quarter, organic sales grew more than 2 percent and our adjusted operating profit margin improved by 90 basis points," said Chairman and CEO Thomas Falk in a press release. "We achieved $110 million of total cost savings from our FORCE program and 2014 Organization Restructuring and continued to allocate capital in shareholder-friendly ways."

Looking forward
Kimberly-Clark reiterated its revenue forecast for 2016, including organic sales growth of 3% to 5%, which is likely to be offset by a 5% to 6% negative impact from foreign exchange. In addition, management still expects the company's full-year adjusted earnings per share to be in the range of $5.95 to $6.15. 

"We continue to execute our Global Business Plan strategies for long-term success and we are confirming our previous top- and bottom-line outlook for 2016," added Falk. "In summary, we expect to deliver on our commitments again this year."

Joe Tenebruso has no position in any stocks mentioned. The Motley Fool recommends Kimberly-Clark. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.