Kimberly-Clark records $4.6 billion sales in Q2 2017

Diluted net income per share for the second quarter was $1.49 in 2017 while it was $1.56 in the same period of previous year. Results were impacted by lower sales and input cost inflation, while the comparison benefited from cost savings. For the first six months of 2017, sales of $9.0 billion decreased slightly compared to the year-ago period.

Organic sales fell 2 per cent in North American consumer products, reflecting category softness, less promotion shipments and competitive activity. Outside North America, organic sales declined 3 per cent in developed markets and rose 2 per cent in developing and emerging markets.

The company's second quarter operating profit was $799 million in 2017 and $838 million in 2016. The year-over-year comparison was impacted by lower sales and $75 million of higher input costs, driven by increases in pulp and other raw materials.

"Our second quarter results reflect a challenging environment. Nonetheless, we continue to manage our company with financial discipline, as we achieved $120 million of cost savings, improved working capital and returned more than $600 million to shareholders through dividends and share repurchases. We are focused on competing effectively in the near-term while we continue to execute our global business plan strategies for long-term success," chairman and chief executive officer Thomas J Falk said.

For the financial year 2017, net sales and organic sales are expected to be similar, or up slightly, year-on-year (prior assumption up 1 to 2 per cent). (RR)

Fibre2Fashion News Desk – India