Kimberly-Clark Corporation reported second quarter 2014 results and narrowed its guidance for full-year 2014 adjusted earnings per share.    

 

Executive Summary

Second quarter 2014 net sales of $5.3 billion increased 1 percent compared to the year-ago period. Organic sales rose 5 percent, including a 10 percent increase in K-C International. Organic sales exclude the impact of changes in foreign currency exchange rates and lower sales as a result of European strategic changes and pulp and tissue restructuring actions.

 

Diluted net income per share for the second quarter was $1.35 in 2014 and $1.36 in 2013. Second quarter adjusted earnings per share were $1.49 in 2014 compared to $1.41 in the year-ago period. Performance benefited from organic sales growth, cost savings and a lower share count, while comparisons were negatively impacted by input cost inflation, unfavorable foreign currency exchange rates and lower net income from equity companies. Adjusted earnings per share in both years exclude certain items described later in this press release.

 

Cash provided by operations in the second quarter of 2014 was $842 million, up 46 percent compared to the prior year.

 

Full-year adjusted earnings per share in 2014 are anticipated to be $6.00 to $6.15 compared to the company's previous guidance range of $6.00 to $6.20.

 

Chairman and Chief Executive Officer Thomas J. Falk said, "We delivered mid-single digit growth in organic sales and adjusted earnings per share in the second quarter.  We also made further progress with targeted growth initiatives, launched product innovations and supported our brands with increased advertising spending.  

 

“We generated significant cost savings and cash flow and allocated capital in shareholder-friendly ways, with share repurchases and dividends totaling $0.8 billion.  Half way through the year, we are essentially on track with our overall plans.  And while our narrower earnings guidance takes into account a slightly more difficult environment, we continue to be optimistic about our prospects to generate attractive shareholder returns."  

 

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