DALLAS, July 25, 2017 /PRNewswire/ -- Kimberly-Clark
Corporation (NYSE: KMB) today reported second quarter 2017 results
and updated some of its key planning and guidance assumptions for
full-year 2017.
Executive Summary
- Second quarter 2017 net sales of $4.6
billion decreased 1 percent compared to the year-ago period,
as organic sales were down 1 percent. Organic sales fell 2 percent
in North American consumer products, reflecting category softness,
less promotion shipments and competitive activity. Outside
North America, organic sales
declined 3 percent in developed markets and rose 2 percent in
developing and emerging markets.
- Diluted net income per share for the second quarter was
$1.49 in 2017 and $1.56 in 2016. Results were impacted by lower
sales and input cost inflation, while the comparison benefited from
cost savings. Second quarter adjusted earnings per share were
$1.53 in 2016, which excludes items
described later in this release.
- Full-year 2017 net sales and organic sales are expected to be
similar, or up slightly, year-on-year. The company's previous
estimate was for sales and organic sales to be up 1 to 2
percent.
- The company anticipates full-year 2017 earnings per share will
be at the low end of its target range of $6.20 to $6.35.
Chairman and Chief Executive Officer Thomas J. Falk said, "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."
Second Quarter 2017 Operating Results
Sales of $4.6 billion in the
second quarter of 2017 were down 1 percent compared to the year-ago
period. Changes in foreign currency exchange rates had no overall
effect on sales. Organic sales were down 1 percent due to lower net
selling prices.
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. Results in
2017 included $120 million of cost
savings from the company's FORCE (Focused On Reducing Costs
Everywhere) program.
The second quarter effective tax rate was 28.2 percent in 2017
and 28.6 percent in 2016. The rate in both periods benefited from
the resolution of certain tax matters. The rate in 2017 also
benefited from the adoption of Accounting Standards Update No.
2016-09, which relates to accounting for employee share-based
compensation. The company expects that the full-year 2017 effective
tax rate will be similar to, or slightly lower than, 2016's
adjusted effective tax rate of 30.7 percent.
Kimberly-Clark's share of net income of equity companies in the
second quarter was $26 million in
2017 and $35 million in 2016. At
Kimberly-Clark de Mexico, results
were impacted by a weaker Mexican peso and higher input costs,
partially offset by benefits from organic sales growth and cost
savings.
Cash Flow and Balance Sheet
Second quarter cash provided by operations was $825 million in 2017 and $860 million in
2016. The comparison was impacted by higher tax payments and lower
earnings, while working capital improved. Capital spending for the
second quarter was $171 million in 2017 and $177 million
in 2016. Full-year spending in 2017 is anticipated to be in the
lower half of the company's target range of $850 to $950 million.
Second quarter 2017 share repurchases were 2.3 million shares at
a cost of $300 million. Total debt
was $8.0 billion at June 30, 2017 and $7.6
billion at the end of 2016.
Second Quarter 2017 Business Segment Results
Personal Care Segment
Second quarter sales of $2.3
billion were down slightly. Net selling prices fell 1
percent, while product mix improved about 1 percent. Second quarter
operating profit of $467 million
increased 3 percent. The comparison benefited from cost savings,
partially offset by lower net selling prices and input cost
inflation.
Sales in North America
decreased 1 percent. Volumes were down 1 percent compared to 8
percent growth in the base period that included benefits from
innovations and promotion activity. Volumes in 2017 were also
impacted by competitive activity. Total volumes in infant and child
care were off mid-single digits due to lower Huggies diaper
volumes. Baby wipes volumes increased mid-single digits and adult
care volumes rose low-single digits.
Sales in developing and emerging markets increased 3 percent
including a 1 point benefit from favorable currency rates. Volumes
increased 4 percent and product mix improved 1 percent, while net
selling prices were down about 2 percent. The volume increase
included gains in China,
Eastern Europe and Latin America. The decline in net selling
prices was mostly in China and
Eastern Europe.
Sales in developed markets outside North America (Australia, South
Korea and Western/Central
Europe) decreased 7 percent. Volumes fell 5 percent and
net selling prices were down 3 percent, while product mix improved
approximately 2 percent. The changes mostly occurred in
South Korea.
Consumer Tissue Segment
Second quarter sales of $1.5 billion decreased 2 percent. Volumes
and net selling prices each fell 1 percent. Second quarter
operating profit of $241 million decreased 12 percent. The
comparison was impacted by lower sales, input cost inflation and
other manufacturing cost increases, partially offset by cost
savings and lower marketing, research and general spending.
Sales in North America
decreased 4 percent. Volumes were down approximately 4 percent
compared to 6 percent growth in the year-ago period, while net
selling prices rose slightly. The volume decline included impacts
from lower promotion shipments and competitive activity.
Sales in developing and emerging markets increased 6 percent
including a 4 point benefit from favorable currency rates. Volumes
increased 8 percent, while net selling prices fell 5 percent and
product mix was off 1 percent. The changes mostly occurred in
Latin America.
Sales in developed markets outside North America decreased 5 percent including a
4 point impact from unfavorable currency rates. Volumes fell 2
percent, as declines in Western/Central
Europe were mostly offset by increases in South Korea. Overall product mix improved 1
percent.
K-C Professional (KCP) Segment
Second quarter sales of $0.8
billion increased slightly. Volumes increased about 1
percent and product mix improved slightly, while net selling prices
were off 1 percent and currency rates were slightly unfavorable.
Second quarter operating profit of $163 million increased
9 percent. The comparison benefited from cost savings, lower
manufacturing costs and reduced marketing, research and general
spending, partially offset by input cost inflation.
Sales in North America
increased 1 percent. Volumes increased 1 percent driven by growth
in wipers and safety products.
Sales in developing and emerging markets increased approximately
4 percent including a 2 point benefit from currency rates.
Volumes increased about 1 percent.
Sales in developed markets outside North America were down 2 percent including a
3 point negative impact from changes in currency rates. Volumes
improved 2 percent, while product mix fell 1 percent.
Year-To-Date Results
For the first six months of 2017, sales of $9.0 billion decreased slightly compared to the
year-ago period. Organic sales were down approximately 1 percent
driven by lower net selling prices. Changes in foreign currency
exchange rates benefited sales slightly.
Year-to-date operating profit was $1,633
million in 2017 versus $1,642
million in 2016. The comparison was impacted by lower sales
and $110 million of higher input
costs. Results in 2017 included $230
million of FORCE cost savings.
Through six months, diluted net income per share was
$3.06 in 2017, even with the year-ago
period. The comparison was impacted by lower operating profit and
reduced net income from equity companies, while results benefited
from declines in the effective tax rate and share count. Adjusted
earnings per share were $3.06 in
2016.
2017 Outlook and Key Planning Assumptions
The company updated the following key planning and guidance
assumptions for full-year 2017:
- Net sales and organic sales expected to be similar, or up
slightly, year-on-year (prior assumption up 1 to 2 percent).
-
- Volumes anticipated to be up slightly, while net selling prices
and product mix, combined, are expected to be down slightly.
- Input cost inflation of $200 to $300
million compared to the previous estimate of $150 to $250 million. The update is driven by
higher assumptions for pulp costs.
- Cost savings of $425 to $450
million from the company's FORCE program. The prior estimate
was for savings of at least $400
million.
- Earnings per share are expected to be at the low end of the
target range of $6.20 to $6.35.
Non-GAAP Financial Measures
This press release and the accompanying tables include the
following financial measures that have not been calculated in
accordance with accounting principles generally accepted in the
U.S., or GAAP, and are therefore referred to as non-GAAP financial
measures:
- Adjusted earnings and earnings per share
- Adjusted gross and operating profit
- Adjusted other (income) and expense, net
- Adjusted effective tax rate
These non-GAAP financial measures exclude the following items
for the relevant time periods as indicated in the accompanying
non-GAAP reconciliations to the comparable GAAP financial
measures:
- 2014 Organization Restructuring. In October 2014, the company initiated a
restructuring program in order to improve organization efficiency
and offset the impact of stranded overhead costs resulting from the
spin-off of the company's health care business. As a result, the
company recognized restructuring charges in 2014, 2015 and
2016.
- Venezuelan operations. In the second quarter of 2016, the
company recorded a modest amount of income related to an updated
assessment of the impact of deconsolidating the company's
Venezuelan business at the end of 2015.
The company provides these non-GAAP financial measures as
supplemental information to our GAAP financial measures. Management
and the company's Board of Directors use adjusted earnings,
adjusted earnings per share and adjusted gross and operating profit
to (a) evaluate the company's historical and prospective financial
performance and its performance relative to its competitors, (b)
allocate resources and (c) measure the operational performance of
the company's business units and their managers. Management also
believes that the use of an adjusted effective tax rate provides
improved insight into the tax effects of our ongoing business
operations.
Additionally, the Management Development and Compensation
Committee of the company's Board of Directors has used certain of
the non-GAAP financial measures when setting and assessing
achievement of incentive compensation goals. These goals are based,
in part, on the company's adjusted earnings per share and
improvement in the company's adjusted return on invested capital
and adjusted operating profit return on sales determined by
excluding certain of the charges that are used in calculating these
non-GAAP financial measures.
This news release includes information regarding organic sales
growth, which describes the impact of changes in volume, net
selling prices and product mix on net sales. Changes in foreign
currency exchange rates also impact the year-over-year change in
net sales.
Conference Call
A conference call to discuss this news release and other matters
of interest to investors and analysts will be held at 9 a.m. (CDT) today. The conference call will be
simultaneously broadcast over the World Wide Web. Stockholders and
others are invited to listen to the live broadcast or a playback,
which can be accessed by following the instructions set out in the
Investors section of the company's Web site
(www.kimberly-clark.com).
About Kimberly-Clark
Kimberly-Clark and its well-known global brands are an
indispensable part of life for people in more than 175 countries.
Every day, nearly a quarter of the world's population trust K-C
brands and the solutions they provide to enhance their health,
hygiene and well-being. With brands such as Kleenex, Scott,
Huggies, Pull-Ups, Kotex and Depend, Kimberly-Clark holds No. 1 or
No. 2 share positions in 80 countries. To keep up with the latest
K-C news and to learn more about the company's 145-year history of
innovation, visit www.kimberly-clark.com.
Copies of Kimberly-Clark's Annual Report to Stockholders and its
proxy statements and other SEC filings, including Annual Reports on
Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on
Form 8-K, are made available free of charge on the company's Web
site on the same day they are filed with the SEC. To view these
filings, visit the Investors section of the company's Web site.
Certain matters contained in this news release concerning the
outlook, anticipated financial and operating results, raw material,
energy and other input costs, anticipated currency rates and
exchange risks, net income from equity companies, sources and uses
of cash, the effective tax rate, the anticipated cost savings from
the company's FORCE program, growth initiatives, contingencies and
anticipated transactions of the company constitute forward-looking
statements and are based upon management's expectations and beliefs
concerning future events impacting the company. There can be no
assurance that these future events will occur as anticipated or
that the company's results will be as estimated. Forward-looking
statements speak only as of the date they were made, and we
undertake no obligation to publicly update them. For a description
of certain factors that could cause the company's future results to
differ from those expressed in any such forward-looking statements,
see Item 1A of the company's Annual Report on Form 10-K for the
year ended December 31, 2016
entitled "Risk Factors."
KIMBERLY-CLARK
CORPORATION
|
CONSOLIDATED INCOME
STATEMENT
|
(Millions, except per
share amounts)
|
|
|
Three Months
Ended
June 30
|
|
|
|
2017
|
|
2016
|
|
Change
|
Net
Sales
|
$
|
4,554
|
|
|
$
|
4,588
|
|
|
-1
|
%
|
Cost of products
sold
|
2,910
|
|
|
2,924
|
|
|
—
|
|
Gross
Profit
|
1,644
|
|
|
1,664
|
|
|
-1
|
%
|
Marketing, research
and general expenses
|
842
|
|
|
847
|
|
|
-1
|
%
|
Other (income) and
expense, net
|
3
|
|
|
(21)
|
|
|
N.M.
|
|
Operating
Profit
|
799
|
|
|
838
|
|
|
-5
|
%
|
Interest
income
|
2
|
|
|
3
|
|
|
-33
|
%
|
Interest
expense
|
(85)
|
|
|
(81)
|
|
|
+5
|
%
|
Income Before
Income Taxes and Equity Interests
|
716
|
|
|
760
|
|
|
-6
|
%
|
Provision for income
taxes
|
(202)
|
|
|
(217)
|
|
|
-7
|
%
|
Income Before
Equity Interests
|
514
|
|
|
543
|
|
|
-5
|
%
|
Share of net income
of equity companies
|
26
|
|
|
35
|
|
|
-26
|
%
|
Net
Income
|
540
|
|
|
578
|
|
|
-7
|
%
|
Net income
attributable to noncontrolling interests
|
(9)
|
|
|
(12)
|
|
|
-25
|
%
|
Net Income
Attributable to Kimberly-Clark Corporation
|
$
|
531
|
|
|
$
|
566
|
|
|
-6
|
%
|
|
|
|
|
|
|
Per Share
Basis
|
|
|
|
|
|
Net Income
Attributable to Kimberly-Clark Corporation
|
|
|
|
|
|
Basic
|
$
|
1.50
|
|
|
$
|
1.57
|
|
|
-4
|
%
|
Diluted
|
$
|
1.49
|
|
|
$
|
1.56
|
|
|
-4
|
%
|
|
|
|
|
|
|
Cash Dividends
Declared
|
$
|
0.97
|
|
|
$
|
0.92
|
|
|
+5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Shares
Outstanding
|
June
30
|
|
|
|
2017
|
|
2016
|
|
|
Outstanding shares as
of
|
353.4
|
|
|
359.7
|
|
|
|
Average diluted
shares for three months ended
|
356.7
|
|
|
362.4
|
|
|
|
|
|
|
|
|
|
|
N.M. - Not
Meaningful
|
Unaudited
|
KIMBERLY-CLARK
CORPORATION
|
CONSOLIDATED INCOME
STATEMENT
|
(Millions, except per
share amounts)
|
|
|
Six Months
Ended
June 30
|
|
|
|
2017
|
|
2016
|
|
Change
|
Net
Sales
|
$
|
9,037
|
|
|
$
|
9,064
|
|
|
—
|
|
Cost of products
sold
|
5,741
|
|
|
5,761
|
|
|
—
|
|
Gross
Profit
|
3,296
|
|
|
3,303
|
|
|
—
|
|
Marketing, research
and general expenses
|
1,655
|
|
|
1,672
|
|
|
-1
|
%
|
Other (income) and
expense, net
|
8
|
|
|
(11)
|
|
|
N.M.
|
|
Operating
Profit
|
1,633
|
|
|
1,642
|
|
|
-1
|
%
|
Interest
income
|
4
|
|
|
7
|
|
|
-43
|
%
|
Interest
expense
|
(168)
|
|
|
(157)
|
|
|
+7
|
%
|
Income Before
Income Taxes and Equity Interests
|
1,469
|
|
|
1,492
|
|
|
-2
|
%
|
Provision for income
taxes
|
(409)
|
|
|
(424)
|
|
|
-4
|
%
|
Income Before
Equity Interests
|
1,060
|
|
|
1,068
|
|
|
-1
|
%
|
Share of net income
of equity companies
|
55
|
|
|
70
|
|
|
-21
|
%
|
Net
Income
|
1,115
|
|
|
1,138
|
|
|
-2
|
%
|
Net income
attributable to noncontrolling interests
|
(21)
|
|
|
(27)
|
|
|
-22
|
%
|
Net Income
Attributable to Kimberly-Clark Corporation
|
$
|
1,094
|
|
|
$
|
1,111
|
|
|
-2
|
%
|
|
|
|
|
|
|
Per Share
Basis
|
|
|
|
|
|
Net Income
Attributable to Kimberly-Clark Corporation
|
|
|
|
|
|
Basic
|
$
|
3.08
|
|
|
$
|
3.08
|
|
|
—
|
|
Diluted
|
$
|
3.06
|
|
|
$
|
3.06
|
|
|
—
|
|
|
|
|
|
|
|
Cash Dividends
Declared
|
$
|
1.94
|
|
|
$
|
1.84
|
|
|
+5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Shares
Outstanding
|
June
30
|
|
|
|
2017
|
|
2016
|
|
|
Average diluted
shares for six months ended
|
357.6
|
|
|
362.9
|
|
|
|
|
|
|
|
|
|
|
N.M. - Not
Meaningful
|
Unaudited
|
KIMBERLY-CLARK
CORPORATION
|
|
|
NON-GAAP
RECONCILIATIONS
|
|
|
(Millions, except per
share amounts)
|
|
|
|
|
|
|
|
Three Months Ended
June 30, 2016
|
|
|
|
|
As
Reported
|
|
Charges for
2014
Organization
Restructuring
|
|
Adjustment
Related to
Venezuelan
Operations
|
|
As
Adjusted
Non-GAAP
|
|
|
Cost of products
sold
|
|
$
|
2,924
|
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
2,922
|
|
|
|
Gross
profit
|
|
1,664
|
|
|
(2)
|
|
|
—
|
|
|
1,666
|
|
|
|
Marketing, research
and general expenses
|
|
847
|
|
|
(1)
|
|
|
—
|
|
|
848
|
|
|
|
Other (income) and
expense, net
|
|
(21)
|
|
|
—
|
|
|
(11)
|
|
|
(10)
|
|
|
|
Operating
profit
|
|
838
|
|
|
(1)
|
|
|
11
|
|
|
828
|
|
|
|
Income before income
taxes and equity interests
|
|
760
|
|
|
(1)
|
|
|
11
|
|
|
750
|
|
|
|
Provision for income
taxes
|
|
(217)
|
|
|
—
|
|
|
—
|
|
|
(217)
|
|
|
|
Effective tax
rate
|
|
28.6
|
%
|
|
—
|
|
|
—
|
|
|
28.9
|
%
|
|
|
Net income
attributable to Kimberly-Clark Corporation
|
|
566
|
|
|
(1)
|
|
|
11
|
|
|
556
|
|
|
|
Diluted earnings per
share
|
|
1.56
|
|
|
—
|
|
|
0.03
|
|
|
1.53
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30, 2016
|
|
|
As
Reported
|
|
Charges for
2014
Organization
Restructuring
|
|
Adjustment
Related to
Venezuelan
Operations
|
|
|
As
Adjusted
Non-GAAP
|
Cost of products
sold
|
|
$
|
5,761
|
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
5,759
|
|
|
Gross
profit
|
|
3,303
|
|
|
(2)
|
|
|
—
|
|
|
3,305
|
|
|
Marketing, research
and general expenses
|
|
1,672
|
|
|
13
|
|
|
—
|
|
|
1,659
|
|
|
Other (income) and
expense, net
|
|
(11)
|
|
|
—
|
|
|
(11)
|
|
|
—
|
|
|
Operating
profit
|
|
1,642
|
|
|
(15)
|
|
|
11
|
|
|
1,646
|
|
|
Income before income
taxes and equity interests
|
|
1,492
|
|
|
(15)
|
|
|
11
|
|
|
1,496
|
|
|
Provision for income
taxes
|
|
(424)
|
|
|
4
|
|
|
—
|
|
|
(428)
|
|
|
Effective tax
rate
|
|
28.4
|
%
|
|
—
|
|
|
—
|
|
|
28.6
|
|
%
|
Net income
attributable to Kimberly-Clark Corporation
|
|
1,111
|
|
|
(11)
|
|
|
11
|
|
|
1,111
|
|
|
Diluted earnings per
share
|
|
3.06
|
|
|
(0.03)
|
|
|
0.03
|
|
|
3.06
|
|
|
|
Non-GAAP financial
measures are not meant to be considered in isolation or as a
substitute for the comparable GAAP measures, and they should be
read only in conjunction with the company's consolidated financial
statements prepared in accordance with GAAP. There are
limitations to these non-GAAP financial measures because they are
not prepared in accordance with GAAP and may not be comparable to
similarly titled measures of other companies due to potential
differences in methods of calculation and items being
excluded. The company compensates for these limitations by
using these non-GAAP financial measures as a supplement to the GAAP
measures and by providing reconciliations of the non-GAAP and
comparable GAAP financial measures.
|
|
Unaudited
|
KIMBERLY-CLARK
CORPORATION
|
CONSOLIDATED BALANCE
SHEET
|
(Millions)
|
|
|
June 30,
2017
|
|
December 31,
2016
|
ASSETS
|
|
|
|
Current
Assets
|
|
|
|
Cash and cash
equivalents
|
$
|
1,051
|
|
|
$
|
923
|
|
Accounts receivable,
net
|
2,221
|
|
|
2,176
|
|
Inventories
|
1,738
|
|
|
1,679
|
|
Other current
assets
|
380
|
|
|
337
|
|
Total Current
Assets
|
5,390
|
|
|
5,115
|
|
Property, Plant
and Equipment, Net
|
7,246
|
|
|
7,169
|
|
Investments in
Equity Companies
|
283
|
|
|
257
|
|
Goodwill
|
1,527
|
|
|
1,480
|
|
Other
Assets
|
624
|
|
|
581
|
|
TOTAL
ASSETS
|
$
|
15,070
|
|
|
$
|
14,602
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
Liabilities
|
|
|
|
Debt payable within
one year
|
$
|
1,246
|
|
|
$
|
1,133
|
|
Trade accounts
payable
|
2,629
|
|
|
2,609
|
|
Accrued
expenses
|
1,671
|
|
|
1,775
|
|
Dividends
payable
|
343
|
|
|
329
|
|
Total Current
Liabilities
|
5,889
|
|
|
5,846
|
|
Long-Term
Debt
|
6,777
|
|
|
6,439
|
|
Noncurrent
Employee Benefits
|
1,278
|
|
|
1,301
|
|
Deferred Income
Taxes
|
441
|
|
|
532
|
|
Other
Liabilities
|
296
|
|
|
309
|
|
Redeemable
Preferred Securities of Subsidiaries
|
58
|
|
|
58
|
|
Stockholders'
Equity (Deficit)
|
|
|
|
Kimberly-Clark
Corporation
|
102
|
|
|
(102)
|
|
Noncontrolling
Interests
|
229
|
|
|
219
|
|
Total
Stockholders' Equity
|
331
|
|
|
117
|
|
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY
|
$
|
15,070
|
|
|
$
|
14,602
|
|
KIMBERLY-CLARK
CORPORATION
|
CONSOLIDATED CASH
FLOW STATEMENT
|
(Millions)
|
|
|
Three Months
Ended
June 30
|
|
Six Months
Ended
June 30
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Operating
Activities
|
|
|
|
|
|
|
|
Net income
|
$
|
540
|
|
|
$
|
578
|
|
|
$
|
1,115
|
|
|
$
|
1,138
|
|
Depreciation and
amortization
|
180
|
|
|
177
|
|
|
358
|
|
|
349
|
|
Stock-based
compensation
|
30
|
|
|
30
|
|
|
50
|
|
|
45
|
|
Deferred income
taxes
|
(9)
|
|
|
37
|
|
|
(34)
|
|
|
3
|
|
Equity companies'
earnings (in excess of) less than dividends paid
|
4
|
|
|
—
|
|
|
(22)
|
|
|
(30)
|
|
Operating working
capital
|
73
|
|
|
57
|
|
|
(191)
|
|
|
(48)
|
|
Postretirement
benefits
|
13
|
|
|
12
|
|
|
(8)
|
|
|
(4)
|
|
Adjustment related to
Venezuelan operations
|
—
|
|
|
(11)
|
|
|
—
|
|
|
(11)
|
|
Other
|
(6)
|
|
|
(20)
|
|
|
(7)
|
|
|
(29)
|
|
Cash Provided by
Operations
|
825
|
|
|
860
|
|
|
1,261
|
|
|
1,413
|
|
Investing
Activities
|
|
|
|
|
|
|
|
Capital
spending
|
(171)
|
|
|
(177)
|
|
|
(386)
|
|
|
(397)
|
|
Proceeds from sales
of investments
|
—
|
|
|
28
|
|
|
—
|
|
|
28
|
|
Investments in time
deposits
|
(24)
|
|
|
(14)
|
|
|
(61)
|
|
|
(73)
|
|
Maturities of time
deposits
|
—
|
|
|
—
|
|
|
70
|
|
|
42
|
|
Other
|
(14)
|
|
|
8
|
|
|
(10)
|
|
|
16
|
|
Cash Used for
Investing
|
(209)
|
|
|
(155)
|
|
|
(387)
|
|
|
(384)
|
|
Financing
Activities
|
|
|
|
|
|
|
|
Cash dividends
paid
|
(345)
|
|
|
(332)
|
|
|
(674)
|
|
|
(650)
|
|
Change in short-term
debt
|
(82)
|
|
|
353
|
|
|
114
|
|
|
(322)
|
|
Debt
proceeds
|
344
|
|
|
—
|
|
|
344
|
|
|
796
|
|
Debt
repayments
|
(4)
|
|
|
(589)
|
|
|
(12)
|
|
|
(591)
|
|
Proceeds from
exercise of stock options
|
29
|
|
|
27
|
|
|
107
|
|
|
58
|
|
Acquisitions of
common stock for the treasury
|
(302)
|
|
|
(153)
|
|
|
(597)
|
|
|
(293)
|
|
Other
|
(37)
|
|
|
6
|
|
|
(46)
|
|
|
(1)
|
|
Cash Used for
Financing
|
(397)
|
|
|
(688)
|
|
|
(764)
|
|
|
(1,003)
|
|
Effect of Exchange
Rate Changes on Cash and Cash Equivalents
|
(3)
|
|
|
4
|
|
|
18
|
|
|
11
|
|
Change in Cash and
Cash Equivalents
|
216
|
|
|
21
|
|
|
128
|
|
|
37
|
|
Cash and Cash
Equivalents - Beginning of Period
|
835
|
|
|
635
|
|
|
923
|
|
|
619
|
|
Cash and Cash
Equivalents - End of Period
|
$
|
1,051
|
|
|
$
|
656
|
|
|
$
|
1,051
|
|
|
$
|
656
|
|
KIMBERLY-CLARK
CORPORATION
|
SELECTED BUSINESS
SEGMENT DATA
|
(Millions)
|
|
|
|
Three Months
Ended June 30
|
|
|
|
Six Months
Ended
June 30
|
|
|
|
|
2017
|
|
2016
|
|
Change
|
|
2017
|
|
2016
|
|
Change
|
NET
SALES
|
|
|
|
|
|
|
|
|
|
|
|
|
Personal
Care
|
|
$
|
2,270
|
|
|
$
|
2,279
|
|
|
—
|
|
|
$
|
4,520
|
|
|
$
|
4,486
|
|
|
+1
|
%
|
Consumer
Tissue
|
|
1,463
|
|
|
1,494
|
|
|
-2
|
%
|
|
2,918
|
|
|
2,990
|
|
|
-2
|
%
|
K-C
Professional
|
|
810
|
|
|
806
|
|
|
—
|
|
|
1,578
|
|
|
1,569
|
|
|
+1
|
%
|
Corporate &
Other
|
|
11
|
|
|
9
|
|
|
N.M.
|
|
|
21
|
|
|
19
|
|
|
N.M.
|
|
TOTAL NET
SALES
|
|
$
|
4,554
|
|
|
$
|
4,588
|
|
|
-1
|
%
|
|
$
|
9,037
|
|
|
$
|
9,064
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
PROFIT
|
|
|
|
|
|
|
|
|
|
|
|
|
Personal
Care
|
|
$
|
467
|
|
|
$
|
455
|
|
|
+3
|
%
|
|
$
|
948
|
|
|
$
|
904
|
|
|
+5
|
%
|
Consumer
Tissue
|
|
241
|
|
|
275
|
|
|
-12
|
%
|
|
516
|
|
|
555
|
|
|
-7
|
%
|
K-C
Professional
|
|
163
|
|
|
150
|
|
|
+9
|
%
|
|
309
|
|
|
300
|
|
|
+3
|
%
|
Corporate &
Other(a)
|
|
(69)
|
|
|
(63)
|
|
|
N.M.
|
|
|
(132)
|
|
|
(128)
|
|
|
N.M.
|
|
Other (income) and
expense, net(a)
|
|
3
|
|
|
(21)
|
|
|
N.M.
|
|
|
8
|
|
|
(11)
|
|
|
N.M.
|
|
TOTAL OPERATING
PROFIT
|
|
$
|
799
|
|
|
$
|
838
|
|
|
-5
|
%
|
|
$
|
1,633
|
|
|
$
|
1,642
|
|
|
-1
|
%
|
|
(a)
|
Corporate & Other
and Other (income) and expense, net include expenses not associated
with the business segments, including charges as indicated in the
Non-GAAP Reconciliations.
|
PERCENTAGE CHANGE
IN NET SALES VERSUS PRIOR YEAR
|
|
|
|
Three Months Ended
June 30, 2017
|
|
|
Total(a)
|
|
Volume
|
|
Net
Price
|
|
Mix/
Other
|
|
Currency
|
|
Organic(b)
|
Personal
Care
|
|
—
|
|
—
|
|
(1)
|
|
1
|
|
—
|
|
(1)
|
Consumer
Tissue
|
|
(2)
|
|
(1)
|
|
(1)
|
|
—
|
|
—
|
|
(2)
|
K-C
Professional
|
|
—
|
|
1
|
|
(1)
|
|
—
|
|
—
|
|
1
|
TOTAL
CONSOLIDATED
|
|
(1)
|
|
—
|
|
(1)
|
|
—
|
|
—
|
|
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30, 2017
|
|
|
Total(a)
|
|
Volume
|
|
Net
Price
|
|
Mix/
Other
|
|
Currency
|
|
Organic(b)
|
Personal
Care
|
|
1
|
|
1
|
|
(1)
|
|
—
|
|
1
|
|
—
|
Consumer
Tissue
|
|
(2)
|
|
(1)
|
|
(1)
|
|
—
|
|
—
|
|
(2)
|
K-C
Professional
|
|
1
|
|
1
|
|
(1)
|
|
1
|
|
—
|
|
1
|
TOTAL
CONSOLIDATED
|
|
—
|
|
—
|
|
(1)
|
|
—
|
|
—
|
|
(1)
|
|
|
(a)
|
Total may not equal
the sum of volume, net price, mix/other and currency due to
rounding.
|
(b)
|
Combined impact of
changes in volume, net price and mix/other.
|
|
|
N.M. - Not
Meaningful
|
Unaudited
|
[KMB-F]
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SOURCE Kimberly-Clark Corporation