DALLAS, July 23, 2019 /PRNewswire/ -- Kimberly-Clark
Corporation (NYSE: KMB) today reported second quarter 2019 results
and raised its outlook for full-year 2019 organic sales growth and
earnings per share.
Executive Summary
- Second quarter 2019 net sales of $4.6
billion were even with the year-ago period. Organic sales
increased 5 percent while changes in foreign currency exchange
rates reduced sales by 5 percent.
- Diluted net income per share for the second quarter was
$1.40 in 2019 and $1.30 in 2018.
- Second quarter adjusted earnings per share were $1.67 in 2019 and $1.59 in 2018. Adjusted earnings per share
exclude certain items described later in this news release.
- Diluted net income per share for full-year 2019 is expected to
be $5.50 to $5.90 compared to the prior estimate of
$4.85 to $5.35.
- The company is now targeting full-year 2019 organic sales
growth of 3 percent and adjusted earnings per share of $6.65 to $6.80. The
prior outlook was for organic sales growth of 2 percent and
adjusted earnings per share of $6.50
to $6.70.
Chief Executive Officer Mike Hsu
said, "We made excellent progress in the second quarter. We
delivered strong organic sales growth, gross margin improvement and
higher earnings per share. In addition, we generated $90 million of cost savings and returned
$520 million to shareholders through
dividends and share repurchases. We also continued to launch
innovations, pursue our growth priorities and increase investments
in our brands."
Hsu added, "For the full year, we are raising our top- and
bottom-line outlook, reflecting strong execution and an improving
commodity environment. We're also increasing our growth investments
behind our brands and in capabilities that will position us for
longer-term success. We continue to be optimistic about our
opportunities to deliver balanced and sustainable growth and create
shareholder value through execution of K-C Strategy 2022."
Second Quarter 2019 Operating Results
Sales of $4.6 billion in the
second quarter of 2019 were even with the year-ago period. Changes
in foreign currency exchange rates reduced sales by 5 percent and
business exits in conjunction with the 2018 Global Restructuring
Program reduced sales slightly. Organic sales increased 5 percent.
Net selling prices rose 5 percent and product mix improved 1
percent, while volumes fell slightly. In North America, organic sales increased 5
percent in consumer products and 2 percent in K-C Professional.
Outside North America, organic
sales rose 9 percent in developing and emerging markets and 1
percent in developed markets.
Second quarter operating profit was $670
million in 2019 and $674
million in 2018. Results in both periods include charges
related to the 2018 Global Restructuring Program. Second quarter
adjusted operating profit was $789
million in 2019 and $774
million in 2018. Results benefited from higher net selling
prices, $70 million of cost savings
from the company's FORCE (Focused On Reducing Costs Everywhere)
program and $20 million of cost
savings from the 2018 Global Restructuring Program. On the other
hand, results were impacted by $80
million of higher input costs, driven by $40 million in pulp inflation and increases in
other raw materials and distribution expense. In addition, foreign
currency translation effects reduced operating profit by
$25 million and transaction effects
also negatively impacted the comparison. Other manufacturing costs
were also higher year-on-year. Advertising spending increased and
general and administrative costs were higher, driven by increased
incentive compensation expense.
The second quarter effective tax rate was 22.2 percent in 2019
and 24.1 percent in 2018. The second quarter adjusted effective tax
rate was 22.3 percent in 2019 and 23.0 percent in 2018. The rate in
2019 benefited from certain planning initiatives.
Kimberly-Clark's share of net income of equity companies in the
second quarter was $33 million in
2019 and $30 million in 2018. At
Kimberly-Clark de Mexico, results
benefited from organic sales growth and cost savings, but were
negatively impacted by higher input costs and unfavorable currency
effects.
Cash Flow and Balance Sheet
Cash provided by operations in the second quarter was
$609 million in 2019 and
$787 million in 2018. The decline was driven by higher tax
payments and increased working capital. Capital spending for the
second quarter was $253 million in 2019 and $158 million
in 2018. Second quarter 2019 share repurchases were 1.3 million
shares at a cost of $167 million.
Total debt was $8.0 billion at
June 30, 2019 and $7.5 billion at the end of 2018.
Second Quarter 2019 Business Segment Results
Personal Care Segment
Second quarter sales of $2.3
billion increased 1 percent. Net selling prices increased
approximately 5 percent, volumes rose 1 percent and product mix
improved 1 percent. Changes in currency rates reduced sales by 6
percent. Second quarter operating profit of $485 million increased 5 percent. The comparison
benefited from organic sales growth and cost savings, while results
were impacted by unfavorable currency effects, input cost
inflation, higher advertising spending and other manufacturing cost
increases.
Sales in North America
increased 5 percent. Net selling prices increased 3 percent, driven
by baby and child care, and volumes rose 3 percent. Volumes were up
high-single digits in adult care, including benefits from category
growth, innovations and increased marketing support. Volumes
increased low-single digits in baby and child care and fell
mid-single digits in feminine care.
Sales in developing and emerging markets decreased 1 percent.
Currency rates were unfavorable by 13 percent, including
significant declines in Latin
America. Net selling prices rose 11 percent and product mix
improved 2 percent, while volumes were even year-on-year. The
higher net selling prices were primarily in Latin America and secondarily in China and the Middle
East/Eastern
Europe/Africa. Volumes
increased in Eastern Europe, ASEAN
and South Africa, but fell in
Latin America and China.
Sales in developed markets outside North America (Australia, South
Korea and Western/Central
Europe) decreased 6 percent, including an 8 point
negative impact from changes in currency rates. Volumes and product
mix each improved 1 percent.
Consumer Tissue Segment
Second quarter sales of $1.5 billion were even year-on-year. Changes
in currency rates reduced sales 4 percent. Net selling prices
increased 5 percent and product mix improved slightly, while
volumes declined 2 percent. Second quarter operating profit of
$221 million increased 7 percent. Results benefited from
higher net selling prices and cost savings. The comparison was
impacted by input cost inflation, other manufacturing cost
increases, unfavorable currencies, lower volumes and higher general
and administrative costs.
Sales in North America
increased 5 percent compared to a 4 percent decline in the year-ago
period. Net selling prices rose 7 percent while volumes fell 2
percent.
Sales in developing and emerging markets decreased 4 percent.
Currency rates were unfavorable by 8 percent, primarily in
Latin America. Net selling prices
increased 5 percent and product mix improved 1 percent, while
volumes fell 1 percent.
Sales in developed markets outside North America decreased 7 percent. Changes in
currency rates reduced sales by 7 percent. Net selling prices
increased 3 percent while volumes fell 2 percent. The changes
occurred primarily in Western/Central
Europe.
K-C Professional (KCP) Segment
Second quarter sales of $0.8
billion decreased 5 percent. Changes in currency rates
reduced sales by 4 percent and business exits in conjunction with
the 2018 Global Restructuring Program reduced sales 2 percent. Net
selling prices increased 3 percent and product mix improved 1
percent, while volumes were down 3 percent. Second quarter
operating profit of $162 million decreased 2 percent. The
comparison was impacted by input cost inflation, lower volumes,
unfavorable currency effects and higher general and administrative
costs. Results benefited from increased net selling prices and cost
savings.
Sales in North America were
even year-on-year. Net selling prices increased 2 percent while
business exits in conjunction with the 2018 Global Restructuring
Program reduced sales 2 percent.
Sales in developing and emerging markets decreased
6 percent, including an 8 point negative impact from changes
in currency rates. Net selling prices rose 4 percent while volumes
declined 2 percent.
Sales in developed markets outside North America were down 8 percent. Currency
rates were unfavorable by 7 percent and business exits in
conjunction with the 2018 Global Restructuring Program reduced
sales 1 percent. Volumes fell 8 percent, while net selling prices
increased 4 percent and product mix improved 3 percent. The changes
occurred mostly in Western/Central
Europe.
Year-To-Date Results
For the first six months of 2019, sales of $9.2 billion decreased 1 percent. Changes in
foreign currency exchange rates reduced sales by 5 percent and
business exits in conjunction with the 2018 Global Restructuring
Program reduced sales slightly. Organic sales increased 4 percent.
Net selling prices rose 4 percent and product mix improved 1
percent, while volumes fell 1 percent.
Year-to-date operating profit was $1,325
million in 2019 and $921
million in 2018. Results in both periods include charges
related to the 2018 Global Restructuring Program. Year-to-date
adjusted operating profit was $1,596
million in 2019 and $1,598
million in 2018. The comparison was impacted by $215 million of higher input costs, unfavorable
currency effects, other manufacturing cost increases, increased
advertising spending and higher general and administrative costs.
On the other hand, results benefited from organic sales growth,
$125 million of FORCE cost savings
and $80 million of cost savings from
the 2018 Global Restructuring Program.
Through six months, diluted net income per share was
$2.71 in 2019 and $1.56 in 2018. Year-to-date adjusted earnings per
share were $3.33 in 2019 and
$3.30 in 2018.
2018 Global Restructuring Program
In January 2018, Kimberly-Clark
initiated the 2018 Global Restructuring Program in order to reduce
the company's structural cost base and enhance the company's
flexibility to invest in its brands, growth initiatives and
capabilities critical to delivering future growth. The company
expects the program will generate annual pre-tax cost savings of
$500 to $550
million by the end of 2021. As part of the program,
Kimberly-Clark expects to exit or divest some low-margin businesses
that generate approximately 1 percent of company net sales. To
implement the program, the company expects to incur restructuring
charges of $1,700 to $1,900 million pre-tax ($1,350 to $1,500
million after tax) by the end of 2020.
Second quarter 2019 restructuring charges were $119 million pre-tax ($92
million after tax), bringing cumulative charges to
$1,307 million pre-tax ($997 million after tax). Second quarter 2019
restructuring savings were $20
million, bringing cumulative savings to $215 million.
2019 Outlook and Key Planning Assumptions
The company updated the following key planning and guidance
assumptions for full-year 2019:
- Net sales even to down 1 percent year-on-year (prior assumption
down 1 to 2 percent).
-
- Organic sales growth 3 percent (previous estimate 2
percent).
- Adjusted operating profit growth of 3 to 5 percent versus prior
target of 1 to 4 percent.
-
- Inflation in key cost inputs of $150 to $250
million compared to the prior assumption of $300 to $400
million. The change is driven primarily by an improved
outlook for pulp and secondarily for other raw materials including
superabsorbent and polymer resin.
- Higher marketing spending and general and administrative costs
than previously planned.
- Net income from equity companies higher year-on-year (prior
estimate similar year-on-year).
- Adjusted earnings per share $6.65
to $6.80 compared to the prior
outlook of $6.50 to $6.70.
Non-GAAP Financial Measures
This news 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 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:
- 2018 Global Restructuring Program. Mentioned elsewhere in this
release.
- U.S. tax reform. In the first, third and fourth quarters of
2018, the company recognized net charges associated with U.S. tax
reform related matters.
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 adjustments 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 and exited businesses 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 (NYSE: KMB) and its trusted brands are an
indispensable part of life for people in more than 175 countries.
Fueled by ingenuity, creativity, and an understanding of people's
most essential needs, we create products that help individuals
experience more of what's important to them. Our portfolio of
brands, including Huggies, Kleenex, Scott, Kotex, Cottonelle,
Poise, Depend, Andrex, Pull-Ups, GoodNites, Intimus, Neve,
Plenitud, Viva and WypAll, hold No. 1 or No. 2 share positions in
80 countries. We use sustainable practices that support a healthy
planet, build strong communities, and ensure our business thrives
for decades to come. To keep up with the latest news and to learn
more about the company's 147-year history of innovation, visit
kimberly-clark.com or follow us on Facebook or Twitter.
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, including in Argentina, net income from equity companies,
sources and uses of cash, the effective tax rate, the anticipated
cost savings from the company's FORCE program, charges and savings
from the 2018 Global Restructuring Program, growth initiatives,
product innovations, 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. In addition, many factors outside our
control, including fluctuations in foreign currency exchange rates,
the prices and availability of our raw materials, potential
competitive pressures on selling prices for our products, energy
costs, our ability to maintain key customer relationships, as well
as general economic and political conditions globally and in the
markets in which we do business, could affect the realization of
these estimates.
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, 2018 entitled "Risk
Factors."
KIMBERLY-CLARK
CORPORATION
|
CONSOLIDATED INCOME
STATEMENTS
|
(Millions, except per
share amounts)
|
|
|
Three Months
Ended June 30
|
|
|
|
2019
|
|
2018
|
|
Change
|
Net
Sales
|
$
|
4,594
|
|
$
|
4,604
|
|
—
|
Cost of products
sold
|
3,108
|
|
3,149
|
|
-1 %
|
Gross
Profit
|
1,486
|
|
1,455
|
|
+2 %
|
Marketing, research
and general expenses
|
811
|
|
771
|
|
+5 %
|
Other (income) and
expense, net
|
5
|
|
10
|
|
-50 %
|
Operating
Profit
|
670
|
|
674
|
|
-1 %
|
Nonoperating
expense
|
(11)
|
|
(36)
|
|
-69 %
|
Interest
income
|
2
|
|
3
|
|
-33 %
|
Interest
expense
|
(67)
|
|
(68)
|
|
-1 %
|
Income Before
Income Taxes and Equity Interests
|
594
|
|
573
|
|
+4 %
|
Provision for income
taxes
|
(132)
|
|
(138)
|
|
-4 %
|
Income Before
Equity Interests
|
462
|
|
435
|
|
+6 %
|
Share of net income
of equity companies
|
33
|
|
30
|
|
+10 %
|
Net
Income
|
495
|
|
465
|
|
+6 %
|
Net income
attributable to noncontrolling interests
|
(10)
|
|
(10)
|
|
—
|
Net Income
Attributable to Kimberly-Clark Corporation
|
$
|
485
|
|
$
|
455
|
|
+7 %
|
|
|
|
|
|
|
Per Share
Basis
|
|
|
|
|
|
Net Income
Attributable to Kimberly-Clark Corporation
|
|
|
|
|
|
Basic
|
$
|
1.41
|
|
$
|
1.30
|
|
+8 %
|
Diluted
|
$
|
1.40
|
|
$
|
1.30
|
|
+8 %
|
|
|
|
|
|
|
Cash Dividends
Declared
|
$
|
1.03
|
|
$
|
1.00
|
|
+3 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Shares
Outstanding
|
June
30
|
|
|
|
2019
|
|
2018
|
|
|
Outstanding shares as
of
|
344.2
|
|
347.9
|
|
|
Average diluted
shares for three months ended
|
346.0
|
|
350.3
|
|
|
|
N.M. - Not
Meaningful
|
Unaudited
|
KIMBERLY-CLARK
CORPORATION
|
CONSOLIDATED INCOME
STATEMENTS
|
(Millions, except per
share amounts)
|
|
|
Six Months
Ended June 30
|
|
|
|
2019
|
|
2018
|
|
Change
|
Net
Sales
|
$
|
9,227
|
|
$
|
9,335
|
|
-1 %
|
Cost of products
sold
|
6,313
|
|
6,556
|
|
-4 %
|
Gross
Profit
|
2,914
|
|
2,779
|
|
+5 %
|
Marketing, research
and general expenses
|
1,580
|
|
1,850
|
|
-15 %
|
Other (income) and
expense, net
|
9
|
|
8
|
|
+13 %
|
Operating
Profit
|
1,325
|
|
921
|
|
+44 %
|
Nonoperating
expense
|
(22)
|
|
(45)
|
|
-51 %
|
Interest
income
|
5
|
|
5
|
|
—
|
Interest
expense
|
(132)
|
|
(134)
|
|
-1 %
|
Income Before
Income Taxes and Equity Interests
|
1,176
|
|
747
|
|
+57 %
|
Provision for income
taxes
|
(275)
|
|
(242)
|
|
+14 %
|
Income Before
Equity Interests
|
901
|
|
505
|
|
+78 %
|
Share of net income
of equity companies
|
60
|
|
57
|
|
+5 %
|
Net
Income
|
961
|
|
562
|
|
+71 %
|
Net income
attributable to noncontrolling interests
|
(22)
|
|
(14)
|
|
+57 %
|
Net Income
Attributable to Kimberly-Clark Corporation
|
$
|
939
|
|
$
|
548
|
|
+71 %
|
|
|
|
|
|
|
Per Share
Basis
|
|
|
|
|
|
Net Income
Attributable to Kimberly-Clark Corporation
|
|
|
|
|
|
Basic
|
$
|
2.73
|
|
$
|
1.57
|
|
+74 %
|
Diluted
|
$
|
2.71
|
|
$
|
1.56
|
|
+74 %
|
|
|
|
|
|
|
Cash Dividends
Declared
|
$
|
2.06
|
|
$
|
2.00
|
|
+3 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Shares
Outstanding
|
June
30
|
|
|
|
2019
|
|
2018
|
|
|
Average diluted
shares for six months ended
|
346.0
|
|
351.3
|
|
|
|
N.M. - Not
Meaningful
|
Unaudited
|
KIMBERLY-CLARK
CORPORATION
|
NON-GAAP
RECONCILIATIONS
|
(Millions, except per
share amounts)
|
|
|
Three Months Ended
June 30, 2019
|
|
As
Reported
|
|
2018
Global
Restructuring
Program
|
|
As
Adjusted
Non-GAAP
|
Cost of products
sold
|
$
|
3,108
|
|
$
|
102
|
|
$
|
3,006
|
Gross
Profit
|
1,486
|
|
(102)
|
|
1,588
|
Marketing, research
and general expenses
|
811
|
|
17
|
|
794
|
Operating
Profit
|
670
|
|
(119)
|
|
789
|
Provision for income
taxes
|
(132)
|
|
27
|
|
(159)
|
Effective tax
rate
|
22.2
%
|
|
—
|
|
22.3
%
|
Net Income
Attributable to Kimberly-Clark Corporation
|
485
|
|
(92)
|
|
577
|
Diluted Earnings per
Share
|
1.40
|
|
(0.27)
|
|
1.67
|
|
|
|
Three Months Ended
June 30, 2018
|
|
As
Reported
|
|
2018
Global
Restructuring
Program
|
|
As
Adjusted
Non-GAAP
|
Cost of products
sold
|
$
|
3,149
|
|
$
|
85
|
|
$
|
3,064
|
Gross
Profit
|
1,455
|
|
(85)
|
|
1,540
|
Marketing, research
and general expenses
|
771
|
|
15
|
|
756
|
Operating
Profit
|
674
|
|
(100)
|
|
774
|
Nonoperating
expense
|
(36)
|
|
(30)
|
|
(6)
|
Provision for income
taxes
|
(138)
|
|
24
|
|
(162)
|
Effective tax
rate
|
24.1 %
|
|
—
|
|
23.0 %
|
Share of net income
of equity companies
|
30
|
|
2
|
|
28
|
Net income
attributable to noncontrolling interests
|
(10)
|
|
2
|
|
(12)
|
Net Income
Attributable to Kimberly-Clark Corporation
|
455
|
|
(102)
|
|
557
|
Diluted Earnings per
Share
|
1.30
|
|
(0.29)
|
|
1.59
|
|
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
|
NON-GAAP
RECONCILIATIONS
|
(Millions, except per
share amounts)
|
|
|
Six Months Ended
June 30, 2019
|
|
As
Reported
|
|
2018
Global
Restructuring
Program
|
|
As
Adjusted
Non-GAAP
|
Cost of products
sold
|
|
|
|
$
|
6,313
|
|
$
|
227
|
|
$
|
6,086
|
Gross
Profit
|
|
|
|
2,914
|
|
(227)
|
|
3,141
|
Marketing, research
and general expenses
|
|
|
|
1,580
|
|
45
|
|
1,535
|
Other (income) and
expense, net
|
|
|
|
9
|
|
(1)
|
|
10
|
Operating
Profit
|
|
|
|
1,325
|
|
(271)
|
|
1,596
|
Provision for income
taxes
|
|
|
|
(275)
|
|
58
|
|
(333)
|
Effective tax
rate
|
|
|
|
23.4
%
|
|
—
|
|
23.0
%
|
Share of net income
of equity companies
|
|
|
|
60
|
|
(2)
|
|
62
|
Net income
attributable to noncontrolling interests
|
|
|
|
(22)
|
|
1
|
|
(23)
|
Net Income
Attributable to Kimberly-Clark Corporation
|
|
|
|
939
|
|
(214)
|
|
1,153
|
Diluted Earnings per
Share
|
|
|
|
2.71
|
|
(0.62)
|
|
3.33
|
|
|
|
Six Months Ended
June 30, 2018
|
|
As
Reported
|
|
2018
Global
Restructuring
Program
|
|
U.S.
Tax
Reform
Related
Matters
|
|
As
Adjusted
Non-GAAP
|
Cost of products
sold
|
$
|
6,556
|
|
$
|
362
|
|
$
|
—
|
|
$
|
6,194
|
Gross
Profit
|
2,779
|
|
(362)
|
|
—
|
|
3,141
|
Marketing, research
and general expenses
|
1,850
|
|
315
|
|
—
|
|
1,535
|
Operating
Profit
|
921
|
|
(677)
|
|
—
|
|
1,598
|
Nonoperating
expense
|
(45)
|
|
(30)
|
|
—
|
|
(15)
|
Provision for income
taxes
|
(242)
|
|
167
|
|
(82)
|
|
(327)
|
Effective tax
rate
|
32.4 %
|
|
—
|
|
—
|
|
22.5 %
|
Share of net income
of equity companies
|
57
|
|
(1)
|
|
—
|
|
58
|
Net income
attributable to noncontrolling interests
|
(14)
|
|
11
|
|
—
|
|
(25)
|
Net Income
Attributable to Kimberly-Clark Corporation
|
548
|
|
(530)
|
|
(82)
|
|
1,160
|
Diluted Earnings per
Share
|
1.56
|
|
(1.51)
|
|
(0.23)
|
|
3.30
|
KIMBERLY-CLARK
CORPORATION
|
CONSOLIDATED BALANCE
SHEETS
|
(Millions)
|
|
|
June 30,
2019
|
|
December 31,
2018
|
ASSETS
|
|
|
|
Current
Assets
|
|
|
|
Cash and cash
equivalents
|
$
|
534
|
|
$
|
539
|
Accounts receivable,
net
|
2,397
|
|
2,164
|
Inventories
|
1,856
|
|
1,813
|
Other current
assets
|
534
|
|
525
|
Total Current
Assets
|
5,321
|
|
5,041
|
Property, Plant
and Equipment, Net
|
7,207
|
|
7,159
|
Investments in
Equity Companies
|
249
|
|
224
|
Goodwill
|
1,478
|
|
1,474
|
Other
Assets
|
1,092
|
|
620
|
TOTAL
ASSETS
|
$
|
15,347
|
|
$
|
14,518
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
Liabilities
|
|
|
|
Debt payable within
one year
|
$
|
1,291
|
|
$
|
1,208
|
Trade accounts
payable
|
2,993
|
|
3,190
|
Accrued expenses and
other current liabilities
|
1,946
|
|
1,793
|
Dividends
payable
|
355
|
|
345
|
Total Current
Liabilities
|
6,585
|
|
6,536
|
Long-Term
Debt
|
6,701
|
|
6,247
|
Noncurrent
Employee Benefits
|
889
|
|
931
|
Deferred Income
Taxes
|
513
|
|
458
|
Other
Liabilities
|
571
|
|
328
|
Redeemable
Preferred Securities of Subsidiaries
|
38
|
|
64
|
Stockholders'
Equity
|
|
|
|
Kimberly-Clark
Corporation
|
(178)
|
|
(287)
|
Noncontrolling
Interests
|
228
|
|
241
|
Total
Stockholders' Equity
|
50
|
|
(46)
|
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY
|
$
|
15,347
|
|
$
|
14,518
|
KIMBERLY-CLARK
CORPORATION
|
CONSOLIDATED CASH
FLOW STATEMENTS
|
(Millions)
|
|
|
Three Months
Ended
June 30
|
|
Six Months
Ended
June 30
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Operating
Activities
|
|
|
|
|
|
|
|
Net income
|
$
|
495
|
|
$
|
465
|
|
$
|
961
|
|
$
|
562
|
Depreciation and
amortization
|
236
|
|
224
|
|
470
|
|
435
|
Asset
impairments
|
—
|
|
—
|
|
—
|
|
74
|
Stock-based
compensation
|
32
|
|
8
|
|
48
|
|
26
|
Deferred income
taxes
|
15
|
|
44
|
|
26
|
|
17
|
Net losses on asset
dispositions
|
11
|
|
17
|
|
17
|
|
53
|
Equity companies'
earnings (in excess of) less than dividends paid
|
(3)
|
|
2
|
|
(30)
|
|
(25)
|
Operating working
capital
|
(150)
|
|
(10)
|
|
(525)
|
|
93
|
Postretirement
benefits
|
(9)
|
|
27
|
|
(21)
|
|
(14)
|
Other
|
(18)
|
|
10
|
|
(20)
|
|
108
|
Cash Provided by
Operations
|
609
|
|
787
|
|
926
|
|
1,329
|
Investing
Activities
|
|
|
|
|
|
|
|
Capital
spending
|
(253)
|
|
(158)
|
|
(569)
|
|
(347)
|
Investments in time
deposits
|
(106)
|
|
(64)
|
|
(186)
|
|
(147)
|
Maturities of time
deposits
|
157
|
|
75
|
|
229
|
|
94
|
Other
|
4
|
|
(9)
|
|
4
|
|
(12)
|
Cash Used for
Investing
|
(198)
|
|
(156)
|
|
(522)
|
|
(412)
|
Financing
Activities
|
|
|
|
|
|
|
|
Cash dividends
paid
|
(355)
|
|
(350)
|
|
(700)
|
|
(691)
|
Change in short-term
debt
|
(308)
|
|
(145)
|
|
543
|
|
104
|
Debt
proceeds
|
696
|
|
—
|
|
696
|
|
—
|
Debt
repayments
|
(301)
|
|
(2)
|
|
(703)
|
|
(4)
|
Proceeds from
exercise of stock options
|
134
|
|
8
|
|
160
|
|
22
|
Acquisitions of
common stock for the treasury
|
(166)
|
|
(223)
|
|
(330)
|
|
(420)
|
Other
|
(71)
|
|
(35)
|
|
(79)
|
|
(41)
|
Cash Used for
Financing
|
(371)
|
|
(747)
|
|
(413)
|
|
(1,030)
|
Effect of Exchange
Rate Changes on Cash and Cash Equivalents
|
3
|
|
(26)
|
|
4
|
|
(19)
|
Change in Cash and
Cash Equivalents
|
43
|
|
(142)
|
|
(5)
|
|
(132)
|
Cash and Cash
Equivalents - Beginning of Period
|
491
|
|
626
|
|
539
|
|
616
|
Cash and Cash
Equivalents - End of Period
|
$
|
534
|
|
$
|
484
|
|
$
|
534
|
|
$
|
484
|
KIMBERLY-CLARK
CORPORATION
|
SELECTED BUSINESS
SEGMENT DATA
|
(Millions)
|
|
|
Three Months
Ended
June 30
|
|
|
|
Six Months
Ended
June 30
|
|
|
|
2019
|
|
2018
|
|
Change
|
|
2019
|
|
2018
|
|
Change
|
NET
SALES
|
|
|
|
|
|
|
|
|
|
|
|
Personal
Care
|
$
|
2,286
|
|
$
|
2,257
|
|
+1 %
|
|
$
|
4,561
|
|
$
|
4,564
|
|
—
|
Consumer
Tissue
|
1,472
|
|
1,472
|
|
—
|
|
2,998
|
|
3,051
|
|
-2 %
|
K-C
Professional
|
821
|
|
861
|
|
-5 %
|
|
1,638
|
|
1,693
|
|
-3 %
|
Corporate &
Other
|
15
|
|
14
|
|
N.M.
|
|
30
|
|
27
|
|
N.M.
|
TOTAL NET
SALES
|
$
|
4,594
|
|
$
|
4,604
|
|
—
|
|
$
|
9,227
|
|
$
|
9,335
|
|
-1 %
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
PROFIT
|
|
|
|
|
|
|
|
|
|
|
|
Personal
Care
|
$
|
485
|
|
$
|
461
|
|
+5 %
|
|
$
|
969
|
|
$
|
931
|
|
+4 %
|
Consumer
Tissue
|
221
|
|
207
|
|
+7 %
|
|
462
|
|
456
|
|
+1 %
|
K-C
Professional
|
162
|
|
165
|
|
-2 %
|
|
312
|
|
323
|
|
-3 %
|
Corporate &
Other(a)
|
(193)
|
|
(149)
|
|
N.M.
|
|
(409)
|
|
(781)
|
|
N.M.
|
Other (income) and
expense, net(a)
|
5
|
|
10
|
|
-50 %
|
|
9
|
|
8
|
|
+13 %
|
TOTAL OPERATING
PROFIT
|
$
|
670
|
|
$
|
674
|
|
-1 %
|
|
$
|
1,325
|
|
$
|
921
|
|
+44 %
|
|
|
(a)
|
Corporate & Other
and Other (income) and expense, net include income and expense not
associated with the business segments, including adjustments as
indicated in the Non-GAAP Reconciliations.
|
PERCENTAGE CHANGE
IN NET SALES VERSUS PRIOR YEAR
|
|
|
Three Months Ended
June 30, 2019
|
|
Total(a)
|
|
Volume
|
|
Net
Price
|
|
Mix/
Other
|
|
Exited
Businesses(b)
|
|
Currency
|
|
|
Organic(c)
|
Personal
Care
|
1
|
|
1
|
|
5
|
|
1
|
|
—
|
|
(6)
|
|
|
8
|
Consumer
Tissue
|
—
|
|
(2)
|
|
5
|
|
—
|
|
—
|
|
(4)
|
|
|
4
|
K-C
Professional
|
(5)
|
|
(3)
|
|
3
|
|
1
|
|
(2)
|
|
(4)
|
|
|
1
|
TOTAL
CONSOLIDATED
|
—
|
|
—
|
|
5
|
|
1
|
|
—
|
|
(5)
|
|
|
5
|
|
|
|
Six Months Ended
June 30, 2019
|
|
Total(a)
|
|
Volume
|
|
Net
Price
|
|
Mix/
Other
|
|
Exited
Businesses(b)
|
|
Currency
|
|
|
Organic(c)
|
Personal
Care
|
—
|
|
1
|
|
4
|
|
1
|
|
—
|
|
(6)
|
|
|
6
|
Consumer
Tissue
|
(2)
|
|
(4)
|
|
5
|
|
—
|
|
—
|
|
(4)
|
|
|
2
|
K-C
Professional
|
(3)
|
|
(2)
|
|
3
|
|
1
|
|
(2)
|
|
(4)
|
|
|
2
|
TOTAL
CONSOLIDATED
|
(1)
|
|
(1)
|
|
4
|
|
1
|
|
—
|
|
(5)
|
|
|
4
|
|
|
(a)
|
Total may not equal
the sum of volume, net price, mix/other, exited businesses and
currency due to rounding.
|
(b)
|
Exited businesses in
conjunction with the 2018 Global Restructuring Program.
|
(c)
|
Combined impact of
changes in volume, net price and mix/other.
|
|
N.M. - Not
Meaningful
|
Unaudited
|
KIMBERLY-CLARK
CORPORATION
|
NON-GAAP
RECONCILIATIONS
|
|
|
Estimated
Range
|
ESTIMATED FULL
YEAR 2019 DILUTED EARNINGS PER SHARE
|
|
|
|
|
|
Adjusted earnings per
share
|
$
|
6.65
|
|
-
|
|
$
|
6.80
|
Adjustment for
charges related to the 2018 Global Restructuring Program
|
(1.15)
|
|
-
|
|
(0.90)
|
Per share basis –
diluted net income attributable to Kimberly-Clark
Corporation
|
$
|
5.50
|
|
-
|
|
$
|
5.90
|
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SOURCE Kimberly-Clark Corporation