DALLAS, Oct. 22, 2019 /PRNewswire/ -- Kimberly-Clark
Corporation (NYSE: KMB) today reported third quarter 2019 results
and raised its outlook for full-year 2019 organic sales growth and
earnings per share.
Executive Summary
- Third quarter 2019 net sales of $4.6
billion increased 1 percent compared to the year-ago period.
Organic sales increased 4 percent.
- Diluted net income per share for the third quarter was
$1.94 in 2019 and $1.29 in 2018.
- Third quarter adjusted earnings per share were $1.84 in 2019 and $1.71 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 $5.75 to $6.00.
- The company is now targeting full-year 2019 organic sales
growth of 3 to 4 percent and adjusted earnings per share of
$6.75 to $6.90. The prior outlook was for organic sales
growth of 3 percent and adjusted earnings per share of $6.65 to $6.80.
Chief Executive Officer Mike Hsu
said, "We delivered excellent third quarter results and we are
raising our full-year outlook. We achieved strong improvements in
organic sales, profit margins and earnings per share in the
quarter. In addition, we continued to launch innovations, pursue
our growth priorities and increase investments in our brands. We
also generated $95 million of cost
savings and returned approximately $570
million to shareholders through dividends and share
repurchases. I'm encouraged by the progress we're making this year
while we invest more for longer-term success. We continue to be
optimistic about our opportunities to deliver balanced and
sustainable growth through execution of K-C Strategy 2022."
Third Quarter 2019 Operating Results
Sales of $4.6 billion in the third
quarter of 2019 increased more than 1 percent compared to the
year-ago period. Changes in foreign currency exchange rates reduced
sales by 2 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. In
North America, organic sales
increased 4 percent in consumer products and 5 percent in K-C
Professional. Outside North
America, organic sales rose 5 percent in developing and
emerging markets and 1 percent in developed markets.
Third quarter operating profit was $915
million in 2019 and $669
million in 2018. Results in both periods include charges
related to the 2018 Global Restructuring Program. Results in 2019
also include a gain on the sale of a manufacturing facility as part
of the restructuring.
Third quarter adjusted operating profit was $859 million in 2019 and $798 million in 2018. Results benefited from
higher net selling prices, $50
million of cost savings from the company's FORCE (Focused On
Reducing Costs Everywhere) program and $45
million of cost savings from the 2018 Global Restructuring
Program. Input costs decreased $10
million, driven by lower raw material costs. Advertising
spending increased and selling, general and administrative costs
were higher, including increased incentive compensation expense.
Other manufacturing costs also rose year-on-year. Foreign currency
translation effects reduced operating profit by $15 million and transaction effects also
negatively impacted the comparison.
The third quarter effective tax rate was 22.8 percent in 2019
and 23.9 percent in 2018. The third quarter adjusted effective tax
rate was 21.5 percent in 2019 and 19.6 percent in 2018. The rate in
2018 benefited from certain planning initiatives.
Kimberly-Clark's share of net income of equity companies in the
third quarter was $31 million in 2019
and $23 million in 2018. At
Kimberly-Clark de Mexico, results
benefited from organic sales growth and cost savings.
Cash Flow and Balance Sheet
Cash provided by operations in the third quarter was
$886 million in 2019 and
$692 million in 2018. The increase included benefits from
improved working capital and lower pension contributions. Capital
spending for the third quarter was $298 million in 2019 and
$219 million in 2018. Proceeds from dispositions of property
in the third quarter of 2019 included approximately $200 million from the previously mentioned sale
of a manufacturing facility as part of the 2018 Global
Restructuring Program.
Third quarter 2019 share repurchases were 1.6 million shares at
a cost of $214 million. The company
expects full-year repurchases of $800
million, consistent with the original target range of
$600 to $900
million. Total debt was $7.8
billion at September 30, 2019
and $7.5 billion at the end of
2018.
Third Quarter 2019 Business Segment Results
Personal Care Segment
Third quarter sales of $2.3
billion increased 2 percent. Net selling prices increased 3
percent, volumes rose 1 percent and product mix improved 1 percent.
Changes in currency rates reduced sales by 3 percent. Third quarter
operating profit of $490 million
increased 5 percent. The comparison benefited from organic sales
growth and cost savings. Results were impacted by unfavorable
currency effects, other manufacturing cost increases, higher
advertising spending and increased selling, general and
administrative costs.
Sales in North America
increased 4 percent. Net selling prices increased 2 percent and
product mix improved 1 percent, both driven by baby and child care.
Volumes were up 1 percent overall. Volumes increased double-digits
in adult care but were down mid-single digits in baby and child
care compared to a mid-single digit increase in the year-ago
period.
Sales in developing and emerging markets increased 3 percent.
Net selling prices rose 6 percent and product mix improved
1 percent, while volumes were even year-on-year and currency
rates were unfavorable by 5 percent. The higher net selling prices
mostly occurred in Argentina, the
Middle East/Eastern Europe/Africa and China. Volumes increased in Eastern Europe, ASEAN and South Africa, but fell in Latin America.
Sales in developed markets outside North America (Australia, South
Korea and Western/Central
Europe) decreased 3 percent, including a 6 point
negative impact from changes in currency rates. Product mix
improved 2 percent and volumes rose 1 percent.
Consumer Tissue Segment
Third quarter sales of $1.5 billion increased 1 percent. Net
selling prices increased 5 percent, while volumes declined 2
percent and changes in currency rates reduced sales 2 percent.
Third quarter operating profit of $264 million increased
25 percent. Results benefited from higher net selling prices,
cost savings and lower input costs. The comparison was impacted by
other manufacturing cost increases, lower volumes and increased
selling, general and administrative costs.
Sales in North America
increased 3 percent compared to a 5 percent decline in the year-ago
period. Net selling prices rose 8 percent, while volumes fell 4
percent and product mix was off 1 percent.
Sales in developing and emerging markets increased 1 percent.
Net selling prices and product mix each improved 1 percent, while
currency rates were unfavorable by 2 percent.
Sales in developed markets outside North America decreased 4 percent, including a
5 point negative impact from changes in currency rates. Net selling
prices increased 2 percent.
K-C Professional (KCP) Segment
Third quarter sales of $0.8
billion decreased 1 percent. Changes in currency rates and
business exits in conjunction with the 2018 Global Restructuring
Program each reduced sales 2 percent. Net selling prices increased
more than 3 percent and product mix improved 1 percent, while
volumes were down 2 percent. Third quarter operating profit of
$176 million increased 10 percent. Results benefited from
increased net selling prices and cost savings. The comparison was
impacted by lower volumes, other manufacturing cost increases,
unfavorable currency effects and higher selling, general and
administrative costs.
Sales in North America
increased 4 percent. Net selling prices increased 4 percent and
volumes rose 1 percent, while business exits in conjunction with
the 2018 Global Restructuring Program reduced sales approximately 2
percent.
Sales in developing and emerging markets decreased
2 percent, including a 2 point negative impact from changes in
currency rates. Volumes declined 5 percent, while net selling
prices rose 4 percent.
Sales in developed markets outside North America were down 7 percent. Currency
rates were unfavorable by 5 percent and business exits in
conjunction with the 2018 Global Restructuring Program reduced
sales 1 percent. Volumes fell 7 percent, while product mix improved
4 percent and net selling prices increased 2 percent. The changes
occurred mostly in Western/Central
Europe.
Year-To-Date Results
For the first nine months of 2019, sales of $13.9 billion were down slightly. Changes in
foreign currency exchange rates reduced sales by 4 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 $2,240
million in 2019 and $1,590
million in 2018. Results in both periods include charges
related to the 2018 Global Restructuring Program. Year-to-date
adjusted operating profit was $2,455
million in 2019 and $2,396
million in 2018. Results benefited from organic sales
growth, $175 million of FORCE cost
savings and $125 million of cost
savings from the 2018 Global Restructuring Program. The comparison
was impacted by $205 million of
higher input costs, unfavorable currency effects, other
manufacturing cost increases, increased advertising spending and
higher general and administrative costs.
Through nine months, diluted net income per share was
$4.65 in 2019 and $2.85 in 2018. Year-to-date adjusted earnings per
share were $5.18 in 2019 and
$5.01 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. Through the third
quarter of 2019, the company has incurred cumulative restructuring
charges of $1,251 million pre-tax
($964 million after tax) and
generated cumulative savings of $260
million.
2019 Outlook and Key Planning Assumptions
The company updated the following key planning and guidance
assumptions for full-year 2019:
- Net sales down slightly year-on-year (prior assumption even to
down 1 percent).
-
- Organic sales growth 3 to 4 percent (previous estimate 3
percent).
- Foreign currency exchange rates unfavorable by 4 percent (prior
estimate 3 to 4 percent).
- Exited businesses in conjunction with the 2018 Global
Restructuring Program expected to reduce sales slightly (no
change).
- Adjusted operating profit growth 4 to 5 percent (prior target 3
to 5 percent).
-
- Inflation in key cost inputs in the lower half of the
previously estimated range of $150 to
$250 million.
- Currency effects slightly more unfavorable than previously
assumed.
- Adjusted effective tax rate toward the low end of the prior
estimate of 23 to 25 percent.
- Adjusted earnings per share $6.75
to $6.90 compared to the prior
outlook of $6.65 to $6.80.
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
September 30
|
|
|
|
2019
|
|
2018
|
|
Change
|
Net
Sales
|
$
|
4,640
|
|
$
|
4,582
|
|
+1 %
|
Cost of products
sold
|
3,085
|
|
3,166
|
|
-3 %
|
Gross
Profit
|
1,555
|
|
1,416
|
|
+10 %
|
Marketing, research
and general expenses
|
815
|
|
749
|
|
+9 %
|
Other (income) and
expense, net
|
(175)
|
|
(2)
|
|
N.M.
|
Operating
Profit
|
915
|
|
669
|
|
+37 %
|
Nonoperating
expense
|
(11)
|
|
(30)
|
|
-63 %
|
Interest
income
|
3
|
|
2
|
|
+50 %
|
Interest
expense
|
(66)
|
|
(64)
|
|
+3 %
|
Income Before
Income Taxes and Equity Interests
|
841
|
|
577
|
|
+46 %
|
Provision for income
taxes
|
(192)
|
|
(138)
|
|
+39 %
|
Income Before
Equity Interests
|
649
|
|
439
|
|
+48 %
|
Share of net income
of equity companies
|
31
|
|
23
|
|
+35 %
|
Net
Income
|
680
|
|
462
|
|
+47 %
|
Net income
attributable to noncontrolling interests
|
(9)
|
|
(11)
|
|
-18 %
|
Net Income
Attributable to Kimberly-Clark Corporation
|
$
|
671
|
|
$
|
451
|
|
+49 %
|
|
|
|
|
|
|
Per Share
Basis
|
|
|
|
|
|
Net Income
Attributable to Kimberly-Clark Corporation
|
|
|
|
|
|
Basic
|
$
|
1.95
|
|
$
|
1.30
|
|
+50 %
|
Diluted
|
$
|
1.94
|
|
$
|
1.29
|
|
+50 %
|
|
|
|
|
|
|
Cash Dividends
Declared
|
$
|
1.03
|
|
$
|
1.00
|
|
+3 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Shares
Outstanding
|
September
30
|
|
|
|
2019
|
|
2018
|
|
|
Outstanding shares as
of
|
343.1
|
|
346.6
|
|
|
Average diluted
shares for three months ended
|
345.9
|
|
348.8
|
|
|
|
N.M. - Not
Meaningful
|
Unaudited
|
KIMBERLY-CLARK
CORPORATION
|
CONSOLIDATED INCOME
STATEMENTS
|
(Millions, except per
share amounts)
|
|
|
Nine Months
Ended
September 30
|
|
|
|
2019
|
|
2018
|
|
Change
|
Net
Sales
|
$
|
13,867
|
|
$
|
13,917
|
|
—
|
Cost of products
sold
|
9,398
|
|
9,722
|
|
-3 %
|
Gross
Profit
|
4,469
|
|
4,195
|
|
+7 %
|
Marketing, research
and general expenses
|
2,395
|
|
2,599
|
|
-8 %
|
Other (income) and
expense, net
|
(166)
|
|
6
|
|
N.M.
|
Operating
Profit
|
2,240
|
|
1,590
|
|
+41 %
|
Nonoperating
expense
|
(33)
|
|
(75)
|
|
-56 %
|
Interest
income
|
8
|
|
7
|
|
+14 %
|
Interest
expense
|
(198)
|
|
(198)
|
|
—
|
Income Before
Income Taxes and Equity Interests
|
2,017
|
|
1,324
|
|
+52 %
|
Provision for income
taxes
|
(467)
|
|
(380)
|
|
+23 %
|
Income Before
Equity Interests
|
1,550
|
|
944
|
|
+64 %
|
Share of net income
of equity companies
|
91
|
|
80
|
|
+14 %
|
Net
Income
|
1,641
|
|
1,024
|
|
+60 %
|
Net income
attributable to noncontrolling interests
|
(31)
|
|
(25)
|
|
+24 %
|
Net Income
Attributable to Kimberly-Clark Corporation
|
$
|
1,610
|
|
$
|
999
|
|
+61 %
|
|
|
|
|
|
|
Per Share
Basis
|
|
|
|
|
|
Net Income
Attributable to Kimberly-Clark Corporation
|
|
|
|
|
|
Basic
|
$
|
4.68
|
|
$
|
2.86
|
|
+64 %
|
Diluted
|
$
|
4.65
|
|
$
|
2.85
|
|
+63 %
|
|
|
|
|
|
|
Cash Dividends
Declared
|
$
|
3.09
|
|
$
|
3.00
|
|
+3 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Shares
Outstanding
|
September
30
|
|
|
|
2019
|
|
2018
|
|
|
Average diluted
shares for nine months ended
|
346.0
|
|
350.4
|
|
|
|
N.M. - Not
Meaningful
|
Unaudited
|
KIMBERLY-CLARK
CORPORATION
|
NON-GAAP
RECONCILIATIONS
|
(Millions, except per
share amounts)
|
|
|
Three Months Ended
September 30, 2019
|
|
As
Reported
|
|
2018
Global
Restructuring
Program
|
|
As
Adjusted
Non-GAAP
|
Cost of products
sold
|
|
|
|
$
|
3,085
|
|
$
|
104
|
|
$
|
2,981
|
Gross
Profit
|
|
|
|
1,555
|
|
(104)
|
|
1,659
|
Marketing, research
and general expenses
|
|
|
|
815
|
|
21
|
|
794
|
Other (income) and
expense, net(b)
|
|
|
|
(175)
|
|
(181)
|
|
6
|
Operating
Profit
|
|
|
|
915
|
|
56
|
|
859
|
Provision for income
taxes
|
|
|
|
(192)
|
|
(23)
|
|
(169)
|
Effective tax
rate
|
|
|
|
22.8
%
|
|
—
|
|
21.5
%
|
Net Income
Attributable to Kimberly-Clark Corporation
|
|
|
|
671
|
|
33
|
|
638
|
Diluted Earnings per
Share(a)
|
|
|
|
1.94
|
|
0.10
|
|
1.84
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30, 2018
|
|
As
Reported
|
|
2018
Global
Restructuring
Program
|
|
U.S.
Tax
Reform
Related
Matters
|
|
As
Adjusted
Non-GAAP
|
Cost of products
sold
|
$
|
3,166
|
|
$
|
103
|
|
$
|
—
|
|
$
|
3,063
|
Gross
Profit
|
1,416
|
|
(103)
|
|
—
|
|
1,519
|
Marketing, research
and general expenses
|
749
|
|
26
|
|
—
|
|
723
|
Operating
Profit
|
669
|
|
(129)
|
|
—
|
|
798
|
Nonoperating
expense
|
(30)
|
|
(20)
|
|
—
|
|
(10)
|
Provision for income
taxes
|
(138)
|
|
30
|
|
(26)
|
|
(142)
|
Effective tax
rate
|
23.9 %
|
|
—
|
|
—
|
|
19.6 %
|
Net Income
Attributable to Kimberly-Clark Corporation
|
451
|
|
(119)
|
|
(26)
|
|
596
|
Diluted Earnings per
Share(a)
|
1.29
|
|
(0.34)
|
|
(0.07)
|
|
1.71
|
|
|
(a)
|
"As Adjusted
Non-GAAP" may not equal "As Reported" plus "Adjustments" as a
result of rounding.
|
(b)
|
Other (income) and
expense, net includes a pre-tax gain of approximately $182 million
on the sale of a manufacturing facility and associated real estate
which were disposed of as part of the 2018 Global Restructuring
Program.
|
|
|
Unaudited
|
KIMBERLY-CLARK
CORPORATION
|
NON-GAAP
RECONCILIATIONS
|
(Millions, except per
share amounts)
|
|
|
|
|
|
Nine Months Ended
September 30, 2019
|
|
|
|
|
As
Reported
|
|
2018
Global
Restructuring
Program
|
|
As
Adjusted
Non-GAAP
|
Cost of products
sold
|
|
|
|
$
|
9,398
|
|
$
|
331
|
|
$
|
9,067
|
Gross
Profit
|
|
|
|
4,469
|
|
(331)
|
|
4,800
|
Marketing, research
and general expenses
|
|
|
|
2,395
|
|
66
|
|
2,329
|
Other (income) and
expense, net(b)
|
|
|
|
(166)
|
|
(182)
|
|
16
|
Operating
Profit
|
|
|
|
2,240
|
|
(215)
|
|
2,455
|
Provision for income
taxes
|
|
|
|
(467)
|
|
35
|
|
(502)
|
Effective tax
rate
|
|
|
|
23.2
%
|
|
—
|
|
22.5
%
|
Share of net income
of equity companies
|
|
|
|
91
|
|
(2)
|
|
93
|
Net income
attributable to noncontrolling interests
|
|
|
|
(31)
|
|
1
|
|
(32)
|
Net Income
Attributable to Kimberly-Clark Corporation
|
|
|
|
1,610
|
|
(181)
|
|
1,791
|
Diluted Earnings per
Share(a)
|
|
|
|
4.65
|
|
(0.52)
|
|
5.18
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30, 2018
|
|
As
Reported
|
|
2018
Global
Restructuring
Program
|
|
U.S.
Tax
Reform
Related
Matters
|
|
As
Adjusted
Non-GAAP
|
Cost of products
sold
|
$
|
9,722
|
|
$
|
465
|
|
$
|
—
|
|
$
|
9,257
|
Gross
Profit
|
4,195
|
|
(465)
|
|
—
|
|
4,660
|
Marketing, research
and general expenses
|
2,599
|
|
341
|
|
—
|
|
2,258
|
Operating
Profit
|
1,590
|
|
(806)
|
|
—
|
|
2,396
|
Nonoperating
expense
|
(75)
|
|
(50)
|
|
—
|
|
(25)
|
Provision for income
taxes
|
(380)
|
|
197
|
|
(108)
|
|
(469)
|
Effective tax
rate
|
28.7 %
|
|
—
|
|
—
|
|
21.5 %
|
Share of net income
of equity companies
|
80
|
|
(1)
|
|
—
|
|
81
|
Net income
attributable to noncontrolling interests
|
(25)
|
|
11
|
|
—
|
|
(36)
|
Net Income
Attributable to Kimberly-Clark Corporation
|
999
|
|
(649)
|
|
(108)
|
|
1,756
|
Diluted Earnings per
Share(a)
|
2.85
|
|
(1.85)
|
|
(0.31)
|
|
5.01
|
|
|
(a)
|
"As Adjusted
Non-GAAP" may not equal "As Reported" plus "Adjustments" as a
result of rounding.
|
(b)
|
Other (income) and
expense, net includes a pre-tax gain of approximately $182 million
on the sale of a manufacturing facility and associated real estate
which were disposed of as part of the 2018 Global Restructuring
Program.
|
|
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
SHEETS
|
(Millions)
|
|
|
September 30,
2019
|
|
December 31,
2018
|
ASSETS
|
|
|
|
Current
Assets
|
|
|
|
Cash and cash
equivalents
|
$
|
416
|
|
$
|
539
|
Accounts receivable,
net
|
2,306
|
|
2,164
|
Inventories
|
1,779
|
|
1,813
|
Other current
assets
|
563
|
|
525
|
Total Current
Assets
|
5,064
|
|
5,041
|
Property, Plant
and Equipment, Net
|
7,158
|
|
7,159
|
Investments in
Equity Companies
|
294
|
|
224
|
Goodwill
|
1,438
|
|
1,474
|
Other
Assets
|
1,079
|
|
620
|
TOTAL
ASSETS
|
$
|
15,033
|
|
$
|
14,518
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
Liabilities
|
|
|
|
Debt payable within
one year
|
$
|
1,555
|
|
$
|
1,208
|
Trade accounts
payable
|
2,942
|
|
3,190
|
Accrued expenses and
other current liabilities
|
1,931
|
|
1,793
|
Dividends
payable
|
354
|
|
345
|
Total Current
Liabilities
|
6,782
|
|
6,536
|
Long-Term
Debt
|
6,198
|
|
6,247
|
Noncurrent
Employee Benefits
|
881
|
|
931
|
Deferred Income
Taxes
|
506
|
|
458
|
Other
Liabilities
|
540
|
|
328
|
Redeemable
Preferred Securities of Subsidiaries
|
38
|
|
64
|
Stockholders'
Equity
|
|
|
|
Kimberly-Clark
Corporation
|
(141)
|
|
(287)
|
Noncontrolling
Interests
|
229
|
|
241
|
Total
Stockholders' Equity
|
88
|
|
(46)
|
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY
|
$
|
15,033
|
|
$
|
14,518
|
KIMBERLY-CLARK
CORPORATION
|
CONSOLIDATED CASH
FLOW STATEMENTS
|
(Millions)
|
|
|
Three Months
Ended
September 30
|
|
Nine Months
Ended
September 30
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Operating
Activities
|
|
|
|
|
|
|
|
Net income
|
$
|
680
|
|
$
|
462
|
|
$
|
1,641
|
|
$
|
1,024
|
Depreciation and
amortization
|
230
|
|
217
|
|
700
|
|
652
|
Asset
impairments
|
—
|
|
—
|
|
—
|
|
74
|
Stock-based
compensation
|
26
|
|
19
|
|
74
|
|
45
|
Deferred income
taxes
|
(18)
|
|
27
|
|
8
|
|
44
|
Net (gains) losses on
asset dispositions
|
(172)
|
|
4
|
|
(155)
|
|
57
|
Equity companies'
earnings (in excess of) less than dividends paid
|
(1)
|
|
7
|
|
(31)
|
|
(18)
|
Operating working
capital
|
126
|
|
24
|
|
(399)
|
|
117
|
Postretirement
benefits
|
5
|
|
(73)
|
|
(16)
|
|
(87)
|
Other
|
10
|
|
5
|
|
(10)
|
|
113
|
Cash Provided by
Operations
|
886
|
|
692
|
|
1,812
|
|
2,021
|
Investing
Activities
|
|
|
|
|
|
|
|
Capital
spending
|
(298)
|
|
(219)
|
|
(867)
|
|
(566)
|
Proceeds from
dispositions of property
|
205
|
|
10
|
|
206
|
|
16
|
Investments in time
deposits
|
(167)
|
|
(71)
|
|
(353)
|
|
(218)
|
Maturities of time
deposits
|
58
|
|
45
|
|
287
|
|
139
|
Other
|
(43)
|
|
15
|
|
(40)
|
|
(3)
|
Cash Used for
Investing
|
(245)
|
|
(220)
|
|
(767)
|
|
(632)
|
Financing
Activities
|
|
|
|
|
|
|
|
Cash dividends
paid
|
(354)
|
|
(348)
|
|
(1,054)
|
|
(1,039)
|
Change in short-term
debt
|
(219)
|
|
349
|
|
324
|
|
453
|
Debt
proceeds
|
4
|
|
—
|
|
700
|
|
—
|
Debt
repayments
|
(2)
|
|
(306)
|
|
(705)
|
|
(310)
|
Proceeds from
exercise of stock options
|
51
|
|
28
|
|
211
|
|
50
|
Acquisitions of
common stock for the treasury
|
(214)
|
|
(176)
|
|
(544)
|
|
(596)
|
Other
|
(13)
|
|
—
|
|
(92)
|
|
(41)
|
Cash Used for
Financing
|
(747)
|
|
(453)
|
|
(1,160)
|
|
(1,483)
|
Effect of Exchange
Rate Changes on Cash and Cash Equivalents
|
(12)
|
|
(9)
|
|
(8)
|
|
(28)
|
Change in Cash and
Cash Equivalents
|
(118)
|
|
10
|
|
(123)
|
|
(122)
|
Cash and Cash
Equivalents - Beginning of Period
|
534
|
|
484
|
|
539
|
|
616
|
Cash and Cash
Equivalents - End of Period
|
$
|
416
|
|
$
|
494
|
|
$
|
416
|
|
$
|
494
|
KIMBERLY-CLARK
CORPORATION
|
SELECTED BUSINESS
SEGMENT DATA
|
(Millions)
|
|
|
Three Months Ended
September 30
|
|
|
|
Nine Months Ended
September 30
|
|
|
|
2019
|
|
2018
|
|
Change
|
|
2019
|
|
2018
|
|
Change
|
NET
SALES
|
|
|
|
|
|
|
|
|
|
|
|
Personal
Care
|
$
|
2,305
|
|
$
|
2,252
|
|
+2 %
|
|
$
|
6,866
|
|
$
|
6,816
|
|
+1 %
|
Consumer
Tissue
|
1,484
|
|
1,469
|
|
+1 %
|
|
4,482
|
|
4,520
|
|
-1 %
|
K-C
Professional
|
839
|
|
848
|
|
-1 %
|
|
2,477
|
|
2,541
|
|
-3 %
|
Corporate &
Other
|
12
|
|
13
|
|
N.M.
|
|
42
|
|
40
|
|
N.M.
|
TOTAL NET
SALES
|
$
|
4,640
|
|
$
|
4,582
|
|
+1 %
|
|
$
|
13,867
|
|
$
|
13,917
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
PROFIT
|
|
|
|
|
|
|
|
|
|
|
|
Personal
Care
|
$
|
490
|
|
$
|
466
|
|
+5 %
|
|
$
|
1,459
|
|
$
|
1,397
|
|
+4 %
|
Consumer
Tissue
|
264
|
|
212
|
|
+25 %
|
|
726
|
|
668
|
|
+9 %
|
K-C
Professional
|
176
|
|
160
|
|
+10 %
|
|
488
|
|
483
|
|
+1 %
|
Corporate &
Other(a)
|
(190)
|
|
(171)
|
|
N.M.
|
|
(599)
|
|
(952)
|
|
N.M.
|
Other (income) and
expense, net(a)
|
(175)
|
|
(2)
|
|
N.M.
|
|
(166)
|
|
6
|
|
N.M.
|
TOTAL OPERATING
PROFIT
|
$
|
915
|
|
$
|
669
|
|
+37 %
|
|
$
|
2,240
|
|
$
|
1,590
|
|
+41 %
|
|
|
(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
September 30, 2019
|
|
Total(a)
|
|
Volume
|
|
Net
Price
|
|
Mix/
Other
|
|
Exited
Businesses(b)
|
|
Currency
|
|
|
Organic(c)
|
Personal
Care
|
2
|
|
1
|
|
3
|
|
1
|
|
—
|
|
(3)
|
|
|
5
|
Consumer
Tissue
|
1
|
|
(2)
|
|
5
|
|
—
|
|
—
|
|
(2)
|
|
|
3
|
K-C
Professional
|
(1)
|
|
(2)
|
|
3
|
|
1
|
|
(2)
|
|
(2)
|
|
|
3
|
TOTAL
CONSOLIDATED
|
1
|
|
(1)
|
|
4
|
|
1
|
|
—
|
|
(2)
|
|
|
4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30, 2019
|
|
Total(a)
|
|
Volume
|
|
Net
Price
|
|
Mix/
Other
|
|
Exited
Businesses(b)
|
|
Currency
|
|
|
Organic(c)
|
Personal
Care
|
1
|
|
1
|
|
4
|
|
1
|
|
—
|
|
(5)
|
|
|
6
|
Consumer
Tissue
|
(1)
|
|
(3)
|
|
5
|
|
—
|
|
—
|
|
(3)
|
|
|
2
|
K-C
Professional
|
(3)
|
|
(2)
|
|
3
|
|
1
|
|
(2)
|
|
(3)
|
|
|
2
|
TOTAL
CONSOLIDATED
|
—
|
|
(1)
|
|
4
|
|
1
|
|
—
|
|
(4)
|
|
|
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
|
$
|
6.75
|
|
-
|
|
$
|
6.90
|
Adjustment for
charges related to the 2018 Global Restructuring Program
|
(1.00)
|
|
-
|
|
(0.90)
|
Per share basis –
diluted net income attributable to Kimberly-Clark
Corporation
|
$
|
5.75
|
|
-
|
|
$
|
6.00
|
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SOURCE Kimberly-Clark Corporation