Kimberly-Clark Misses 3Q Adjusted Profit Expectations
October 22 2020 - 8:27AM
Dow Jones News
By Micah Maidenberg
Kimberly-Clark Corp. reported a weaker third-quarter profit but
said demand picked up as shoppers sought out its various consumer
products to use during the Covid-19 pandemic.
The company behind Huggies diapers, Cottonelle toilet paper and
other items reported net income of $472 million, or $1.38 a share,
down from $671 million, or $1.94 a share, for the year-earlier
period. An adjusted profit for the quarter of $1.72 a share missed
expectations from analysts by 4 cents.
Kimberly-Clark said operating income fell in part because last
year's third quarter included a one-time gain tied to the sale of a
factory.
Some manufacturing costs, including expenses related to the
coronavirus pandemic, rose. Costs for marketing, research and
certain other efforts jumped 13% year-over-year.
Net sales for the third quarter totaled $4.68 billion, up from
$4.64 billion. On a comparable basis, sales were up 3%. Analysts
were looking for about $4.59 billion in sales, according to
FactSet.
Chief Executive Mike Hsu said demand increased due to the
pandemic.
The company said sales in its personal-care unit in North
America rose 6% year-over-year, helped by volume gains among baby
and child care items. Volumes in the consumer-tissue business rose
11% in the U.S. and Canada, matching the sales increase for those
items.
Write to Micah Maidenberg at micah.maidenberg@wsj.com
(END) Dow Jones Newswires
October 22, 2020 08:12 ET (12:12 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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