DALLAS, July 23, 2021 /PRNewswire/ -- Kimberly-Clark
Corporation (NYSE: KMB) today reported second quarter 2021
results.
Executive Summary
- Second quarter 2021 net sales of $4.7
billion increased 2 percent compared to the year-ago period,
with an organic sales decline of 3 percent.
- Diluted net income per share for the second quarter was
$1.19 in 2021 and $1.99 in 2020.
- Second quarter adjusted earnings per share were $1.47 in 2021 compared to $2.20 in 2020. Adjusted earnings per share
exclude certain items described later in this news release.
- Diluted net income per share for 2021 is anticipated to be
$6.00 to $6.50.
- The company is now targeting full-year 2021 organic sales
decline of 0 to 2 percent and adjusted earnings per share of
$6.65 to $6.90. The prior outlook was for organic sales
growth of 0 to 1 percent and adjusted earnings per share of
$7.30 to $7.55. The updated earnings outlook reflects
significantly higher input cost inflation and lower sales volumes,
partially offset by additional cost savings and reduced
discretionary spending.
Chairman and Chief Executive Officer Mike Hsu said, "Our second quarter reflects
continued pandemic-driven volatility. We are facing
significantly higher input costs and a reversal in consumer tissue
volumes from record growth in the year ago period as consumers and
retailers in North America
continued to reduce home and retail inventory. While we look
forward to a return to a more normalized environment, we have moved
decisively to take pricing actions to mitigate inflationary
headwinds and continue to prudently manage costs. We remain
confident in our strategy and in our fundamental brand
performance. Our personal care business is performing well,
and we continue to improve our market positions in key markets and
realize robust growth across Developing and Emerging Markets."
Hsu continued, "We will continue to execute K-C Strategy
2022. While our updated outlook reflects a more challenging
near-term environment, we are taking appropriate actions and remain
confident in our strategies to create long-term shareholder
value."
Second Quarter 2021 Operating Results
Sales of $4.7 billion in the
second quarter of 2021 increased 2 percent versus the prior
year. Changes in foreign currency exchange rates increased
sales 3 percent and the net impact of the Softex Indonesia
acquisition and exited businesses in conjunction with the 2018
Global Restructuring Program increased sales 2 percent.
Organic sales decreased 3 percent as volumes declined 4 percent
while the combined impact of changes in net selling prices and
product mix increased sales approximately 1 percent.
In North America, organic sales
decreased 11 percent in consumer products and 4 percent in K-C
Professional. Volumes in North
America, particularly consumer tissue, were negatively
impacted by consumer and retailer destocking following the stock up
that occurred in prior periods related to the global outbreak of
COVID-19. Outside North America, organic sales were up 9
percent in developing and emerging (D&E) markets and up
1 percent in developed markets.
Second quarter operating profit was $613
million in 2021 and $925
million in 2020. Results in both periods include
charges related to the 2018 Global Restructuring Program.
Second quarter adjusted operating profit was $676 million in 2021 and $1,012 million in 2020. Results were
impacted by lower sales volumes and $345
million of higher input costs, driven by pulp, other
materials and distribution costs. Other manufacturing costs
were higher, including inefficiencies from lower production
volumes. Results benefited from higher net selling prices,
$115 million of cost savings from the
company's FORCE (Focused On Reducing Costs Everywhere) program,
$30 million of cost savings from the
2018 Global Restructuring Program and lower marketing, research and
general expense.
The second quarter effective tax rate was 22.8 percent in 2021
and 23.2 percent in 2020. The second quarter adjusted
effective tax rate was 22.5 percent in 2021 and 22.7 percent in
2020. Kimberly-Clark's share of net income of equity
companies in the second quarter was $28
million in 2021 and $35
million in 2020.
Cash Flow and Balance Sheet
Cash provided by operations in the second quarter was
$565 million in 2021 and an all-time
record of $1,579 million in
2020. The decrease was driven by higher working capital,
lower earnings and higher tax payments. Capital spending for
the second quarter was $201 million
in 2021 and $284 million in
2020.
Second quarter 2021 share repurchases were 1.2 million shares at
a cost of $161 million. The
company now plans for full-year repurchases of $400 to $450
million, below the original target range of $650 to $750
million. Total debt was $9.1
billion at June 30, 2021 and
$8.4 billion at the end of
2020.
Second Quarter 2021 Business Segment Results
Personal Care Segment
Second quarter sales of $2.5
billion increased 13 percent. The net impact of the
Softex Indonesia acquisition and exited businesses in conjunction
with the 2018 Global Restructuring Program increased sales 4
percent while changes in currency rates increased sales 3
percent. Volumes increased 4 percent while product mix
improved 2 percent. Second quarter operating profit of
$454 million decreased 13
percent. Results were impacted by input cost inflation and
higher other manufacturing cost increases while the comparison
benefited from organic sales growth and cost savings.
Sales in North America
increased 2 percent. Product mix improved 2 percent, driven
by baby and child care, and changes in currency rates increased
sales 1 percent. Exited business related to the 2018 Global
Restructuring program reduced sales 1 percent.
Sales in D&E markets increased 24 percent. The Softex
Indonesia acquisition increased sales by 14 percent while changes
in currency rates increased sales 2 percent. Volumes
rose 6 percent and the combined impact of changes in net selling
prices and product mix increased sales 2 percent. Organic
sales increased in Argentina,
Brazil, China, India
and throughout the Middle East,
Africa, Eastern Europe region but declined in ASEAN
and most of the rest of Latin
America.
Sales in developed markets outside North America (Australia, South
Korea and Western/Central
Europe) increased 26 percent. Changes in currency
rates increased sales 14 percent and volumes rose 12 percent.
Consumer Tissue Segment
Second quarter sales of $1.4
billion decreased 13 percent. Volumes declined 15
percent while changes in currency rates increased sales about 3
percent. The volume decline was driven by reduced shipments
in North America, reflecting
category softness as retailers reduce inventory and consumers
reduce at home usage and pantry levels following the stock up that
occurred in prior periods related to the global outbreak of
COVID-19. Second quarter operating profit of $196 million decreased 54 percent. The
comparison was impacted by lower organic sales, higher input costs
and other manufacturing cost increases, including inefficiencies
from lower production volumes. Results benefited from cost
savings, lower advertising spending and favorable currency
effects.
Sales in North America
decreased 26 percent. Volumes fell 27 percent and product mix
was down 2 percent, while net selling prices improved
2 percent.
Sales in D&E markets increased 9 percent including a 3 point
favorable impact from changes in currency rates. Volumes rose
3 percent and product mix improved 1 percent, while net selling
prices were down 2 percent. The Softex Indonesia acquisition
increased sales 4 percent.
Sales in developed markets outside North America increased 1 percent, including a
10 percent benefit from changes in currency rates. Net
selling prices were down 6 percent, compared to very low promotion
levels in the year-ago period, and volumes were down 1
percent. Exited businesses related to the 2018 Global
Restructuring program reduced sales 2 percent.
K-C Professional (KCP) Segment
Second quarter sales of $0.8
billion increased 6 percent. Net selling prices
increased approximately 5 percent, product mix improved 1 percent
and changes in currency rates increased sales 3 percent.
Volumes declined 4 percent. Second quarter operating profit
of $110 million decreased 29
percent. The comparison was impacted by lower volumes and
higher input costs. Results benefited from increased net
selling prices and cost savings.
Sales in North America
decreased 3 percent. Volumes were down 11 percent, while net
selling prices rose approximately 6 percent and product mix
improved 2 percent. Sales were down mid-teens in washroom
products and wipers while sales increased double-digits in safety
and other products, mostly due to higher net selling prices and
favorable product mix.
Sales in D&E markets increased 31 percent including a 3
point benefit from changes in currency rates. Volumes rose 24
percent, compared to a soft year-ago period, while net selling
prices increased 5 percent.
Sales in developed markets outside North America were up 13 percent including an
11 percent benefit from changes in currency rates. Net
selling prices increased 5 percent while volumes decreased
approximately 2 percent.
Year-To-Date Results
For the first six months of 2021, sales of $9.5 billion decreased 2 percent. Organic
sales decreased 5 percent, as volumes declined 7 percent and net
selling prices and product mix each improved 1 percent.
Changes in foreign currency exchange rates increased sales by
approximately 2 percent and the net impact of the Softex Indonesia
acquisition and business exits in conjunction with the 2018 Global
Restructuring Program increased sales 2 percent.
Year-to-date operating profit was $1,383
million in 2021 and $1,829
million in 2020. Results in both periods include
charges related to the 2018 Global Restructuring Program.
Year-to-date adjusted operating profit was $1,480 million in 2021 and $2,009 million in 2020. Results were
impacted by lower sales volumes, higher input costs and elevated
other manufacturing costs. Results benefited from higher net
selling prices, $180 million of FORCE
savings and $70 million of cost
savings from the 2018 Global Restructuring
Program.
Through six months, diluted net income per share was
$2.92 in 2021 and $3.92 in 2020. Year-to-date adjusted
earnings per share were $3.27 in 2021
and $4.34 in 2020.
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. As part of
the program, Kimberly-Clark expects to exit or divest some
low-margin businesses that generate about 1 percent of company net
sales.
The restructuring is expected to be completed in 2021.
Total restructuring charges are anticipated to be $2,000 to $2,100
million pre-tax ($1,490 to
$1,570 million after tax). The
company expects the program will generate annual pre-tax cost
savings of $540 to $560 million by the end of 2021. Through
the second quarter of 2021, the company has incurred cumulative
restructuring charges of $1,974
million pre-tax ($1,474
million after tax) and generated cumulative savings of
$495 million.
2021 Outlook and Key Planning Assumptions
The company updated the following key planning and guidance
assumptions for full-year 2021:
- Net sales increase 1 to 4 percent (prior assumption 3 to 5
percent).
-
- Organic sales decline 0 to 2 percent (prior target 0 to 1
percent increase).
- Foreign currency exchange rates favorable between 1 and 2
percent (no change).
- Softex Indonesia acquisition expected to increase sales 2
percent while exited businesses in conjunction with the 2018 Global
Restructuring Program anticipated to reduce sales slightly (no
change).
- Adjusted operating profit expected to decline 11 to 14 percent
year-on-year (prior assumption decline of 3 to 6 percent).
-
- Key cost inputs expected to increase $1,200 to $1,300
million (previous estimate $900 to $1,050
million). The increased estimate is driven by polymer-based
materials and pulp.
- Cost savings of $520 to
$560 million, including $400 to $420
million from the FORCE program and $120 to $140
million from the 2018 Global Restructuring Program. The
prior estimate was for total savings of $460 to $520
million.
- Net income from equity companies similar, to down somewhat,
year-on-year (prior outlook similar, to up somewhat).
- Adjusted earnings per share of $6.65 to $6.90
(prior outlook $7.30 to $7.55).
- Capital spending of $1,100 to
$1,200 million (prior outlook
$1,200 to $1,300 million).
- Share repurchase of $400 to
$450 million (prior outlook
$650 to $750
million).
Prepared Management Remarks and Live Question and Answer
Webcast
At approximately 7:00 a.m. (Central
time) on July 23, 2021, the
company will post management remarks (in PDF format) regarding its
second quarter 2021 results and full-year 2021 outlook at
www.kimberly-clark.com. At 9:00 am
(Central time) on July 23,
2021, the company will host a live question and answer
session with investors and analysts. Stockholders and others
are invited to listen to the live broadcast or a playback, which
will be accessible on the company's website at
www.kimberly-clark.com.
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 charges for the
2018 Global Restructuring Program (mentioned elsewhere in this
release) for the relevant time periods as indicated in the
accompanying non-GAAP reconciliations to the comparable GAAP
financial measures.
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
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, acquisitions and exited businesses
also impact the year-over-year change in net sales.
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, Sweety, Softex, Viva and
WypAll, hold No. 1 or No. 2 share positions in approximately 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 nearly 150-year history of
innovation, visit 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.
As more fully described in Kimberly-Clark's Quarterly Report
on Form 10-Q for the quarter ended June 30,
2021, the company has been actively monitoring the COVID-19
situation and its impact globally. The impact of COVID-19 and
measures to prevent its spread are affecting our business in a
number of ways. We have experienced increased volatility in
demand for some of our products as consumers adapt to the evolving
environment. We have also experienced incidents of supply
chain disruption and increased currency and commodity
volatility. We expect the ultimate significance of the impact
on our financial and operational results will be dictated by the
length of time that such circumstances continue, which will depend
on the currently unknowable extent and duration of the COVID-19
pandemic and governmental and public actions taken in
response. COVID-19 also makes it more challenging for
management to estimate future business performance, particularly
over the near term.
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 pandemics (including the ongoing COVID-19
outbreak and the related responses of governments, consumers,
customers, suppliers and employees), epidemics, the prices and
availability of our raw materials, supply chain disruptions due to
COVID-19, changes in customer preferences (including consumer
tissue destocking following a COVID-19 related stock up in 2020),
severe weather conditions or government trade or similar regulatory
actions, potential competitive pressures on selling prices for our
products, energy costs, failure to realize the expected benefits or
synergies from the Softex Indonesia acquisition, fluctuations in
foreign currency exchange rates, 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 entitled "Risk
Factors" in the company's Annual Report on Form 10-K for the year
ended December 31, 2020.
KIMBERLY-CLARK
CORPORATION
|
CONSOLIDATED INCOME
STATEMENTS
|
(Millions, except per
share amounts)
|
|
|
Three Months Ended
June 30
|
|
|
|
2021
|
|
2020
|
|
Change
|
Net
Sales
|
$
|
4,722
|
|
$
|
4,612
|
|
+2 %
|
Cost of products
sold
|
3,242
|
|
2,835
|
|
+14 %
|
Gross
Profit
|
1,480
|
|
1,777
|
|
-17 %
|
Marketing, research
and general expenses
|
854
|
|
844
|
|
+1 %
|
Other (income) and
expense, net
|
13
|
|
8
|
|
+63 %
|
Operating
Profit
|
613
|
|
925
|
|
-34 %
|
Nonoperating
expense
|
(55)
|
|
(6)
|
|
+817 %
|
Interest
income
|
2
|
|
2
|
|
—
|
Interest
expense
|
(65)
|
|
(65)
|
|
—
|
Income Before
Income Taxes and Equity Interests
|
495
|
|
856
|
|
-42 %
|
Provision for income
taxes
|
(113)
|
|
(199)
|
|
-43 %
|
Income Before
Equity Interests
|
382
|
|
657
|
|
-42 %
|
Share of net income of
equity companies
|
28
|
|
35
|
|
-20 %
|
Net
Income
|
410
|
|
692
|
|
-41 %
|
Net income
attributable to noncontrolling interests
|
(6)
|
|
(11)
|
|
-45 %
|
Net Income
Attributable to Kimberly-Clark Corporation
|
$
|
404
|
|
$
|
681
|
|
-41 %
|
|
|
|
|
|
|
Per Share
Basis
|
|
|
|
|
|
Net Income
Attributable to Kimberly-Clark Corporation
|
|
|
|
|
|
Basic
|
$
|
1.20
|
|
$
|
2.00
|
|
-40 %
|
Diluted
|
$
|
1.19
|
|
$
|
1.99
|
|
-40 %
|
|
|
|
|
|
|
Cash Dividends
Declared
|
$
|
1.14
|
|
$
|
1.07
|
|
+7 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Shares
Outstanding
|
June
30
|
|
|
|
2021
|
|
2020
|
|
|
Outstanding shares as
of
|
336.9
|
|
341.0
|
|
|
Average diluted shares
for three months ended
|
338.3
|
|
341.9
|
|
|
|
|
|
|
|
|
KIMBERLY-CLARK
CORPORATION
|
CONSOLIDATED INCOME
STATEMENTS
|
(Millions, except per
share amounts)
|
|
|
Six Months Ended
June 30
|
|
|
|
2021
|
|
2020
|
|
Change
|
Net
Sales
|
$
|
9,465
|
|
$
|
9,621
|
|
-2 %
|
Cost of products
sold
|
6,396
|
|
6,053
|
|
+6 %
|
Gross
Profit
|
3,069
|
|
3,568
|
|
-14 %
|
Marketing, research
and general expenses
|
1,669
|
|
1,717
|
|
-3 %
|
Other (income) and
expense, net
|
17
|
|
22
|
|
-23 %
|
Operating
Profit
|
1,383
|
|
1,829
|
|
-24 %
|
Nonoperating
expense
|
(61)
|
|
(17)
|
|
+259 %
|
Interest
income
|
3
|
|
4
|
|
-25 %
|
Interest
expense
|
(128)
|
|
(126)
|
|
+2 %
|
Income Before
Income Taxes and Equity Interests
|
1,197
|
|
1,690
|
|
-29 %
|
Provision for income
taxes
|
(260)
|
|
(396)
|
|
-34 %
|
Income Before
Equity Interests
|
937
|
|
1,294
|
|
-28 %
|
Share of net income of
equity companies
|
67
|
|
73
|
|
-8 %
|
Net
Income
|
1,004
|
|
1,367
|
|
-27 %
|
Net income
attributable to noncontrolling interests
|
(16)
|
|
(26)
|
|
-38 %
|
Net Income
Attributable to Kimberly-Clark Corporation
|
$
|
988
|
|
$
|
1,341
|
|
-26 %
|
|
|
|
|
|
|
Per Share
Basis
|
|
|
|
|
|
Net Income
Attributable to Kimberly-Clark Corporation
|
|
|
|
|
|
Basic
|
$
|
2.92
|
|
$
|
3.93
|
|
-26 %
|
Diluted
|
$
|
2.92
|
|
$
|
3.92
|
|
-26 %
|
|
|
|
|
|
|
Cash Dividends
Declared
|
$
|
2.28
|
|
$
|
2.14
|
|
+7 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Shares
Outstanding
|
June
30
|
|
|
|
2021
|
|
2020
|
|
|
Average diluted shares
for six months ended
|
338.8
|
|
342.3
|
|
|
|
|
|
|
|
|
KIMBERLY-CLARK
CORPORATION
|
NON-GAAP
RECONCILIATIONS
|
(Millions, except per
share amounts)
|
|
|
Three Months Ended
June 30, 2021
|
|
As
Reported
|
|
2018
Global
Restructuring
Program
|
|
As
Adjusted
Non-GAAP
|
Cost of products
sold
|
$
|
3,242
|
|
$
|
25
|
|
$
|
3,217
|
Gross
Profit
|
1,480
|
|
(25)
|
|
1,505
|
Marketing, research
and general expenses
|
854
|
|
30
|
|
824
|
Other (income) and
expense, net
|
13
|
|
8
|
|
5
|
Operating
Profit
|
613
|
|
(63)
|
|
676
|
Nonoperating
expense
|
(55)
|
|
(56)
|
|
1
|
Provision for income
taxes
|
(113)
|
|
25
|
|
(138)
|
Effective tax
rate
|
22.8
%
|
|
—
|
|
22.5
%
|
Net Income
Attributable to Kimberly-Clark Corporation
|
404
|
|
(94)
|
|
498
|
Diluted Earnings per
Share(a)
|
1.19
|
|
(0.28)
|
|
1.47
|
|
|
|
Three Months Ended
June 30, 2020
|
|
As
Reported
|
|
2018
Global
Restructuring
Program
|
|
As
Adjusted
Non-GAAP
|
Cost of products
sold
|
$
|
2,835
|
|
$
|
60
|
|
$
|
2,775
|
Gross
Profit
|
1,777
|
|
(60)
|
|
1,837
|
Marketing, research
and general expenses
|
844
|
|
27
|
|
817
|
Operating
Profit
|
925
|
|
(87)
|
|
1,012
|
Provision for income
taxes
|
(199)
|
|
15
|
|
(214)
|
Effective tax
rate
|
23.2 %
|
|
—
|
|
22.7 %
|
Share of net income
of equity companies
|
35
|
|
(1)
|
|
36
|
Net income
attributable to noncontrolling interests
|
(11)
|
|
1
|
|
(12)
|
Net Income
Attributable to Kimberly-Clark Corporation
|
681
|
|
(72)
|
|
753
|
Diluted Earnings per
Share(a)
|
1.99
|
|
(0.21)
|
|
2.20
|
|
|
(a)
|
"As Adjusted
Non-GAAP" may not equal "As Reported" plus "Adjustments" as a
result of rounding.
|
|
|
Unaudited
|
KIMBERLY-CLARK
CORPORATION
|
NON-GAAP
RECONCILIATIONS
|
(Millions, except per
share amounts)
|
|
|
Six Months Ended
June 30, 2021
|
|
As
Reported
|
|
2018
Global
Restructuring
Program
|
|
As
Adjusted
Non-GAAP
|
Cost of products
sold
|
$
|
6,396
|
|
$
|
50
|
|
$
|
6,346
|
Gross
Profit
|
3,069
|
|
(50)
|
|
3,119
|
Marketing, research
and general expenses
|
1,669
|
|
39
|
|
1,630
|
Other (income) and
expense, net
|
17
|
|
8
|
|
9
|
Operating
Profit
|
1,383
|
|
(97)
|
|
1,480
|
Nonoperating
expense
|
(61)
|
|
(56)
|
|
(5)
|
Provision for income
taxes
|
(260)
|
|
32
|
|
(292)
|
Effective tax
rate
|
21.7
%
|
|
—
|
|
21.6
%
|
Net income
attributable to noncontrolling interests
|
(16)
|
|
1
|
|
(17)
|
Net Income
Attributable to Kimberly-Clark Corporation
|
988
|
|
(120)
|
|
1,108
|
Diluted Earnings per
Share(a)
|
2.92
|
|
(0.35)
|
|
3.27
|
|
|
|
Six Months Ended
June 30, 2020
|
|
As
Reported
|
|
2018
Global
Restructuring
Program
|
|
As
Adjusted
Non-GAAP
|
Cost of products
sold
|
$
|
6,053
|
|
$
|
130
|
|
$
|
5,923
|
Gross
profit
|
3,568
|
|
(130)
|
|
3,698
|
Marketing, research
and general expenses
|
1,717
|
|
50
|
|
1,667
|
Operating
profit
|
1,829
|
|
(180)
|
|
2,009
|
Provision for income
taxes
|
(396)
|
|
33
|
|
(429)
|
Effective tax
rate
|
23.4 %
|
|
—
|
|
22.9 %
|
Share of net income
of equity companies
|
73
|
|
(1)
|
|
74
|
Net income
attributable to noncontrolling interests
|
(26)
|
|
2
|
|
(28)
|
Net income
attributable to Kimberly-Clark Corporation
|
1,341
|
|
(146)
|
|
1,487
|
Diluted Earnings per
Share(a)
|
3.92
|
|
(0.43)
|
|
4.34
|
|
|
(a)
|
"As Adjusted
Non-GAAP" may not equal "As Reported" plus "Adjustments" as a
result of rounding.
|
|
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)
|
|
|
June 30, 2021
|
|
December 31,
2020
|
ASSETS
|
|
|
|
Current
Assets
|
|
|
|
Cash and cash
equivalents
|
$
|
306
|
|
$
|
303
|
Accounts receivable,
net
|
2,340
|
|
2,235
|
Inventories
|
2,110
|
|
1,903
|
Other current
assets
|
816
|
|
733
|
Total Current
Assets
|
5,572
|
|
5,174
|
Property, Plant
and Equipment, Net
|
8,018
|
|
8,042
|
Investments in
Equity Companies
|
350
|
|
300
|
Goodwill
|
1,834
|
|
1,895
|
Other Intangible
Assets, Net
|
803
|
|
832
|
Other
Assets
|
1,250
|
|
1,280
|
TOTAL
ASSETS
|
$
|
17,827
|
|
$
|
17,523
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
Liabilities
|
|
|
|
Debt payable within
one year
|
$
|
1,493
|
|
$
|
486
|
Trade accounts
payable
|
3,337
|
|
3,336
|
Accrued expenses and
other current liabilities
|
2,037
|
|
2,262
|
Dividends
payable
|
377
|
|
359
|
Total Current
Liabilities
|
7,244
|
|
6,443
|
Long-Term
Debt
|
7,591
|
|
7,878
|
Noncurrent
Employee Benefits
|
875
|
|
864
|
Deferred Income
Taxes
|
665
|
|
723
|
Other
Liabilities
|
666
|
|
718
|
Redeemable
Preferred Securities of Subsidiaries
|
28
|
|
28
|
Stockholders'
Equity
|
|
|
|
Kimberly-Clark
Corporation
|
524
|
|
626
|
Noncontrolling
Interests
|
234
|
|
243
|
Total Stockholders'
Equity
|
758
|
|
869
|
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY
|
$
|
17,827
|
|
$
|
17,523
|
KIMBERLY-CLARK
CORPORATION
|
CONSOLIDATED CASH
FLOW STATEMENTS
|
(Millions)
|
|
|
Three Months
Ended
June
30
|
|
Six Months
Ended
June
30
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Operating
Activities
|
|
|
|
|
|
|
|
Net income
|
$
|
410
|
|
|
$
|
692
|
|
|
$
|
1,004
|
|
|
$
|
1,367
|
|
Depreciation and
amortization
|
189
|
|
|
201
|
|
|
378
|
|
|
414
|
|
Asset
impairments
|
—
|
|
|
—
|
|
|
3
|
|
|
—
|
|
Stock-based
compensation
|
20
|
|
|
39
|
|
|
42
|
|
|
54
|
|
Deferred income
taxes
|
(39)
|
|
|
21
|
|
|
(74)
|
|
|
12
|
|
Net (gains) losses on
asset dispositions
|
11
|
|
|
6
|
|
|
15
|
|
|
13
|
|
Equity companies'
earnings (in excess of) less than dividends paid
|
6
|
|
|
(9)
|
|
|
(32)
|
|
|
(47)
|
|
Operating working
capital
|
(95)
|
|
|
634
|
|
|
(495)
|
|
|
490
|
|
Postretirement
benefits
|
51
|
|
|
(1)
|
|
|
36
|
|
|
(15)
|
|
Other
|
12
|
|
|
(4)
|
|
|
9
|
|
|
(5)
|
|
Cash Provided by
Operations
|
565
|
|
|
1,579
|
|
|
886
|
|
|
2,283
|
|
Investing
Activities
|
|
|
|
|
|
|
|
Capital
spending
|
(201)
|
|
|
(284)
|
|
|
(499)
|
|
|
(636)
|
|
Proceeds from
dispositions of property
|
30
|
|
|
4
|
|
|
30
|
|
|
5
|
|
Investments in time
deposits
|
(292)
|
|
|
(218)
|
|
|
(451)
|
|
|
(323)
|
|
Maturities of time
deposits
|
226
|
|
|
158
|
|
|
433
|
|
|
254
|
|
Other
|
(5)
|
|
|
9
|
|
|
—
|
|
|
10
|
|
Cash Used for
Investing
|
(242)
|
|
|
(331)
|
|
|
(487)
|
|
|
(690)
|
|
Financing
Activities
|
|
|
|
|
|
|
|
Cash dividends
paid
|
(389)
|
|
|
(365)
|
|
|
(748)
|
|
|
(722)
|
|
Change in short-term
debt
|
216
|
|
|
(385)
|
|
|
960
|
|
|
(667)
|
|
Debt
proceeds
|
—
|
|
|
—
|
|
|
5
|
|
|
1,241
|
|
Debt
repayments
|
—
|
|
|
—
|
|
|
(253)
|
|
|
(252)
|
|
Proceeds from exercise
of stock options
|
17
|
|
|
27
|
|
|
27
|
|
|
135
|
|
Acquisitions of common
stock for the treasury
|
(162)
|
|
|
(49)
|
|
|
(331)
|
|
|
(263)
|
|
Other
|
(24)
|
|
|
(15)
|
|
|
(54)
|
|
|
(39)
|
|
Cash Used for
Financing
|
(342)
|
|
|
(787)
|
|
|
(394)
|
|
|
(567)
|
|
Effect of Exchange
Rate Changes on Cash and Cash Equivalents
|
5
|
|
|
8
|
|
|
(2)
|
|
|
(20)
|
|
Change in Cash and
Cash Equivalents
|
(14)
|
|
|
469
|
|
|
3
|
|
|
1,006
|
|
Cash and Cash
Equivalents - Beginning of Period
|
320
|
|
|
979
|
|
|
303
|
|
|
442
|
|
Cash and Cash
Equivalents - End of Period
|
$
|
306
|
|
|
$
|
1,448
|
|
|
$
|
306
|
|
|
$
|
1,448
|
|
KIMBERLY-CLARK
CORPORATION
|
SELECTED BUSINESS
SEGMENT DATA
|
(Millions)
|
|
|
Three Months
Ended
June
30
|
|
|
|
Six Months
Ended
June
30
|
|
|
|
2021
|
|
2020
|
|
Change
|
|
2021
|
|
2020
|
|
Change
|
NET
SALES
|
|
|
|
|
|
|
|
|
|
|
|
Personal
Care
|
$
|
2,517
|
|
$
|
2,229
|
|
+13 %
|
|
$
|
4,979
|
|
$
|
4,651
|
|
+7 %
|
Consumer
Tissue
|
1,424
|
|
1,645
|
|
-13 %
|
|
2,934
|
|
3,368
|
|
-13 %
|
K-C
Professional
|
765
|
|
724
|
|
+6 %
|
|
1,517
|
|
1,572
|
|
-3 %
|
Corporate &
Other
|
16
|
|
14
|
|
N.M.
|
|
35
|
|
30
|
|
N.M.
|
TOTAL NET
SALES
|
$
|
4,722
|
|
$
|
4,612
|
|
+2 %
|
|
$
|
9,465
|
|
$
|
9,621
|
|
-2 %
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
PROFIT
|
|
|
|
|
|
|
|
|
|
|
|
Personal
Care
|
$
|
454
|
|
$
|
519
|
|
-13 %
|
|
$
|
935
|
|
$
|
1,046
|
|
-11 %
|
Consumer
Tissue
|
196
|
|
428
|
|
-54 %
|
|
465
|
|
793
|
|
-41 %
|
K-C
Professional
|
110
|
|
155
|
|
-29 %
|
|
236
|
|
336
|
|
-30 %
|
Corporate &
Other(a)
|
(134)
|
|
(169)
|
|
N.M.
|
|
(236)
|
|
(324)
|
|
N.M.
|
Other (income) and
expense, net(a)
|
13
|
|
8
|
|
+63 %
|
|
17
|
|
22
|
|
-23 %
|
TOTAL OPERATING
PROFIT
|
$
|
613
|
|
$
|
925
|
|
-34 %
|
|
$
|
1,383
|
|
$
|
1,829
|
|
-24 %
|
|
|
(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, 2021
|
|
Total(a)
|
|
Volume
|
|
Net
Price
|
|
Mix/
Other
|
|
Acquisition/
Exited
Businesses(b)
|
|
Currency
|
|
|
Organic(c)
|
Personal
Care
|
13
|
|
4
|
|
—
|
|
2
|
|
4
|
|
3
|
|
|
6
|
Consumer
Tissue
|
(13)
|
|
(15)
|
|
—
|
|
(1)
|
|
—
|
|
3
|
|
|
(17)
|
K-C
Professional
|
6
|
|
(4)
|
|
5
|
|
1
|
|
—
|
|
3
|
|
|
2
|
TOTAL
CONSOLIDATED
|
2
|
|
(4)
|
|
1
|
|
1
|
|
2
|
|
3
|
|
|
(3)
|
|
|
|
Six Months Ended
June 30, 2021
|
|
Total(a)
|
|
Volume
|
|
Net
Price
|
|
Mix/
Other
|
|
Acquisition/
Exited
Businesses(b)
|
|
Currency
|
|
|
Organic(c)
|
Personal
Care
|
7
|
|
—
|
|
—
|
|
2
|
|
4
|
|
1
|
|
|
2
|
Consumer
Tissue
|
(13)
|
|
(15)
|
|
—
|
|
(1)
|
|
—
|
|
2
|
|
|
(15)
|
K-C
Professional
|
(3)
|
|
(13)
|
|
6
|
|
1
|
|
—
|
|
2
|
|
|
(6)
|
TOTAL
CONSOLIDATED
|
(2)
|
|
(7)
|
|
1
|
|
1
|
|
2
|
|
2
|
|
|
(5)
|
|
|
(a)
|
Total may not equal
the sum of volume, net price, mix/other, acquisition/exited
businesses and currency due to rounding.
|
(b)
|
Combined impact of
the acquisition of Softex Indonesia and 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
|
OUTLOOK FOR
2021
|
|
|
Estimated
Range
|
|
ESTIMATED FULL
YEAR 2021 DILUTED EARNINGS PER SHARE
|
|
|
|
|
Adjusted earnings per
share
|
$
|
6.65
|
-
|
$
|
6.90
|
|
Adjustment for
charges related to the 2018 Global Restructuring Program
|
(0.65)
|
-
|
(0.40)
|
|
Per share basis –
diluted net income attributable to Kimberly-Clark
Corporation
|
$
|
6.00
|
-
|
$
|
6.50
|
|
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