Kimberly-Clark 4Q Profit Falls Amid Higher Costs
January 26 2022 - 8:15AM
Dow Jones News
By Will Feuer
Kimberly-Clark Corp. saw earnings fall in the latest quarter,
despite an increase in sales, as the company faced higher costs due
to inflation and a supply-chain crunch.
The company behind Huggies diapers, Cottonelle toilet paper and
other items on Wednesday posted net income attributable to the
company of $357 million, or $1.06 a share, compared with $539
million, or $1.58 a share, in the comparable quarter last year.
Stripping out charges related to the company's 2018 global
restructuring program, Kimberly-Clark posted adjusted earnings of
$1.30 a share. Analysts polled by FactSet had forecast an adjusted
profit of $1.25 a share.
Sales grew to $4.97 billion from $4.84 billion in the year-ago
quarter. Analysts were forecasting sales of $4.89 billion.
Personal-care sales grew 12%, to $2.6 billion, including the
negative effect from rising input costs, Kimberly-Clark said.
Consumer-tissue sales declined by 10%, to $1.6 billion, as
demand subsided year over year compared with the earlier phases of
the Covid-19 pandemic.
Professional sales rose 2%, to $800 million, the company
said.
The overall cost of products sold rose 11%, to $3.53 billion,
compared with a year earlier, the company said.
"While we expect inflation and supply-chain disruption to
persist into 2022, we are committed to recovering margins to
pre-pandemic levels over time, and we are optimistic about gradual
improvement later in the year," Chairman and Chief Executive Mike
Hsu said.
Write to Will Feuer at Will.Feuer@wsj.com
(END) Dow Jones Newswires
January 26, 2022 08:00 ET (13:00 GMT)
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