DALLAS, Jan. 23, 2020 /PRNewswire/ -- Kimberly-Clark
Corporation (NYSE: KMB) today reported year-end 2019 results and
provided its 2020 outlook.
Executive Summary
- Fourth quarter 2019 net sales of $4.6
billion were even with the year-ago period, while organic
sales increased 3 percent. Full-year 2019 net sales of $18.5 billion were even with the year-ago period,
while organic sales increased 4 percent.
- Diluted net income per share for the fourth quarter was
$1.59 in 2019 and $1.18 in 2018. Full-year diluted net income per
share was $6.24 in 2019 and
$4.03 in 2018.
- Fourth quarter adjusted earnings per share were $1.71 in 2019, up 7 percent compared to
$1.60 in 2018. Adjusted earnings per
share exclude certain items described later in this news
release.
- Full-year adjusted earnings per share were $6.89 in 2019, up 4 percent compared to
$6.61 in 2018. The company's previous
guidance was for adjusted earnings per share of $6.75 to $6.90.
- Net sales in 2020 are expected to increase 1 percent
year-on-year, including organic sales growth of 2 percent. Diluted
net income per share for 2020 is anticipated to be $5.95 to $6.65.
Adjusted earnings per share in 2020 are expected to be $7.10 to $7.35.
- The company's Board of Directors has approved a 3.9 percent
increase in the quarterly dividend, which is the 48th
consecutive annual increase in the dividend.
Chairman and Chief Executive Officer Mike Hsu said, "Our fourth quarter results
capped off a year of excellent progress at Kimberly-Clark. For the
full year of 2019, we delivered 4 percent growth in organic sales
and in adjusted earnings per share, both ahead of our original
outlook for the year. We also achieved strong margin improvements,
generated $425 million of cost
savings and returned $2.2 billion to
shareholders through dividends and share repurchases. At the same
time, we launched innovations, pursued our growth priorities and
increased our investments behind our brands and in capabilities to
position us for longer-term success. Overall, I'm encouraged by our
progress in the first year of executing K-C Strategy 2022."
Hsu continued, "Looking ahead, our plan for 2020 is to deliver
top- and bottom-line growth consistent with our medium-term
financial objectives while continuing to increase our growth
investments and allocate capital in shareholder-friendly ways. We
remain very optimistic about our opportunities to deliver balanced
and sustainable growth and create long-term shareholder value."
Fourth Quarter 2019 Operating Results
Sales of $4.6 billion in the
fourth quarter of 2019 were even with 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 3 percent.
Net selling prices rose more than 2 percent and product mix
improved 1 percent, while volumes fell 1 percent. In North America, organic sales increased 3
percent in both consumer products and in K-C Professional. Outside
North America, organic sales rose
3 percent in developing and emerging markets and 1 percent in
developed markets.
Fourth quarter operating profit was $751
million in 2019 and $639
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 property associated with a
former manufacturing facility that was closed as part of a past
restructuring.
Fourth quarter adjusted operating profit was $826 million in 2019 and $742 million in 2018. Results benefited from
higher net selling prices, improved product mix, $85 million of cost savings from the company's
FORCE (Focused On Reducing Costs Everywhere) program and
$40 million of cost savings from the
2018 Global Restructuring Program. Input costs decreased
$60 million, driven by pulp, while
other manufacturing costs rose year-on-year. Selling, general and
administrative costs were higher, including increased incentive
compensation expense and investments to improve commercial
capabilities. Advertising spending also increased year-on-year.
Unfavorable foreign currency translation and transaction effects
also impacted the comparison.
The fourth quarter effective tax rate was 17.2 percent in 2019
and 18.6 percent in 2018. The fourth quarter adjusted effective tax
rate was 24.6 percent in 2019 and 19.1 percent in 2018. The rate in
2018 benefited from planning initiatives and resolution of certain
matters.
Kimberly-Clark's share of net income of equity companies in the
fourth quarter was $32 million in
2019 and $23 million in 2018. Results
benefited from volume growth, lower input costs and cost
savings.
Cash Flow and Balance Sheet
Cash provided by operations in the fourth quarter was
$924 million in 2019 and
$949 million in 2018. Full-year cash provided by operations
was $2,736 million in 2019 and
$2,970 million in 2018. The full-year
comparison was impacted by increased working capital and tax
payments, partially offset by higher earnings and lower pension
contributions. Capital spending for the fourth quarter was
$342 million in 2019 and
$311 million in 2018. Full-year spending was $1,209 million in 2019, including significant
spending related to the 2018 Global Restructuring Program, compared
to $877 million in 2018.
Fourth quarter 2019 share repurchases were 1.9 million shares at
a cost of $252 million, bringing
full-year repurchases to 6.2 million shares at a cost of
$800 million. Total debt was
$7.7 billion at the end of 2019 and
$7.5 billion at the end of 2018.
Fourth Quarter 2019 Business Segment Results
Personal Care Segment
Fourth quarter sales of $2.2
billion increased 1 percent. Net selling prices increased 2
percent and product mix improved approximately 2 percent. Changes
in currency rates reduced sales by 2 percent. Fourth quarter
operating profit of $445 million
increased 2 percent. The comparison benefited from organic sales
growth and cost savings. Results were impacted by other
manufacturing cost increases, increased selling, general and
administrative costs, higher advertising spending and unfavorable
currency effects.
Sales in North America
increased 2 percent. Product mix improved 2 percent and net selling
prices increased 1 percent, both driven by baby and child care,
while volumes were down 1 percent. Volumes were down mid-single
digits in baby and child care compared to a mid-single digit
increase in the year-ago period, while volumes increased
high-single digits in adult care.
Sales in developing and emerging markets increased 1 percent
despite a 5 point negative impact from changes in currency rates.
Net selling prices rose 3 percent, product mix improved
1 percent and volumes increased 1 percent. The higher net
selling prices mostly occurred in Argentina and China. Volumes increased in Eastern Europe, India 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 5 point
negative impact from changes in currency rates. Volumes and product
mix each improved 1 percent, while net selling prices fell 1
percent.
Consumer Tissue Segment
Fourth quarter sales of $1.5 billion increased 1 percent. Net
selling prices increased 3 percent, while volumes declined 1
percent and changes in currency rates reduced sales 1 percent.
Fourth quarter operating profit of $281 million increased
36 percent. Results benefited from higher net selling prices,
cost savings and lower input costs. The comparison was impacted by
other manufacturing cost increases and increased selling, general
and administrative costs.
Sales in North America
increased 4 percent. Net selling prices rose 6 percent, while
volumes fell 3 percent.
Sales in developing and emerging markets decreased 2 percent,
including a 2 point negative impact from changes in currency rates.
Net selling prices improved 1 percent, while volumes fell 1
percent.
Sales in developed markets outside North America decreased 2 percent. Changes in
currency rates reduced sales 4 percent, while volumes improved 2
percent.
K-C Professional (KCP) Segment
Fourth quarter sales of $0.8
billion decreased 3 percent. Business exits in conjunction
with the 2018 Global Restructuring Program and changes in currency
rates reduced sales by 3 percent and 1 percent, respectively. Net
selling prices increased 2 percent and product mix improved 2
percent, while volumes were down 3 percent. Fourth quarter
operating profit of $169 million increased 12 percent.
Results benefited from increased net selling prices, cost savings
and lower input costs. The comparison was impacted by lower
volumes, other manufacturing cost increases, and higher selling,
general and administrative costs.
Sales in North America
increased 1 percent. Net selling prices increased 3 percent and
product mix improved 1 percent, while volumes fell 1 percent.
Business exits in conjunction with the 2018 Global Restructuring
Program reduced sales 1 percent.
Sales in developing and emerging markets decreased
5 percent, including a 2 point negative impact from changes in
currency rates. Volumes declined 6 percent, while net selling
prices increased 2 percent and product mix improved 1 percent.
Sales in developed markets outside North America were down 5 percent. Currency
rates were unfavorable by 4 percent and business exits in
conjunction with the 2018 Global Restructuring Program reduced
sales 1 percent. Volumes fell 6 percent, while product mix improved
4 percent and net selling prices increased 1 percent. The changes
occurred mostly in Western/Central
Europe.
Full Year 2019 Results
Sales of $18.5 billion were even
with the year-ago period. Changes in foreign currency exchange
rates reduced sales by 3 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 3 percent in both consumer products and in K-C
Professional. Outside North
America, organic sales rose 6 percent in developing and
emerging markets and 1 percent in developed markets.
Operating profit was $2,991
million in 2019 and $2,229
million in 2018. Results in both periods include charges
related to the 2018 Global Restructuring Program.
Adjusted operating profit was $3,281
million in 2019, up 5 percent compared to $3,138 million in 2018. Results benefited from
organic sales growth, $260 million of
FORCE cost savings and $165 million
of cost savings from the 2018 Global Restructuring Program. The
comparison was impacted by unfavorable currency effects,
$145 million of higher input costs,
other manufacturing cost increases, increased advertising spending
and higher selling, general and administrative costs.
Diluted net income per share was $6.24 in 2019 and $4.03 in 2018. Adjusted earnings per share of
$6.89 in 2019 increased 4 percent
compared to $6.61 in 2018.
Performance benefited from higher adjusted operating profit,
increased net income from equity companies and a lower share count,
partially offset by a higher adjusted effective tax rate.
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 ($1,300 to $1,400
million after tax) by the end of 2020. Through the end of
2019, the company has incurred cumulative restructuring charges of
$1,402 million pre-tax ($1,031 million after tax) and generated
cumulative savings of $300
million.
2020 Outlook and Key Planning Assumptions
The company's key planning and guidance assumptions for 2020 are
as follows:
- Net sales increase of 1 percent.
-
- Organic sales increase of 2 percent, with improvements in net
selling prices, volumes and product mix.
- Foreign currency exchange rates unfavorable by 1 percent.
- Exited businesses in conjunction with the 2018 Global
Restructuring Program expected to reduce sales slightly.
- Adjusted operating profit growth of 3 to 5 percent.
-
- Cost savings of $425 to
$500 million, including $325 to $375
million from the FORCE program and $100 to $125
million from the 2018 Global Restructuring Program.
- Key cost inputs expected to decline $50 to $200
million, driven by pulp.
- Increased advertising spending.
- Unfavorable foreign currency translation and transaction
effects.
- Interest expense expected to increase somewhat
year-on-year.
- Adjusted effective tax rate of 23 to 25 percent.
- Net income from equity companies higher year-on-year.
- Adjusted earnings per share of $7.10 to $7.35
compared to $6.89 in 2019.
- Capital spending of $1,150 to
$1,350 million, including significant
spending related to the 2018 Global Restructuring Program.
- Dividend increase of 3.9 percent (approved by the Board of
Directors and mentioned previously in this release). The quarterly
dividend will increase to $1.07 per
share, up from $1.03 per share in
2019. The first dividend will be payable on April 2, 2020 to stockholders of record on
March 6, 2020.
- Share repurchases of $700 to
$900 million, subject to market
conditions.
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.
- Property sale gain. In the fourth quarter of 2019, the company
recognized a gain on the sale of property associated with a former
manufacturing facility that was closed in 2012 as part of a past
restructuring.
- 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. (CST) 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 148-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
December 31
|
|
|
|
2019
|
|
2018
|
|
Change
|
Net
Sales
|
$
|
4,583
|
|
$
|
4,569
|
|
—
|
Cost of products
sold
|
3,017
|
|
3,167
|
|
-5 %
|
Gross
Profit
|
1,566
|
|
1,402
|
|
+12 %
|
Marketing, research
and general expenses
|
859
|
|
768
|
|
+12 %
|
Other (income) and
expense, net
|
(44)
|
|
(5)
|
|
N.M.
|
Operating
Profit
|
751
|
|
639
|
|
+18 %
|
Nonoperating
expense
|
(58)
|
|
(88)
|
|
-34 %
|
Interest
income
|
3
|
|
3
|
|
—
|
Interest
expense
|
(63)
|
|
(65)
|
|
-3 %
|
Income Before
Income Taxes and Equity Interests
|
633
|
|
489
|
|
+29 %
|
Provision for income
taxes
|
(109)
|
|
(91)
|
|
+20 %
|
Income Before
Equity Interests
|
524
|
|
398
|
|
+32 %
|
Share of net income
of equity companies
|
32
|
|
23
|
|
+39 %
|
Net
Income
|
556
|
|
421
|
|
+32 %
|
Net income
attributable to noncontrolling interests
|
(9)
|
|
(10)
|
|
-10 %
|
Net Income
Attributable to Kimberly-Clark Corporation
|
$
|
547
|
|
$
|
411
|
|
+33 %
|
|
|
|
|
|
|
Per Share
Basis
|
|
|
|
|
|
Net Income
Attributable to Kimberly-Clark Corporation
|
|
|
|
|
|
Basic
|
$
|
1.60
|
|
$
|
1.19
|
|
+34 %
|
Diluted
|
$
|
1.59
|
|
$
|
1.18
|
|
+35 %
|
|
|
|
|
|
|
Cash Dividends
Declared
|
$
|
1.03
|
|
$
|
1.00
|
|
+3 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Shares
Outstanding
|
December
31
|
|
|
|
2019
|
|
2018
|
|
|
Outstanding shares as
of
|
341.4
|
|
345.0
|
|
|
Average diluted
shares for three months ended
|
344.4
|
|
347.3
|
|
|
|
N.M. - Not
Meaningful
|
Unaudited
|
KIMBERLY-CLARK
CORPORATION
|
CONSOLIDATED INCOME
STATEMENTS
|
(Millions, except per
share amounts)
|
|
|
Twelve Months
Ended December 31
|
|
|
|
2019
|
|
2018
|
|
Change
|
Net
Sales
|
$
|
18,450
|
|
$
|
18,486
|
|
—
|
Cost of products
sold
|
12,415
|
|
12,889
|
|
-4 %
|
Gross
Profit
|
6,035
|
|
5,597
|
|
+8 %
|
Marketing, research
and general expenses
|
3,254
|
|
3,367
|
|
-3 %
|
Other (income) and
expense, net
|
(210)
|
|
1
|
|
N.M.
|
Operating
Profit
|
2,991
|
|
2,229
|
|
+34 %
|
Nonoperating
expense
|
(91)
|
|
(163)
|
|
-44 %
|
Interest
income
|
11
|
|
10
|
|
+10 %
|
Interest
expense
|
(261)
|
|
(263)
|
|
-1 %
|
Income Before
Income Taxes and Equity Interests
|
2,650
|
|
1,813
|
|
+46 %
|
Provision for income
taxes
|
(576)
|
|
(471)
|
|
+22 %
|
Income Before
Equity Interests
|
2,074
|
|
1,342
|
|
+55 %
|
Share of net income
of equity companies
|
123
|
|
103
|
|
+19 %
|
Net
Income
|
2,197
|
|
1,445
|
|
+52 %
|
Net income
attributable to noncontrolling interests
|
(40)
|
|
(35)
|
|
+14 %
|
Net Income
Attributable to Kimberly-Clark Corporation
|
$
|
2,157
|
|
$
|
1,410
|
|
+53 %
|
|
|
|
|
|
|
Per Share
Basis
|
|
|
|
|
|
Net Income
Attributable to Kimberly-Clark Corporation
|
|
|
|
|
|
Basic
|
$
|
6.28
|
|
$
|
4.05
|
|
+55 %
|
Diluted
|
$
|
6.24
|
|
$
|
4.03
|
|
+55 %
|
|
|
|
|
|
|
Cash Dividends
Declared
|
$
|
4.12
|
|
$
|
4.00
|
|
+3 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Shares
Outstanding
|
December
31
|
|
|
|
2019
|
|
2018
|
|
|
Average diluted
shares for twelve months ended
|
345.6
|
|
349.6
|
|
|
KIMBERLY-CLARK
CORPORATION
|
NON-GAAP
RECONCILIATIONS
|
(Millions, except per
share amounts)
|
|
|
Three Months Ended
December 31, 2019
|
|
As
Reported
|
|
2018
Global
Restructuring
Program
|
|
Property Sale
Gain
|
|
As
Adjusted
Non-GAAP
|
Cost of products
sold
|
$
|
3,017
|
|
$
|
85
|
|
$
|
—
|
|
$
|
2,932
|
Gross
profit
|
1,566
|
|
(85)
|
|
—
|
|
1,651
|
Marketing, research
and general expenses
|
859
|
|
33
|
|
—
|
|
826
|
Other (income) and
expense, net
|
(44)
|
|
(12)
|
|
(31)
|
|
(1)
|
Operating
profit
|
751
|
|
(106)
|
|
31
|
|
826
|
Nonoperating
expense
|
(58)
|
|
(45)
|
|
—
|
|
(13)
|
Provision for income
taxes
|
(109)
|
|
83
|
|
(7)
|
|
(185)
|
Effective tax
rate
|
17.2
%
|
|
—
|
|
—
|
|
24.6
%
|
Net income
attributable to noncontrolling interests
|
(9)
|
|
1
|
|
—
|
|
(10)
|
Net income
attributable to Kimberly-Clark Corporation
|
547
|
|
(67)
|
|
24
|
|
590
|
Diluted earnings per
share(a)
|
1.59
|
|
(0.19)
|
|
0.07
|
|
1.71
|
|
|
|
Three Months Ended
December 31, 2018
|
|
As
Reported
|
|
2018
Global
Restructuring
Program
|
|
U.S.
Tax
Reform
Related
Matters
|
|
As
Adjusted
Non-GAAP
|
Cost of products
sold
|
$
|
3,167
|
|
$
|
76
|
|
$
|
—
|
|
$
|
3,091
|
Gross
profit
|
1,402
|
|
(76)
|
|
—
|
|
1,478
|
Marketing, research
and general expenses
|
768
|
|
39
|
|
—
|
|
729
|
Other (income) and
expense, net
|
(5)
|
|
(12)
|
|
—
|
|
7
|
Operating
profit
|
639
|
|
(103)
|
|
—
|
|
742
|
Nonoperating
expense
|
(88)
|
|
(77)
|
|
—
|
|
(11)
|
Provision for income
taxes
|
(91)
|
|
46
|
|
(9)
|
|
(128)
|
Effective tax
rate
|
18.6 %
|
|
—
|
|
—
|
|
19.1 %
|
Net income
attributable to Kimberly-Clark Corporation
|
411
|
|
(134)
|
|
(9)
|
|
554
|
Diluted earnings per
share(a)
|
1.18
|
|
(0.39)
|
|
(0.03)
|
|
1.60
|
|
|
(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)
|
|
|
Twelve Months
Ended December 31, 2019
|
|
As
Reported
|
|
2018
Global
Restructuring
Program
|
|
Property
Sale
Gain
|
|
As
Adjusted
Non-GAAP
|
Cost of products
sold
|
$
|
12,415
|
|
$
|
416
|
|
$
|
—
|
|
$
|
11,999
|
Gross
profit
|
6,035
|
|
(416)
|
|
—
|
|
6,451
|
Marketing, research
and general expenses
|
3,254
|
|
99
|
|
—
|
|
3,155
|
Other (income) and
expense, net(b)
|
(210)
|
|
(194)
|
|
(31)
|
|
15
|
Operating
profit
|
2,991
|
|
(321)
|
|
31
|
|
3,281
|
Nonoperating
expense
|
(91)
|
|
(45)
|
|
—
|
|
(46)
|
Provision for income
taxes
|
(576)
|
|
118
|
|
(7)
|
|
(687)
|
Effective tax
rate
|
21.7
%
|
|
—
|
|
—
|
|
23.0
%
|
Share of net income
of equity companies
|
123
|
|
(2)
|
|
—
|
|
125
|
Net income
attributable to noncontrolling interests
|
(40)
|
|
2
|
|
—
|
|
(42)
|
Net income
attributable to Kimberly-Clark Corporation
|
2,157
|
|
(248)
|
|
24
|
|
2,381
|
Diluted earnings per
share(a)
|
6.24
|
|
(0.72)
|
|
0.07
|
|
6.89
|
|
|
|
Twelve Months
Ended December 31, 2018
|
|
As
Reported
|
|
2018
Global
Restructuring
Program
|
|
U.S.
Tax
Reform
Related
Matters
|
|
As
Adjusted
Non-GAAP
|
Cost of products
sold
|
$
|
12,889
|
|
$
|
541
|
|
$
|
—
|
|
$
|
12,348
|
Gross
profit
|
5,597
|
|
(541)
|
|
—
|
|
6,138
|
Marketing, research
and general expenses
|
3,367
|
|
380
|
|
—
|
|
2,987
|
Other (income) and
expense, net
|
1
|
|
(12)
|
|
—
|
|
13
|
Operating
profit
|
2,229
|
|
(909)
|
|
—
|
|
3,138
|
Nonoperating
expense
|
(163)
|
|
(127)
|
|
—
|
|
(36)
|
Provision for income
taxes
|
(471)
|
|
243
|
|
(117)
|
|
(597)
|
Effective tax
rate
|
26.0 %
|
|
—
|
|
—
|
|
21.0 %
|
Share of net income
of equity companies
|
103
|
|
(1)
|
|
—
|
|
104
|
Net income
attributable to noncontrolling interests
|
(35)
|
|
11
|
|
—
|
|
(46)
|
Net income
attributable to Kimberly-Clark Corporation
|
1,410
|
|
(783)
|
|
(117)
|
|
2,310
|
Diluted earnings per
share(a)
|
4.03
|
|
(2.24)
|
|
(0.33)
|
|
6.61
|
|
|
(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)
|
|
|
December
31
|
|
2019
|
|
2018
|
ASSETS
|
|
|
|
Current
Assets
|
|
|
|
Cash and cash
equivalents
|
$
|
442
|
|
$
|
539
|
Accounts receivable,
net
|
2,263
|
|
2,164
|
Inventories
|
1,790
|
|
1,813
|
Other current
assets
|
562
|
|
525
|
Total Current
Assets
|
5,057
|
|
5,041
|
Property, Plant
and Equipment, Net
|
7,450
|
|
7,159
|
Investments in
Equity Companies
|
268
|
|
224
|
Goodwill
|
1,467
|
|
1,474
|
Other
Assets
|
1,041
|
|
620
|
TOTAL
ASSETS
|
$
|
15,283
|
|
$
|
14,518
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
Liabilities
|
|
|
|
Debt payable within
one year
|
$
|
1,534
|
|
$
|
1,208
|
Trade accounts
payable
|
3,055
|
|
3,190
|
Accrued expenses and
other current liabilities
|
1,978
|
|
1,793
|
Dividends
payable
|
352
|
|
345
|
Total Current
Liabilities
|
6,919
|
|
6,536
|
Long-Term
Debt
|
6,213
|
|
6,247
|
Noncurrent
Employee Benefits
|
897
|
|
931
|
Deferred Income
Taxes
|
511
|
|
458
|
Other
Liabilities
|
520
|
|
328
|
Redeemable
Preferred Securities of Subsidiaries
|
29
|
|
64
|
Stockholders'
Equity
|
|
|
|
Kimberly-Clark
Corporation
|
(33)
|
|
(287)
|
Noncontrolling
Interests
|
227
|
|
241
|
Total
Stockholders' Equity
|
194
|
|
(46)
|
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY
|
$
|
15,283
|
|
$
|
14,518
|
KIMBERLY-CLARK
CORPORATION
|
CONSOLIDATED CASH
FLOW STATEMENTS
|
(Millions)
|
|
|
Three Months
Ended
December
31
|
|
Twelve Months
Ended
December
31
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Operating
Activities
|
|
|
|
|
|
|
|
Net income
|
$
|
556
|
|
$
|
421
|
|
$
|
2,197
|
|
$
|
1,445
|
Depreciation and
amortization
|
217
|
|
230
|
|
917
|
|
882
|
Asset
impairments
|
—
|
|
—
|
|
—
|
|
74
|
Stock-based
compensation
|
22
|
|
(4)
|
|
96
|
|
41
|
Deferred income
taxes
|
21
|
|
(42)
|
|
29
|
|
2
|
Net (gains) losses on
asset dispositions
|
(38)
|
|
(5)
|
|
(193)
|
|
52
|
Equity companies'
earnings (in excess of) less than dividends paid
|
25
|
|
36
|
|
(6)
|
|
18
|
Operating working
capital
|
111
|
|
272
|
|
(288)
|
|
389
|
Postretirement
benefits
|
29
|
|
62
|
|
13
|
|
(25)
|
Other
|
(19)
|
|
(21)
|
|
(29)
|
|
92
|
Cash Provided by
Operations
|
924
|
|
949
|
|
2,736
|
|
2,970
|
Investing
Activities
|
|
|
|
|
|
|
|
Capital
spending
|
(342)
|
|
(311)
|
|
(1,209)
|
|
(877)
|
Proceeds from
dispositions of property
|
36
|
|
35
|
|
242
|
|
51
|
Investments in time
deposits
|
(215)
|
|
(135)
|
|
(568)
|
|
(353)
|
Maturities of time
deposits
|
255
|
|
133
|
|
542
|
|
272
|
Other
|
(9)
|
|
8
|
|
(49)
|
|
5
|
Cash Used for
Investing
|
(275)
|
|
(270)
|
|
(1,042)
|
|
(902)
|
Financing
Activities
|
|
|
|
|
|
|
|
Cash dividends
paid
|
(354)
|
|
(347)
|
|
(1,408)
|
|
(1,386)
|
Change in short-term
debt
|
(21)
|
|
(487)
|
|
303
|
|
(34)
|
Debt
proceeds
|
6
|
|
507
|
|
706
|
|
507
|
Debt
repayments
|
(2)
|
|
(97)
|
|
(707)
|
|
(407)
|
Proceeds from
exercise of stock options
|
17
|
|
12
|
|
228
|
|
62
|
Acquisitions of
common stock for the treasury
|
(256)
|
|
(204)
|
|
(800)
|
|
(800)
|
Other
|
(22)
|
|
(16)
|
|
(114)
|
|
(57)
|
Cash Used for
Financing
|
(632)
|
|
(632)
|
|
(1,792)
|
|
(2,115)
|
Effect of Exchange
Rate Changes on Cash and Cash Equivalents
|
9
|
|
(2)
|
|
1
|
|
(30)
|
Change in Cash and
Cash Equivalents
|
26
|
|
45
|
|
(97)
|
|
(77)
|
Cash and Cash
Equivalents - Beginning of Period
|
416
|
|
494
|
|
539
|
|
616
|
Cash and Cash
Equivalents - End of Period
|
$
|
442
|
|
$
|
539
|
|
$
|
442
|
|
$
|
539
|
KIMBERLY-CLARK
CORPORATION
|
SELECTED BUSINESS
SEGMENT DATA
|
(Millions)
|
|
|
Three
Months
Ended December
31
|
|
|
|
Twelve
Months
Ended December
31
|
|
|
|
2019
|
|
2018
|
|
Change
|
|
2019
|
|
2018
|
|
Change
|
NET
SALES
|
|
|
|
|
|
|
|
|
|
|
|
Personal
Care
|
$
|
2,242
|
|
$
|
2,221
|
|
+1 %
|
|
$
|
9,108
|
|
$
|
9,037
|
|
+1 %
|
Consumer
Tissue
|
1,511
|
|
1,495
|
|
+1 %
|
|
5,993
|
|
6,015
|
|
—
|
K-C
Professional
|
815
|
|
841
|
|
-3 %
|
|
3,292
|
|
3,382
|
|
-3 %
|
Corporate &
Other
|
15
|
|
12
|
|
N.M.
|
|
57
|
|
52
|
|
N.M.
|
TOTAL NET
SALES
|
$
|
4,583
|
|
$
|
4,569
|
|
—
|
|
$
|
18,450
|
|
$
|
18,486
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
PROFIT
|
|
|
|
|
|
|
|
|
|
|
|
Personal
Care
|
$
|
445
|
|
$
|
436
|
|
+2 %
|
|
$
|
1,904
|
|
$
|
1,833
|
|
+4 %
|
Consumer
Tissue
|
281
|
|
207
|
|
+36 %
|
|
1,007
|
|
875
|
|
+15 %
|
K-C
Professional
|
169
|
|
151
|
|
+12 %
|
|
657
|
|
634
|
|
+4 %
|
Corporate &
Other(a)
|
(188)
|
|
(160)
|
|
N.M.
|
|
(787)
|
|
(1,112)
|
|
N.M.
|
Other (income) and
expense, net(a)
|
(44)
|
|
(5)
|
|
N.M.
|
|
(210)
|
|
1
|
|
N.M.
|
TOTAL OPERATING
PROFIT
|
$
|
751
|
|
$
|
639
|
|
+18 %
|
|
$
|
2,991
|
|
$
|
2,229
|
|
+34 %
|
|
|
(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
December 31, 2019
|
|
Total(a)
|
|
Volume
|
|
Net
Price
|
|
Mix/
Other
|
|
Exited
Businesses(b)
|
|
Currency
|
|
|
Organic(c)
|
Personal
Care
|
1
|
|
—
|
|
2
|
|
2
|
|
—
|
|
(2)
|
|
|
3
|
Consumer
Tissue
|
1
|
|
(1)
|
|
3
|
|
—
|
|
—
|
|
(1)
|
|
|
2
|
K-C
Professional
|
(3)
|
|
(3)
|
|
2
|
|
2
|
|
(3)
|
|
(1)
|
|
|
1
|
TOTAL
CONSOLIDATED
|
—
|
|
(1)
|
|
2
|
|
1
|
|
—
|
|
(2)
|
|
|
3
|
|
|
|
|
|
Twelve Months
Ended December 31, 2019
|
|
Total(a)
|
|
Volume
|
|
Net
Price
|
|
Mix/
Other
|
|
Exited
Businesses(b)
|
|
Currency
|
|
|
Organic(c)
|
Personal
Care
|
1
|
|
1
|
|
3
|
|
1
|
|
—
|
|
(4)
|
|
|
5
|
Consumer
Tissue
|
—
|
|
(3)
|
|
5
|
|
—
|
|
—
|
|
(3)
|
|
|
2
|
K-C
Professional
|
(3)
|
|
(2)
|
|
3
|
|
1
|
|
(2)
|
|
(3)
|
|
|
2
|
TOTAL
CONSOLIDATED
|
—
|
|
(1)
|
|
4
|
|
1
|
|
—
|
|
(3)
|
|
|
4
|
|
|
(a)
|
Total may not equal
the sum of volume, net price, mix/other 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
|
OUTLOOK FOR
2020
|
|
|
Estimated
Range
|
ESTIMATED FULL
YEAR 2020 DILUTED EARNINGS PER SHARE
|
|
|
|
|
|
Adjusted earnings per
share
|
$
|
7.10
|
|
-
|
|
$
|
7.35
|
Adjustment for
charges related to the 2018 Global Restructuring Program
|
(1.15)
|
|
-
|
|
(0.70)
|
Per share basis –
diluted net income attributable to Kimberly-Clark
Corporation
|
$
|
5.95
|
|
-
|
|
$
|
6.65
|
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