Kimberly-Clark Expects 2021 Sales to Rise 4% to 6%
By Dave Sebastian
Kimberly-Clark Corp. said it expects net sales to rise 4% to 6%
this year, assuming it doesn't take a hit from potential
supply-chain disruptions, as it sees strong cash flow and growth
The acquisition of Softex Indonesia could raise sales by 2%,
while exited businesses in conjunction with a restructuring program
could reduce sales slightly, the company said Monday. On an organic
basis, the company sees sales rising 1% to 2%. It expects adjusted
earnings of $7.75 a share to $8 a share, and for reported net
income from equity companies to be about flat.
Kimberly-Clark said it expects to complete its 2018
restructuring program this year, anticipating charges of $2 billion
to $2.1 billion before taxes, higher than the prior estimate of the
high end of $1.7 billion to $1.9 billion due to pandemic-related
delays and additional savings opportunities. It expects to save
$540 million to $560 million in pre-tax costs by the end of the
year from the program, compared with its prior target of $500
million to $550 million.
The company saved $575 million in costs and returned $2.15
billion to shareholders through dividends and share buybacks in
2020, Chairman and Chief Executive Mike Hsu said. Kimberly-Clark
said it expects share repurchases of $650 million to $750 million
for 2021, and its board has approved a new $5 billion share-buyback
"At the same time, we will continue to operate with financial
discipline," Mr. Hsu said. "We expect more challenging category
conditions and higher commodity costs in 2021."
For 2021, the company sees capital spending of $1.2 billion to
$1.3 billion, including spending related to the 2018 restructuring
program and other initiatives.
Shares rose 1.6% in premarket trading.
Write to Dave Sebastian at firstname.lastname@example.org
(END) Dow Jones Newswires
January 25, 2021 08:27 ET (13:27 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.