Kimberly-Clark 1Q Sales, Earnings Lower Compared With Pandemic's Early Days
By Matt Grossman
Kimberly-Clark Corp. Friday posted lower revenue and profit
figures in the latest quarter as volumes retreated compared with an
intense period of consumer stocking-up a year ago during the onset
of the Covid-19 pandemic.
The Irving, Texas-based producer of paper and fiber products
logged first-quarter earnings of $1.72 a share, a decline from
$1.92 a share in the same three-month period a year earlier. Net
income attributable to the company was $584 million, compared with
$660 million in last year's first quarter.
Kimberly-Clark's adjusted earnings were $1.80 a share. Analysts
surveyed by FactSet had forecast adjusted earnings of $1.93 a
Revenue was down 5% at $4.74 billion, compared with $5.01
billion a year ago. Analysts were expecting revenue of $4.98
Chairman and Chief Executive Mike Hsu attributed the declining
performance to an imposing year-over-year comparison, because
results from 2020's first quarter were boosted by stocking-up
behavior as the coronavirus pandemic arrived in the U.S.
He added that severe winter weather in the South had caused
temporary supply-chain disruptions earlier this year. The weather
had caused the temporary shutdown of some manufacturing facilities
and affected the availability of materials from suppliers.
Volumes were down by 10% in the quarter, compared with an
increase of more than 8% in 2020's first quarter. Sales in the
consumer-tissue segment fell 12% to $1.5 billion, while revenue
from the company's K-C Professional business declined to $752
million, from $848 million a year earlier. Personal-care sales rose
2% to $2.46 billion, driven by expansion overseas.
The company's profitability was also dented by higher input
costs for pulp and other materials, Kimberly-Clark said.
Write to Matt Grossman at firstname.lastname@example.org
(END) Dow Jones Newswires
April 23, 2021 08:05 ET (12:05 GMT)
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