DALLAS, Oct. 25, 2021 /PRNewswire/ -- Kimberly-Clark
Corporation (NYSE: KMB) today reported third quarter 2021
results.
Executive Summary
- Third quarter 2021 net sales of $5.0
billion increased 7 percent compared to the year-ago period,
with an organic sales increase of 4 percent.
- Diluted net income per share for the third quarter was
$1.39 in 2021 and $1.38 in 2020.
- Third quarter adjusted earnings per share were $1.62 in 2021 compared to $1.72 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
$5.15 to $5.60.
- The company is now targeting full-year 2021 organic sales
decline of 1 to 2 percent and adjusted earnings per share of
$6.05 to $6.25. The prior outlook was for organic sales
decline of 0 to 2 percent and adjusted earnings per share of
$6.65 to $6.90. The updated earnings outlook reflects
significantly higher input cost inflation.
Chairman and Chief Executive Officer Mike Hsu said, "Our third quarter results
reflect a dynamic and challenging macro environment. Our
organic sales were strong, including double-digit growth in a
number of our personal care markets, and improving performance in
tissue and our professional business. Market
share performance also remained strong, demonstrating the
strength of our innovation and excellent local commerical
execution. Our earnings were negatively impacted by significant
inflation and supply chain disruptions that increased our costs
beyond what we anticipated. We are taking further action,
including additional pricing and enhanced cost management, to
mitigate these headwinds as it is becoming clear they are not
likely to be resolved quickly."
Hsu continued, "We will continue to invest in our brands and
capabilities as we navigate through this volatile and difficult
macro environment. Our strategy is working, and we remain
confident in our future and our ability to create long-term
shareholder value."
Third Quarter 2021 Operating Results
Sales of $5.0 billion in the third
quarter of 2021 increased 7 percent versus the prior year.
Changes in foreign currency exchange rates increased sales 1
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 increased 4
percent as net selling prices rose 3 percent and product mix
increased sales 1 percent.
In North America, organic sales
increased 3 percent in consumer products and 16 percent in K-C
Professional. Outside North America, organic sales were up 6
percent in developing and emerging (D&E) markets and were even
with year-ago in developed markets.
Third quarter operating profit was $657
million in 2021 and $666
million in 2020. Results in both periods include
charges related to the 2018 Global Restructuring Program.
Third quarter adjusted operating profit was $745 million in 2021 and $806 million in 2020. Results were impacted
by $480 million of higher input
costs, driven by pulp and polymer-based materials, distribution and
energy costs. Results benefited from organic sales growth,
$115 million of cost savings from the
company's FORCE (Focused On Reducing Costs Everywhere) program,
$35 million of cost savings from the
2018 Global Restructuring Program and lower marketing, research and
general expense.
The third quarter effective tax rate was 21.6 percent in 2021
and 20.1 percent in 2020. The third quarter adjusted
effective tax rate was 20.9 percent in 2021 and 22.4 percent in
2020. Kimberly-Clark's share of net income of equity
companies in the third quarter was $21
million in 2021 and $31
million in 2020.
Cash Flow and Balance Sheet
Cash provided by operations in the third quarter was
$782 million in 2021 and $559 million in 2020. The increase was
driven by improved working capital and lower tax payments.
Capital spending for the third quarter was $235 million in 2021 and $258 million in 2020. Third quarter 2021
share repurchases were 0.4 million shares at a cost of $58 million. The company now plans for
full-year repurchases of approximately $400
million, at the low end of the previous range of
$400 to $450
million. Total debt was $8.9
billion at September 30, 2021
and $8.4 billion at the end of
2020.
Third Quarter 2021 Business Segment Results
Personal Care Segment
Third quarter sales of $2.7
billion increased 14 percent. The net impact of the
Softex Indonesia acquisition and exited businesses in conjunction
with the 2018 Global Restructuring Program increased sales
approximately 3 percent while changes in currency rates
increased sales 1 percent. Net selling prices increased 4
percent, volumes rose 3 percent and product mix improved 2
points. Third quarter operating profit of $496 million increased 2 percent. Results
benefited from organic sales growth, cost savings and reduced
marketing, research and general spending. The comparison was
impacted by input cost inflation.
Sales in North America
increased 11 percent. Net selling prices increased sales 5
percent, volumes rose 4 percent and product mix improved 2
points. Changes in currency rates increased sales 1 percent
while exited business related to the 2018 Global Restructuring
program reduced sales 1 percent.
Sales in D&E markets increased 18 percent. The Softex
Indonesia acquisition increased sales by approximately 11 percent
while changes in currency rates increased sales
1 percent. Net selling prices increased sales 4 percent
and product mix increased sales 3 percent. Organic sales
increased in Argentina,
Brazil, China, Eastern
Europe, India and
South Africa 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 11 percent including a 4 point
favorable impact from changes in currency rates. Volumes rose
5 percent and net selling prices increased sales 2 percent.
Consumer Tissue Segment
Third quarter sales of $1.5
billion decreased 5 percent. Changes in currency rates
increased sales 1 percent. Volumes declined 7 percent while
net selling prices increased sales 1 percent. The volume
comparison reflects elevated shipments in North America and developed markets in the
year-ago period to support higher consumer and customer demand
related to the global outbreak of COVID-19. Third quarter
operating profit of $222 million
decreased 30 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 and reduced
marketing, research and general spending.
Sales in North America
decreased 8 percent. Volumes fell 8 percent and product mix
was down 1 percent, while net selling prices improved
1 percent.
Sales in D&E markets increased 5 percent including a 1 point
favorable impact from changes in currency rates. Net selling
prices rose 3 percent, product mix improved approximately 1 percent
while volumes were down 3 percent. The Softex Indonesia
acquisition increased sales 4 percent.
Sales in developed markets outside North America decreased 6 percent.
Volumes were down 6 percent while net selling prices rose 1
percent. Exited businesses related to the 2018 Global
Restructuring program reduced sales 4 percent while change in
currency rates increased sales 3 percent.
K-C Professional (KCP) Segment
Third quarter sales of $0.8
billion increased 13 percent. Volumes increased 6
percent, net selling prices rose 5 percent and product mix
improved slightly. Changes in currency rates increased sales
1 percent. Third quarter operating profit of $96 million increased 10 percent. Results
benefited from organic sales growth, cost savings, lower other
manufacturing costs, and reduced marketing, research and general
spending. The comparison was impacted by higher input
costs.
Sales in North America
increased 16 percent. Volumes increased approximately 10
percent and net selling prices rose 6 percent. Product mix
and currency rates each increased sales slightly. Sales were
up significantly in washroom products reflecting comparison to weak
year-ago period.
Sales in D&E markets increased 14 percent including a 1
point benefit from changes in currency rates. Volumes rose
approximately 10 percent, compared to a soft year-ago period, net
selling prices increased 3 percent and product mix improved 1
percent.
Sales in developed markets outside North America were up 3 percent including a 3
percent benefit from changes in currency rates. Net selling
prices increased 5 percent while volumes decreased 5 percent.
Year-To-Date Results
For the first nine months of 2021, sales of $14.5 billion increased 1 percent. Organic
sales decreased 2 percent as volumes declined 5 percent while
net selling prices increased 2 percent and product mix 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 $2,040
million in 2021 and $2,495
million in 2020. Results in both periods include
charges related to the 2018 Global Restructuring Program.
Year-to-date adjusted operating profit was $2,225 million in 2021 and $2,815 million in 2020. Results were
impacted by lower sales volumes, $960
million of higher input costs and elevated other
manufacturing costs. Results benefited from higher net
selling prices, $295 million of FORCE
savings, $105 million of cost savings
from the 2018 Global Restructuring Program and reduced marketing,
research and general spending.
Through nine months, diluted net income per share was
$4.31 in 2021 and $5.30 in 2020. Year-to-date adjusted
earnings per share were $4.89 in 2021
and $6.06 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 by the end of
2021. Total restructuring charges are anticipated to be
$2,100 to $2,200 million pre-tax ($1,580 to $1,650
million after tax) compared to the previous estimate for
charges of $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 $550 to $560 million by the end of 2021, at the high end
of the previous savings range. Through the third quarter of
2021, the company has incurred cumulative restructuring charges of
$2,071 million pre-tax ($1,553 million after tax) and generated
cumulative savings of $525
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 2 percent (prior assumption 1 to 4
percent).
-
- Organic sales decline 1 to 2 percent (prior outlook decline 0
to 2 percent).
- Combined benefit of foreign currency exchange rates and the
Softex Indonesia acquisition net of exited businesses in
conjunction with the 2018 Global Restructuring Program expected to
increase sales 3 percent (prior assumption foreign currency benefit
1 to 2 percent, Softex Indonesia acquisition increase sales 2
percent while exited businesses reduce sales slightly).
- Adjusted operating profit expected to decline 20 to 22 percent
year-on-year (prior assumption decline of 11 to 14 percent).
-
- Key cost inputs expected to increase $1,400 to $1,500
million (previous estimate $1,200 to $1,300
million). The increased estimate driven by polymer-based
materials, distribution costs, and energy rates.
- Cost savings of $520 to
$540 million, including $390 to $400
million from the FORCE program and $130 to $140
million from the 2018 Global Restructuring Program (prior
outlook total 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).
- Net income from equity companies down year-on-year (prior
outlook similar, to down somewhat).
- Adjusted earnings per share of $6.05 to $6.25
(prior outlook $6.65 to $6.90).
- Capital spending of $1,000 to
$1,100 million (prior outlook
$1,100 to $1,200 million).
- Share repurchases of approximately $400
million (prior outlook $400 to
$450 million).
Prepared Management Remarks and Live Question and Answer
Webcast
At approximately 7:00 a.m. (CDT)
on October 25, 2021, the company will
post management remarks (in PDF format) regarding its third quarter
2021 results and full-year 2021 outlook at
www.kimberly-clark.com. At 9:00 a.m.
(CDT) on October 25, 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 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.
- Softex Indonesia acquisition-related costs. The company
incurred costs to evaluate and execute the acquisition of Softex
Indonesia.
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 September
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
September 30
|
|
|
|
2021
|
|
2020
|
|
Change
|
Net
Sales
|
$
|
5,010
|
|
$
|
4,683
|
|
+7 %
|
Cost of products
sold
|
3,527
|
|
3,093
|
|
+14 %
|
Gross
Profit
|
1,483
|
|
1,590
|
|
-7 %
|
Marketing, research
and general expenses
|
819
|
|
919
|
|
-11 %
|
Other (income) and
expense, net
|
7
|
|
5
|
|
+40 %
|
Operating
Profit
|
657
|
|
666
|
|
-1 %
|
Nonoperating
expense
|
(10)
|
|
(40)
|
|
-75 %
|
Interest
income
|
1
|
|
2
|
|
-50 %
|
Interest
expense
|
(64)
|
|
(62)
|
|
+3 %
|
Income Before
Income Taxes and Equity Interests
|
584
|
|
566
|
|
+3 %
|
Provision for income
taxes
|
(126)
|
|
(114)
|
|
+11 %
|
Income Before
Equity Interests
|
458
|
|
452
|
|
+1 %
|
Share of net income of
equity companies
|
21
|
|
31
|
|
-32 %
|
Net
Income
|
479
|
|
483
|
|
-1 %
|
Net income
attributable to noncontrolling interests
|
(10)
|
|
(11)
|
|
-9 %
|
Net Income
Attributable to Kimberly-Clark Corporation
|
$
|
469
|
|
$
|
472
|
|
-1 %
|
|
|
|
|
|
|
Per Share
Basis
|
|
|
|
|
|
Net Income
Attributable to Kimberly-Clark Corporation
|
|
|
|
|
|
Basic
|
$
|
1.39
|
|
$
|
1.38
|
|
+1 %
|
Diluted
|
$
|
1.39
|
|
$
|
1.38
|
|
+1 %
|
|
|
|
|
|
|
Cash Dividends
Declared
|
$
|
1.14
|
|
$
|
1.07
|
|
+7 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Shares
Outstanding
|
September
30
|
|
|
|
2021
|
|
2020
|
|
|
Outstanding shares as
of
|
336.7
|
|
340.4
|
|
|
Average diluted shares
for three months ended
|
337.5
|
|
342.3
|
|
|
|
|
|
|
|
|
Unaudited
|
|
|
|
|
|
KIMBERLY-CLARK
CORPORATION
|
CONSOLIDATED INCOME
STATEMENTS
|
(Millions, except per
share amounts)
|
|
|
Nine Months
Ended September 30
|
|
|
2021
|
|
2020
|
|
Change
|
Net
Sales
|
$
|
14,475
|
|
$
|
14,304
|
|
+1 %
|
Cost of products
sold
|
9,923
|
|
9,146
|
|
+8 %
|
Gross
Profit
|
4,552
|
|
5,158
|
|
-12 %
|
Marketing, research
and general expenses
|
2,488
|
|
2,636
|
|
-6 %
|
Other (income) and
expense, net
|
24
|
|
27
|
|
-11 %
|
Operating
Profit
|
2,040
|
|
2,495
|
|
-18 %
|
Nonoperating
expense
|
(71)
|
|
(57)
|
|
+25 %
|
Interest
income
|
4
|
|
6
|
|
-33 %
|
Interest
expense
|
(192)
|
|
(188)
|
|
+2 %
|
Income Before
Income Taxes and Equity Interests
|
1,781
|
|
2,256
|
|
-21 %
|
Provision for income
taxes
|
(386)
|
|
(510)
|
|
-24 %
|
Income Before
Equity Interests
|
1,395
|
|
1,746
|
|
-20 %
|
Share of net income of
equity companies
|
88
|
|
104
|
|
-15 %
|
Net
Income
|
1,483
|
|
1,850
|
|
-20 %
|
Net income
attributable to noncontrolling interests
|
(26)
|
|
(37)
|
|
-30 %
|
Net Income
Attributable to Kimberly-Clark Corporation
|
$
|
1,457
|
|
$
|
1,813
|
|
-20 %
|
|
|
|
|
|
|
Per Share
Basis
|
|
|
|
|
|
Net Income
Attributable to Kimberly-Clark Corporation
|
|
|
|
|
|
Basic
|
$
|
4.32
|
|
$
|
5.32
|
|
-19 %
|
Diluted
|
$
|
4.31
|
|
$
|
5.30
|
|
-19 %
|
|
|
|
|
|
|
Cash Dividends
Declared
|
$
|
3.42
|
|
$
|
3.21
|
|
+7 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Shares
Outstanding
|
September
30
|
|
|
|
2021
|
|
2020
|
|
|
Average diluted shares
for nine months ended
|
338.4
|
|
342.3
|
|
|
|
|
|
|
|
|
Unaudited
|
|
|
|
|
|
KIMBERLY-CLARK
CORPORATION
|
NON-GAAP
RECONCILIATIONS
|
(Millions, except per
share amounts)
|
|
|
|
|
|
|
Three Months Ended
September 30, 2021
|
|
|
|
|
|
As
Reported
|
|
2018
Global
Restructuring
Program
|
|
As
Adjusted
Non-GAAP
|
Cost of products
sold
|
|
|
|
|
$
|
3,527
|
|
$
|
48
|
|
$
|
3,479
|
Gross
Profit
|
|
|
|
|
1,483
|
|
|
(48)
|
|
1,531
|
Marketing, research
and general expenses
|
|
|
|
|
819
|
|
|
39
|
|
780
|
Other (income) and
expense, net
|
|
|
|
|
7
|
|
|
1
|
|
6
|
Operating
Profit
|
|
|
|
|
657
|
|
|
(88)
|
|
745
|
Nonoperating
expense
|
|
|
|
|
(10)
|
|
|
(9)
|
|
(1)
|
Provision for income
taxes
|
|
|
|
|
(126)
|
|
|
16
|
|
(142)
|
Effective tax
rate
|
|
|
|
|
21.6
%
|
|
|
—
|
|
20.9
%
|
Net income
attributable to noncontrolling interests
|
|
|
|
|
(10)
|
|
|
2
|
|
(12)
|
Net Income
Attributable to Kimberly-Clark Corporation
|
|
|
|
|
469
|
|
|
(79)
|
|
548
|
Diluted Earnings per
Share(a)
|
|
|
|
|
1.39
|
|
|
(0.23)
|
|
1.62
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30, 2020
|
|
|
|
|
As
Reported
|
|
2018
Global
Restructuring
Program
|
|
Softex
Indonesia
Acquisition-
Related
Costs
|
|
As
Adjusted
Non-GAAP
|
Cost of products
sold
|
|
$
|
3,093
|
|
$
|
107
|
|
$
|
—
|
|
$
|
2,986
|
Gross
Profit
|
|
1,590
|
|
(107)
|
|
—
|
|
1,697
|
Marketing, research
and general expenses
|
|
919
|
|
25
|
|
9
|
|
885
|
Other (income) and
expense, net
|
|
5
|
|
(1)
|
|
—
|
|
6
|
Operating
Profit
|
|
666
|
|
(131)
|
|
(9)
|
|
806
|
Nonoperating
expense
|
|
(40)
|
|
(26)
|
|
—
|
|
(14)
|
Provision for income
taxes
|
|
(114)
|
|
50
|
|
—
|
|
(164)
|
Effective tax
rate
|
|
20.1 %
|
|
—
|
|
—
|
|
22.4 %
|
Net Income
Attributable to Kimberly-Clark Corporation
|
|
472
|
|
(107)
|
|
(9)
|
|
588
|
Diluted Earnings per
Share(a)
|
|
1.38
|
|
(0.31)
|
|
(0.03)
|
|
1.72
|
|
(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)
|
|
|
|
|
|
|
Nine Months Ended
September 30, 2021
|
|
|
|
|
|
As
Reported
|
|
2018
Global
Restructuring
Program
|
|
As
Adjusted
Non-GAAP
|
Cost of products
sold
|
|
|
|
|
$
|
9,923
|
|
$
|
98
|
|
$
|
9,825
|
Gross
Profit
|
|
|
|
|
4,552
|
|
(98)
|
|
4,650
|
Marketing, research
and general expenses
|
|
|
|
|
2,488
|
|
78
|
|
2,410
|
Other (income) and
expense, net
|
|
|
|
|
24
|
|
9
|
|
15
|
Operating
Profit
|
|
|
|
|
2,040
|
|
(185)
|
|
2,225
|
Nonoperating
expense
|
|
|
|
|
(71)
|
|
(65)
|
|
(6)
|
Provision for income
taxes
|
|
|
|
|
(386)
|
|
48
|
|
(434)
|
Effective tax
rate
|
|
|
|
|
21.7
%
|
|
—
|
|
21.4
%
|
Net income
attributable to noncontrolling interests
|
|
|
|
|
(26)
|
|
3
|
|
(29)
|
Net Income
Attributable to Kimberly-Clark Corporation
|
|
|
|
|
1,457
|
|
(199)
|
|
1,656
|
Diluted Earnings per
Share(a)
|
|
|
|
|
4.31
|
|
(0.59)
|
|
4.89
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30, 2020
|
|
|
As
Reported
|
|
2018
Global
Restructuring
Program
|
|
Softex
Indonesia
Acquisition-
Related
Costs
|
|
As
Adjusted
Non-GAAP
|
Cost of products
sold
|
|
$
|
9,146
|
|
$
|
237
|
|
$
|
—
|
|
$
|
8,909
|
Gross
Profit
|
|
5,158
|
|
(237)
|
|
—
|
|
5,395
|
Marketing, research
and general expenses
|
|
2,636
|
|
75
|
|
9
|
|
2,552
|
Other (income) and
expense, net
|
|
27
|
|
(1)
|
|
—
|
|
28
|
Operating
Profit
|
|
2,495
|
|
(311)
|
|
(9)
|
|
2,815
|
Nonoperating
expense
|
|
(57)
|
|
(26)
|
|
—
|
|
(31)
|
Provision for income
taxes
|
|
(510)
|
|
83
|
|
—
|
|
(593)
|
Effective tax
rate
|
|
22.6 %
|
|
—
|
|
—
|
|
22.8 %
|
Share of net income
of equity companies
|
|
104
|
|
(1)
|
|
—
|
|
105
|
Net income
attributable to noncontrolling interests
|
|
(37)
|
|
2
|
|
—
|
|
(39)
|
Net Income
Attributable to Kimberly-Clark Corporation
|
|
1,813
|
|
(253)
|
|
(9)
|
|
2,075
|
Diluted Earnings per
Share(a)
|
|
5.30
|
|
(0.74)
|
|
(0.03)
|
|
6.06
|
|
(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)
|
|
|
September 30,
2021
|
|
December 31,
2020
|
ASSETS
|
|
|
|
Current
Assets
|
|
|
|
Cash and cash
equivalents
|
$
|
286
|
|
$
|
303
|
Accounts receivable,
net
|
2,399
|
|
2,235
|
Inventories
|
2,098
|
|
1,903
|
Other current
assets
|
843
|
|
733
|
Total Current
Assets
|
5,626
|
|
5,174
|
Property, Plant
and Equipment, Net
|
7,964
|
|
8,042
|
Investments in
Equity Companies
|
340
|
|
300
|
Goodwill
|
1,796
|
|
1,895
|
Other Intangible
Assets, Net
|
810
|
|
832
|
Other
Assets
|
1,239
|
|
1,280
|
TOTAL
ASSETS
|
$
|
17,775
|
|
$
|
17,523
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
Liabilities
|
|
|
|
Debt payable within
one year
|
$
|
1,387
|
|
$
|
486
|
Trade accounts
payable
|
3,519
|
|
3,336
|
Accrued expenses and
other current liabilities
|
1,972
|
|
2,262
|
Dividends
payable
|
380
|
|
359
|
Total Current
Liabilities
|
7,258
|
|
6,443
|
Long-Term
Debt
|
7,555
|
|
7,878
|
Noncurrent
Employee Benefits
|
869
|
|
864
|
Deferred Income
Taxes
|
701
|
|
723
|
Other
Liabilities
|
657
|
|
718
|
Redeemable
Preferred Securities of Subsidiaries
|
28
|
|
28
|
Stockholders'
Equity
|
|
|
|
Kimberly-Clark
Corporation
|
474
|
|
626
|
Noncontrolling
Interests
|
233
|
|
243
|
Total Stockholders'
Equity
|
707
|
|
869
|
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY
|
$
|
17,775
|
|
$
|
17,523
|
|
|
|
|
|
|
2021 Data is
Unaudited
|
|
|
|
|
|
KIMBERLY-CLARK
CORPORATION
|
CONSOLIDATED CASH
FLOW STATEMENTS
|
(Millions)
|
|
|
Three Months
Ended
September 30
|
|
Nine Months
Ended
September 30
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Operating
Activities
|
|
|
|
|
|
|
|
Net income
|
$
|
479
|
|
$
|
483
|
|
$
|
1,483
|
|
$
|
1,850
|
Depreciation and
amortization
|
194
|
|
192
|
|
572
|
|
606
|
Asset
impairments
|
—
|
|
—
|
|
3
|
|
—
|
Stock-based
compensation
|
(12)
|
|
47
|
|
30
|
|
101
|
Deferred income
taxes
|
32
|
|
(42)
|
|
(42)
|
|
(30)
|
Net (gains) losses on
asset dispositions
|
19
|
|
54
|
|
34
|
|
67
|
Equity companies'
earnings (in excess of) less than dividends paid
|
7
|
|
(6)
|
|
(25)
|
|
(53)
|
Operating working
capital
|
63
|
|
(198)
|
|
(432)
|
|
292
|
Postretirement
benefits
|
3
|
|
22
|
|
39
|
|
7
|
Other
|
(3)
|
|
7
|
|
6
|
|
2
|
Cash Provided by
Operations
|
782
|
|
559
|
|
1,668
|
|
2,842
|
Investing
Activities
|
|
|
|
|
|
|
|
Capital
spending
|
(235)
|
|
(258)
|
|
(734)
|
|
(894)
|
Proceeds from
dispositions of property
|
1
|
|
—
|
|
31
|
|
5
|
Investments in time
deposits
|
(181)
|
|
(186)
|
|
(632)
|
|
(509)
|
Maturities of time
deposits
|
165
|
|
150
|
|
598
|
|
404
|
Other
|
1
|
|
7
|
|
1
|
|
17
|
Cash Used for
Investing
|
(249)
|
|
(287)
|
|
(736)
|
|
(977)
|
Financing
Activities
|
|
|
|
|
|
|
|
Cash dividends
paid
|
(385)
|
|
(365)
|
|
(1,133)
|
|
(1,087)
|
Change in short-term
debt
|
(106)
|
|
170
|
|
854
|
|
(497)
|
Debt
proceeds
|
—
|
|
601
|
|
5
|
|
1,842
|
Debt
repayments
|
(16)
|
|
(501)
|
|
(269)
|
|
(753)
|
Proceeds from exercise
of stock options
|
25
|
|
77
|
|
52
|
|
212
|
Acquisitions of common
stock for the treasury
|
(62)
|
|
(186)
|
|
(393)
|
|
(449)
|
Other
|
(3)
|
|
(1)
|
|
(57)
|
|
(40)
|
Cash Used for
Financing
|
(547)
|
|
(205)
|
|
(941)
|
|
(772)
|
Effect of Exchange
Rate Changes on Cash and Cash Equivalents
|
(6)
|
|
3
|
|
(8)
|
|
(17)
|
Change in Cash and
Cash Equivalents
|
(20)
|
|
70
|
|
(17)
|
|
1,076
|
Cash and Cash
Equivalents - Beginning of Period
|
306
|
|
1,448
|
|
303
|
|
442
|
Cash and Cash
Equivalents - End of Period
|
$
|
286
|
|
$
|
1,518
|
|
$
|
286
|
|
$
|
1,518
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
KIMBERLY-CLARK
CORPORATION
|
SELECTED BUSINESS
SEGMENT DATA
|
(Millions)
|
|
|
|
Three Months
Ended
September 30
|
|
|
|
Nine Months
Ended
September 30
|
|
|
|
|
2021
|
|
2020
|
|
Change
|
|
2021
|
|
2020
|
|
Change
|
NET
SALES
|
|
|
|
|
|
|
|
|
|
|
|
|
Personal
Care
|
|
$
|
2,656
|
|
$
|
2,339
|
|
+14 %
|
|
$
|
7,635
|
|
$
|
6,990
|
|
+9 %
|
Consumer
Tissue
|
|
1,541
|
|
1,623
|
|
-5 %
|
|
4,475
|
|
4,991
|
|
-10 %
|
K-C
Professional
|
|
797
|
|
705
|
|
+13 %
|
|
2,314
|
|
2,277
|
|
+2 %
|
Corporate &
Other
|
|
16
|
|
16
|
|
N.M.
|
|
51
|
|
46
|
|
N.M.
|
TOTAL NET
SALES
|
|
$
|
5,010
|
|
$
|
4,683
|
|
+7 %
|
|
$
|
14,475
|
|
$
|
14,304
|
|
+1 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
PROFIT
|
|
|
|
|
|
|
|
|
|
|
|
|
Personal
Care
|
|
$
|
496
|
|
$
|
486
|
|
+2 %
|
|
$
|
1,431
|
|
$
|
1,532
|
|
-7 %
|
Consumer
Tissue
|
|
222
|
|
318
|
|
-30 %
|
|
687
|
|
1,111
|
|
-38 %
|
K-C
Professional
|
|
96
|
|
87
|
|
+10 %
|
|
332
|
|
423
|
|
-22 %
|
Corporate &
Other(a)
|
|
(150)
|
|
(220)
|
|
N.M.
|
|
(386)
|
|
(544)
|
|
N.M.
|
Other (income) and
expense, net(a)
|
|
7
|
|
5
|
|
+40 %
|
|
24
|
|
27
|
|
-11 %
|
TOTAL OPERATING
PROFIT
|
|
$
|
657
|
|
$
|
666
|
|
-1 %
|
|
$
|
2,040
|
|
$
|
2,495
|
|
-18 %
|
|
|
(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
September 30, 2021
|
|
|
Total(a)
|
|
Volume
|
|
Net
Price
|
|
Mix/
Other
|
|
Acquisition/
Exited
Businesses(b)
|
|
Currency
|
|
|
Organic(c)
|
Personal
Care
|
|
14
|
|
3
|
|
4
|
|
2
|
|
3
|
|
1
|
|
|
9
|
Consumer
Tissue
|
|
(5)
|
|
(7)
|
|
1
|
|
—
|
|
—
|
|
1
|
|
|
(6)
|
K-C
Professional
|
|
13
|
|
6
|
|
5
|
|
—
|
|
—
|
|
1
|
|
|
12
|
TOTAL
CONSOLIDATED
|
|
7
|
|
—
|
|
3
|
|
1
|
|
2
|
|
1
|
|
|
4
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30, 2021
|
|
|
Total(a)
|
|
Volume
|
|
Net
Price
|
|
Mix/
Other
|
|
Acquisition/
Exited
Businesses(b)
|
|
Currency
|
|
|
Organic(c)
|
Personal
Care
|
|
9
|
|
1
|
|
1
|
|
2
|
|
4
|
|
1
|
|
|
4
|
Consumer
Tissue
|
|
(10)
|
|
(12)
|
|
—
|
|
(1)
|
|
—
|
|
2
|
|
|
(12)
|
K-C
Professional
|
|
2
|
|
(7)
|
|
6
|
|
1
|
|
—
|
|
2
|
|
|
—
|
TOTAL
CONSOLIDATED
|
|
1
|
|
(5)
|
|
2
|
|
1
|
|
2
|
|
2
|
|
|
(2)
|
|
|
(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
|
|
$
|
6.05
|
|
-
|
|
$
|
6.25
|
Adjustment for
charges related to the 2018 Global Restructuring Program
|
|
(0.90)
|
|
-
|
|
(0.65)
|
Per share basis –
diluted net income attributable to Kimberly-Clark
Corporation
|
|
$
|
5.15
|
|
-
|
|
$
|
5.60
|
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