DALLAS, July 26,
2022 /PRNewswire/ -- Kimberly-Clark Corporation
(NYSE: KMB) today reported second quarter 2022 results.
Executive Summary
- Second quarter 2022 net sales of $5.1
billion increased 7 percent compared to the year-ago period,
including organic sales growth of 9 percent.
- Diluted net income per share for the second quarter was
$1.29 in 2022 and $1.19 in 2021.
- Second quarter adjusted earnings per share were $1.34 in 2022, down 9 percent compared to
$1.47 in 2021. Adjusted earnings per
share exclude certain items described later in this news
release.
- Diluted net income per share for 2022 is expected to be
$5.67 to $6.10.
- The company is now targeting full-year 2022 organic sales
growth of 5 to 7 percent compared to prior outlook of 4 to 6
percent and maintains adjusted earnings per share range of
$5.60 to $6.00.
"I'm pleased to close the first half of the year with another
quarter of excellent execution by our teams who delivered strong
organic sales growth, with increases in all our segments. Our
growth strategy is working," said Mike
Hsu, Chairman and CEO, Kimberly-Clark. "Our results also
reflect ongoing market volatility and significant input cost
inflation. We continue to be thoughtful with our response to
inflation, focusing on providing value to our consumers while
leveraging price and cost discipline to mitigate macro headwinds
for margin improvement over time."
Hsu continued, "As we manage our business prudently in the
near-term, we're committed to investing in our people, brands and
capabilities to ensure we continue to be well positioned to deliver
balanced and sustainable growth over the long-term."
Second Quarter 2022 Operating Results
Sales of $5.1 billion in the
second quarter of 2022 increased 7 percent compared to the
year-ago period. Changes in foreign currency exchange rates reduced
sales 2 percent. Organic sales increased 9 percent as net selling
prices rose 9 percent, product mix increased sales 1 percent and
volumes declined 1 percent. In North
America, organic sales increased 11 percent in consumer
products and increased 8 percent in K-C Professional. Outside
North America, organic sales rose 8 percent in developing and
emerging (D&E) markets and 9 percent in developed markets.
Second quarter operating profit was $621 million in 2022
and $613 million in 2021. Excluding
the charges related to the 2018 Global Restructuring Program, 2021
adjusted operating profit was $676
million.
Results were impacted by $405
million of higher input costs. Higher marketing, research
and general expense as well as unfavorable foreign currency
transaction effects reduced operating profit in the quarter.
Results benefited from organic sales growth and $45 million of cost savings from the company's
FORCE (Focused On Reducing Costs Everywhere) program.
The second quarter effective tax rate was 21.8 percent in
2022 and 22.8 percent in 2021. The second quarter adjusted
effective tax rate was 22.0 percent in 2022 and 22.5 percent
in 2021. Kimberly-Clark's share of net income of equity companies
in the second quarter was $29 million in 2022 and $28 million in 2021.
Cash Flow and Balance Sheet
Cash provided by operations in the second quarter was
$740 million in 2022 and $565
million in 2021. The increase was driven by lower tax
payments and reduced use of cash for working capital. Capital
spending for the second quarter was $217
million in 2022 and $201
million in 2021. Second quarter share repurchases were
173 thousand shares at a cost of $23
million. Total debt was $8.7
billion as of June 30, 2022
and $8.6 billion at the end of
2021.
Second Quarter 2022 Business Segment Results
Personal Care Segment
Second quarter sales of $2.7
billion increased 8 percent. Net selling prices
increased 9 percent, product mix improved 1 percent while volumes
declined 1 percent. The acquisition of the controlling interest in
Thinx increased sales 1 point and changes in foreign currency
exchange rates decreased sales by 2 percent. Second quarter
operating profit of $466 million
increased 3 percent. Results benefited from organic sales
growth and cost savings. The comparison was impacted by input cost
inflation, higher marketing, research and general spending as well
as unfavorable foreign currency effects.
Sales in North America
increased 10 percent. Net selling prices increased 9 percent and
the Thinx acquisition increased sales 1 percent. Organic sales were
up in all personal care segments.
Sales in D&E markets increased 7 percent. Net selling prices
increased sales 12 percent and product mix improved 3 points while
volumes declined 6 percent. Changes in foreign currency exchange
rates decreased sales 2 percent. Organic sales growth was driven by
Latin America and China.
Sales in developed markets outside North America (Australia, South
Korea and Western/Central
Europe) increased 1 percent. Volumes increased 5
percent, net selling prices increased sales 4 percent and product
mix improved sales 1 point. Changes in foreign currency exchange
rates reduced sales 9 percent.
Consumer Tissue Segment
Second quarter sales of $1.5
billion increased 8 percent. Net selling prices increased
sales 7 percent, volumes rose 3 percent and product mix improved
sales 1 point. Changes in foreign currency exchange rates reduced
sales 3 percent. Second quarter operating profit of
$178 million decreased 9 percent. The
comparison was impacted by input cost inflation and higher
marketing, research and general spending. Results benefited from
organic sales growth, lower other manufacturing costs and cost
savings.
Sales in North America
increased 14 percent. Volumes grew 7 percent, net selling prices
improved 6 percent, and product mix increased sales 1 point. The
volume growth reflects comparison to the COVID-related consumer and
retailer inventory destocking in the year-ago period.
Sales in D&E markets increased 4 percent. Net selling prices
rose 9 percent and product mix improved 3 percent, while volumes
were down 7 percent. Changes in foreign currency exchange rates
decreased sales 1 point.
Sales in developed markets outside North America were even with year-ago. Net
selling prices rose approximately 9 percent and volumes grew 2
percent. Changes in foreign currency exchange rates decreased sales
9 percent and exited businesses related to the 2018 Global
Restructuring program reduced sales 1 point.
K-C Professional (KCP) Segment
Second quarter sales of $0.8
billion increased 5 percent. Net selling prices rose 9
percent and product mix increased sales 2 points while volumes
declined 3 percent. Changes in foreign currency exchange rates
decreased sales 3 percent. Second quarter operating profit of
$85 million decreased 23 percent. The
comparison was impacted by input cost inflation, lower volumes and
higher marketing, research and general spending. Results benefited
from higher net selling prices and cost savings.
Sales in North America
increased 8 percent. Net selling prices rose approximately 8
percent, product mix increased sales 2 percent while volumes
declined 1 percent. Washroom products sales were up strong
double-digits while sales of safety products decreased versus a
strong year-ago.
Sales in D&E markets increased 4 percent. Net selling prices
increased 7 percent, product mix increased sales 1 point while
volumes declined 2 percent. Changes in foreign currency exchange
rates decreased sales 2 percent.
Sales in developed markets outside North America decreased 3 percent. Changes in
foreign currency exchange rates reduced sales 9 percent. Net
selling prices increased 14 percent and product mix improved sales
2 percent while volumes declined 10 percent.
Year-To-Date Results
For the first six months of 2022, sales of $10.2 billion increased 7 percent. Organic sales
increased 10 percent, as net selling prices rose 7 percent, volumes
increased 1 percent and product mix increased sales approximately
1 point. Changes in foreign currency exchange rates decreased
sales by approximately 2 percent.
Year-to-date operating profit was $1,314
million in 2022 and $1,383
million in 2021. Results in 2022 include the net benefit of
the acquisition of a controlling interest of Thinx. 2021 results
include charges related to the 2018 Global Restructuring
Program.
Year-to-date adjusted operating profit was $1,250 million in 2022 and $1,480 million in 2021. Results were impacted by
higher input costs, higher marketing, research and general spending
and unfavorable foreign currency effects. Results benefited from
organic sales growth, $95 million of
FORCE savings and lower other manufacturing costs.
Through six months, diluted net income per share was
$2.84 in 2022 and $2.92 in 2021. Year-to-date adjusted earnings per
share were $2.69 in 2022 and
$3.27 in 2021.
2022 Outlook and Key Planning Assumptions
The company updated key planning and guidance assumptions for
full-year 2022. The outlook reflects a reasonable set of
assumptions subject to change given the high level of volatility in
the macro environment.
- Net sales increase 2 to 4 percent (no change).
-
- Organic sales increase 5 to 7 percent (prior target 4 to 6
percent).
- Foreign currency exchange rates unfavorable approximately 3
percent (prior estimate approximately 2 percent).
- Adjusted operating profit down mid-single digit percent (prior
estimate down low to mid-single digit).
-
- Key cost inputs expected to increase $1.4 to $1.6
billion (previous estimate $1.1 to $1.3
billion). Costs are projected to increase or remain elevated
for most inputs, including pulp and other raw materials as well as
distribution and energy.
- Adjusted earnings per share remains $5.60 to $6.00.
Given the current cost outlook, expect to be at the lower end of
the range.
Prepared Management Remarks and Live Question and Answer
Webcast
At approximately 7:00 a.m. (CDT)
on July 26, 2022, the company will
post management remarks (in PDF format) regarding its second
quarter 2022 results at www.kimberly-clark.com. At 9:00 a.m. (CDT) on July
26, 2022, 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:
- Pension settlements. In the second quarter of 2022, the company
recognized pension settlement charges related to lump-sum
distributions from pension plan assets exceeding the total of
annual service and interest costs resulting in a recognition of
deferred actuarial losses.
- Acquisition of controlling interest in Thinx. In the first
quarter of 2022, the company completed the acquisition of a
majority and controlling share of Thinx. As a result of this
transaction, a net benefit was recognized primarily due to the
nonrecurring, non-cash gain recognized related to the remeasurement
of the carrying value of previously held equity investment to fair
value partially offset by transaction and integration costs.
- 2018 Global Restructuring Program. In 2018, the company
initiated a restructuring program to reduce our structural cost
base by streamlining and simplifying our manufacturing supply chain
and overhead organization. Restructuring charges were incurred in
2018, 2019, 2020 and 2021. The restructuring actions were completed
by the end of 2021.
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 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
website on the same day they are filed with the SEC. To view these
filings, visit the Investors section of the company's website.
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 and Turkey, net income from equity companies,
sources and uses of cash, the effective tax rate, the anticipated
cost savings from the company's FORCE 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 the war in Ukraine (including the related responses of
consumers, customers and suppliers as well as sanctions issued by
the U.S., the European Union, Russia or other countries), 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, changes in customer preferences, severe weather
conditions, government trade or similar regulatory actions,
potential competitive pressures on selling prices for our products,
energy costs, 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, 2021.
KIMBERLY-CLARK
CORPORATION
CONSOLIDATED INCOME
STATEMENTS
(Millions, except per
share amounts)
|
|
|
Three Months Ended
June 30
|
|
|
|
2022
|
|
2021
|
|
Change
|
Net
Sales
|
$
5,063
|
|
$
4,722
|
|
+7 %
|
Cost of products
sold
|
3,534
|
|
3,242
|
|
+9 %
|
Gross
Profit
|
1,529
|
|
1,480
|
|
+3 %
|
Marketing, research
and general expenses
|
906
|
|
854
|
|
+6 %
|
Other (income) and
expense, net
|
2
|
|
13
|
|
-85 %
|
Operating
Profit
|
621
|
|
613
|
|
+1 %
|
Nonoperating
expense
|
(27)
|
|
(55)
|
|
-51 %
|
Interest
income
|
1
|
|
2
|
|
-50 %
|
Interest
expense
|
(68)
|
|
(65)
|
|
+5 %
|
Income Before Income
Taxes and Equity Interests
|
527
|
|
495
|
|
+6 %
|
Provision for income
taxes
|
(115)
|
|
(113)
|
|
+2 %
|
Income Before Equity
Interests
|
412
|
|
382
|
|
+8 %
|
Share of net income of
equity companies
|
29
|
|
28
|
|
+4 %
|
Net
Income
|
441
|
|
410
|
|
+8 %
|
Net income
attributable to noncontrolling interests
|
(4)
|
|
(6)
|
|
-33 %
|
Net Income
Attributable to Kimberly-Clark Corporation
|
$
437
|
|
$
404
|
|
+8 %
|
|
|
|
|
|
|
Per Share
Basis
|
|
|
|
|
|
Net Income
Attributable to Kimberly-Clark Corporation
|
|
|
|
|
|
Basic
|
$
1.30
|
|
$
1.20
|
|
+8 %
|
Diluted
|
$
1.29
|
|
$
1.19
|
|
+8 %
|
|
|
|
|
|
|
Cash Dividends
Declared
|
$
1.16
|
|
$
1.14
|
|
+2 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Shares
Outstanding
|
June
30
|
|
|
|
2022
|
|
2021
|
|
|
Outstanding shares as
of
|
337.6
|
|
336.9
|
|
|
Average diluted shares
for three months ended
|
338.3
|
|
338.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited
|
|
|
|
|
|
KIMBERLY-CLARK
CORPORATION
CONSOLIDATED INCOME
STATEMENTS
(Millions, except per
share amounts)
|
|
|
Six Months Ended
June 30
|
|
|
|
2022
|
|
2021
|
|
Change
|
Net
Sales
|
$
10,158
|
|
$
9,465
|
|
+7 %
|
Cost of products
sold
|
7,109
|
|
6,396
|
|
+11 %
|
Gross
Profit
|
3,049
|
|
3,069
|
|
-1 %
|
Marketing, research
and general expenses
|
1,792
|
|
1,669
|
|
+7 %
|
Other (income) and
expense, net
|
(57)
|
|
17
|
|
N.M.
|
Operating
Profit
|
1,314
|
|
1,383
|
|
-5 %
|
Nonoperating
expense
|
(31)
|
|
(61)
|
|
-49 %
|
Interest
income
|
3
|
|
3
|
|
—
|
Interest
expense
|
(133)
|
|
(128)
|
|
+4 %
|
Income Before Income
Taxes and Equity Interests
|
1,153
|
|
1,197
|
|
-4 %
|
Provision for income
taxes
|
(229)
|
|
(260)
|
|
-12 %
|
Income Before Equity
Interests
|
924
|
|
937
|
|
-1 %
|
Share of net income of
equity companies
|
52
|
|
67
|
|
-22 %
|
Net
Income
|
976
|
|
1,004
|
|
-3 %
|
Net income
attributable to noncontrolling interests
|
(16)
|
|
(16)
|
|
—
|
Net Income
Attributable to Kimberly-Clark Corporation
|
$
960
|
|
$
988
|
|
-3 %
|
|
|
|
|
|
|
Per Share
Basis
|
|
|
|
|
|
Net Income
Attributable to Kimberly-Clark Corporation
|
|
|
|
|
|
Basic
|
$
2.85
|
|
$
2.92
|
|
-2 %
|
Diluted
|
$
2.84
|
|
$
2.92
|
|
-3 %
|
|
|
|
|
|
|
Cash Dividends
Declared
|
$
2.32
|
|
$
2.28
|
|
+2 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Shares
Outstanding
|
June
30
|
|
|
|
2022
|
|
2021
|
|
|
Average diluted shares
for six months ended
|
338.3
|
|
338.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited
|
|
|
|
|
|
N.M. - Not
Meaningful
|
|
|
|
|
|
KIMBERLY-CLARK
CORPORATION
NON-GAAP
RECONCILIATIONS
(Millions, except per
share amounts)
|
|
|
|
Three Months Ended
June 30, 2022
|
|
|
As
Reported
|
|
Pension
Settlements
|
|
As
Adjusted
Non-GAAP
|
Nonoperating
expense
|
|
$
(27)
|
|
$
(24)
|
|
$
(3)
|
Provision for income
taxes
|
|
(115)
|
|
6
|
|
(121)
|
Effective tax
rate
|
|
21.8 %
|
|
—
|
|
22.0 %
|
Net Income Attributable
to Kimberly-Clark Corporation
|
|
437
|
|
(18)
|
|
455
|
Diluted Earnings per
Share(a)
|
|
1.29
|
|
(0.05)
|
|
1.34
|
|
|
|
|
|
|
Three Months Ended
June 30, 2021
|
|
|
As
Reported
|
|
2018
Global
Restructuring
Program
|
|
As
Adjusted
Non-GAAP
|
Cost of products
sold
|
|
$
3,242
|
|
$
25
|
|
$
3,217
|
Gross Profit
|
|
1,480
|
|
(25)
|
|
1,505
|
Marketing, research and
general expenses
|
|
854
|
|
30
|
|
824
|
Other (income) and
expense, net
|
|
13
|
|
8
|
|
5
|
Operating
Profit
|
|
613
|
|
(63)
|
|
676
|
Nonoperating
expense
|
|
(55)
|
|
(56)
|
|
1
|
Provision for income
taxes
|
|
(113)
|
|
25
|
|
(138)
|
Effective tax
rate
|
|
22.8 %
|
|
—
|
|
22.5 %
|
Net Income Attributable
to Kimberly-Clark Corporation
|
|
404
|
|
(94)
|
|
498
|
Diluted Earnings per
Share(a)
|
|
1.19
|
|
(0.28)
|
|
1.47
|
|
|
|
|
|
|
|
(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)
|
|
|
|
Six Months Ended
June 30, 2022
|
|
|
As
Reported
|
|
Acquisition of
Controlling
Interest in Thinx
|
|
Pension
Settlements
|
|
As
Adjusted
Non-GAAP
|
Marketing, research and
general expenses
|
|
$
1,792
|
|
$
21
|
|
$
—
|
|
$
1,771
|
Other (income) and
expense, net
|
|
(57)
|
|
(85)
|
|
—
|
|
28
|
Operating
Profit
|
|
1,314
|
|
64
|
|
—
|
|
1,250
|
Nonoperating
expense
|
|
(31)
|
|
—
|
|
(24)
|
|
(7)
|
Provision for income
taxes
|
|
(229)
|
|
4
|
|
6
|
|
(239)
|
Effective tax
rate
|
|
19.9 %
|
|
—
|
|
—
|
|
21.5 %
|
Net Income Attributable
to Kimberly-Clark Corporation
|
|
960
|
|
68
|
|
(18)
|
|
910
|
Diluted Earnings per
Share(a)
|
|
2.84
|
|
0.20
|
|
(0.05)
|
|
2.69
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30, 2021
|
|
|
|
|
As
Reported
|
|
2018
Global
Restructuring
Program
|
|
As
Adjusted
Non-GAAP
|
Cost of products
sold
|
|
|
|
$
6,396
|
|
$
50
|
|
$
6,346
|
Gross Profit
|
|
|
|
3,069
|
|
(50)
|
|
3,119
|
Marketing, research and
general expenses
|
|
|
|
1,669
|
|
39
|
|
1,630
|
Other (income) and
expense, net
|
|
|
|
17
|
|
8
|
|
9
|
Operating
Profit
|
|
|
|
1,383
|
|
(97)
|
|
1,480
|
Nonoperating
expense
|
|
|
|
(61)
|
|
(56)
|
|
(5)
|
Provision for income
taxes
|
|
|
|
(260)
|
|
32
|
|
(292)
|
Effective tax
rate
|
|
|
|
21.7 %
|
|
—
|
|
21.6 %
|
Net income attributable
to noncontrolling interests
|
|
|
|
(16)
|
|
1
|
|
(17)
|
Net Income Attributable
to Kimberly-Clark Corporation
|
|
|
|
988
|
|
(120)
|
|
1,108
|
Diluted Earnings per
Share(a)
|
|
|
|
2.92
|
|
(0.35)
|
|
3.27
|
|
(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)
|
|
|
June 30,
2022
|
|
December 31,
2021
|
ASSETS
|
|
|
|
Current
Assets
|
|
|
|
Cash and cash
equivalents
|
$
311
|
|
$
270
|
Accounts receivable,
net
|
2,469
|
|
2,207
|
Inventories
|
2,278
|
|
2,239
|
Other current
assets
|
604
|
|
849
|
Total Current
Assets
|
5,662
|
|
5,565
|
Property, Plant and
Equipment, Net
|
7,931
|
|
8,097
|
Investments in
Equity Companies
|
270
|
|
290
|
Goodwill
|
2,102
|
|
1,840
|
Other Intangible
Assets, Net
|
893
|
|
810
|
Other
Assets
|
1,256
|
|
1,235
|
TOTAL
ASSETS
|
$
18,114
|
|
$
17,837
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
Liabilities
|
|
|
|
Debt payable within
one year
|
$
1,031
|
|
$
433
|
Trade accounts
payable
|
3,701
|
|
3,840
|
Accrued expenses and
other current liabilities
|
2,089
|
|
2,096
|
Dividends
payable
|
388
|
|
380
|
Total Current
Liabilities
|
7,209
|
|
6,749
|
Long-Term
Debt
|
7,698
|
|
8,141
|
Noncurrent Employee
Benefits
|
829
|
|
809
|
Deferred Income
Taxes
|
703
|
|
694
|
Other
Liabilities
|
673
|
|
681
|
Redeemable Common
and Preferred Securities of Subsidiaries
|
260
|
|
26
|
Stockholders'
Equity
|
|
|
|
Kimberly-Clark
Corporation
|
593
|
|
514
|
Noncontrolling
Interests
|
149
|
|
223
|
Total Stockholders'
Equity
|
742
|
|
737
|
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY
|
$
18,114
|
|
$
17,837
|
|
|
2022 Data is
Unaudited
|
KIMBERLY-CLARK
CORPORATION
CONSOLIDATED CASH FLOW
STATEMENTS
(Millions)
|
|
|
Three Months
Ended
June 30
|
|
Six Months Ended
June 30
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Operating
Activities
|
|
|
|
|
|
|
|
Net income
|
$
441
|
|
$
410
|
|
$
976
|
|
$ 1,004
|
Depreciation and
amortization
|
192
|
|
189
|
|
380
|
|
378
|
Asset
impairments
|
—
|
|
—
|
|
—
|
|
3
|
Gain on previously
held equity investment in Thinx
|
—
|
|
—
|
|
(85)
|
|
—
|
Stock-based
compensation
|
52
|
|
20
|
|
68
|
|
42
|
Deferred income
taxes
|
17
|
|
(39)
|
|
(35)
|
|
(74)
|
Net (gains) losses on
asset dispositions
|
7
|
|
11
|
|
13
|
|
15
|
Equity companies'
earnings (in excess of) less than dividends paid
|
2
|
|
6
|
|
(21)
|
|
(32)
|
Operating working
capital
|
21
|
|
(95)
|
|
(348)
|
|
(495)
|
Postretirement
benefits
|
13
|
|
51
|
|
(1)
|
|
36
|
Other
|
(5)
|
|
12
|
|
(3)
|
|
9
|
Cash Provided by
Operations
|
740
|
|
565
|
|
944
|
|
886
|
Investing
Activities
|
|
|
|
|
|
|
|
Capital
spending
|
(217)
|
|
(201)
|
|
(470)
|
|
(499)
|
Acquisition of
business, net of cash acquired
|
(12)
|
|
—
|
|
(46)
|
|
—
|
Proceeds from
dispositions of property
|
1
|
|
30
|
|
1
|
|
30
|
Investments in time
deposits
|
(217)
|
|
(292)
|
|
(300)
|
|
(451)
|
Maturities of time
deposits
|
290
|
|
226
|
|
545
|
|
433
|
Other
|
(6)
|
|
(5)
|
|
(7)
|
|
—
|
Cash Used for
Investing
|
(161)
|
|
(242)
|
|
(277)
|
|
(487)
|
Financing
Activities
|
|
|
|
|
|
|
|
Cash dividends
paid
|
(391)
|
|
(389)
|
|
(775)
|
|
(748)
|
Change in short-term
debt
|
(281)
|
|
216
|
|
553
|
|
960
|
Debt
proceeds
|
—
|
|
—
|
|
—
|
|
5
|
Debt
repayments
|
—
|
|
—
|
|
(300)
|
|
(253)
|
Proceeds from exercise
of stock options
|
52
|
|
17
|
|
75
|
|
27
|
Acquisitions of common
stock for the treasury
|
(24)
|
|
(162)
|
|
(49)
|
|
(331)
|
Cash dividends paid to
noncontrolling interests
|
(82)
|
|
—
|
|
(82)
|
|
(17)
|
Other
|
(27)
|
|
(24)
|
|
(42)
|
|
(37)
|
Cash Used for
Financing
|
(753)
|
|
(342)
|
|
(620)
|
|
(394)
|
Effect of Exchange
Rate Changes on Cash and Cash Equivalents
|
(8)
|
|
5
|
|
(6)
|
|
(2)
|
Change in Cash and
Cash Equivalents
|
(182)
|
|
(14)
|
|
41
|
|
3
|
Cash and Cash
Equivalents - Beginning of Period
|
493
|
|
320
|
|
270
|
|
303
|
Cash and Cash
Equivalents - End of Period
|
$
311
|
|
$
306
|
|
$
311
|
|
$
306
|
|
Unaudited
|
KIMBERLY-CLARK
CORPORATION
SELECTED BUSINESS
SEGMENT DATA
(Millions)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
June 30
|
|
|
|
Six Months Ended
June 30
|
|
|
|
|
2022
|
|
2021
|
|
Change
|
|
2022
|
|
2021
|
|
Change
|
NET
SALES
|
|
|
|
|
|
|
|
|
|
|
|
|
Personal
Care
|
|
$ 2,710
|
|
$ 2,517
|
|
+8 %
|
|
$ 5,439
|
|
$ 4,979
|
|
+9 %
|
Consumer
Tissue
|
|
1,537
|
|
1,424
|
|
+8 %
|
|
3,105
|
|
2,934
|
|
+6 %
|
K-C
Professional
|
|
802
|
|
765
|
|
+5 %
|
|
1,582
|
|
1,517
|
|
+4 %
|
Corporate &
Other
|
|
14
|
|
16
|
|
N.M.
|
|
32
|
|
35
|
|
N.M.
|
TOTAL NET
SALES
|
|
$ 5,063
|
|
$ 4,722
|
|
+7 %
|
|
$
10,158
|
|
$ 9,465
|
|
+7 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
PROFIT
|
|
|
|
|
|
|
|
|
|
|
|
|
Personal
Care
|
|
$
466
|
|
$
454
|
|
+3 %
|
|
$
941
|
|
$
935
|
|
+1 %
|
Consumer
Tissue
|
|
178
|
|
196
|
|
-9 %
|
|
349
|
|
465
|
|
-25 %
|
K-C
Professional
|
|
85
|
|
110
|
|
-23 %
|
|
175
|
|
236
|
|
-26 %
|
Corporate &
Other(a)
|
|
(106)
|
|
(134)
|
|
N.M.
|
|
(208)
|
|
(236)
|
|
N.M.
|
Other (income) and
expense, net(a)
|
|
2
|
|
13
|
|
-85 %
|
|
(57)
|
|
17
|
|
N.M.
|
TOTAL OPERATING
PROFIT
|
|
$
621
|
|
$
613
|
|
+1 %
|
|
$ 1,314
|
|
$ 1,383
|
|
-5 %
|
|
|
(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
June 30, 2022
|
|
|
Total(a)
|
|
Volume
|
|
Net
Price
|
|
Mix/
Other
|
|
Acquisition/
Exited
Businesses(b)
|
|
Currency
|
|
|
Organic(c)
|
Personal
Care
|
|
8
|
|
(1)
|
|
9
|
|
1
|
|
1
|
|
(2)
|
|
|
9
|
Consumer
Tissue
|
|
8
|
|
3
|
|
7
|
|
1
|
|
—
|
|
(3)
|
|
|
11
|
K-C
Professional
|
|
5
|
|
(3)
|
|
9
|
|
2
|
|
—
|
|
(3)
|
|
|
7
|
TOTAL
CONSOLIDATED
|
|
7
|
|
(1)
|
|
9
|
|
1
|
|
—
|
|
(2)
|
|
|
9
|
|
|
|
|
Six Months Ended
June 30, 2022
|
|
|
Total(a)
|
|
Volume
|
|
Net
Price
|
|
Mix/
Other
|
|
Acquisition/
Exited
Businesses(b)
|
|
Currency
|
|
|
Organic(c)
|
Personal
Care
|
|
9
|
|
1
|
|
9
|
|
2
|
|
—
|
|
(2)
|
|
|
11
|
Consumer
Tissue
|
|
6
|
|
3
|
|
6
|
|
1
|
|
(1)
|
|
(2)
|
|
|
9
|
K-C
Professional
|
|
4
|
|
(2)
|
|
7
|
|
2
|
|
—
|
|
(2)
|
|
|
7
|
TOTAL
CONSOLIDATED
|
|
7
|
|
1
|
|
7
|
|
1
|
|
—
|
|
(2)
|
|
|
10
|
(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 Thinx Inc. and exited businesses in conjunction with
the 2018 Global Restructuring
Program.
|
(c)
|
Combined impact of
changes in volume, net price and mix/other.
|
|
|
|
Unaudited
|
N.M. - Not
Meaningful
|
KIMBERLY-CLARK
CORPORATION
NON-GAAP
RECONCILIATIONS
OUTLOOK FOR
2022
|
|
|
|
Estimated
Range
|
ESTIMATED FULL YEAR
2022 DILUTED EARNINGS PER SHARE
|
|
|
|
|
|
|
Adjusted earnings per
share
|
|
$ 5.60
|
|
-
|
|
$ 6.00
|
Acquisition of
controlling interest in Thinx
|
|
0.20
|
|
-
|
|
0.20
|
Pension
settlements
|
|
(0.13)
|
|
-
|
|
(0.10)
|
Per share basis –
diluted net income attributable to Kimberly-Clark
Corporation
|
|
$ 5.67
|
|
-
|
|
$ 6.10
|
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SOURCE Kimberly-Clark Corporation