DALLAS, Oct. 25,
2022 /PRNewswire/ -- Kimberly-Clark Corporation
(NYSE: KMB) today reported third quarter 2022 results.
Executive Summary
- Third quarter 2022 net sales of $5.1
billion increased 1 percent compared to the year-ago period,
including organic sales growth of 5 percent.
- Diluted net income per share for the third quarter was
$1.38 in 2022 and $1.39 in 2021.
- Third quarter adjusted earnings per share were $1.40 in 2022, down 14 percent compared to
$1.62 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 continues to target full-year 2022 organic sales
growth of 5 to 7 percent and expects adjusted earnings per share at
the lower end of $5.60 to
$6.00 range
"Our third quarter results reflect strong execution by our teams
around the world in the face of a challenging macro environment,"
said Chairman and CEO Mike Hsu. "We
delivered organic sales growth across all our segments and
continued to provide our consumers with value-inspired
innovation."
Hsu continued, "We continue to execute our plan to restore
margins over time and are seeing progress with sequential margin
improvement this quarter. As we navigate persistent input cost
inflation, we're focused on driving our growth strategy, serving
consumers, customers and communities while living our purpose of
Better Care for a Better World."
Third Quarter 2022 Operating Results
Sales of
$5.1 billion in the third quarter of
2022 increased 1 percent compared to the year-ago period.
Organic sales increased 5 percent as net selling prices rose 9
percent and product mix increased sales 1 percent while volumes
declined 5 percent. Changes in foreign currency exchange rates
reduced sales 4 percent. In North
America, organic sales decreased 2 percent in consumer
products and increased 5 percent in K-C Professional. Outside
North America, organic sales rose 11 percent in both developing and
emerging (D&E) and developed markets.
Third quarter operating profit was $655 million in 2022 and
$657 million in 2021. Excluding the
charges related to the 2018 Global Restructuring Program, 2021
adjusted operating profit was $745
million.
Results were impacted by $360
million of higher input costs. Lower volumes, higher
marketing, research and general expense as well as unfavorable
foreign currency effects reduced operating profit in the quarter.
Results benefited from higher net selling prices and $80 million of cost savings from the company's
FORCE (Focused On Reducing Costs Everywhere) program.
The third quarter effective tax rate was 22.4 percent in
2022 and 21.6 percent in 2021. The third quarter adjusted effective
tax rate was 22.3 percent in 2022 and 20.9 percent in 2021.
Kimberly-Clark's share of net income of equity companies in the
third quarter was $29 million in 2022 and $21 million in 2021.
Cash Flow and Balance Sheet
Cash provided by
operations in the third quarter was $798 million in 2022 and
$782 million in 2021. Capital
spending for the third quarter was $209
million in 2022 and $235
million in 2021. Third quarter share repurchases were
192 thousand shares at a cost of $25
million. Total debt was $8.6
billion as of September 30,
2022, unchanged from the end of 2021.
Third Quarter 2022 Business Segment Results
Personal
Care Segment
Third quarter sales of $2.6 billion
decreased 1 percent. Changes in foreign currency exchange
rates reduced sales by 4 percent and the acquisition of the
controlling interest in Thinx increased sales 1 point. Net selling
prices increased 8 percent and product mix improved 1 point while
volumes declined 7 percent. Third quarter operating profit of
$423 million decreased 15 percent.
The comparison was impacted by input cost inflation, lower volumes
and associated fixed cost under absorption, higher marketing,
research and general spending as well as unfavorable foreign
currency effects. Results benefited from higher net selling prices
and cost savings.
Sales in North America
decreased 5 percent. Volumes declined 10 percent while net selling
prices increased 4 percent and the Thinx acquisition increased
sales approximately 2 points. The volume comparison reflects
elevated shipments in the year-ago period to restore retailer
inventory levels following supply disruptions. The planned exit of
a private label contract earlier this year as well as some
reductions in retailer inventory levels late in the quarter also
impacted the comparison.
Sales in D&E markets increased 5 percent. Net selling prices
increased sales 15 percent and product mix improved 3 percent while
volumes declined 6 percent. Changes in foreign currency exchange
rates decreased sales 6 percent. Organic sales growth was strong
across Latin America and the
Asia Pacific region.
Sales in developed markets outside North America (Australia, South
Korea and Western/Central
Europe) decreased 4 percent. Changes in foreign
currency exchange rates reduced sales 12 percent. Net selling
prices increased sales 5 percent and volumes grew 3 percent.
Consumer Tissue Segment
Third quarter sales of $1.6 billion
increased 2 percent. Net selling prices increased sales 9 percent
while volumes declined approximately 3 percent. Changes in foreign
currency exchange rates reduced sales 4 percent. Third quarter
operating profit of $218 million
decreased 2 percent. The comparison was impacted by input cost
inflation, higher marketing, research and general spending and
unfavorable foreign currency effects. Results benefited from
organic sales growth, cost savings and lower other manufacturing
costs.
Sales in North America
increased 5 percent. Net selling prices rose 7 percent while
volumes declined 2 percent. Higher net selling prices were achieved
across all sub-segments while volume decline was primarily in
bathroom tissue.
Sales in D&E markets increased 3 percent. Net selling prices
rose 12 percent and product mix improved 1 point, while volumes
were down 6 percent. Changes in foreign currency exchange rates
decreased sales 5 percent.
Sales in developed markets outside North America decreased 2 percent. Changes in
foreign currency exchange rates decreased sales 13 percent. Net
selling prices rose approximately 12 percent while volumes declined
1 point.
K-C Professional (KCP) Segment
Third quarter sales of $0.8 billion
increased 5 percent. Net selling prices rose approximately 14
percent and product mix increased sales 1 point while volumes
declined 5 percent. Changes in foreign currency exchange rates
decreased sales 4 percent. Third quarter operating profit of
$119 million increased 24 percent.
Results benefited from higher net selling prices and cost savings.
The comparison was impacted by input cost inflation, lower volumes
and unfavorable foreign currency effects.
Sales in North America
increased 5 percent. Net selling prices rose 14 percent, product
mix increased sales approximately 1 point while volumes declined 9
percent. Washroom products sales were up double-digits while sales
of safety products decreased versus a strong year-ago.
Sales in D&E markets increased 7 percent. Net selling prices
increased 8 percent, volumes grew 2 percent and product mix
increased sales approximately 2 points. Changes in foreign
currency exchange rates decreased sales 6 percent.
Sales in developed markets outside North America increased 5 percent. Net selling
prices increased 19 percent and product mix improved sales 1 point.
Changes in foreign currency exchange rates reduced sales 15
percent.
Year-To-Date Results
For the first nine months of
2022, sales of $15.2 billion
increased 5 percent. Organic sales increased 8 percent, as net
selling prices rose 8 percent, product mix increased sales
1 point and volumes declined 1 percent. Changes in foreign
currency exchange rates decreased sales by 3 percent.
Year-to-date operating profit was $1,969
million in 2022 and $2,040
million in 2021. Results in 2022 include the net benefit of
the acquisition of a controlling interest of Thinx and 2021 results
include charges related to the 2018 Global Restructuring
Program.
Year-to-date adjusted operating profit was $1,905 million in 2022 and $2,225 million in 2021. Results were impacted by
over $1.2 billion of higher input
costs, higher marketing, research and general spending and
unfavorable foreign currency effects. Results benefited from
organic sales growth, $175 million of
FORCE savings and lower other manufacturing costs.
Through nine months, diluted net income per share was
$4.22 in 2022 and $4.31 in 2021. Year-to-date adjusted earnings per
share were $4.09 in 2022 and
$4.89 in 2021.
2022 Outlook and Key Planning Assumptions
The company
updated key planning and guidance assumptions for full-year 2022.
The outlook reflects assumptions subject to change given the high
level of volatility in the macro environment.
- Net sales increase 2 to 4 percent with organic sales growth of
5 to 7 percent (no change).
- Foreign currency exchange rates unfavorable 3 to 4 percent on
net sales (previous estimate 3 percent) with mid-to high-single
digit impact on operating profit (previously mid-single
digit).
- Adjusted effective tax rate 22 to 23 percent (previous estimate
22 to 24 percent).
- Adjusted earnings per share outlook remains at the lower end of
$5.60 to $6.00 range (no change).
- Capital spending $0.9 to
$1.0 billion (previous range
$1.0 to $1.1
billion).
Prepared Management Remarks and Live Question and Answer
Webcast
At approximately 7:00 a.m.
(CDT) on October 25, 2022, the
company will post management remarks (in PDF format) regarding its
third quarter 2022 results at www.kimberly-clark.com. At
9:00 a.m. (CDT) on October 25, 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 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
September 30
|
|
|
|
2022
|
|
2021
|
|
Change
|
Net
Sales
|
$
5,053
|
|
$
5,010
|
|
+1 %
|
Cost of products
sold
|
3,510
|
|
3,527
|
|
—
|
Gross
Profit
|
1,543
|
|
1,483
|
|
+4 %
|
Marketing, research
and general expenses
|
873
|
|
819
|
|
+7 %
|
Other (income) and
expense, net
|
15
|
|
7
|
|
+114 %
|
Operating
Profit
|
655
|
|
657
|
|
—
|
Nonoperating
expense
|
(18)
|
|
(10)
|
|
+80 %
|
Interest
income
|
4
|
|
1
|
|
+300 %
|
Interest
expense
|
(73)
|
|
(64)
|
|
+14 %
|
Income Before Income
Taxes and Equity Interests
|
568
|
|
584
|
|
-3 %
|
Provision for income
taxes
|
(127)
|
|
(126)
|
|
+1 %
|
Income Before Equity
Interests
|
441
|
|
458
|
|
-4 %
|
Share of net income of
equity companies
|
29
|
|
21
|
|
+38 %
|
Net
Income
|
470
|
|
479
|
|
-2 %
|
Net income
attributable to noncontrolling interests
|
(3)
|
|
(10)
|
|
-70 %
|
Net Income
Attributable to Kimberly-Clark Corporation
|
$
467
|
|
$
469
|
|
—
|
|
|
|
|
|
|
Per Share
Basis
|
|
|
|
|
|
Net Income
Attributable to Kimberly-Clark Corporation
|
|
|
|
|
|
Basic
|
$
1.38
|
|
$
1.39
|
|
-1 %
|
Diluted
|
$
1.38
|
|
$
1.39
|
|
-1 %
|
|
|
|
|
|
|
Cash Dividends
Declared
|
$
1.16
|
|
$
1.14
|
|
+2 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Shares
Outstanding
|
September
30
|
|
|
|
2022
|
|
2021
|
|
|
Outstanding shares as
of
|
337.5
|
|
336.7
|
|
|
Average diluted shares
for three months ended
|
338.3
|
|
337.5
|
|
|
|
|
|
|
|
|
KIMBERLY-CLARK
CORPORATION
|
CONSOLIDATED INCOME
STATEMENTS
|
(Millions, except per
share amounts)
|
|
|
Nine Months
Ended
September 30
|
|
|
|
2022
|
|
2021
|
|
Change
|
Net
Sales
|
$
15,211
|
|
$
14,475
|
|
+5 %
|
Cost of products
sold
|
10,619
|
|
9,923
|
|
+7 %
|
Gross
Profit
|
4,592
|
|
4,552
|
|
+1 %
|
Marketing, research
and general expenses
|
2,665
|
|
2,488
|
|
+7 %
|
Other (income) and
expense, net
|
(42)
|
|
24
|
|
N.M.
|
Operating
Profit
|
1,969
|
|
2,040
|
|
-3 %
|
Nonoperating
expense
|
(49)
|
|
(71)
|
|
-31 %
|
Interest
income
|
7
|
|
4
|
|
+75 %
|
Interest
expense
|
(206)
|
|
(192)
|
|
+7 %
|
Income Before Income
Taxes and Equity Interests
|
1,721
|
|
1,781
|
|
-3 %
|
Provision for income
taxes
|
(356)
|
|
(386)
|
|
-8 %
|
Income Before Equity
Interests
|
1,365
|
|
1,395
|
|
-2 %
|
Share of net income of
equity companies
|
81
|
|
88
|
|
-8 %
|
Net
Income
|
1,446
|
|
1,483
|
|
-2 %
|
Net income
attributable to noncontrolling interests
|
(19)
|
|
(26)
|
|
-27 %
|
Net Income
Attributable to Kimberly-Clark Corporation
|
$
1,427
|
|
$
1,457
|
|
-2 %
|
|
|
|
|
|
|
Per Share
Basis
|
|
|
|
|
|
Net Income
Attributable to Kimberly-Clark Corporation
|
|
|
|
|
|
Basic
|
$
4.23
|
|
$
4.32
|
|
-2 %
|
Diluted
|
$
4.22
|
|
$
4.31
|
|
-2 %
|
|
|
|
|
|
|
Cash Dividends
Declared
|
$
3.48
|
|
$
3.42
|
|
+2 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Shares
Outstanding
|
September
30
|
|
|
|
2022
|
|
2021
|
|
|
Average diluted shares
for nine months ended
|
338.3
|
|
338.4
|
|
|
|
|
|
|
|
|
Unaudited
|
N.M. - Not
Meaningful
|
KIMBERLY-CLARK
CORPORATION
|
NON-GAAP RECONCILIATIONS
|
(Millions, except per
share amounts)
|
|
|
|
Three Months Ended
September 30, 2022
|
|
|
As
Reported
|
|
Pension
Settlements
|
|
As
Adjusted
Non-GAAP
|
Nonoperating
expense
|
|
$
(18)
|
|
$
(10)
|
|
$
(8)
|
Provision for income
taxes
|
|
(127)
|
|
2
|
|
(129)
|
Effective tax
rate
|
|
22.4 %
|
|
—
|
|
22.3 %
|
Net Income Attributable
to Kimberly-Clark Corporation
|
|
467
|
|
(8)
|
|
475
|
Diluted Earnings per
Share(a)
|
|
1.38
|
|
(0.02)
|
|
1.40
|
|
|
|
|
|
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
|
|
(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, 2022
|
|
|
As
Reported
|
|
Acquisition of
Controlling
Interest in Thinx
|
|
Pension
Settlements
|
|
As
Adjusted
Non-GAAP
|
Marketing, research and
general expenses
|
|
$
2,665
|
|
$
21
|
|
$
—
|
|
$
2,644
|
Other (income) and
expense, net
|
|
(42)
|
|
(85)
|
|
—
|
|
43
|
Operating
Profit
|
|
1,969
|
|
64
|
|
—
|
|
1,905
|
Nonoperating
expense
|
|
(49)
|
|
—
|
|
(34)
|
|
(15)
|
Provision for income
taxes
|
|
(356)
|
|
4
|
|
8
|
|
(368)
|
Effective tax
rate
|
|
20.7 %
|
|
—
|
|
—
|
|
21.8 %
|
Net Income Attributable
to Kimberly-Clark Corporation
|
|
1,427
|
|
68
|
|
(26)
|
|
1,385
|
Diluted Earnings per
Share(a)
|
|
4.22
|
|
0.20
|
|
(0.08)
|
|
4.09
|
|
|
|
|
|
|
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
|
|
(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,
2022
|
|
December 31,
2021
|
ASSETS
|
|
|
|
Current
Assets
|
|
|
|
Cash and cash
equivalents
|
$
362
|
|
$
270
|
Accounts receivable,
net
|
2,333
|
|
2,207
|
Inventories
|
2,281
|
|
2,239
|
Other current
assets
|
649
|
|
849
|
Total Current
Assets
|
5,625
|
|
5,565
|
Property, Plant and
Equipment, Net
|
7,737
|
|
8,097
|
Investments in
Equity Companies
|
266
|
|
290
|
Goodwill
|
2,043
|
|
1,840
|
Other Intangible
Assets, Net
|
866
|
|
810
|
Other
Assets
|
1,299
|
|
1,235
|
TOTAL
ASSETS
|
$
17,836
|
|
$
17,837
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
Liabilities
|
|
|
|
Debt payable within
one year
|
$
959
|
|
$
433
|
Trade accounts
payable
|
3,660
|
|
3,840
|
Accrued expenses and
other current liabilities
|
2,190
|
|
2,096
|
Dividends
payable
|
388
|
|
380
|
Total Current
Liabilities
|
7,197
|
|
6,749
|
Long-Term
Debt
|
7,628
|
|
8,141
|
Noncurrent Employee
Benefits
|
837
|
|
809
|
Deferred Income
Taxes
|
636
|
|
694
|
Other
Liabilities
|
695
|
|
681
|
Redeemable Common
and Preferred Securities of Subsidiaries
|
260
|
|
26
|
Stockholders'
Equity
|
|
|
|
Kimberly-Clark
Corporation
|
437
|
|
514
|
Noncontrolling
Interests
|
146
|
|
223
|
Total Stockholders'
Equity
|
583
|
|
737
|
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY
|
$
17,836
|
|
$
17,837
|
KIMBERLY-CLARK
CORPORATION
|
CONSOLIDATED CASH FLOW
STATEMENTS
|
(Millions)
|
|
|
Three Months
Ended
September 30
|
|
Nine Months
Ended
September 30
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Operating
Activities
|
|
|
|
|
|
|
|
Net income
|
$
470
|
|
$
479
|
|
$ 1,446
|
|
$ 1,483
|
Depreciation and
amortization
|
188
|
|
194
|
|
568
|
|
572
|
Asset
impairments
|
—
|
|
—
|
|
—
|
|
3
|
Gain on previously
held equity investment in Thinx
|
—
|
|
—
|
|
(85)
|
|
—
|
Stock-based
compensation
|
33
|
|
(12)
|
|
101
|
|
30
|
Deferred income
taxes
|
(96)
|
|
32
|
|
(131)
|
|
(42)
|
Net (gains) losses on
asset dispositions
|
1
|
|
19
|
|
14
|
|
34
|
Equity companies'
earnings (in excess of) less than dividends paid
|
—
|
|
7
|
|
(21)
|
|
(25)
|
Operating working
capital
|
182
|
|
63
|
|
(166)
|
|
(432)
|
Postretirement
benefits
|
7
|
|
3
|
|
6
|
|
39
|
Other
|
13
|
|
(3)
|
|
10
|
|
6
|
Cash Provided by
Operations
|
798
|
|
782
|
|
1,742
|
|
1,668
|
Investing
Activities
|
|
|
|
|
|
|
|
Capital
spending
|
(209)
|
|
(235)
|
|
(679)
|
|
(734)
|
Acquisition of
business, net of cash acquired
|
—
|
|
—
|
|
(46)
|
|
—
|
Proceeds from
dispositions of property
|
6
|
|
1
|
|
7
|
|
31
|
Investments in time
deposits
|
(111)
|
|
(181)
|
|
(411)
|
|
(632)
|
Maturities of time
deposits
|
87
|
|
165
|
|
632
|
|
598
|
Other
|
(13)
|
|
1
|
|
(20)
|
|
1
|
Cash Used for
Investing
|
(240)
|
|
(249)
|
|
(517)
|
|
(736)
|
Financing
Activities
|
|
|
|
|
|
|
|
Cash dividends
paid
|
(392)
|
|
(385)
|
|
(1,167)
|
|
(1,133)
|
Change in short-term
debt
|
(66)
|
|
(106)
|
|
487
|
|
854
|
Debt
proceeds
|
—
|
|
—
|
|
—
|
|
5
|
Debt
repayments
|
(12)
|
|
(16)
|
|
(312)
|
|
(269)
|
Proceeds from exercise
of stock options
|
9
|
|
25
|
|
84
|
|
52
|
Acquisitions of common
stock for the treasury
|
(25)
|
|
(62)
|
|
(74)
|
|
(393)
|
Cash dividends paid to
noncontrolling interests
|
—
|
|
—
|
|
(82)
|
|
(17)
|
Other
|
(3)
|
|
(3)
|
|
(45)
|
|
(40)
|
Cash Used for
Financing
|
(489)
|
|
(547)
|
|
(1,109)
|
|
(941)
|
Effect of Exchange
Rate Changes on Cash and Cash Equivalents
|
(18)
|
|
(6)
|
|
(24)
|
|
(8)
|
Change in Cash and
Cash Equivalents
|
51
|
|
(20)
|
|
92
|
|
(17)
|
Cash and Cash
Equivalents - Beginning of Period
|
311
|
|
306
|
|
270
|
|
303
|
Cash and Cash
Equivalents - End of Period
|
$
362
|
|
$
286
|
|
$
362
|
|
$
286
|
KIMBERLY-CLARK
CORPORATION
|
SELECTED BUSINESS
SEGMENT DATA
|
(Millions)
|
|
|
|
Three Months
Ended
September 30
|
|
|
|
Nine Months
Ended
September 30
|
|
|
|
|
2022
|
|
2021
|
|
Change
|
|
2022
|
|
2021
|
|
Change
|
NET
SALES
|
|
|
|
|
|
|
|
|
|
|
|
|
Personal
Care
|
|
$ 2,628
|
|
$ 2,656
|
|
-1 %
|
|
$ 8,067
|
|
$ 7,635
|
|
+6 %
|
Consumer
Tissue
|
|
1,578
|
|
1,541
|
|
+2 %
|
|
4,683
|
|
4,475
|
|
+5 %
|
K-C
Professional
|
|
836
|
|
797
|
|
+5 %
|
|
2,418
|
|
2,314
|
|
+4 %
|
Corporate &
Other
|
|
11
|
|
16
|
|
N.M.
|
|
43
|
|
51
|
|
N.M.
|
TOTAL NET
SALES
|
|
$ 5,053
|
|
$ 5,010
|
|
+1 %
|
|
$
15,211
|
|
$
14,475
|
|
+5 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
PROFIT
|
|
|
|
|
|
|
|
|
|
|
|
|
Personal
Care
|
|
$
423
|
|
$
496
|
|
-15 %
|
|
$ 1,364
|
|
$ 1,431
|
|
-5 %
|
Consumer
Tissue
|
|
218
|
|
222
|
|
-2 %
|
|
567
|
|
687
|
|
-17 %
|
K-C
Professional
|
|
119
|
|
96
|
|
+24 %
|
|
294
|
|
332
|
|
-11 %
|
Corporate &
Other(a)
|
|
(90)
|
|
(150)
|
|
N.M.
|
|
(298)
|
|
(386)
|
|
N.M.
|
Other (income) and
expense, net(a)
|
|
15
|
|
7
|
|
+114 %
|
|
(42)
|
|
24
|
|
N.M.
|
TOTAL OPERATING
PROFIT
|
|
$
655
|
|
$
657
|
|
—
|
|
$ 1,969
|
|
$ 2,040
|
|
-3 %
|
|
|
(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, 2022
|
|
|
Total(a)
|
|
Volume
|
|
Net
Price
|
|
Mix/
Other
|
|
Acquisition/
Exited
Businesses(b)
|
|
Currency
|
|
|
Organic(c)
|
Personal
Care
|
|
(1)
|
|
(7)
|
|
8
|
|
1
|
|
1
|
|
(4)
|
|
|
2
|
Consumer
Tissue
|
|
2
|
|
(3)
|
|
9
|
|
—
|
|
—
|
|
(4)
|
|
|
7
|
K-C
Professional
|
|
5
|
|
(5)
|
|
14
|
|
1
|
|
—
|
|
(4)
|
|
|
9
|
TOTAL
CONSOLIDATED
|
|
1
|
|
(5)
|
|
9
|
|
1
|
|
—
|
|
(4)
|
|
|
5
|
|
|
|
|
|
Nine Months Ended
September 30, 2022
|
|
|
Total(a)
|
|
Volume
|
|
Net
Price
|
|
Mix/
Other
|
|
Acquisition/
Exited
Businesses(b)
|
|
Currency
|
|
|
Organic(c)
|
Personal
Care
|
|
6
|
|
(2)
|
|
8
|
|
2
|
|
—
|
|
(3)
|
|
|
8
|
Consumer
Tissue
|
|
5
|
|
1
|
|
7
|
|
—
|
|
—
|
|
(3)
|
|
|
8
|
K-C
Professional
|
|
4
|
|
(3)
|
|
9
|
|
1
|
|
—
|
|
(3)
|
|
|
7
|
TOTAL
CONSOLIDATED
|
|
5
|
|
(1)
|
|
8
|
|
1
|
|
—
|
|
(3)
|
|
|
8
|
|
|
(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
|
[KMB-F]
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SOURCE Kimberly-Clark Corporation