Kimberly-Clark Corporation Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2017; Provides Earnings Guidance for the Year 2018
January 23, 2018 at 12:30 pm
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Kimberly-Clark Corporation reported unaudited consolidated earnings results for the fourth quarter and full year ended December 31, 2017. For the quarter, the company reported net sales of $4,582 million compared to $4,544 million a year ago. Operating profit was $812 million compared to $839 million a year ago. Income before income taxes and equity interests was $743 million compared to $760 million a year ago. Net income attributable to the company was $617 million or $1.75 per diluted share compared to $505 million or $1.40 per diluted share a year ago. Cash provided by operations was $863 million compared to $871 million a year ago. Capital spending was $190 million compared to $189 million a year ago. Fourth quarter adjusted earnings per share were $1.57 in 2017 and $1.45 in 2016. Fourth quarter adjusted operating profit was $836 million in 2017 and $859 million in 2016. The year-over-year comparison was impacted by lower net selling prices and $130 million of higher input costs, driven by increases in pulp and other raw materials.
For the year, the company reported net sales of $18,259 million compared to $18,202 million a year ago. Operating profit was $3,299 million compared to $3,317 million a year ago. Income before income taxes and equity interests was $2,991 million compared to $3,009 million a year ago. Net income attributable to the company was $2,278 million or $6.40 per diluted share compared to $2,166 million or $5.99 per diluted share a year ago. Cash provided by operations was $2,929 million compared to $3,232 million a year ago. Capital spending was $785 million compared to $771 million a year ago. Full-year adjusted earnings per share were $6.23 in 2017, up 3% compared to $6.03 in 2016. Adjusted operating profit was $3,323 million in 2017 and $3,341 million in 2016.
The company provided earnings guidance for the year 2018. Net sales in 2018 are expected to increase 1% to 2%. Diluted net income per share for 2018 is anticipated to be $3.90 to $4.50, including charges related to the restructuring. Adjusted earnings per share in 2018 are expected to be $6.90 to $7.20, a year-on-year increase of approximately 11 to 16%. The company expects adjusted operating profit growth of 2 to 5%. Interest expense down approximately 20%, including benefits from redeeming, in December 2017, $500 million of notes originally due in late 2018. Adjusted effective tax rate expects to be 23 to 26%.
Kimberly-Clark Corporation specializes in the manufacturing and the marketing of hygiene products and personal care. Net sales break down by family products as follows:
- protection and personal care products (52.3%): disposable diapers, training pants, diapers, feminine protection products, etc. (Huggies, Pull-Ups, Little Swimmers, GoodNites, DryNites, Sweety, Kotex, U by Kotex, Intimus, Depend, Thinx, Poise, Plenitud, Softex and other brand names) ;
- household hygiene products (30.8%): tissues, toilet paper, paper towels, hand towels, paper napkins, wipes, etc. (Kleenex, Scott, Cottonelle, Viva, Andrex, Scottex and other brand names);
- professional hygiene products (16.7%): hand towels, tissues, towels, apparel, disinfectants, industrial wipers, etc. (Kleenex, Scott, WypAll, Kimtech, KleenGuard and other brand names);
- others (0.2%).
At the end of 2023, the group had 82 production sites worldwide.
Noth America accounts for 54.5% of net sales.
Kimberly-Clark Corporation Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2017; Provides Earnings Guidance for the Year 2018