WASHINGTON (dpa-AFX) - Kimberly-Clark Corp. (KMB) Tuesday reported a drop in fourth-quarter profit, reflecting restructuring charges and higher costs. Excluding charges, profit rose from last year. However, both adjusted earnings and revenues came in below Street estimates. For fiscal 2012, the company expects nearly-static revenues, and provided earnings guidance below Street estimate. For the fourth quarter, Kimberly-Clark's net income attributable to the company was down 18.5 percent at $401 million compared to $492 million in the year-ago quarter. Earnings per share for the quarter were $1.01 versus $1.20 last year. Fourth quarter 2011 charges for restructuring actions totaled $107 million after tax. In January 2011, the company initiated a pulp and tissue restructuring to exit its remaining integrated pulp manufacturing operations. Excluding charges, net income for the quarter was $508 million or $1.28 per share. On average, 14 analysts polled by Thomson Reuters expected earnings of $1.30 per share for the quarter. Analysts' estimates typically exclude special items. Net sales for the quarter increased 2 percent to $5.176 billion from $5.075 billion last year. Eleven Street analysts on consensus estimated revenues of $5.220 billion. However, input costs rose 5.9 percent causing a 6.1 percent drop in gross profit. Contributing to the revenue growth were higher net selling prices of 2 percent and increased sales volumes of 1 percent. A divestiture in Latin America and lost sales from exiting non-strategic products, as well as pulp and tissue restructuring actions reduced sales volumes by 1 percent. Operating profit for the quarter dropped 13 percent to $611 million. Excluding restructuring costs, adjusted operating profit was 9 percent higher than last year. In addition to sales growth, the rise reflected $70 million in cost savings from the company's 'Focused On Reducing Costs Everywhere' program. Personal Care segment in North America reported 5 percent drop in sales. Sales increased 9 percent in K-C's international operations in Asia, Latin America, the Middle East. Consumer Tissue Segment sales were flat with last year. Here, North America reported growth while Europe and K-C International dropped. K-C Professional & Other Segment, and Health Care Segment grew 2 and 10 percent respectively. Full-year 2011 sales of $20.8 billion increased 6 percent. Adjusted earnings were $4.80 per share for the full year. Adjusted earnings per share in 2012 are expected to be $5.00 to $5.15, up 4 to 7 percent compared to 2011, while Street consensus is currently $5.24. The company expects developed markets to remain difficult in the near term, and sees a headwind in volatile foreign currency exchange rates. Net sales are expected to increase 0 to 1 percent. The restructuring costs are projected at $385 to $420 million, after tax through the end of 2012, up from previous guidance of $280 to $420 million after tax. The actions would result in a $250 to $300 million decrease in 2013 annual net sales, while operating profit is anticipated to increase by at least $75 million in 2013 and at least $100 million in 2014. The company expects to increase its dividend at a mid-single digit rate, effective April 2012. The company plans at least $2 billion of dividends and share repurchases. Share repurchases are expected to total $900 million to $1.1 billion in 2012. KMB is currently trading at $72.41, down $1.11 or 1.51%, on the NYSE. Over the past year, the stock traded in a range of $61.00 - $74.25.
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