Kimberly-Clark reports 4Q sales of $4.5 billion
(USA, January 25, 2017) Kimberly-Clark Corporation’s sales of $4.5 billion in the 4Q 2016 were even with the year-ago period. Organic sales were up 1%, as volumes increased 2%, while the combined impact of changes in net selling prices and product mix reduced sales by 1%. Changes in foreign currency exchange rates lowered sales 1%.
4Q operating profit was $839 million in 2016 and $630million in 2015.
Adjusted operating profit of $859 million in the 4Q 2016 increased 10% compared to $779 million in the year-ago period.
The year-over-year operating profit comparison included benefits from $140 million in cost savings from the company’s FORCE (Focused On Reducing Costs Everywhere) program and $25 million of savings from the 2014 Organization Restructuring. Input costs decreased $5 million, driven by lower fiber costs. Negative foreign currency translation effects reduced operating profit by $5 million. Other manufacturing-related cost increases and foreign currency transaction effects also negatively impacted the operating profit comparison.
Full year 2016 sales of $18.2 billion decreased 2% compared to the year-ago period, as changes in foreign currency exchange rates reduced sales by about 4%. Organic sales rose approximately 2% due to higher volumes.
Operating profit was $3,317 million in 2016 versus $1,613 million in 2015.
Adjusted operating profit of $3,341 million in 2016 increased 4% compared to $3,210 million in 2015.
Diluted net income per share was $5.99 in 2016 and $2.77 in 2015. Adjusted earnings per share of $6.03 in 2016 increased 5% versus $5.76 in 2015.
Chairman and CEO Thomas J. Falk said, “Our full-year results were consistent with our previous outlook. While we experienced a challenging economic and competitive environment in 2016, our market share positions remained broadly healthy. We also achieved record cost savings, which helped us improve our margins and deliver bottom-line earnings in line with our guidance for the year. In addition, we generated strong cash flow and returned $2.1 billion to shareholders through dividends and share repurchases.”
Kimberly-Clark Corporation is an American multinational personal care corporation that produces mostly paper-based consumer products. (Source: press release)
Cover Image: Kimberly-Clark brands