KIMBERLY-CLARK CORPORATION DALLAS, Oct. 24, 2016 /PRNewswire/ -- Kimberly-Clark Corporation (NYSE: KMB) today reported third quarter 2016 results and updated its full-year 2016 outlook.
Executive Summary
-- Third quarter 2016 net sales of $4.6 billion decreased approximately 3
percent compared to the year-ago period, as changes in foreign currency
exchange rates reduced sales by more than 2 percent. Organic sales were
essentially even with the prior year. Organic sales increased 3 percent
in developing and emerging markets but were down elsewhere.
-- Diluted net income per share for the third quarter was $1.52 in 2016 and
$1.41 in 2015. The comparison benefited from cost savings and
restructuring charges in 2015, but was negatively impacted by
unfavorable foreign currency exchange rate effects.
-- Third quarter adjusted earnings per share were $1.52 in 2016 and $1.51
in 2015. Adjusted earnings per share exclude certain items described
later in this news release.
-- Cash provided by operations in the third quarter of 2016 was $948
million, up 12 percent compared to the prior year.
-- Full-year 2016 organic sales growth is expected to be 2 percent compared
to the company's prior expectation for growth at the low end of the 3 to
5 percent range. Diluted net income per share for 2016 is anticipated to
be $5.92 to $6.05 (prior outlook $5.92 to $6.15). Adjusted earnings per
share are expected to be $5.95 to $6.05 (previous guidance $5.95 to
$6.15).
Chairman and Chief Executive Officer Thomas J. Falk said, "We experienced a more challenging economic and competitive environment in the third quarter. Nonetheless, our market share positions are broadly healthy. We achieved strong cost savings, improved margins and increased cash flow in the quarter. We also allocated capital in shareholder-friendly ways. Our focus remains on continuing to compete effectively in the near-term as we execute our Global Business Plan strategies for long-term success."
Third Quarter 2016 Operating Results
Sales of $4.6 billion in the third quarter of 2016 were down approximately 3 percent compared to the year-ago period. Changes in foreign currency exchange rates reduced sales by more than 2 percent. Organic sales were essentially even with the prior year.
Third quarter operating profit was $836 million in 2016 and $779 million in 2015. Results in 2015 included $17 million of charges for restructuring the company's business in Turkey and $11 million of 2014 Organization Restructuring costs. Adjusted operating profit of $836 million in the third quarter of 2016 increased 1 percent compared to $826 million in the year-ago period. Items excluded from adjusted operating profit are described later in this release.
The year-over-year operating profit comparison included benefits from $105 million in cost savings from the company's FORCE (Focused On Reducing Costs Everywhere) program and $15 million of savings from the 2014 Organization Restructuring. Input costs decreased $10 million, mostly due to lower fiber costs. Translation effects due to changes in foreign currency exchange rates lowered operating profit by $10 million and transaction effects also negatively impacted the comparison. Results in 2016 were also impacted by slightly lower net selling prices and unfavorable product mix, along with ongoing manufacturing-related cost increases.
The third quarter effective tax rate was 30.0 percent in 2016 and 30.6 percent in 2015. The third quarter adjusted effective tax rate was 29.9 percent in 2016 and 30.3 percent in 2015. The company expects the full-year 2016 effective tax rate and the adjusted effective tax rate will both be approximately at the low end of the 30.5 to 32.5 percent target range.
Kimberly-Clark's share of net income of equity companies in the third quarter was $33 million in 2016 and $37 million in 2015. At Kimberly-Clark de Mexico, results were impacted by a weaker Mexican peso and higher input costs, mostly offset by benefits from organic sales growth and cost savings.
Cash Flow and Balance Sheet
Cash provided by operations in the third quarter of 2016 was $948 million, up 12 percent versus $849 million in the year-ago period, primarily due to improved working capital. Capital spending for the third quarter was $185 million in 2016 and $271 million in 2015. The company expects that full-year 2016 spending will be somewhat below the previous target range of $950 to $1,050 million.
Third quarter 2016 share repurchases were 1.7 million shares at a cost of $225 million. The company now expects full-year share repurchases of $750 million (prior target $700 to $800 million). Total debt was $7.6 billion at September 30, 2016 and $7.8 billion at the end of 2015.
Third Quarter 2016 Business Segment Results
Personal Care Segment
Third quarter sales of $2.3 billion decreased 2 percent. Changes in currency rates reduced sales 3 percent. Volumes increased approximately 3 percent while net selling prices were off 1 percent. Third quarter operating profit of $458 million decreased 5 percent. The comparison was impacted by unfavorable currencies, changes in net selling prices and product mix and increased marketing, research and general spending on a local currency basis, partially offset by volume growth and cost savings.
Sales in North America decreased 1 percent. Net selling prices were down 2 percent, while volumes improved 1 percent compared to 10 percent growth in the base period. Child care volumes rose double-digits, with benefits from innovations and category growth. Baby wipes volumes also increased double-digits and market shares improved. Huggies diaper and adult care volumes were down low single-digits and mid-single digits, respectively, compared to double-digit growth in the year-ago period that included benefits from innovation launches and increased promotion shipments. Adult care volumes in 2016 were also impacted by competitive promotion activity.
Sales in developing and emerging markets decreased 4 percent, including an 8 point drag from unfavorable currency rates. Volumes increased 4 percent, with gains in China, Eastern Europe and the Middle East/Africa, and declines in Argentina and Brazil. Overall net selling prices were even year-on-year, as increases in response to weaker currency rates and local cost inflation, primarily in Latin America, were offset by decreases in China.
Sales in developed markets outside North America (Australia, South Korea and Western/Central Europe) increased 1 percent. Volumes advanced 2 percent and product mix improved slightly, while net selling prices fell 2 percent.
Consumer Tissue Segment
Third quarter sales of $1.5 billion decreased 4 percent. Currency rates were unfavorable by 2 percent and volumes were off 2 percent. Third quarter operating profit of $267 million increased 3 percent. The comparison benefited from cost savings and input cost deflation, partially offset by unfavorable currencies and lower organic sales.
Sales in North America decreased 4 percent. Volumes were down 3 percent and product mix was unfavorable 1 percent. The volume comparison included impacts from changes in the timing of promotion shipments and strong growth in the year-ago period.
Sales in developing and emerging markets decreased 4 percent, including a 4 point negative impact from currency rates. Net selling prices rose 3 percent, offset by lower volumes.
Sales in developed markets outside North America fell 4 percent, with currency rates unfavorable by 3 percent. Net selling prices were down 2 percent, while volumes were up 1 percent.
K-C Professional (KCP) Segment
Third quarter sales of $0.8 billion decreased 3 percent. Changes in currency rates reduced sales 2 percent. Volumes declined 2 percent, while net selling prices rose 1 percent. Product mix/other was down slightly, including an approximate 1 percent impact from lower sales of nonwovens to Halyard Health, Inc. Third quarter operating profit of $157 million increased 2 percent. The comparison benefited from higher net selling prices and cost savings, mostly offset by unfavorable currency effects and lower volumes.
Sales in North America increased 1 percent due to higher net selling prices. Overall volumes were even year-on-year, as growth in washroom products was offset by declines in other categories.
Sales in developing and emerging markets decreased 1 percent, including a 5 point drag from currency rates. Net selling prices rose 4 percent, primarily in Latin America, and product mix improved 1 percent, while volumes fell 2 percent.
Sales in developed markets outside North America were down 6 percent. Changes in currency rates reduced sales 2 percent. Volumes fell 6 percent, while the combined impact of changes in net selling prices and product mix increased sales 1 percent. The volume decline was driven by results in Western/Central Europe.
Year-To-Date Results
For the first nine months of 2016, sales of $13.7 billion decreased approximately 3 percent compared to the year-ago period, as changes in foreign currency exchange rates reduced sales by more than 4 percent. Organic sales rose about 2 percent due to higher volumes.
Year-to-date operating profit was $2,478 million in 2016 versus $983 million in 2015. Results in 2015 included $1,350 million of pension settlement charges. Adjusted operating profit of $2,482 million in 2016 increased 2 percent compared to $2,431 million in 2015. Results in 2016 included $295 million of FORCE cost savings and $45 million of savings from the 2014 Organization Restructuring. In addition, input costs were $60 million lower. Translation effects due to changes in foreign currency exchange rates lowered operating profit by $85 million and transaction effects also negatively impacted results.
Through nine months, diluted net income per share was $4.58 in 2016 and $1.85 in 2015. Adjusted earnings per share of $4.59 in 2016 increased 6 percent versus $4.34 in 2015.
2014 Organization Restructuring
In October 2014, Kimberly-Clark initiated a restructuring program in order to improve organization efficiency and offset the impact of stranded overhead costs resulting from the spin-off of the company's health care business. The restructuring is intended to improve underlying profitability and increase flexibility to invest in targeted growth initiatives, brand building and other capabilities critical to delivering future growth.
The restructuring is expected to be completed by the end of 2016, with total costs anticipated to be toward the high end of the previously communicated range of $130 to $160 million after tax ($190 to $230 million pre-tax). Cumulative pre-tax savings from the restructuring are expected to be toward the high end of the previously communicated range of $120 to $140 million by the end of 2017. Through the end of the third quarter of 2016, cumulative restructuring costs were $149 million after tax ($211 million pre-tax) and cumulative savings were $115 million.
2016 Outlook and Key Planning Assumptions
The company updated the following key planning and guidance assumptions for full-year 2016:
-- Negative foreign currency translation effects on net sales and operating
profit are expected to be 4 percent and 3 percent, respectively (prior
assumption 4 to 5 percent range for each).
-- Organic sales growth is expected to be 2 percent compared to the
company's prior expectation for growth at the low end of the 3 to 5
percent range.
-- Adjusted earnings per share are expected to be $5.95 to $6.05 compared
to the previous guidance range of $5.95 to $6.15.
Non-GAAP Financial Measures
This press 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 other (income) and expense, net
-- 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:
-- 2014 Organization Restructuring. See previous discussion in this news
release.
-- Turkey Restructuring. In the third quarter of 2015, the company
initiated actions to restructure its business in Turkey, including the
closing of a manufacturing facility.
-- Venezuelan operations. In the first quarter of 2015, following the
Venezuelan government's elimination of the SICAD II exchange rate, the
company recorded a charge for remeasuring the local currency balance
sheet in Venezuela at the SIMADI floating exchange rate. In the second
quarter of 2016, the company recorded a modest amount of income related
to an updated assessment of the impact of deconsolidating the company's
Venezuelan business at the end of 2015.
-- Pension settlement charges. In 2015, the company started to offer a
lump-sum pension benefit payout option for certain plan participants. In
addition, Kimberly-Clark purchased group annuity contracts that
transferred to two insurance companies the pension benefit obligations
for certain Kimberly-Clark retirees. As a result, the company recognized
pension settlement charges in 2015, mostly in the second quarter.
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 and adjusted operating profit return on sales determined by excluding certain of the charges 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 also impact the year-over-year change in net sales.
Conference Call
A conference call to discuss this news release and other matters of interest to investors and analysts will be held at 9 a.m. (CDT) today. The conference call will be simultaneously broadcast over the World Wide Web. Stockholders and others are invited to listen to the live broadcast or a playback, which can be accessed by following the instructions set out in the Investors section of the company's Web site (www.kimberly-clark.com).
About Kimberly-Clark
Kimberly-Clark and its well-known global brands are an indispensable part of life for people in more than 175 countries. Every day, nearly a quarter of the world's population trust K-C brands and the solutions they provide to enhance their health, hygiene and well-being. With brands such as Kleenex, Scott, Huggies, Pull-Ups, Kotex and Depend, Kimberly-Clark holds No. 1 or No. 2 share positions in 80 countries. To keep up with the latest K-C news and to learn more about the company's 144-year history of innovation, visit www.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 Web site on the same day they are filed with the SEC. To view these filings, visit the Investors section of the company's Web site.
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, net income from equity companies, sources and uses of cash, the effective tax rate, the anticipated costs, scope, timing and financial and other effects of the 2014 Organization Restructuring, the anticipated cost savings from the company's FORCE program, growth initiatives, 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. 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, such as currency rates and exchange risks, cost savings and reductions, raw material, energy and other input costs, competition, market demand and economic and political conditions, that could cause the company's future results to differ from those expressed in any such forward-looking statements, see Item 1A of the company's Annual Report on Form 10-K for the year ended December 31, 2015 entitled "Risk Factors."
KIMBERLY-CLARK CORPORATION
CONSOLIDATED INCOME STATEMENT
(Millions, except per share amounts)
Three Months Ended
September 30
------------
2016 2015 Change
---- ---- ------
Net Sales $4,594 $4,718 -2.6%
Cost of products sold 2,924 3,036 -3.7%
----- -----
Gross Profit 1,670 1,682 -0.7%
Marketing, research and
general expenses 833 868 -4.0%
Other (income) and expense,
net 1 35 -97.1%
--- ---
Operating Profit 836 779 +7.3%
Interest income 2 4 -50.0%
Interest expense (81) (74) +9.5%
--- ---
Income Before Income Taxes
and Equity Interests 757 709 +6.8%
Provision for income taxes (227) (217) +4.6%
---- ----
Income Before Equity
Interests 530 492 +7.7%
Share of net income of
equity companies 33 37 -10.8%
--- ---
Net Income 563 529 +6.4%
Net income attributable to
noncontrolling interests (13) (12) +8.3%
--- ---
Net Income Attributable to
Kimberly-Clark
Corporation $550 $517 +6.4%
==== ====
Per Share Basis
Net Income Attributable to Kimberly-Clark
Corporation
Basic $1.53 $1.42 +7.7%
===== =====
Diluted $1.52 $1.41 +7.8%
===== =====
Cash Dividends Declared $0.92 $0.88 +4.5%
===== =====
Common shares outstanding September 30
------------
2016 2015
---- ----
Outstanding shares as of 358.4 363.3
Average diluted shares for
three months ended 361.5 366.2
Unaudited
KIMBERLY-CLARK CORPORATION
CONSOLIDATED INCOME STATEMENT
(Millions, except per share amounts)
Nine Months Ended
September 30
------------
2016 2015 Change
---- ---- ------
Net Sales $13,658 $14,052 -2.8%
Cost of products sold 8,685 9,054 -4.1%
----- -----
Gross Profit 4,973 4,998 -0.5%
Marketing, research and
general expenses 2,505 2,586 -3.1%
Other (income) and expense,
net (10) 1,429 N.M.
--- -----
Operating Profit 2,478 983 N.M.
Interest income 9 12 -25.0%
Interest expense (238) (219) +8.7%
---- ----
Income Before Income Taxes
and Equity Interests 2,249 776 N.M.
Provision for income taxes (651) (166) N.M.
---- ----
Income Before Equity
Interests 1,598 610 N.M.
Share of net income of
equity companies 103 112 -8.0%
--- ---
Net Income 1,701 722 N.M.
Net income attributable to
noncontrolling interests (40) (42) -4.8%
--- ---
Net Income Attributable to
Kimberly-Clark
Corporation $1,661 $680 N.M.
====== ====
Per Share Basis
Net Income Attributable to Kimberly-Clark
Corporation
Basic $4.61 $1.87 N.M.
===== =====
Diluted $4.58 $1.85 N.M.
===== =====
Cash Dividends Declared $2.76 $2.64 +4.5%
===== =====
Common shares outstanding September 30
------------
2016 2015
---- ----
Average diluted shares for
nine months ended 362.4 366.9
N.M. - Not Meaningful
Unaudited
KIMBERLY-CLARK CORPORATION
NON-GAAP RECONCILIATIONS
(Millions, except per share amounts)
Three Months Ended September 30, 2016
-------------------------------------
As Charges for As
2014
Reported Organization Adjusted
Restructuring
Non-GAAP
--------
Cost of products sold $2,924 $1 $2,923
Gross profit 1,670 (1) 1,671
Marketing, research and
general expenses 833 2 831
Other (income) and
expense, net 1 (3) 4
Operating profit 836 - 836
Income before income
taxes and equity
interests 757 - 757
Provision for income
taxes (227) (1) (226)
Effective tax rate 30.0% - 29.9%
Net income attributable
to Kimberly-Clark
Corporation 550 (1) 551
Diluted earnings per
share 1.52 - 1.52
Three Months Ended September 30, 2015
-------------------------------------
As Charges Charges for Charges for As
2014 Turkey
Reported for Pension Organization Restructuring Adjusted
Restructuring
Settlements Non-GAAP
----------- --------
Cost of
products sold $3,036 $ - $4 $16 $3,016
Gross profit 1,682 - (4) (16) 1,702
Marketing,
research and
general
expenses 868 - 7 1 860
Other (income)
and expense,
net 35 19 - - 16
Operating
profit 779 (19) (11) (17) 826
Income before
income taxes
and equity
interests 709 (19) (11) (17) 756
Provision for
income taxes (217) 8 4 - (229)
Effective tax
rate 30.6% - - - 30.3%
Net income
attributable
to Kimberly-
Clark
Corporation 517 (11) (7) (17) 552
Diluted
earnings per
share 1.41 (0.03) (0.02) (0.05) 1.51
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
NON-GAAP RECONCILIATIONS
(Millions, except per share amounts)
Nine Months Ended September 30, 2016
------------------------------------
As Charges for Adjustment As
2014 Related to
Reported Organization Venezuelan Adjusted
Restructuring Operations
Non-GAAP
Cost of
products sold $8,685 $3 $ - $8,682
Gross profit 4,973 (3) - 4,976
Marketing,
research and
general
expenses 2,505 15 - 2,490
Other (income)
and expense,
net (10) (3) (11) 4
Operating
profit 2,478 (15) 11 2,482
Income before
income taxes
and equity
interests 2,249 (15) 11 2,253
Provision for
income taxes (651) 3 - (654)
Effective tax
rate 28.9% - - 29.0%
Net income
attributable
to Kimberly-
Clark
Corporation 1,661 (12) 11 1,662
Diluted
earnings per
share(a) 4.58 (0.03) 0.03 4.59
Nine Months Ended September 30, 2015
------------------------------------
As Charges Charges for Charge Charges for As
2014 Related to Turkey
Reported for Pension Organization Venezuelan Restructuring Adjusted
Restructuring
Settlements Operations Non-
GAAP
----
Cost of
products sold $9,054 $ - $19 $5 $16 $9,014
Gross profit 4,998 - (19) (5) (16) 5,038
Marketing,
research and
general
expenses 2,586 - 17 - 1 2,568
Other (income)
and expense,
net 1,429 1,350 - 40 - 39
Operating
profit 983 (1,350) (36) (45) (17) 2,431
Income before
income taxes
and equity
interests 776 (1,350) (36) (45) (17) 2,224
Provision for
income taxes (166) 520 16 - - (702)
Effective tax
rate 21.4% - - - - 31.6%
Net income
attributable
to Kimberly-
Clark
Corporation 680 (830) (20) (45) (17) 1,592
Diluted
earnings per
share(a) 1.85 (2.26) (0.05) (0.12) (0.05) 4.34
(a) "As Adjusted Non-GAAP"
does not equal "As
Reported" plus "Charges"
as a result of rounding.
Unaudited
KIMBERLY-CLARK CORPORATION
CONSOLIDATED BALANCE SHEET
(Millions)
September 30, December 31,
2016 2015
---- ----
ASSETS
Current Assets
Cash and cash equivalents $884 $619
Accounts receivable, net 2,222 2,281
Inventories 1,736 1,909
Other current assets 418 617
--- ---
Total Current Assets 5,260 5,426
Property, Plant and Equipment, Net 7,198 7,104
Investments in Equity Companies 289 247
Goodwill 1,518 1,446
Other Assets 634 619
--- ---
TOTAL ASSETS $14,899 $14,842
======= =======
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Debt payable within one year $1,205 $1,669
Trade accounts payable 2,454 2,612
Accrued expenses 1,731 1,750
Dividends payable 330 318
--- ---
Total Current Liabilities 5,720 6,349
Long-Term Debt 6,443 6,106
Noncurrent Employee Benefits 1,195 1,137
Deferred Income Taxes 594 766
Other Liabilities 332 380
Redeemable Preferred Securities of Subsidiaries 64 64
Stockholders' Equity (Deficit)
Kimberly-Clark Corporation 299 (174)
Noncontrolling Interests 252 214
--- ---
Total Stockholders' Equity 551 40
--- ---
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $14,899 $14,842
======= =======
2016 Data is Unaudited
KIMBERLY-CLARK CORPORATION
CONSOLIDATED CASH FLOW STATEMENT
(Millions)
Three MonthsEnded Nine Months Ended
September 30 September 30
------------ ------------
2016 2015 2016 2015
---- ---- ---- ----
Operating Activities
Net income $563 $529 $1,701 $722
Depreciation and amortization 179 182 528 565
Stock-based compensation 19 17 64 68
Deferred income taxes (16) (32) (13) (378)
Equity companies' earnings (in
excess of) less than dividends
paid (1) (1) (31) (38)
(Increase) decrease in operating
working capital 197 101 149 (316)
Postretirement benefits 8 33 4 941
Adjustments related to Venezuelan
operations - - (11) 45
Other (1) 20 (30) 32
--- --- --- ---
Cash Provided by Operations 948 849 2,361 1,641
--- --- ----- -----
Investing Activities
Capital spending (185) (271) (582) (798)
Investments in time deposits (60) (18) (133) (100)
Maturities of time deposits 22 9 64 100
Other 31 (17) 75 (25)
--- --- --- ---
Cash Used for Investing (192) (297) (576) (823)
---- ---- ---- ----
Financing Activities
Cash dividends paid (331) (321) (981) (952)
Change in short-term debt (515) (292) (837) (109)
Debt proceeds 494 587 1,290 1,097
Debt repayments (5) (305) (596) (349)
Proceeds from exercise of stock
options 39 20 97 102
Acquisitions of common stock for
the treasury (219) (145) (512) (503)
Shares purchased from
noncontrolling interest - - - (151)
Other 3 1 2 6
--- --- --- ---
Cash Used for Financing (534) (455) (1,537) (859)
---- ---- ------ ----
Effect of Exchange Rate Changes on
Cash and Cash Equivalents 6 (57) 17 (105)
--- --- --- ----
Increase (Decrease) in Cash and
Cash Equivalents 228 40 265 (146)
Cash and Cash Equivalents -
Beginning of Period 656 603 619 789
--- --- --- ---
Cash and Cash Equivalents -End of
Period $884 $643 $884 $643
==== ==== ==== ====
Unaudited
KIMBERLY-CLARK CORPORATION
SELECTED BUSINESS SEGMENT DATA
(Millions)
Three Months Nine Months Ended
Ended September September 30
30
---
2016 2015 Change 2016 2015 Change
---- ---- ------ ---- ---- ------
NET SALES
Personal Care $2,312 $2,357 -1.9% $6,798 $6,971 -2.5%
Consumer Tissue 1,472 1,528 -3.7% 4,462 4,601 -3.0%
K-C Professional 802 826 -2.9% 2,371 2,443 -2.9%
Corporate & Other 8 7 N.M. 27 37 N.M.
--- --- --- ---
TOTAL NET SALES $4,594 $4,718 -2.6% $13,658 $14,052 -2.8%
====== ====== ======= =======
OPERATING PROFIT
Personal Care $458 $484 -5.4% $1,362 $1,412 -3.5%
Consumer Tissue 267 260 +2.7% 822 811 +1.4%
K-C Professional 157 154 +1.9% 457 433 +5.5%
Corporate & Other(a) (45) (84) N.M. (173) (244) N.M.
Other (income) and expense, net(a) 1 35 N.M. (10) 1,429 N.M.
--- --- --- -----
TOTAL OPERATING PROFIT $836 $779 +7.3% $2,478 $983 N.M.
==== ==== ====== ====
(a) Segment Operating Profit excludes
other (income) and expense, net and
expenses not associated with the
business segments, including charges
as indicated in the Non-GAAP
Reconciliations.
PERCENTAGE CHANGE IN NET SALES VERSUS PRIOR YEAR
Three Months Ended September 30, 2016
-------------------------------------
Total Net Mix/ Currency
Volume Price Other(a)
------ ----- --------
Personal Care (1.9) 3 (1) (1) (3)
Consumer Tissue (3.7) (2) - - (2)
K-C Professional (2.9) (2) 1 - (2)
TOTAL CONSOLIDATED (2.6) - - (1) (2)
Nine Months Ended September 30, 2016
------------------------------------
Total Net Mix/ Currency
Volume Price Other(a)
------ ----- --------
Personal Care (2.5) 4 (1) 1 (6)
Consumer Tissue (3.0) - - - (3)
K-C Professional (2.9) (1) 1 - (3)
TOTAL CONSOLIDATED (2.8) 2 - (1) (4)
(a) Mix/Other includes
rounding.
N.M. - Not Meaningful
Unaudited
KIMBERLY-CLARK CORPORATION
OUTLOOK FOR 2016
Estimated Range
---------------
ESTIMATED
FULL YEAR
2016
DILUTED
EARNINGS
PER SHARE
Adjusted
earnings
per share $5.95 - $6.05
Adjustment
for
charges
related to
the 2014
Organization
Restructuring (0.06) - (0.03)
Adjustment
related to
Venezuelan
Operations 0.03 - 0.03
---- ----
Per share
basis -
diluted
net
income
attributable
to
Kimberly-
Clark
Corporation $5.92 - $6.05
===== =====
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To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/kimberly-clark-announces-third-quarter-2016-results-300349432.html
SOURCE Kimberly-Clark Corporation
