Kimberly-Clark has confirmed its previous guidance for full-year 2016 adjusted earnings per share in its second quarter 2016 results, released on 25 July 2016.
“We delivered a good quarter of results in a challenging environment while we continue to execute our long-term Global Business Plan strategies,” stated Kimberly-Clark chairman and CEO Thomas J. Falk.
The company’s second quarter 2016 net sales of $4.6 billion decreased 1 per cent compared to the same period a year ago, as changes in foreign currency exchange rates reduced sales 4 per cent. However, organic sales rose by 3 per cent, including a 7 per cent volume increase in North American consumer products and 5 per cent organic growth in developing and emerging markets.
“In the second quarter, we achieved a 4 percent increase in sales volumes, with benefits from targeted growth initiatives and product innovations,” explained Mr Falk.
“We also delivered $110 million of cost savings, which helped improve our profitability and increase our adjusted earnings per share.”
The diluted net income per Kimberly-Clark share for the second quarter was $1.56 in 2016 and a loss of $0.83 in 2015, driven by non-cash pension settlement charges. Second quarter adjusted earnings per share were $1.53 in 2016 and $1.41 in 2015.
Cash provided by operations in the second quarter of 2016 was $860 million, which is an 11 per cent increase compared to the prior year.
“Cash flow was strong in the quarter and we continued to allocate capital in shareholder-friendly ways,” added Mr Falk.
“Half way through the year, we are broadly on track with our plans and are confirming our bottom-line earnings guidance for 2016.”
The company anticipates full-year 2016 diluted net income per share of $5.92 to $6.15 and continues to expect 2016 adjusted earnings per share of $5.95 to $6.15.