Kimberly-Clark 1Q 2019 results: Net Sales Down 2 percent from year ago to $4.6 billion

Kimberly-Clark Corporation has reported first quarter 2019 results.

First quarter 2019 net sales of $4.6 billion decreased 2 percent compared with the year-ago period. Changes in foreign currency exchange rates reduced sales by 5 percent, while organic sales increased 3 percent including higher net selling prices of 4 percent.
Diluted net income per share for the first quarter was $1.31 in 2019 and $0.26 in 2018.Diluted net income per share for the first quarter was $1.31 in 2019 and $0.26 in 2018.
First quarter adjusted earnings per share were $1.66 in 2019 and $1.71 in 2018. Adjusted earnings per share exclude certain items described later in this news release.
The company continues to target full-year 2019 organic sales growth of 2 percent and adjusted earnings per share of $6.50 to $6.70.

CEO Mike Hsu said, "I'm encouraged with our first quarter results. We made excellent progress driving higher selling prices to help offset commodity and currency headwinds. We also continued to launch innovations, pursue our growth priorities and invest in our brands. In addition, we generated $115 million of cost savings and returned $510 million to shareholders through dividends and share repurchases. We are confirming our previous full-year outlook while we maintain a strong focus on executing K-C Strategy 2022 for long-term success."

Consumer Tissue Segment

First quarter sales of $1.5 billion decreased 3 percent. Changes in currency rates reduced sales 3 percent. Net selling prices increased 6 percent, while volumes decreased 6 percent compared to a 7 percent increase in the base period. First quarter operating profit of $241 million decreased 3 percent. The comparison was impacted by lower volumes, input cost inflation, other manufacturing cost increases and unfavorable currencies, while results benefited from increased net selling prices and cost savings.

Sales in North America decreased 3 percent. Net selling prices rose 7 percent, while volumes fell 10 percent compared to a 9 percent increase in the prior year. The volume decline reflects lower promotion activity, the impact of price increases and a severe cold and flu season in the year-ago period that benefited facial tissue sales.

Sales in developing and emerging markets decreased 4 percent. Currency rates were unfavorable by 8 percent, primarily in Latin America. Net selling prices increased 5 percent and product mix improved 1 percent, while volumes fell 2 percent.

Sales in developed markets outside North America decreased 5 percent. Changes in currency rates reduced sales by 6 percent. Net selling prices increased 4 percent and volumes fell 3 percent, with the changes mostly in Western/Central Europe.

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