Kimberly-Clark Corporation reported third quarter 2015 results and updated its previous guidance for full-year 2015 organic sales growth and adjusted earnings per share.
Third quarter 2015 net sales of $4.7 billion decreased 7 percent compared to the year-ago period, as changes in foreign currency exchange rates reduced sales 12 percent. Organic sales rose 5 percent, including a 10 percent increase in developing and emerging markets and a 7 percent improvement in personal care in North America.
Diluted net income per share for the third quarter was $1.41 in 2015 and $1.50 in 2014.
Third quarter adjusted earnings per share were $1.51 in 2015 compared to adjusted earnings per share from continuing operations of $1.50 in the prior year. Performance benefited from organic sales growth, cost savings, input cost deflation and a lower share count. Comparisons were negatively impacted by unfavourable foreign currency exchange rate effects, increased marketing, research and general spending on a local currency basis and higher other expense. Adjusted earnings per share in both years exclude certain items described later in this news release.
Full-year 2015 organic sales growth is expected to be 4 to 5 percent compared to the company’s prior expectation of 3 to 5 percent. Full-year 2015 adjusted earnings per share are anticipated to be $5.70 to $5.80 versus the company’s previous guidance of $5.65 to $5.80.
Thomas J. Falk about the results
Chairman and Chief Executive Officer Thomas J. Falk said, “We delivered another quarter of good financial results. Organic sales grew mid-single digits, with benefits from targeted growth initiatives, innovations and brand investments. We achieved significant cost savings and improved adjusted gross margin. In addition, our adjusted earnings per share from continuing operations set a new quarterly record and we allocated capital in shareholder-friendly ways. We are executing well in a challenging environment and are raising the low end of our previous guidance ranges for full-year organic sales growth and adjusted earnings per share.”
In the picture: Thomas J. Falk, Chairman and Chief Executive Officer of Kimberly-Clark