Kimberly-Clark Corporation recently reported first quarter 2017 results and confirmed its previous guidance for full-year 2017 earnings per share.
First quarter 2017 net sales of $4.5 billion were even with the prior year. Changes in foreign currency exchange rates increased sales by 1 percent, while organic sales decreased 1 percent. Organic sales were down 3 percent in North American consumer products, reflecting category softness, competitive activity and less promotion shipments. Organic sales increased 4 percent in developing and emerging markets.
Diluted net income per share for the first quarter was $1.57 in 2017 and $1.50 in 2016. The comparison benefited from cost savings and favorable currency effects, while results were impacted by lower net selling prices and input cost inflation. First quarter adjusted earnings per share were $1.53 in 2016, which excludes costs related to the 2014 Organization Restructuring (described later in this release).
Full-year 2017 net sales are expected to increase 1 to 2 percent, with organic sales up 1 to 2 percent and currency exchange rates neutral overall. The company's previous estimate was for sales to be similar year-on-year, with organic sales up approximately 2 percent and currency exchange rates down 2 percent.
The company continues to target full-year 2017 earnings per share of $6.20 to $6.35.
Chairman and Chief Executive Officer Thomas J. Falk said, "We delivered earnings growth in the first quarter despite a challenging environment, particularly in North America. We also achieved $110 million of cost savings and improved our margins. In addition, we returned more than $600 million to shareholders through dividends and share repurchases."
Falk added, "We are confirming our bottom-line earnings growth range for 2017. The outlook for currencies has improved, while commodity inflation has picked up somewhat and category growth continues to be relatively modest. We remain optimistic about our opportunities to create long-term shareholder value through execution of our Global Business Plan."
