healthcare products maker Kimberly-Clark Corp. (KMB: Quote) reported Friday a profit for the fourth quarter that declined 33 percent from last year, primarily reflecting higher restructuring charges and expenses. Both adjusted earnings per share and quarterly revenues topped analysts’ expectations. Further, the company provided adjusted earnings guidance for the full-year 2013, in line with Street view.
“Our fourth quarter results capped off a year of excellent performance for Kimberly-Clark. For the full year of 2012, we delivered organic sales growth of 5 percent, highlighted by 10 percent growth in K-C International,” Chairman and CEO Thomas Falk said.
The Dallas, Texas-based company reported net income of $267 million or $0.68 per share for the fourth quarter, down from $401 million or $1.01 per share in the prior-year quarter. Results for the latest quarter include costs for pulp and tissue restructuring actions and costs for the European strategic changes announced in October of 2012.
Excluding items, adjusted net income for the quarter was $539 million or $1.37 per share, compared to $508 million or $1.28 per share in the year-ago quarter.
On average, 16 analysts polled by Thomson Reuters expected the company to report earnings of $1.35 per share for the quarter. Analysts’ estimates typically exclude special items.
The company attributed the improvement in adjusted profit to organic sales growth and cost savings, partially offset by increased expenses.
Net sales for the quarter increased 2.5 percent to $5.31 billion from $5.18 billion in the same quarter last year, and topped thirteen Wall Street analysts’ consensus estimate of $5.19 billion.
Organic sales rose 5 percent, driven by 3 percent rise in sales volumes and higher net selling prices of 2 percent. Changes in foreign currency exchange rates and lost sales from exiting non-strategic products decreased sales by about 1 percent. The organic growth was highlighted by a 9 percent increase in K-C International.
Personal care segment sales grew 7.7 percent, while sales at consumer tissue segment declined 2.4 percent from last year. K-C Professional & other segment sales increased 1.0 percent, while sales at health care segment decreased 2.4 percent from a year ago.
Operating profit for the quarter decreased 26.5 percent to $449 million, while adjusted operating profit increased 5 percent to $798 million from last year.
For fiscal 2012, the company reported net income of $1.75 billion or $4.42 per share, higher than $1.59 billion or $3.99 per share in the prior year. Excluding items, adjusted earnings per share was $5.25, compared to last year’s 4.80. Net sales for the full year edged up 1 percent to $21.06 billion from last year.
Street was looking for full-year 2012 earnings of or $5.23 per share on annual revenues of $20.96 billion.
Looking ahead to fiscal 2013, the company expects adjusted earnings in a range of $5.50 to $5.65 per share, on anticipated net sales growth between flat and 3 percent. Analysts currently expect the company to report earnings of $5.58 per share on revenues of $21.20 billion for the full-year 2013.
The company noted that it expects to increase dividend at a high-single digit rate effective April 2013, subject to approval by the board of directors.
KMB closed Thursday’s regular trading session at $86.58, down $0.42 on a volume of 2.44 million shares. In the past 52-week period, the stock has been trading in a range of $70.50 to $88.25.
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by RTT Staff Writer
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