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KIMBERLY-CLARK ANNOUNCES THIRD QUARTER RESULTS

 DALLAS, Oct. 22 /PRNewswire/ -- Kimberly-Clark Corporation (NYSE: KMB) today reported that, despite an overall improvement in sales volumes, third quarter earnings were below the all-time records achieved a year ago.
 Wayne R. Sanders, chairman of the board and chief executive officer, said more than half of the decline in net income resulted from an increase in the federal income tax rate due to the enactment of the 1993 Tax Act. This tax adjustment reduced third quarter net income by $13.5 million or eight cents a share. Three cents related to the first three quarters of 1993 and five cents related to deferred taxes for prior years. Other major factors in the earnings decline were lower selling prices, principally for disposable diapers, higher product introduction costs, primarily in Europe, and costs related to maintenance shutdowns at several mills.
 Sales volumes increased 6 percent compared with the third quarter of 1992, Sanders said. Net sales, however, declined slightly because of the lower selling prices and changes in currency exchange rates, principally for Europe and Canada. He added that, in addition to diapers, selling prices were lower for feminine care products and facial tissue in the U.S.
 Compared with the third quarter of 1992, sales declined 0.7 percent to $1.8 billion, gross profit was down 8.5 percent to $587.9 million and operating profit decreased 8.6 percent to $189.6 million. Net income for the 1993 third quarter declined 17.5 percent to $111.2 million and net income per share decreased 17.9 percent to 69 cents versus 84 cents last year.
 Sanders said Huggies diapers continued to be the number one selling brand in the U.S. during the quarter, with market share at an all-time high. Sales volumes for Kotex and New Freedom feminine care products and Depend and Poise incontinence products increased to record levels in the third quarter, and market shares were the highest in 10 years.
 Sales volumes also improved for Huggies baby wipes, Kleenex facial tissue, consumer products in the Far East, Neenah Paper's premium business and correspondence papers, and Midwest Express Airlines, Inc.
 Other factors affecting quarterly earnings were continuing poor results for the company's consumer and industrial bathroom tissue businesses in North America and Continental Europe because of excess industry capacity and pricing pressures. Prices for industrial bathroom tissue in the U.S., however, have been improving in recent months, Sanders said, although they remain below 1990 levels.
 During the quarter, the annual maintenance shutdown of the company's pulp mill in Terrace Bay, Ont., Canada, was extended to reduce inventories. In 1992, the shutdown occurred in the fourth quarter, Mr. Sanders said. In addition, major maintenance shutdowns were taken in September at the company's consumer and service product mills in Koblenz, Germany, and Rouen, France.
 Sanders said the price declines and maintenance shutdowns, coupled with new facility start-up costs, caused gross profit to decrease. Partially offsetting the decline in gross profit were lower promotional spending and reduced general expense. Sanders said higher product introduction costs for expansion of Huggies Pull-Ups training pants, as well as spending associated with the upcoming launch of Huggies diapers in Europe, were major factors in reduced operating profit outside North America.
 Net income from equity companies increased 21.6 percent in the quarter. Sanders said record results at Kimberly-Clark de Mexico, S.A. de C.V., which benefited from higher sales volumes and selling prices, were the major contributor to the improvement in equity company earnings.
 For the first nine months of 1993, sales declined 1.4 percent to $5.2 billion, gross profit was down 6.5 percent to $1.8 billion and operating profit decreased 6.1 percent to $577.2 million. Excluding a one-time charge for accounting changes in 1992, net income for the first nine months of 1993 decreased 7.9 percent to $369.3 million or $2.30 per share.
 Kimberly-Clark is a manufacturer of household, personal care and health care products, as well as newsprint and premium business, correspondence and specialty papers. The company's well-known consumer products include Huggies disposable diapers, Huggies Pull-Ups training pants, Huggies baby wipes, Kleenex facial tissue, Kleenex premium bathroom tissue, Kotex and New Freedom feminine products, Hi-Dri household towels and Depend and Poise incontinence products.
 KIMBERLY-CLARK CORPORATION
 Third Quarter Ended Sept. 30
 (Millions except per share amounts -- unaudited)
 Percent
 1993 1992 Change
 Net Sales $1,781.0 $1,793.5 - .7
 Cost of products sold 1,193.1 1,151.3 + 3.6
 Gross Profit 587.9 642.2 - 8.5
 Advertising, promotion and selling
 expenses 273.8 306.1 -10.6
 Research expense 37.4 38.6 - 3.1
 General expense 87.1 90.0 - 3.2
 Operating Profit 189.6 207.5 - 8.6
 Interest expense (27.4) (24.6) +11.4
 Other income (expense), net 4.3 4.6 - 6.5
 Income Before Income Taxes 166.5 187.5 -11.2
 Provision for income taxes 76.0(A) 70.3 + 8.1
 Income Before Equity Interests 90.5 117.2 -22.8
 Share of net inc. of equity
 companies 24.8 20.4 +21.6
 Minority owners' share of
 subsidiaries' net income (4.1) (2.8) +46.4
 Net Income $ 111.2(A)$ 134.8 -17.5
 Net Income Per Share $ .69(A)$ .84 -17.9
 Capital Spending $ 154.0 $ 170.6 - 9.7
 (A) Includes additional income tax charge of $13.5 million or $.08 per share related to the increase in the U.S. statutory income tax rate from 34 percent to 35 percent enacted in August 1993.
 KIMBERLY-CLARK CORPORATION
 NINE MONTHS ENDED SEPTEMBER 30
 (Millions except per share amounts -- unaudited)
 Percent
 1993 1992 Change
 Net Sales $5,208.9 $5,281.8 - 1.4
 Cost of products sold 3,414.2 3,361.4 + 1.6
 Gross Profit 1,794.7 1,920.4 - 6.5
 Advertising, promotion and selling
 expenses 824.6 938.4 -12.1
 Research expense 117.9 112.5 + 4.8
 General expense 275.0 254.5 + 8.1
 Operating Profit 577.2 615.0 - 6.1
 Interest expense (81.6) (74.6) + 9.4
 Other income (expense), net 18.0 15.1 +19.2
 Income Before Income Taxes 513.6 555.5 - 7.5
 Provision for income taxes 207.9(A) 208.4 - .2
 Income Before Equity Interests 305.7 347.1 -11.9
 Share of net income of equity
 companies 74.8 63.5 +17.8
 Minority owners' share of
 subsidiaries' net income (11.2) (9.8) +14.3
 Income Before Cumulative Effects
 of Accounting Changes 369.3(A) 400.8 - 7.9
 Cumulative Effects of Accounting Changes:
 Other postretirement benefits,
 net of income taxes -- (245.0) N.M.
 Income taxes -- 35.0 N.M.
 Net Income $ 369.3(A)$ 190.8 +93.6
 Per Share Basis:(B)
 Income Before Cumulative Effects
 of Accounting Changes $ 2.30(A)$ 2.50 - 8.0
 Cumulative Effects of Accounting Changes:
 Other postretirement benefits,
 net of income taxes -- (1.53) N.M.
 Income taxes -- .22 N.M.
 Net Income $ 2.30(A)$ 1.19 +93.3
 (A) Includes additional income tax charge of $13.5 million or $.08 per share related to the increase in the U.S. statutory income tax rate from 34 percent to 35 percent enacted in August 1993.
 (B) The average number of common shares outstanding for the nine months ended September 30, 1993 and 1992 was 160.8 million and 160.3 million, respectively.
 N.M. - Not meaningful
 KIMBERLY-CLARK CORPORATION
 (Millions -- unaudited)
 Percent
 Nine Months Ended Sept. 30, 1993 1992 Change
 Capital Spending $493.0 $470.8 + 4.7
 Twelve Months Ended Sept. 30,
 Net Income Return on Average
 Stockholders' Equity (In Percents) 12.9(A) 13.4(A)
 Operating Profit Return on Average
 Assets (In Percents) 8.7(B) 14.6
 (A) Includes the impact of deducting the cumulative effects of accounting changes in the first quarter of 1992 ($210.0 million after- tax), a restructuring charge in the fourth quarter of 1992 ($172.0 million after-tax) and a favorable adjustment from the disposition of a Canadian subsidiary in the fourth quarter of 1991 ($20.0 million after-tax). Excluding these effects from net income, net income return on average stockholders' equity for the 12 months ended Sept. 30 was 19.9 percent in 1993 compared with 21.1 percent in 1992.
 (B) Includes the impact of deducting a restructuring charge from operating profit in the fourth quarter of 1992 ($250.0 million pretax). Excluding this effect, operating profit return on average assets for the 12 months ended Sept. 30, 1993 was 13.0 percent.
 KIMBERLY-CLARK CORPORATION
 Selected Product Class Data
 (Millions -- unaudited)
 Operating
 Third quarter ended Net Sales Pct. Profit Pct.
 Sept. 30, 1993 1992 Change 1993 1992
 Change
 Class I $1,428.4 $1,461.0 - 2.2 $144.1 $164.7 -12.5
 Class II 263.6 266.2 - 1.0 43.7 37.6 +16.2
 Class III 96.6 77.6 +24.5 8.6 5.4 +59.3
 Interclass sales and
 unallocated items-net (7.6) (11.3) N.M. (6.8) (.2) N.M.
 Consolidated $1,781.0 $1,793.5 - .7 $189.6 $207.5 - 8.6
 Nine Months Ended
 Sept. 30
 Class I $4,148.1 $4,302.6 - 3.6 $440.8 $499.0 -11.7
 Class II 807.3 796.1 + 1.4 132.5 113.9 +16.3
 Class III 293.3 214.4 +36.8 19.4 13.0 +49.2
 Interclass sales & unallocated
 items-net (39.8) (31.3) N.M. (15.5) (10.9) N.M.
 Consolidated $5,208.9 $5,281.8 - 1.4 $577.2 $615.0 - 6.1


Description of Product Classes Class I includes tissue products for household, commercial, institutional and industrial uses; infant, child, feminine and incontinence care products; industrial and commercial wipers; health care products; and related products.
 Class II includes newsprint, printing papers, premium business and correspondence papers, tobacco industry papers and products, technical papers, and related products. Class III includes aircraft services, commercial air transportation and other products and services. N.M. - Not meaningful
 -0- 10/22/93
 /CONTACT: Tina S. Barry of Kimberly-Clark Corporation, 214-830-1484/
 (KMB)


CO: Kimberly-Clark Corporation ST: Texas IN: PAP SU: ERN

SH -- NY022 -- 5653 10/22/93 10:43 EDT
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