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KIMBERLY-CLARK REPORTS IMPROVED SECOND QUARTER RESULTS

         KIMBERLY-CLARK REPORTS IMPROVED SECOND QUARTER RESULTS
    DALLAS, July 23 /PRNewswire/ -- Kimberly-Clark Corporation today


reported improved second quarter results. Compared with the second quarter of 1991, sales increased 3.6 percent to $1.7 billion, net income rose 12.1 percent to $138.1 million and earnings per share were up 11.7 percent to 86 cents.
    For the first six months of 1992, sales rose 4.0 percent to $3.5 billion, net income increased 12.7 percent to $274.5 million, and earnings per share improved 12.5 percent to $1.71.
    Wayne R. Sanders, chairman of the board and chief executive officer, said that the company's record results in the first half "were achieved despite difficult economic and competitive conditions in the U.S., Canada and Europe, and a weak newsprint market."
    All of the sales growth in the second quarter came from volume increases, Mr. Sanders said.  Gross profit was up 4.9 percent in the quarter and gross margin (gross profit as a percentage of sales) increased to 36.5 percent from 36.1 percent in the 1991 second quarter. Operating efficiencies at many of the company's U.S. manufacturing facilities, lower raw material costs and the higher sales volumes were the major reasons for the improvement.
    Operating profit increased by 11.1 percent in the quarter and operating margin (operating profit as a percentage of sales) increased to 11.7 percent from 10.9 percent.  Despite relatively high marketing expenses, operating profit increased faster than gross profit due to the recovery of legal fees related to the settlement of diaper litigation.
    Sanders said that consumer and professional health care products in North America provided most of the growth in consolidated operating profit in the quarter.  Outside North America, gains were achieved in the Far East and Latin America, but economic and competitive conditions in Europe adversely affected results.
    Net income from equity companies increased by 20.8 percent in the quarter, Mr. Sanders said.  The company's affiliates in Mexico and Colombia were primarily responsible for the improvement.
    Net income as a percentage of average stockholders' equity for the most recent 12 months was 21.6 percent, compared with 21.5 percent for the same period last year.  The ratio of total debt to adjusted capital was 30.9 percent at the end of the second quarter compared with 31.5 percent at year-end 1991.  Capital spending for the first six months of 1992 was $300.2 million compared with $257.9 million for the same period a year ago.
    Regarding the outlook for the full year, Sanders cautioned that although results for the first half of 1992 were at record levels, start-up costs and introductory marketing expenses in the second half of the year will be higher than normal because of many new or improved products, such as Huggies UltraTrim diapers.
    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 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 incontinence products.
                       KIMBERLY-CLARK CORPORATION
                      SECOND QUARTER ENDED JUNE 30
                  (Millions except per share amounts)
                                              1992      1991  Pct change
    Net Sales                                $1,748.6  $1,687.8   + 3.6
      Cost of products sold                   1,042.4   1,011.5   + 3.1
      Distribution expense                       67.1      66.9   +  .3
    Gross Profit                                639.1     609.4   + 4.9
      Advertising, promotion and selling
        expenses                                321.3     300.9   + 6.8
      Research expense                           38.4      38.0   + 1.1
      General expense                            74.8      86.4   -13.4
    Operating Profit                            204.6     184.1   +11.1
      Interest income                             1.5       1.9   -21.1
      Other income                                7.3       7.8   - 6.4
      Interest expense                          (24.3)    (24.5)  -  .8
      Other expense                              (3.4)     (2.3)  +47.8
    Income Before Income Taxes                  185.7     167.0   +11.2
      Provision for income taxes                 67.8      61.0   +11.1
    Income Before Equity Interests              117.9     106.0   +11.2
      Share of net income of equity
        companies                                23.2      19.2   +20.8
      Minority owners' share of
        subsidiaries' net income                 (3.0)     (2.0)  +50.0
    Net Income                               $  138.1  $  123.2   +12.1
    Net Income Per Share                     $    .86  $    .77   +11.7
    Geographic Analysis of Net Income:
      North America                          $  107.1  $   91.7   +16.8
      Outside North America                      31.0      31.5   - 1.6
    Cash Dividends Declared Per Share        $    .41  $    .37   +10.8
    Capital Spending                            168.5     135.5   +24.4
    Unaudited
                        KIMBERLY-CLARK CORPORATION
                         SIX MONTHS ENDED JUNE 30
                   (Millions except per share amounts)              Pct
                                               1992      1991     Change
    Net Sales                                $3,488.3  $3,355.4   + 4.0
      Cost of products sold                   2,065.2   2,011.6   + 2.7
      Distribution expense                      139.0     133.8   + 3.9
    Gross Profit                              1,284.1   1,210.0   + 6.1
      Advertising, promotion and selling
        expenses                                632.3     595.0   + 6.3
      Research expense                           73.9      71.7   + 3.1
      General expense                           163.0     167.9   - 2.9
    Operating Profit                            414.9     375.4   +10.5
      Interest income                             3.1       3.6   -13.9
      Other income                               13.2      14.0   - 5.7
      Interest expense                          (50.0)    (48.7)  + 2.7
      Other expense                              (5.8)     (4.6)  +26.1
    Income Before Income Taxes                  375.4     339.7   +10.5
      Provision for income taxes                137.0     126.6   + 8.2
    Income Before Equity Interests              238.4     213.1   +11.9
      Share of net income of equity
        companies                                43.1      35.5   +21.4
      Minority owners' share of
        subsidiaries' net income                 (7.0)     (5.1)  +37.3
    Net Income                               $  274.5  $  243.5   +12.7
    Net Income Per Share(A)                  $   1.71  $   1.52   +12.5
    Geographic Analysis of Net Income:
      North America                          $ 208.7   $  178.7   +16.8
      Outside North America                     65.8       64.8   + 1.5
    Cash Dividends Declared Per Share        $    .82  $    .74   +10.8
    Capital Spending                            300.2     257.9   +16.4
    TWELVE MONTHS ENDED JUNE 30                 1992      1991
    Net Income Return on Average
      Stockholders' Equity                     21.6 pct  21.5 pct
    Operating Profit Return on Average
      Assets                                   14.7 pct  15.1 pct
    (A) -- The average number of common shares outstanding for the six months ended June 30, 1992 and 1991 was 160.2 million and 159.9 million, respectively.
                                 Unaudited
                         KIMBERLY-CLARK CORPORATION
                        SELECTED PRODUCT CLASS DATA
                                 (Millions)
                                 Sales               Operating Profit
                                            Pct                    Pct
                          1992      1991   Change   1992    1991 Change
    SECOND QUARTER ENDED JUNE 30
    Class I
      North America    $1,136.1  $1,111.4  + 2.2   $161.7  $129.0  +25.3
      Outside North
        America           292.5     266.5  + 9.8      9.4    10.4  - 9.6
          Total         1,428.6   1,377.9  + 3.7    171.1   139.4  +22.7
    Class II
      North America       207.9     201.7  + 3.1     23.1    29.5  -21.7
      Outside North
        America            56.0      54.6  + 2.6     13.5    15.2  -11.2
          Total           263.9     256.3  + 3.0     36.6    44.7  -18.1
    Class III              65.2      66.6  - 2.1      3.4     5.3  -35.8
    Interclass sales
      and unallocated
      items-net            (9.1)    (13.0)   N.M.    (6.5)   (5.3)  N.M.
    Consolidated       $1,748.6  $1,687.8  + 3.6   $204.6  $184.1  +11.1
    SIX MONTHS ENDED JUNE 30
    Class I
      North America    $2,244.8  $2,152.8  + 4.3   $311.1  $251.3  +23.8
      Outside North
        America           596.8     571.9  + 4.4     28.1    29.2  - 3.8
          Total         2,841.6   2,724.7  + 4.3    339.2   280.5  +20.9
    Class II
      North America       416.6     409.6  + 1.7     49.8    63.6  -21.7
      Outside North
        America           113.3     113.2  +  .1     28.4    30.6  - 7.2
          Total           529.9     522.8  + 1.4     78.2    94.2  -17.0
    Class III             136.8     133.8  + 2.2      8.2     7.5  + 9.3
    Interclass sales
      and unallocated
      items-net           (20.0)    (25.9)   N.M.   (10.7)  (6.8)   N.M.
    Consolidated       $3,488.3  $3,355.4  + 4.0   $414.9  $375.4  +10.5
    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
    Unaudited
    -0-                        7/23/92 R
    /CONTACT:  Tina Barry of Kimberly-Clark, 214-830-1484/
    (KMB) CO:  Kimberly-Clark Corporation ST:  Texas IN:  HOU SU:  ERN TQ -- NY030R -- 2660 07/23/92 15:18 EDT
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No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

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Date:Jul 23, 1992
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