Kimberly-Clark Corporation reported that net sales in the third quarter of 2006 rose 5.2 percent to $4.2 billion, a new quarterly record.
Sales were up in each of the company's four business segments, with particular strength in Health Care, Personal Care and K-C Professional & Other.
Robust top-line growth in developing and emerging markets, where sales increased at a double-digit rate for the eighth consecutive quarter, contributed to the overall gain in sales.
Diluted net income was 79 cents per share compared with 68 cents per share in 2005, an increase of 16 percent.
Excluding charges for strategic cost reductions to streamline the company's operations, adjusted earnings in the third quarter of 2006 were 99 cents per share, in line with the company's previous guidance of 96 to 99 cents per share and up approximately 4 percent from 95 cents per share last year.
The improvement was driven by the increase in sales along with widespread cost reductions, strong performance at K-C de Mexico and a lower share count.
These positive factors were partially offset by significant cost inflation, a higher effective tax rate and incremental compensation expense for stock options recorded under the provisions of Statement of Financial Accounting Standards (SFAS) 123R.
Personal care sales in North America increased about 2 percent compared with the third quarter of 2005.
Higher sales volumes accounted forthe entire increase, led by upper single-digit volume gains for the company's market-leading Huggies baby wipes, Pull-Ups training pants, and Depend and Poise incontinence care products.
marketing@alchempro.com
