Marginal increase in Q1 sales at Kimberly-Clark

Executive Summary

First quarter 2013 net sales of $5.3 billion increased 1 percent compared to the year-ago period.  Organic sales rose 3 percent, including increases of 6 percent in North American consumer tissue and 5 percent in K-C International.  Organic sales exclude the impact of changes in foreign currency rates and lost sales as a result of European strategic changes and pulp and tissue restructuring actions.

Diluted net income per share for the first quarter of 2013 was $1.36 versus $1.18 in 2012.   

First quarter adjusted earnings per share were an all-time record $1.48 in 2013 compared to $1.24 in the prior year.  The improvement was driven by organic sales growth, cost savings and higher other income, partially offset by input cost inflation, increased marketing, research and general spending and a higher effective tax rate. 

First quarter 2013 and estimated full-year 2013 adjusted earnings per share exclude restructuring costs for European strategic changes and a balance sheet remeasurement charge due to the February 2013 devaluation of the Venezuelan bolivar.  Adjusted earnings per share in the first quarter of 2012 exclude costs for pulp and tissue restructuring actions.

Adjusted earnings per share in 2013 are anticipated to be $5.60 to $5.75 versus the company's previous target of $5.50 to $5.65. 

Chairman and Chief Executive Officer Thomas J. Falk said, "We are off to an excellent start to the year.  We achieved solid organic sales growth compared to a strong year-ago result, including benefits from targeted growth initiatives and product innovations. 

"We improved adjusted gross margin by 140 basis points and adjusted operating profit margin by 200 basis points.  We delivered all-time record adjusted earnings per share, reflecting continued momentum in K-C International, $85 million of cost savings from our ongoing FORCE program and above-plan volume growth in North American consumer tissue. 

"Finally, we improved cash flow and returned $0.8 billion to shareholders through dividends and share repurchases.  As a result of our strong first quarter performance, we are raising our full-year outlook for adjusted earnings per share while we continue to invest for long-term success.  We are optimistic about our plans and believe that execution of our Global Business Plan strategies will generate attractive returns to shareholders."