Said Thomas J. Falk, Chairman and Chief Executive Officer, "The top- and bottom-line growth in 2005, coming on the heels of good results in 2004, affirms that the Global Business Plan they launched two years ago is succeeding. I'm proud of what teams have accomplished.
Sales of $4.0 billion set a new quarterly record, and were about 9 percent above the prior year excluding sales in 2004 from the pulp operations that were also divested in the Neenah Paper spin-off.
The 5-plus percent increase in sales volumes was highlighted by continued strength in developing and emerging markets, excellent gains for key personal care and consumer tissue brands in North America and continued solid growth in K-C Professional and Health Care.
The top-line growth, along with continued success in reducing costs and ongoing share repurchases, contributed to the improvement in second quarter earnings per share before unusual items. These positive factors enabled the company to overcome the impact of inflation in key cost components totaling approximately $95 million and to fund nearly $35 million of additional marketing and research spending for new and improved products.
Review of second quarter sales by segment Sales of personal care products rose 7.4 percent in the second quarter, boosted by a 6 percent increase in sales volumes and currency benefits of 3 percent. Net selling prices declined about 2 percent, as response to competitive activity in diapers and training pants in North America and Europe was mitigated by improving prices in developing and emerging markets (Asia, Latin America, the Middle East, Eastern Europe and Africa).
marketing@alchempro.com
