The adverse impact of inflation on second quarter results totaled about $95 million, including the raw material inflation noted above, an additional $10 million in fiber costs, $15 million in energy costs and $20 million in distribution costs.
The improvement was mainly due to a benefit of approximately $12 million from settlement of an insurance claim for partial recovery of damages related to a fire last year at one of the company's facilities in Europe. The year-over-year change in operating profit was also affected by $16 million of costs in the second quarter of 2004 to improve the efficiency of the company's diaper operations in North America and Europe.
Kimberly-Clark's share of net income of equity companies in the second quarter rose 8 percent to $32 million, driven mainly by higher net income at Kimberly-Clark de Mexico, S.A. de C.V. KCM's sales increased about 20 percent and operating profit climbed 23 percent, driven by continued strong results in its consumer business. However, KCM's bottom-line results were negatively impacted by currency transaction losses that reduced Kimberly-Clark's share of KCM's net income by approximately $7 million.
During the second quarter, the company repurchased 3.1 million shares of its common stock at a cost of $200 million, bringing the year-to-date total to 7.7 million shares at a cost of $501 million. As a result of the company's ongoing share repurchase program, a lower share count benefited second quarter
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