LONDON, UK / ACCESSWIRE / January 25, 2018 / Active-Investors.com has just released a free earnings report on Kimberly-Clark Corp. (NYSE: KMB). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=KMB. Kimberly-Clark reported its fourth quarter and fiscal 2017 operating and financial results on January 23, 2018. The maker of consumer products such as Huggies diapers and Kleenex tissue exceeded earnings expectations and also announced a new global restructuring initiative and established a multi-year savings target for its ongoing cost savings program. Register today and get access to over 1,000 Free Research Reports by joining our site below:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Kimberly-Clark most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
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Earnings Highlights and Summary
Kimberly-Clark reported sales of $4.58 billion in Q4 2017, up 1% compared to sales of $4.54 billion in Q4 2016. The Company's organic sales fell approximately 1%, as lower net selling prices dropped 2%, partially offset by improved product mix of 1% and slightly higher volumes. The Company's sales numbers missed analysts' estimates of $4.6 billion.
During Q4 2017, Kimberly-Clark's operating profit was $812 million compared to $839 million in Q4 2016. The Company's reported quarter adjusted operating profit was $836 million versus $859 million in the year ago comparable period.
Kimberly-Clark reported net income of $617 million, or $1.75 per diluted share, compared to $505 million, or $1.40 per diluted share, in Q4 2016. The Company's earnings, adjusted for pretax gains, were $1.57 per share, ahead of Wall Street's estimates of $1.54 per share.
For full year 2017, Kimberly-Clark reported sales of $18.26 billion, which was slightly higher compared to sales of $18.20 billion in FY16. The Company posted net income of $6.40 per diluted share for FY17 compared to $5.99 in FY16. Kimberly-Clark posted adjusted earnings per share of $6.23 in 2017, up 3% compared to $6.03 in 2016.
Kimberly-Clark's Business Segment Results
During Q4 2017, the Personal Care segment's sales grew 1% to $2.3 billion on a y-o-y basis. The segment's volumes grew 2% and product mix improved 1% compared to the year ago same period, while net selling prices fell 3%. The segment's reported quarter operating profit of $483 million decreased 2% on a y-o-y basis.
For Q4 2017, the Consumer Tissue segment's sales totaled $1.5 billion, down 1% compared to the year ago period. The segment's volumes and net selling prices each dropped 1%, while currency rates were favorable by less than 2% versus the year ago same period. In the reported quarter, the Consumer Tissue segment's operating profit of $258 million fell 13% on a y-o-y basis, impacted by lower sales and input cost inflation.
During Q3 2017, the K-C Professional (KCP) segment's sales grew 3% to $0.8 billion. Changes in currency rates benefited sales by 2% and volumes increased 1% on a y-o-y basis. KCP segment's reported quarter operating profit of $151 million increased 3%, attributed to volume growth, cost savings and lower marketing, research and general spending.
Cash Flow and Balance Sheet
Kimberly-Clark's cash provided by operations totaled $863 million in Q4 2017 compared to $871 million in Q4 2016. The Company's capital spending was $190 million for the reported quarter compared to $189 million in the year earlier same quarter. For Q4 2017, the Company made share repurchases totaling 0.9 million shares at a cost of $100 million, bringing full-year repurchases to 7.2 million shares at a cost of $900 million.
FORCE Cost Savings Target
Kimberly-Clark stated that it has established a four-year cost savings target of more than $1.5 billion from its ongoing FORCE program over the 2018-2021 time-period. The Company plans to achieve the savings through a continued focus on improving productivity at manufacturing facilities, optimizing raw material, and product design costs, generating benefits from procurement activities, and improving distribution efficiencies.
2018 Global Restructuring Program
Kimberly-Clark also announced a global restructuring program, which is expected to reduce the Company's structural cost base and enhance its flexibility to invest in its brands, growth initiatives, and capabilities critical to delivering future growth.
Kimberly-Clark is estimating that the program will generate annual pre-tax cost savings of $500 million to $550 million by the end of 2021. Savings will be driven by workforce reductions, which are anticipated to be in a range of 5,000 to 5,500 (12 to 13% of current headcount), along with manufacturing supply chain efficiencies. The program is expected to broadly impact all of the company's business segments and organizations in each major geography.
Kimberly-Clark is expecting to close or sell approximately 10 manufacturing facilities and expand production capacity at several others to improve overall scale and cost. As part of the program, Kimberly-Clark expects to exit or divest some low-margin businesses that generate approximately 1% of Company net sales, primarily in the consumer tissue business segment.
Kimberly-Clark expects total cash spending of $1.50 billion to $1.70 billion by the end of 2020, consisting of $900 billion to $1.00 billion in pre-tax cash restructuring charges and approximately $600 million to $700 million in incremental capital spending. Kimberly-Clark also expects to incur non-cash restructuring charges of $800 million to $900 million pre-tax by the end of 2020, making the total expected restructuring charges $1.70 billion to $1.90 billion pre-tax.
2018 Outlook
Kimberly-Clark is forecasting FY18 net sales to grow 1% to 2%. The Company's organic sales are expected to increase approximately 1%, driven by higher volumes.
Kimberly-Clark is projecting adjusted operating profit growth of 2% to 5% for FY18. The Company is estimating cost savings of approximately $400 million from the FORCE program and $50 million to $70 million from the 2018 Global Restructuring Program. Kimberly-Clark is anticipating adjusted earnings per share of $6.90 to $7.20 for FY18.
Stock Performance Snapshot
January 24, 2018 - At Wednesday's closing bell, Kimberly-Clark's stock climbed 1.59%, ending the trading session at $119.71.
Volume traded for the day: 5.36 million shares, which was above the 3-month average volume of 2.20 million shares.
Stock performance in the previous three-month period – up 6.38%
After yesterday's close, Kimberly-Clark's market cap was at $42.05 billion.
Price to Earnings (P/E) ratio was at 19.75.
The stock has a dividend yield of 3.24%.
The stock is part of the Consumer Goods sector, categorized under the Personal Products industry.
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