Kimberly-Clark Records Small Sales Gain Amid More Competition

By Joshua Jamerson 

Kimberly-Clark Corp. reported organic sales growth for the latest quarter as the maker of Kleenex tissues and Huggies diapers, facing increased competition, eked out a small gain in net sales.

Chairman and Chief Executive Thomas Falk said the company expects to operate in a continued difficult environment in 2017, adding that Kimberly-Clark will have to "invest in innovation, marketing and targeted growth initiatives to keep our brands strong and help us compete effectively." Mr. Falk said that the company confronted a challenging competitive environment in 2016 but that its market share positions remained broadly healthy.

The Dallas company reported organic sales increased 1%, including 3% growth in developing and emerging markets. Foreign currency headwinds dented sales by 1%

Over all for the quarter, Kimberly-Clark reported a profit of $505 million, or $1.40 a share, up from $333 million, or 91 cents a share, a year earlier.

The comparison benefited from cost savings and a charge in 2015 related to deconsolidating the company's Venezuelan business at the end of that year. Excluding certain items, earnings were $1.45 a share, up from $1.42 in the prior-year period.

Revenue edged up 0.1% to $4.54 billion. Analysts polled by Thomson Reuters forecast earnings of $1.42 a share on $4.55 billion in revenue.

For 2017, Kimberly-Clark projects earnings per share in a range of $6.20 to $6.35; analysts expect $6.28. Kimberly-Clark expects net sales in 2017 similar to the $18.2 billion reported for 2016; analysts expected 2% annual growth.

The company also said Tuesday that it plans to raise its quarterly dividend to 97 cents a share from 92 cents. The dividend will be payable April 4 to shareholders of record March 10.

Kimberly-Clark shares, which have risen 2.7% in the past three months but are still 7.7% lower than a year ago, were inactive in premarket trading.

Write to Joshua Jamerson at [e-mail]

(END) Dow Jones Newswires

January 24, 2017 08:20 ET (13:20 GMT)

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