Kimberly-Clark De Mexico 2Q Net Profit Flat At MXN1.08 Billion

Consumer products company Kimberly-Clark de Mexico (KCDMY, KIMBER.MX) said Thursday its net profit in the second quarter was 1.08 billion pesos ($84 million), practically unchanged from a year ago, as higher financial costs offset gains in sales and operating profit.

In a press release, Kimberly-Clark de Mexico said sales rose 7%, to MXN6.63 billion, despite continued weakness in the Mexican market, with a 4% increase in volume of products sold and prices that were 3% higher on average than in the second quarter of 2009.

Operating profit rose 8%, to MXN1.82 billion, as higher raw materials and energy costs were offset by cost-saving efforts and a stronger peso than a year ago.

The peso's weakening from the first quarter of this year, however, contributed to higher financial costs in the quarter. Earnings per share rose 2%, to MXN1.01, as a result of share buybacks. Kimberly-Clark de Mexico A shares closed up 1.2% Thursday, at MXN75.94.

The company said it generated operating cash flow of MXN8.19 billion in the 12 months through June 2010. In that period it spent MXN1.07 billion on share buybacks, and MXN984 million in capital expenditures.

-By Anthony Harrup, Dow Jones Newswires; (5255) 5980-5176, [e-mail]