Associated Press
DALLAS — Shares of paper-products giant Kimberly-Clark Corp. fell more than 7 percent Tuesday after the company said third-quarter and full-year earnings would fall short of expectations.
The maker of Kleenex, Huggies, Kotex and other paper and personal-care products blamed weak currencies in key foreign markets and a downturn in some sales after last month’s terrorist attacks.
The company, which has a pulp mill and a tissue plant in Everett that employs nearly 1,000 people, said that it expected operating third-quarter earnings of 80 cents per share.
Analysts surveyed by Thomson Financial/First Call had expected earnings of 85 cents per share. The company earned 84 cents per share in the third quarter of 2000.
Kimberly-Clark said full-year earnings would be $3.20 to $3.30 per share. Analysts expected $3.38 per share.
The company said third-quarter sales would be $3.7 billion, up from $3.5 billion in the quarter a year earlier.
In late trading Tuesday on the New York STock Exchange, shares of Kimberly-Clark were down $4.27, or 7.1 percent, to $55.79.
The company said currency fluctuations reduced overseas profit and trimmed 4 cents per share off quarterly earnings. It said sales to Mexico are likely to remain weak due to fallout from the soft U.S. economy.
Chairman and chief executive Wayne R. Sanders added that the company was on track to meet expected earnings until last month’s terrorist attacks. After Sept. 11, he said, sales at hotels, office buildings and other locations other than consumers’ homes fell sharply.
Sales to nonresidential customers represent about 15 percent of sales, the company said.
The company is scheduled to report earnings Oct. 23.
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