DALLAS – Kimberly-Clark Corp., the maker of Kleenex tissue and Huggies diapers, said Monday its first-quarter profit rose 64 percent on strong sales growth and cost-cutting efforts, but the company said it was concerned about rising pulp prices.
Kimberly-Clark earned $452 million, or 98 cents per share, for the three months ended March 31 compared with $275.1 million, or 60 cents per share, for the same quarter last year.
Excluding charges related to cost reductions, the company posted an adjusted profit of $1.03 per share. Analysts had expected $1.01 per share after excluding items, according to a survey by Thomson Financial.
The company had said in late March that adjusted earnings would be at or slightly above the high end of 99 cents to $1.01 per share. But taxes were lower than predicted, helping Kimberly-Clark beat its own forecast.
Revenue rose 8 percent to $4.39 billion from $4.07 billion a year ago, topping analysts’ forecast of $4.27 billion.
Sales volume grew, and Kimberly-Clark also benefited from currency exchanges – the cheaper dollar makes its products less expensive overseas – and more sales of higher-priced items.
Huggies and baby wipes both recorded double-digit increases in sales. But sales volumes for tissues fell in North America and Europe, and sales of health-care items were virtually flat.
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