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Kimberly-Clark Announces Year-End 2012 Results And 2013 Outlook



       Kimberly-Clark Announces Year-End 2012 Results And 2013 Outlook

PR Newswire

DALLAS, Jan. 25, 2013

DALLAS, Jan. 25, 2013 /PRNewswire/ -- Kimberly-Clark Corporation (NYSE: KMB)
today reported year-end 2012 results and provided its 2013 outlook and related
key planning assumptions.    

(Logo: http://photos.prnewswire.com/prnh/20110928/DA76879LOGO)

Executive Summary

  o Fourth quarter 2012 net sales of $5.3 billion increased 3 percent compared
    to the year-ago period.  Organic sales rose 5 percent, highlighted by a
    9 percent increase in K-C International.  Organic sales exclude the impact
    of changes in foreign currency rates and lost sales as a result of pulp
    and tissue restructuring actions.
  o Diluted net income per share for the fourth quarter of 2012 was $0.68
    versus $1.01 in 2011.  Full-year diluted net income per share was $4.42 in
    2012 and $3.99 in 2011. 
  o Fourth quarter adjusted earnings per share were $1.37 in 2012 compared to
    $1.28 in the prior year.  The improvement in fourth quarter adjusted
    earnings per share was driven by organic sales growth and cost savings,
    partially offset by increased marketing, research and general spending and
    a higher level of expense in other (income) and expense, net. 
  o Full-year adjusted earnings per share were $5.25 in 2012 compared to $4.80
    in 2011 and the company's previous guidance of $5.15 to $5.25.  Fourth
    quarter and full-year adjusted earnings per share in both periods exclude
    costs for pulp and tissue restructuring actions.  Fourth quarter adjusted
    earnings per share in 2012 also exclude costs for the European strategic
    changes announced in October of 2012.   Full-year adjusted earnings per
    share in 2011 also exclude a business tax charge related to a law change
    in Colombia.
  o Cash provided by operations in the fourth quarter of 2012 was an all-time
    record $1,119 million, up 116 percent compared to the prior year.
  o Adjusted earnings per share in 2013 are expected to be $5.50 to $5.65, up
    5 to 8 percent compared to 2012.  Adjusted earnings per share in 2013
    exclude costs for the European strategic changes. 
  o The company expects to increase its dividend at a high-single digit rate
    effective April 2013.  This will represent the company's 41^st consecutive
    annual increase in the dividend.
  o Share repurchases are anticipated to total $1.0 to $1.2 billion in 2013.

Chairman and Chief Executive Officer Thomas J. Falk said, "Our fourth quarter
results capped off a year of excellent performance for Kimberly-Clark.  For
the full year of 2012, we delivered organic sales growth of 5 percent,
highlighted by 10 percent growth in K-C International.  We launched a number
of product innovations and increased strategic marketing spending by $115
million and research and development spending at a double-digit rate.  We
improved adjusted gross margin by 230 basis points and adjusted operating
profit margin by 90 basis points, aided by $335 million of cost savings from
our ongoing FORCE program and restructuring actions.  We grew adjusted
earnings per share by 9 percent, above our original plan for the year and at
the high end of our long-range target.  Finally, we generated very strong cash
flow, which allowed us to return $2.5 billion to shareholders through
dividends and share repurchases.  Overall, we had a very good year of
financial performance and I'm encouraged by the progress we made in 2012."   
  

Falk added, "The strength of our results this past year gives us added
confidence that we will continue to execute our Global Business Plan well
going forward.  In 2013, we will continue to pursue targeted growth
initiatives, launch product innovations and support our brands with increased
strategic marketing spending.  We expect to achieve healthy levels of cost
savings, which should help us overcome moderate commodity cost inflation.  We
will continue to manage our company with financial discipline, including a
strong focus on cash generation and shareholder-friendly capital allocation. 
We are optimistic about our plans and continue to believe that successful
execution of our strategies will generate strong returns to shareholders." 
     

Fourth Quarter 2012 Operating Results

Sales of $5.3 billion in the fourth quarter of 2012 were up 3 percent compared
to the year-ago period.  Organic sales rose 5 percent, with increased sales
volumes of 3 percent and higher net selling prices of 2 percent.  Changes in
foreign currency rates and lost sales from exiting non-strategic products in
conjunction with pulp and tissue restructuring actions each reduced sales by 1
percent.   

Operating profit was $449 million in the fourth quarter of 2012, down
27 percent from $611 million in 2011.  Adjusted operating profit was $798
million in the fourth quarter of 2012, up 5 percent compared to $759 million
in the year-ago period.  Adjusted results exclude costs for pulp and tissue
restructuring actions of $50 million in 2012 and $148 million in 2011. 
Adjusted results in 2012 also exclude $299 million of costs for European
strategic changes.

The increase in year-over-year adjusted operating profit included benefits
from organic sales growth and $80 million  in cost savings from the company's
FORCE (Focused On Reducing Costs Everywhere) program.  In addition, costs for
key materials were $15 million lower overall versus 2011, with $20 million of
lower fiber costs and a $15 million decrease for other raw materials,
partially offset by $15 million of higher distribution costs and $5 million of
higher energy costs.  Higher production volumes in 2012 positively affected
the operating profit comparison by $15 million.  Overall marketing, research
and general expenses increased versus the year-ago period.  The higher
spending included increased administrative expenses, in part to support future
growth, particularly in K-C International.  Strategic marketing spending rose
$10 million, primarily to support product innovations and targeted growth
initiatives.  Other (income) and expense, net was $9 million of expense in the
fourth quarter of 2012 compared to $24 million of income in the prior year. 
The change was driven by a gain on the sale of a small venture investment in a
health care start-up company in 2011.

The company's fourth quarter effective tax rate was 38.5 percent in 2012 and
29.6 percent in 2011.  The fourth quarter adjusted effective tax rate, which
excludes the effects of the previously mentioned items excluded from adjusted
earnings per share calculations, was 30.6 percent in 2012 and 29.2 percent in
2011.  The full-year adjusted effective tax rate in 2012 was 30.6 percent,
consistent with the company's expectation for an adjusted rate between 30 and
32 percent. 

Kimberly-Clark's share of net income of equity companies in the fourth quarter
of 2012 was $51 million compared to $39 million in 2011.  At Kimberly-Clark de
Mexico, S.A.B. de C.V., results benefited from double-digit sales growth and
increased operating profit margins.

Cash Flow and Balance Sheet

Cash provided by operations in the fourth quarter of 2012 was an all-time
record and totaled $1,119 million compared to $517 million in the prior year. 
The increase was driven by improved working capital and lower defined benefit
pension plan contributions.  Fourth quarter pension contributions totaled $15
million in 2012 and $265 million in 2011.  Cash provided by operations for the
full year was $3,288 million in 2012 compared to $2,288 million in 2011.  The
increase was driven by higher cash earnings, improved working capital and
lower pension contributions ($110 million in 2012 compared to $680 million in
2011).     

Capital spending for the fourth quarter was $330 million in 2012 and
$312 million in 2011.  Full-year 2012 spending totaled $1,093 million,
consistent with the company's target for spending in a range of $1.0 to $1.1
billion.  During the fourth quarter, the company repurchased approximately 3.8
million shares of its common stock at a cost of $320 million.  Full-year 2012
share repurchases totaled 16.4 million shares at a cost of $1.3 billion. 
Total debt and redeemable securities was $6.7 billion at December 31, 2012 and
at the end of 2011.

Fourth Quarter 2012 Business Segment Results

Personal Care Segment

Fourth quarter sales of $2.4 billion increased 8 percent.  Sales volumes rose
6 percent and net selling prices improved 3 percent, while changes in currency
rates reduced sales by 1 percent.  Fourth quarter operating profit of $419
million increased 23 percent.  The improvement included benefits from organic
sales growth, cost savings and higher production volumes, partially offset by
increased marketing, research and general expenses and higher manufacturing
costs.

Sales in North America increased 5 percent.  Net selling prices rose
4 percent, including improved revenue realization for Huggies diapers and baby
wipes, and overall sales volumes rose 1 percent.  Adult care volumes increased
high-single digits, including benefits from continued market share gains. 
Feminine care volumes increased mid-single digits, boosted by continued
momentum on the U by Kotex brand.  Huggies baby wipes volumes were up
mid-single digits and child care volumes advanced low-single digits compared
to a soft year-ago performance.  Huggies diaper volumes were down low-single
digits, primarily reflecting category declines.  Volumes of non-branded
offerings were also below year-ago levels.      

Sales increased 10 percent in K-C International.  Sales volumes were up
9 percent, with double-digit growth in Asia and the Middle East/Eastern
Europe/Africa region and a mid-single digit gain in Latin America.  Volume
performance was strong in a number of markets, including Brazil, China, Peru,
Russia, South Africa, South Korea, Turkey and Venezuela.  Overall net selling
prices improved 2 percent compared to the year-ago period, driven by increases
in Latin America, and product mix advanced 1 point.  Changes in currency rates
reduced sales by 2 percent.

Sales in Europe increased 4 percent.  Sales volumes rose 6 percent and net
selling prices were up 2 percent.  Currency rates were unfavorable by 3
percent and changes in product mix reduced sales 1 percent.  The overall
volume increase was driven by growth in non-branded offerings, child care
products and Huggies baby wipes, partially offset by declines in Huggies
diapers.      

Consumer Tissue Segment

Fourth quarter sales of $1.7 billion declined 2 percent.  Lost sales in
conjunction with pulp and tissue restructuring actions reduced sales volumes
by 3 percent and changes in currency rates and product mix each decreased
sales by 1 percent.  Net selling prices improved 2 percent and organic sales
volumes were up 1 percent.  Fourth quarter operating profit of $235 million
decreased 4 percent.  The operating profit comparison was negatively impacted
by increased marketing, research and general expenses, mostly offset by
benefits from cost savings and organic sales growth. 

Sales in North America were down 2 percent compared to the prior year,
including a 5 point negative impact from lost sales in conjunction with pulp
and tissue restructuring actions.  Organic sales volumes increased 3 percent,
driven by gains in bathroom tissue and paper towels.  Overall net selling
prices were up 2 percent, while changes in product mix reduced sales 2
percent.    

Sales increased 1 percent in K-C International.  Net selling prices increased
approximately 3 percent, reflecting strategies to improve net realized revenue
and profitability.  Currency rates were unfavorable 2 percent and organic
sales volumes were off 1 percent.    

Sales in Europe decreased 7 percent.  Sales volumes were down 2 percent,
driven by declines in bathroom tissue and facial tissue.  Net selling prices
fell 2 percent and changes in product mix reduced sales 1 percent, as economic
conditions remain difficult.  Currency rates were unfavorable 2 percent.      

K-C Professional (KCP) Segment

Fourth quarter sales of $0.8 billion increased 1 percent.  Organic sales
volumes were up 2 percent and net selling prices improved 1 percent.  Changes
in currency rates and lost sales in conjunction with pulp and tissue
restructuring actions each reduced sales by 1 percent.  Fourth quarter
operating profit of $138 million increased 9 percent.  The improvement was
driven by cost savings, organic sales growth and input cost deflation,
partially offset by higher manufacturing costs.

Sales in North America fell 1 percent, as sales volumes and product mix were
each off slightly.  Volumes in most product categories were similar to or
slightly below year-ago levels. 

Sales increased 9 percent in K-C International.  Sales volumes were up
9 percent, with high-single digit growth in Asia and Latin America.  Overall
net selling prices rose approximately 3 percent, while unfavorable currency
rates and changes in product mix each reduced sales by about 1 percent.

Sales in Europe decreased 6 percent.  Lost sales in conjunction with pulp and
tissue restructuring actions reduced sales volumes 4 percent, currency rates
were unfavorable 3 percent and organic sales volumes were off slightly.  Net
selling prices increased approximately 2 percent. 

Health Care Segment

Fourth quarter sales of $0.4 billion decreased 2 percent.  Changes in sales
volumes, net selling prices and currency rates each reduced sales about
1 percent.  Fourth quarter operating profit of $61 million increased
2 percent.  The improvement was driven by input cost deflation and lower
marketing, research and general expenses, mostly offset by increased
manufacturing costs and the negative impact of lower organic sales.

Surgical and infection prevention (medical supply) volumes were off slightly
compared to double-digit growth in the year-ago period.  Medical device
volumes decreased 1 percent.

Western and Central European Businesses – Strategic Changes

In October of 2012, the company decided to make strategic changes in its
Western and Central European businesses in order to improve underlying
profitability and to focus the company's resources and investments on its
strongest market positions and growth opportunities that can deliver more
sustainable returns.  These changes include the exit of the diaper category in
Western and Central Europe, with the exception of the Italian market, and the
divestiture or exit of some lower-margin businesses in certain markets, mostly
in the consumer tissue segment.  To align its cost structure with these
strategic decisions, the company will streamline its European manufacturing
footprint and administrative organization. 

Restructuring costs for these actions will be incurred through 2014 and are
expected to total $250 to $350 million after tax ($300 to $400 million
pre-tax).  Cash costs are projected to be approximately 50 to 60 percent of
the total charges.  These estimates are unchanged from the projections
announced in October 2012.  The businesses that will be exited or divested
generate annual net sales of approximately $500 million and negligible
operating profit.  Fourth quarter 2012 restructuring costs were $242 million
after tax ($299 million pre-tax).             

Pulp and  Tissue Restructuring Actions

In January of 2011, the company initiated a two-year pulp and  tissue
restructuring in order to exit its remaining integrated pulp manufacturing
operations and improve the underlying profitability and return on invested
capital of its consumer tissue and K-C Professional businesses.  In addition,
in January of 2012, the company decided to streamline an additional facility
in North America to further enhance the profitability of the consumer tissue
business.  As a result of the restructuring actions, versus the 2010 baseline,
the company expects that by 2013 annual net sales will decrease by $250 to
$300 million, and that operating profit will increase by at least $75 million
in 2013 and at least $100 million in 2014.  These estimates are unchanged from
the projections announced in January 2012.

Charges for the restructuring actions were completed at the end of 2012, as
expected.  Fourth quarter 2012 charges totaled $30 million after tax
($50 million pre-tax), bringing cumulative charges to $375 million after tax
($550 million pre-tax), in line with the company's original projections.  Cash
costs were 32 percent of the total cumulative charges.  Fourth quarter 2012
operating profit benefits from restructuring actions were $10 million,
bringing cumulative benefits to $60 million.

Full-Year 2012 Results

Full-year 2012 sales of $21.1 billion increased 1 percent.  Organic sales rose
5 percent, as net selling prices and sales volumes each increased more than 2
percent and product mix improved slightly.  Changes in foreign currency rates
decreased sales by 3 percent and lost sales in conjunction with pulp and
tissue restructuring actions reduced sales volumes by 1 percent.  Year-to-date
operating profit of $2,686 million increased 10 percent compared to $2,442
million in 2011.  Adjusted operating profit in 2012 of $3,120 million
increased 8 percent compared to $2,889 million in 2011.  Adjusted operating
profit comparisons benefited from organic sales growth, FORCE cost savings of
$295 million and input cost deflation of $90 million.  These benefits were
partially offset by increased marketing, research and general expenses,
including $115 million in higher strategic marketing spending.  Administrative
and research spending also increased, in part to build further capabilities
and support future growth.  Foreign currency translation effects reduced
operating profit by $55 million as a result of the weakening of several
currencies relative to the U.S. dollar.  A lower level of income in other
(income) and expense, net adversely impacted the operating profit comparison
by $45 million.  Diluted net income per share was $4.42 in 2012 and $3.99 in
2011.  Adjusted earnings per share were $5.25 in 2012 and $4.80 in 2011.  The
increase in adjusted earnings per share was primarily due to higher adjusted
operating profit.  

Adjusted operating profit and adjusted earnings per share in 2012 and 2011
exclude charges for pulp and tissue restructuring actions.  Adjusted results
in 2012 also exclude charges for European strategic changes.  Adjusted results
in 2011 also exclude a non-deductible charge in the first quarter as a result
of legislation in Colombia that changed the manner in which certain business
taxes in that country are assessed.  Additional detail on these items and
further information about why the company uses these non-GAAP financial
measures are provided later in this news release.  

2013 Outlook and Key Assumptions

The company's key planning and guidance assumptions for 2013 are as follows: 
    

  o Net sales increase of 0 to 3 percent.

       o Organic sales are expected to grow 3 to 5 percent.  Organic volumes
         are anticipated to grow 2 to 3 percent, while the combination of
         higher net selling prices and improved product mix should contribute
         1 to 2 points of additional growth, driven by price increases in K-C
         International and a global focus on improving mix.
       o Lost sales as a result of European strategic changes and pulp and
         tissue restructuring actions are expected to reduce sales volumes by
         2 percent.
       o Currency rates are expected to decrease sales by 0 to 1 percent.

  o Adjusted operating profit growth of 3 to 6 percent. 

       o Cost savings from the company's FORCE program should total $250 to
         $300 million.
       o Inflation in key cost inputs of $150 to $250 million, primarily due
         to higher pulp, recycled fiber and distribution costs.  This assumes
         average market pricing for benchmark northern softwood pulp to $890
         to $910 per metric ton and average oil prices of $90 to $100 per
         barrel.
       o Strategic marketing spending is planned to increase faster than
         sales, primarily supporting product innovations and targeted growth
         initiatives.  Research and development and selling expenses are also
         expected to rise faster than sales to support growth initiatives and
         further improve capabilities.
       o The company's growth in adjusted operating profit assumes an
         approximate 1 point negative impact related to uncertainties in the
         Venezuelan operating environment.

  o Interest expense is expected to increase somewhat in 2013.
  o The adjusted effective tax rate in 2013 is anticipated to be in the 30 to
    32 percent range.
  o The company's share of net income from equity companies is expected to
    increase somewhat, driven by improved results at K-C de Mexico.
  o Adjusted earnings per share in a range of $5.50 to $5.65, up 5 to 8
    percent compared to adjusted earnings per share of $5.25 in 2012.
  o Capital spending should total $1.0 to $1.1 billion, in line with the
    company's long-term target of 4 ½ to 5 ½ percent of net sales.
  o Cash contributions to the company's defined benefit pension plans are
    expected to be $100 to $300 million.
  o Average primary working capital cash conversion cycle is anticipated to
    improve 1 day.
  o A high-single digit increase in the dividend is anticipated April 2013,
    subject to approval by the Board of Directors.
  o Share repurchases are expected to total $1.0 to $1.2 billion, subject to
    market conditions.

Non-GAAP Financial Measures

This press release and the accompanying tables include the following financial
measures that have not been calculated in accordance with accounting
principles generally accepted in the U.S., or GAAP, and are therefore referred
to as non-GAAP financial measures:

  o Adjusted earnings and earnings per share
  o Adjusted gross and operating profit
  o Adjusted effective tax rate

These non-GAAP financial measures exclude the following items: 

  o Western and Central Europe strategic changes and related restructuring
    charges.  In October 2012, the company initiated strategic changes and a
    related restructuring in its Western and Central European businesses in
    order to improve underlying profitability and focus its resources on its
    strongest market positions and growth opportunities.  The restructuring is
    expected to be completed by December 31, 2014.  Restructuring charges
    related to these strategic changes were excluded from the calculation of
    the company's earnings and earnings per share, gross and operating profit
    and effective tax rate, calculated in accordance with GAAP, for the three
    and twelve months ended December 31, 2012, and the estimated earnings per
    share and estimated effective tax rate, calculated in accordance with
    GAAP, for 2013.
  o Pulp and tissue restructuring charges.  In January 2011, the company
    initiated a pulp and tissue restructuring to exit its remaining integrated
    pulp manufacturing operations and improve the underlying profitability and
    return on invested capital of its consumer tissue and K-C Professional
    businesses.  In addition, in January 2012, the company decided to
    streamline an additional facility in North America to further enhance the
    profitability of the consumer tissue business.  The restructuring actions
    were substantially completed by December 31, 2012, including the pending
    sale of a manufacturing facility that is expected to close in the first
    half of 2013.  Pulp and tissue restructuring charges were excluded from
    the calculation of the company's earnings and earnings per share, gross
    and operating profit and the effective tax rate, calculated in accordance
    with GAAP, for the three and twelve months ended December 31, 2012 and
    December 31, 2011.
  o Non-deductible business tax charge in Colombia due to legislative change. 
    The company recorded a non-deductible charge in the first quarter of 2011
    as a result of legislation in Colombia that changed the manner in which
    certain business taxes in that country are assessed.  This assessment
    covers the period from 2011 through 2014 and impacted results for both our
    consolidated operations and our equity company in Colombia.  This item was
    excluded from the calculation of the company's earnings and earnings per
    share, operating profit and effective tax rate, calculated in accordance
    with GAAP, for the twelve months ended December 31, 2011.

In accordance with the SEC's requirements, reconciliations of the non-GAAP
financial measures to the comparable GAAP financial measures are attached.

In addition, this press release includes information regarding organic sales,
which exclude the impact of changes in foreign currency rates and lost sales
in conjunction with pulp and tissue restructuring actions.

The company provides these non-GAAP financial measures as supplemental
information to our GAAP financial measures.  Management and the company's
Board of Directors use adjusted earnings, adjusted earnings per share and
adjusted gross and operating profit to (a) evaluate the company's historical
and prospective financial performance and its performance relative to its
competitors, (b) allocate resources and (c) measure the operational
performance of the company's business units and their managers.  Management
also believes that the use of adjusted effective tax rate provides improved
insight into the tax effects of our ongoing business operations.

Additionally, the Management Development and Compensation Committee of the
company's Board of Directors has used certain of the non-GAAP financial
measures when setting and assessing achievement of incentive compensation
goals.  These goals are based, in part, on the company's adjusted earnings per
share and improvement in the company's adjusted return on invested capital and
adjusted operating profit return on sales determined by excluding certain of
the charges that are used in calculating these non-GAAP financial measures.

In addition, Kimberly-Clark management believes that investors' understanding
of the company's performance is enhanced by including these non-GAAP financial
measures as a reasonable basis for comparing the company's ongoing results of
operations.  Many investors are interested in understanding the performance of
our businesses by comparing our results from ongoing operations from one
period to the next.  By providing these non-GAAP financial measures, together
with reconciliations, we believe we are enhancing investors' understanding of
our businesses and our results of operations.  Also, many financial analysts
who follow our company focus on and publish both historical results and future
projections based on non-GAAP financial measures.  We believe that it is in
the best interests of our investors for us to provide this information to
analysts so that those analysts accurately report the non-GAAP financial
information.

These non-GAAP financial measures are not meant to be considered in isolation
or as a substitute for the comparable GAAP measures.  There are limitations to
these non-GAAP financial measures because they are not prepared in accordance
with GAAP and may not be comparable to similarly titled measures of other
companies due to potential differences in methods of calculation and items
being excluded.  The company compensates for these limitations by using these
non-GAAP financial measures as a supplement to the GAAP measures and by
providing reconciliations of the non-GAAP and comparable GAAP financial
measures.  The non-GAAP financial measures should be read only in conjunction
with the company's consolidated financial statements prepared in accordance
with GAAP.

Conference Call

A conference call to discuss this news release and other matters of interest
to investors and analysts will be held at 9 a.m. (CST) today.  The conference
call will be simultaneously broadcast over the World Wide Web.  Stockholders
and others are invited to listen to the live broadcast or a playback, which
can be accessed by following the instructions set out in the Investors section
of the company's Web site (www.kimberly-clark.com).

About Kimberly-Clark

Kimberly-Clark and its well-known global brands are an indispensable part of
life for people in more than 175 countries.  Every day, nearly a quarter of
the world's population trust K-C brands and the solutions they provide to
enhance their health, hygiene and well-being.  With brands such as Kleenex,
Scott, Huggies, Pull-Ups, Kotex and Depend, Kimberly-Clark holds No. 1 or No.
2 share positions in more than 80 countries.  To keep up with the latest K-C
news and to learn more about the company's 141 year history of innovation,
visit www.kimberly-clark.com.

Copies of Kimberly-Clark's Annual Report to Stockholders and its proxy
statements and other SEC filings, including Annual Reports on Form 10-K,
Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, are made
available free of charge on the company's Web site on the same day they are
filed with the SEC.  To view these filings, visit the Investors section of the
company's Web site.

Certain matters contained in this news release concerning the business
outlook, including anticipated financial and operating results, the
anticipated costs, scope, timing and financial and other effects of the
Western and Central Europe strategic changes and the pulp and tissue
restructuring actions, dividends and share repurchases, marketing, research,
innovation, capital and other spending and expenses, cost savings and
reductions, raw material, energy and other input costs, cash flow sources and
uses of cash, changes in finished product selling prices, market demand and
economic conditions, anticipated currency rates and exchange risks, the
effective tax rate, contingencies and anticipated transactions of the company
constitute forward-looking statements and are based upon management's
expectations and beliefs concerning future events impacting the company. 
There can be no assurance that these future events will occur as anticipated
or that the company's results will be as estimated.  Forward-looking
statements speak only as of the date they were made, and we undertake no
obligation to publicly update them.  For a description of certain factors that
could cause the company's future results to differ from those expressed in any
such forward-looking statements, see Item 1A of the company's Annual Report on
Form 10-K for the year ended December 31, 2011 entitled "Risk Factors."

 

KIMBERLY-CLARK CORPORATION

CONSOLIDATED INCOME STATEMENT

(Millions, except per share amounts)

 
                                                    Three Months Ended

                                                    December 31
                                                    2012      2011      Change
Net sales                                           $ 5,307   $ 5,176   +2.5%
Cost of products sold                               3,783     3,632     +4.2%
Gross profit                                        1,524     1,544     -1.3%
Marketing, research and general expenses            1,066     957       +11.4%
Other (income) and expense, net                     9         (24)      N.M.
Operating profit                                    449       611       -26.5%
Interest income                                     5         5         -
Interest expense                                    (72)      (72)      -
Income before income taxes and equity interests     382       544       -29.8%
Provision for income taxes                          (147)     (161)     -8.7%
Income before equity interests                      235       383       -38.6%
Share of net income of equity companies             51        39        +30.8%
Net income                                          286       422       -32.2%
Net income attributable to noncontrolling interests (19)      (21)      -9.5%
Net income attributable to Kimberly-Clark           $ 267     $ 401     -33.4%
Corporation
Per share basis – diluted net income attributable   $ 0.68    $ 1.01    -32.7%
to Kimberly-Clark Corporation
COMMON SHARES INFORMATION
                                                    December 31
                                                    2012      2011
Outstanding shares as of                            389.3     395.7
Average diluted shares for three months ended       393.5     397.8
Cash dividends declared per share for three months  $ 0.74    $ 0.70
ended
N.M. – Not meaningful

 

 

KIMBERLY-CLARK CORPORATION

CONSOLIDATED INCOME STATEMENT

(Millions, except per share amounts)

 
                                                  Twelve Months Ended

                                                  December 31
                                                  2012       2011       Change
Net sales                                         $ 21,063   $ 20,846   +1.0%
Cost of products sold                             14,314     14,694     -2.6%
Gross profit                                      6,749      6,152      +9.7%
Marketing, research and general expenses          4,069      3,761      +8.2%
Other (income) and expense, net                   (6)        (51)       -88.2%
Operating profit                                  2,686      2,442      +10.0%
Interest income                                   18         18         —
Interest expense                                  (284)      (277)      +2.5%
Income before income taxes and equity interests   2,420      2,183      +10.9%
Provision for income taxes                        (768)      (660)      +16.4%
Income before equity interests                    1,652      1,523      +8.5%
Share of net income of equity companies           176        161        +9.3%
Net income                                        1,828      1,684      +8.6%
Net income attributable to noncontrolling         (78)       (93)       -16.1%
interests
Net income Attributable to Kimberly-Clark         $ 1,750    $ 1,591    +10.0%
Corporation
Per share basis – diluted net income attributable $ 4.42     $ 3.99     +10.8%
to Kimberly-Clark Corporation
COMMON SHARES INFORMATION
                                                  December 31
                                                  2012       2011
Average diluted shares for twelve months ended    396.1      398.6
Cash dividends declared per share for twelve      $ 2.96     $ 2.80
months ended

    

KIMBERLY-CLARK CORPORATION

NON-GAAP RECONCILIATIONS

(Millions, except per share amounts)

 
                       Three Months Ended December 31, 2012
                                  Pulp and
                                                                     As
                       As         Tissue         Charges for
                                                 European Strategic  Adjusted
                       Reported   Restructuring  Changes
                                                                     Non-GAAP
                                  Charges
Cost of products sold  $ 3,783    $    45        $      250          $ 3,488
Gross profit           1,524      (45)           (250)               1,819
Marketing, research    1,066      4              49                  1,013
and general expenses
Other (income) and     9          1              —                   8
expense, net
Operating profit       449        (50)           (299)               798
Income before income
taxes and equity       382        (50)           (299)               731
interests
Provision for income   (147)      20             57                  (224)
taxes
Effective tax rate     38.5    %  —              —                   30.6    %
Income before equity   235        (30)           (242)               507
interests
Net income             286        (30)           (242)               558
Net income
attributable to
Kimberly-Clark         267        (30)           (242)               539

   Corporation
Diluted earnings per   0.68       (0.08)         (0.61)              1.37
share

    

                                          Three Months Ended December 31, 2011
                                                      Pulp and
                                                                     As
                                          As          Tissue
                                                                     Adjusted
                                          Reported    Restructuring
                                                                     Non-GAAP
                                                      Charges
Cost of products sold                     $  3,632    $    145       $ 3,487
Gross profit                              1,544       (145)          1,689
Marketing, research and general expenses  957         1              956
Other (income) and expense, net           (24)        2              (26)
Operating profit                          611         (148)          759
Income before income taxes and equity     544         (148)          692
interests
Provision for income taxes                (161)       41             (202)
Effective tax rate                        29.6     %  —              29.2    %
Income before equity interests            383         (107)          490
Net income                                422         (107)          529
Net income attributable to
Kimberly-Clark                            401         (107)          508

   Corporation
Diluted earnings per share                1.01        (0.27)         1.28

    

 

KIMBERLY-CLARK CORPORATION

NON-GAAP RECONCILIATIONS

(Millions, except per share amounts)

 
                            Twelve Months Ended December 31, 2012
                                        Pulp and
                                                       Charges for  As
                            As          Tissue         European
                                                       Strategic    Adjusted
                            Reported    Restructuring  Changes
                                                                    Non-GAAP
                                        Charges
Cost of products sold       $ 14,314    $    128       250          $ 13,936
Gross profit                6,749       (128)          (250)        7,127
Marketing, research and     4,069       6              49           4,014
general expenses
Other (income) and          (6)         1              —            (7)
expense, net
Operating profit            2,686       (135)          (299)        3,120
Income before income taxes  2,420       (135)          (299)        2,854
and equity interests
Provision for income taxes  (768)       49             57           (874)
Effective tax rate          31.7     %  —              —            30.6     %
Income before equity        1,652       (86)           (242)        1,980
interests
Share of net income of      176         —              —            176
equity companies
Net income                  1,828       (86)           (242)        2,156
Net income attributable to
Kimberly-Clark              1,750       (86)           (242)        2,078

   Corporation
Diluted earnings per share  4.42        (0.22)         (0.61)       5.25

    

                               Twelve Months Ended December 31, 2011
                                           Pulp and
                                                          Business  As
                               As           Tissue
                                                          Tax       Adjusted
                               Reported    Restructuring
                                                          Charge    Non-GAAP
                                           Charges
Cost of products sold          $ 14,694    $    407       $    —    $ 14,287
Gross profit                   6,152       (407)          —         6,559
Marketing, research and        3,761       6              32        3,723
general expenses
Other (income) and expense,    (51)        2              —         (53)
net
Operating profit               2,442       (415)          (32)      2,889
Income before income taxes     2,183       (415)          (32)      2,630
and equity interests
Provision for income taxes     (660)       126            —         (786)
Effective tax rate             30.2     %  —              —         29.9     %
Income before equity           1,523       (289)          (32)      1,844
interests
Share of net income of equity  161         —              (3)       164
companies
Net income                     1,684       (289)          (35)      2,008
Net income attributable to
Kimberly-Clark                 1,591       (289)          (35)      1,915

   Corporation
Diluted earnings per           3.99        (0.73)         (0.09)    4.80
share^(a)

    

       The sum of the diluted earnings per share shown for "Pulp and Tissue
^(a)   Restructuring Charges", "Business Tax Charge" and "As Adjusted
       Non-GAAP" does not equal "As Reported" as a result of rounding.

 

KIMBERLY-CLARK CORPORATION

SUPPLEMENTAL FINANCIAL INFORMATION

(Millions)

 
PRELIMINARY BALANCE SHEET DATA
                                                      December 31  December 31

                                                      2012         2011
Assets
Cash and cash equivalents                             $  1,106     $  764
Accounts receivable, net                              2,642        2,602
Inventories                                           2,348        2,356
Total current assets                                  6,589        6,283
Total assets                                          19,873       19,373
Liabilities and Stockholders' Equity
Trade accounts payable                                $  2,443     $  2,388
Debt payable within one year                          1,115        706
Total current liabilities                             6,091        5,397
Long-term debt                                        5,070        5,426
Redeemable preferred and common securities of         549          547
subsidiaries
Total stockholders' equity                            5,287        5,529

    

PRELIMINARY CASH FLOW DATA
                               Three Months Ended  Twelve Months Ended

                               December 31         December 31
                               2012        2011    2012       2011
Depreciation and amortization  $  215      $ 270   $  857     $ 1,091
Cash provided by operations    1,119       517     3,288      2,288
Capital spending               330         312     1,093      968
Cash used for investing        455         286     1,184      681
Cash dividends paid            292         275     1,151      1,099
Cash used for financing        816         710     1,802      1,741

 

KIMBERLY-CLARK CORPORATION

SELECTED BUSINESS SEGMENT DATA

(Millions)

 
                      Three Months Ended          Twelve Months Ended

                      December 31                 December 31
                      2012      2011      Change  2012       2011       Change
NET SALES
Personal Care         $ 2,380   $ 2,210   +7.7%   $ 9,576    $ 9,128    +4.9%
Consumer Tissue       1,675     1,716     -2.4%   6,527      6,770      -3.6%
K-C Professional &    825       817       +1.0%   3,283      3,294      -0.3%
Other
Health Care           410       420       -2.4%   1,622      1,606      +1.0%
Corporate & Other     17        13        N.M.    55         48         N.M.
Consolidated          $ 5,307   $ 5,176   +2.5%   $ 21,063   $ 20,846   +1.0%
OPERATING PROFIT
Personal Care         $ 419     $ 341     +22.9%  $ 1,660    $ 1,526    +8.8%
Consumer Tissue       235       246       -4.5%   887        775        +14.5%
K-C Professional &    138       127       +8.7%   545        487        +11.9%
Other
Health Care           61        60        +1.7%   229        219        +4.6%
Corporate &           (395)     (187)     N.M.    (641)      (616)      N.M.
Other^(a)(b)
Other (income) and    9         (24)      N.M.    (6)        (51)       -88.2%
expense, net^(c)
Consolidated          $ 449     $ 611     -26.5%  $ 2,686    $ 2,442    +10.0%

    

       For the three months ended December 31, 2012 and 2011, Corporate &
       Other includes charges related to the pulp and tissue restructuring
^(a)   actions of $49 million and $146 million, respectively.  In addition,
       for the three months ended December 31, 2012, Corporate & Other
       includes charges of $299 million related to the European strategic
       changes.
       For the twelve months ended December 31, 2012 and 2011, Corporate &
       Other includes charges related to the pulp and tissue restructuring
       actions of $134 million and $413 million, respectively.  For the twelve
^(b)   months ended December 31, 2012 charges of $299 million related to the
       European strategic changes were included in Corporate & Other.  In
       addition, for the twelve months ended December 31, 2011, Corporate &
       Other includes a non-deductible business tax charge of $32 million
       related to a law change in Colombia.
       For the three and twelve month periods, Other (income) and expense, net
^(c)   includes pulp and tissue restructuring charges of $1 million in 2012
       and $2 million in 2011.
N.M. – Not meaningful

 

 

KIMBERLY-CLARK CORPORATION

SELECTED BUSINESS SEGMENT DATA

 
PERCENTAGE CHANGE IN NET SALES VERSUS PRIOR YEAR

 
              Three Months Ended December 31, 2012
                      Organic  Restructuring  Total   Net    Mix/
              Total   Volume   Impact on                                Currency
                               Volume^(a)     Volume  Price  Other^(b)
Consolidated  2.5     3        (1)            2       2      —          (1)
Personal      7.7     6        —              6       3      —          (1)
Care
Consumer      (2.4)   1        (3)            (2)     2      (1)        (1)
Tissue
K-C
Professional  1.0     2        (1)            1       1      —          (1)
& Other
Health Care   (2.4)   (1)      —              (1)     (1)    1          (1)

    

              Twelve Months Ended December 31, 2012
                      Organic  Restructuring  Total   Net    Mix/
              Total   Volume   Impact on                                Currency
                               Volume^(a)     Volume  Price  Other^(b)
Consolidated  1.0     2        (1)            1       2      1          (3)
Personal      4.9     5        —              5       3      —          (3)
Care
Consumer      (3.6)   —        (3)            (3)     2      (1)        (2)
Tissue
K-C
Professional  (0.3)   2        (1)            1       1      —          (2)
& Other
Health Care   1.0     2        —              2       —      —          (1)

    

^ (a) Lost volume related to the pulp and tissue restructuring actions.
^ (b) Mix/Other includes rounding.

 

KIMBERLY-CLARK CORPORATION

PERIODS ENDED DECEMBER 31
OUTLOOK FOR 2013

 

ESTIMATED FULL YEAR 2013 DILUTED EARNINGS PER SHARE

 
Adjusted earnings per share                                $ 5.50   -  $ 5.65
Adjustment for charges related to European strategic       (.22)    -  —
changes
Per share basis – diluted net income attributable to       $ 5.28   -  $ 5.65
Kimberly-Clark Corporation

    

ESTIMATED FULL YEAR 2013 EFFECTIVE TAX RATE

 
Adjusted effective tax rate                                  30.0 %  -  32.0 %
Adjustment for restructuring charges related to European     —       -  1.0
strategic changes
Effective tax rate                                           30.0 %  -  33.0 %

    

 

SOURCE Kimberly-Clark Corporation

Website: http://www.kimberly-clark.com
Contact: Investor Relations, Paul Alexander, +1-972-281-1440,
palexand@kcc.com, or Media Relations, Bob Brand, +1-972-281-5335,
bob.brand@kcc.com
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