FMCG giant Kimberly-Clark has said it expects a higher full-year profit than it had earlier forecast, boosted by the strong results seen in its third quarter. For the quarter, net profit jumped up 41% to $582m ($1.40 a share), from $413m (99 cents) last year, easily beating analysts’ expectations.
However, revenue was down 1.7% to $4.91bn, with drops in its two main units. Sales in the personal care unit, which includes Huggies baby wipes, declined by about 1%, and sales in the unit that includes Kleenex tissue was down 5%. The one unit that did show growth was the healthcare unit, where sales rose by 16%.
The company said profit was helped by its earlier announced plans to cut about 3% of its global workforce by end-2009, and by the lower costs of materials this year (raw materials costs fell by more than $270m in the quarter). The group has also been introducing higher-margin products, as it looks to widen its health-care investment.
Chairman and CEO Thomas Falk said consumers continue to feel some pressure, adding, “I wouldn't say it's getting a lot worse, but it's not getting a lot better, either”. He also noted that in some categories, consumers are “tending to load up at the beginning of month”.
For the year, Kimberly-Clark said it now expects to earn $4.50 to $4.60 per share, up from a July forecast of $4.10 to $4.25 a share. It also said it expects sales to drop by just 2%, from a previous forecast 4-6% fall.
Namnews - Friday 23rd October 2009
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