Kimberly-Clark (K-C) has said it “continues to be optimistic” about its prospects to drive profitable growth and generate attractive returns as it reports its 2Q results.
For the three months ended 30 June 2013, its consumer tissue segment reported sales of $1.6bn, an increase of 2% compared to a year ago.
Organic sales volumes improved 3% and net selling prices were up 1%.
The business said that lost sales in conjunction with European strategic changes and pulp and tissue restructuring actions reduced sales volumes by 1% and currency rates were unfavorable by one point.
The division’s second quarter operating profit of $220 million was even with the previous year, a comparison the company said has benefited from organic sales growth and higher production volumes in 2013.
Sales in the company’s North America consumer tissue division increased 3% while sales volumes were up 2% driven by growth on Cottonelle bathroom tissue.
Sales increased 8% in K-C International while sales in Europe decreased 8% in conjunction with European strategic changes and pulp and tissue restructuring actions.
As a group, the company reported net sales of $5.3bn, a figure that was even with the same time a year ago.
Operating profit was $796m in the second quarter of 2013, up 6% from $754m in 2012.
Chairman and chief executive Thomas J. Falk said: “We delivered another solid quarter of results while we continued to execute our Global Business Plan strategies.
“We achieved 3% organic sales growth, as excellent results in K-C International more than offset mixed volume performance in the developed markets.
“We also launched a number of product innovations and continued to allocate capital in shareholder-friendly ways. At the half way point of the year, I am encouraged by our progress overall.”
K-C will continue to target organic sales growth of 3-5% led by K-C International.
Falk added: “If recent spot currency rates generally hold going forward, it is less likely that adjusted earnings per share will be in the upper half of our guidance range. “Although the macro environment has become more volatile recently, we continue to be optimistic about our prospects to drive profitable growth and to generate attractive returns to shareholders.”
