By RTT News, October 22, 2013, 09:09:00 AM EDT
(RTTNews.com) - Healthcare products maker Kimberly-Clark Corp. ( KMB ) Tuesday reported higher profit and revenue for the third quarter that topped Wall Street estimates. Further, the company lifted the low end of its profit forecast for the year.
Net income attributable to the company increased to $546 million or $1.42 per share from $517 million or $1.30 per share last year.
Adjusted income for the quarter was $556 million or $1.44 per share, driven by organic sales growth, cost savings, a lower effective tax rate and a decreased share count. Adjusted earnings totaled $533 million or $1.34 per share last year.
On average, 16 analysts polled by Thomson Reuters expected the company to report earnings per share of $1.40 for the quarter. Analysts' estimates typically exclude special items.
Net sales advanced to $5.26 billion from $5.25 billion a year ago. Analysts expected revenue of $5.23 billion for the quarter.
Organic sales rose 5 percent, with increased sales volumes of 3 percent, higher net selling prices of 1 percent and improved product mix of 1 percent.
Changes in foreign currency exchange rates as well as lost sales in conjunction with European strategic changes and pulp and tissue restructuring actions, each reduced sales by more than 2 percent.
Personal Care Segment's sales slid 1 percent to $2.4 billion. Lost sales as a result of European strategic changes reduced sales volumes by 4 percent and currency rates hurt 3 percent. Sales in North America were even while Sales in K-C International increased 3 percent despite a 6 point negative impact from changes in currency rates.
In the Consumer Tissue Segment, sales rose 1 percent to $1.6 billion. Net selling prices rose 3 percent and higher organic sales volumes and favorable product mix each added 1 point of growth. Sales in North America rose 4 percent while Sales in K-C International grew 4 percent, despite a 7 point adverse currency impact.
Further, the company noted that restructuring costs for the strategic actions in the Western and Central European Businesses, to be incurred through 2014, are expected to be toward the high end of the previously communicated range of $350 to $400 million pre-tax.
The company expects adjusted earnings per share for 2013 to be $5.65 to $5.75, up 8 percent to 10 percent from 2012. The previous projection for 2013 adjusted earnings per share was $5.60 to $5.75. Analysts expect the company to report fiscal 2013 profit per share of $5.68.
KMB closed at $98.83 on Monday and is up 2.7 percent in pre-market trading.
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