Kimberly-Clark Corporation reported that net sales in the second quarter of 2007 increased 8.2 percent to $4.5 billion, establishing a new quarterly record for the twelfth consecutive quarter. The improvement was broad-based, with organic sales growth of 5 percent or better for the company’s Personal Care, Consumer Tissue and K-C Professional & Other businesses and continued double-digit sales gains in developing and emerging markets. In addition, changes in currency exchange rates benefited sales by about 3 percent.
Diluted net income per share was $1.00 compared with 82 cents in the prior year. Adjusted earnings in the second quarter of 2007 were $1.04 per share, up more than 9 percent from 95 cents per share in 2006 and slightly above the company’s previous guidance range of $1.01 to $1.03 per share.
The higher sales, along with continued success in reducing costs, enabled the company to deliver a 7 percent increase in adjusted operating profit for the quarter while increasing strategic marketing expenses by $13 million and absorbing approximately $85 million of cost inflation. A lower effective tax rate also contributed to the bottom-line improvement versus the year-ago period.
Adjusted earnings exclude charges for strategic cost reductions to streamline the company’s operations in both years and certain incremental implementation costs related to the strategic cost reduction plan in 2007. Further information about adjusted earnings and other non-GAAP financial measures is provided on pages 7-9.
Diluted net income per share was $1.00 compared with 82 cents in the prior year. Adjusted earnings in the second quarter of 2007 were $1.04 per share, up more than 9 percent from 95 cents per share in 2006 and slightly above the company’s previous guidance range of $1.01 to $1.03 per share.
The higher sales, along with continued success in reducing costs, enabled the company to deliver a 7 percent increase in adjusted operating profit for the quarter while increasing strategic marketing expenses by $13 million and absorbing approximately $85 million of cost inflation. A lower effective tax rate also contributed to the bottom-line improvement versus the year-ago period.
Adjusted earnings exclude charges for strategic cost reductions to streamline the company’s operations in both years and certain incremental implementation costs related to the strategic cost reduction plan in 2007. Further information about adjusted earnings and other non-GAAP financial measures is provided on pages 7-9.
