Kimberly-Clark Announces Year-End 2017 Results, 2018 Outlook, New Global Restructuring And Multi-Year Cost Savings Target
Executive Summary
- Fourth quarter 2017 net sales of
$4.6 billion increased 1 percent compared to the year-ago period and full-year 2017 net sales of$18.3 billion rose slightly. - Diluted net income per share for the fourth quarter was
$1.75 in 2017 and$1.40 in 2016. Full-year diluted net income per share was$6.40 in 2017 and$5.99 in 2016. - Fourth quarter adjusted earnings per share were
$1.57 in 2017 and$1.45 in 2016. Adjusted earnings per share exclude certain items described later in this news release. - Full-year adjusted earnings per share were
$6.23 in 2017, up 3 percent compared to$6.03 in 2016. The company's previous guidance was for earnings at the low end of the$6.20 to$6.35 range. - The company has established a cost savings target of more than
$1.5 billion over the 2018 to 2021 time period from its ongoing FORCE (Focused On Reducing Costs Everywhere) program. - In addition, the company announced a new 2018 Global Restructuring Program to reduce the company's structural cost base by streamlining and simplifying its manufacturing supply chain and overhead organization. The restructuring is expected to generate annual cost savings of
$500 to$550 million by the end of 2021 and accelerate the company's return to delivering its long-term growth objectives over time. - Net sales in 2018 are expected to increase 1 to 2 percent. Diluted net income per share for 2018 is anticipated to be
$3.90 to$4.50 , including charges related to the restructuring. Adjusted earnings per share in 2018 are expected to be$6.90 to$7.20 , a year-on-year increase of approximately 11 to 16 percent. - The company's Board of Directors has approved a 3.1 percent increase in the quarterly dividend for 2018, which is the 46th consecutive annual increase in the dividend.
Chairman and Chief Executive Officer
Falk continued, "Although we expect market conditions will remain challenging in the near-term, we plan to deliver better results in 2018 while we begin to implement our new restructuring. We expect organic sales to return to growth while improving our margins and delivering double-digit growth in adjusted earnings per share. In addition, we will increase investments in our brands, our growth initiatives and the capabilities we need for long-term success. We will also continue to allocate capital in shareholder-friendly ways."
Falk concluded, "We believe that, over time, our 2018 Global Restructuring Program will accelerate our return to delivering on our long-term growth objectives. This is the biggest restructuring we have undertaken since the introduction of our Global Business Plan in 2003, and it will make our company leaner, stronger and faster. The changes we are making will improve our underlying profitability, provide more flexibility to invest in growth opportunities and help us compete even more effectively. At the same time, we are expecting our ongoing FORCE program to continue to deliver significant results and are making that clear by establishing a multi-year commitment for this program. Combined, our restructuring and FORCE programs will generate more than
Fourth Quarter 2017 Operating Results
Sales of
Fourth quarter operating profit was
The fourth quarter effective tax rate was 19.2 percent in 2017 and 35.7 percent in 2016. The rate in 2017 included a net benefit as a result of
Cash Flow and Balance Sheet
Cash provided by operations in the fourth quarter was
Fourth quarter 2017 share repurchases were 0.9 million shares at a cost of
FORCE Cost Savings Target
The company has established a four-year cost savings target of more than
2018 Global Restructuring Program - Overview
The 2018 Global Restructuring Program is expected to reduce Kimberly-Clark's structural cost base and enhance the company's flexibility to invest in its brands, growth initiatives and capabilities critical to delivering future growth. The program will make Kimberly-Clark's overhead organization structure and manufacturing supply chain less complex and more efficient. Over time, the program is expected to accelerate the company's return to delivering sales and earnings growth in line with its Global Business Plan objectives and further enhance long-term shareholder value.
The company expects the program will generate annual pre-tax cost savings of
The company expects to close or sell approximately 10 manufacturing facilities and expand production capacity at several others to improve overall scale and cost. As part of the program, Kimberly-Clark expects to exit or divest some low-margin businesses that generate approximately 1 percent of company net sales. The sales are concentrated in the consumer tissue business segment.
To implement the restructuring program, the company expects total cash spending of
The company also expects to incur non-cash restructuring charges of
Fourth Quarter 2017 Business Segment Results
Personal Care Segment
Fourth quarter sales of
Sales in
Sales in developing and emerging markets increased 7 percent. Volumes increased 4 percent and product mix improved 3 percent, while net selling prices were down 3 percent. In addition, the acquisition of the company's joint venture in
Sales in developed markets outside
Consumer Tissue Segment
Fourth quarter sales of
Sales in
Sales in developing and emerging markets increased 4 percent, including a 2 point benefit from favorable currency rates. Volumes increased 3 percent, while the combined impact of changes in net selling prices and product mix reduced sales by 1 percent.
Sales in developed markets outside
K-C Professional (KCP) Segment
Fourth quarter sales of
Sales in
Sales in developing and emerging markets increased 6 percent, including a 3 point benefit from currency rates. Volumes were up 3 percent, primarily in
Sales in developed markets outside
Full Year 2017 Results
Sales of
Operating profit was
Diluted net income per share was
2018 Outlook and Key Planning Assumptions
The company's key planning and guidance assumptions for 2018 are as follows:
- Net sales increase of 1 to 2 percent.
- Organic sales are expected to increase approximately 1 percent, driven by higher volumes. Changes in net selling prices and product mix are expected to be similar, or up slightly, year-on-year.
- Changes in foreign currency exchange rates are anticipated to have a neutral to 1 percent positive impact on net sales, and the acquisition of the company's joint venture in
India should benefit sales slightly. - Adjusted operating profit growth of 2 to 5 percent.
- Cost savings of approximately
$400 million from the FORCE program and$50 to$70 million from the 2018 Global Restructuring Program. - Inflation in key cost inputs of
$300 to$400 million . A majority of the inflation is anticipated to occur in international markets. InNorth America , the company is assuming market prices of$1,050 to$1,100 per metric ton for eucalyptus pulp and mid-$50's to low-$60's per barrel for oil. - Interest expense down approximately 20 percent, including benefits from redeeming, in
December 2017 ,$500 million of notes originally due in late 2018. - Adjusted effective tax rate of 23 to 26 percent.
- Net income from equity companies similar, or up slightly, year-on-year.
- Adjusted earnings per share of
$6.90 to$7.20 , up approximately 11 to 16 percent compared to$6.23 in 2017. - Capital spending of approximately
$1.1 billion .
Dividend increase of 3.1 percent (approved by the Board of Directors and mentioned previously in this release). The quarterly dividend will increase to$1.00 per share, up from$0.97 per share in 2017. The first dividend will be payable onApril 3, 2018 to stockholders of record onMarch 9, 2018 . - Share repurchases between
$0.7 and$0.9 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
- Adjusted earnings and earnings per share
- Adjusted gross and operating profit
- Adjusted other (income) and expense, net
- Adjusted effective tax rate
These non-GAAP financial measures exclude the following items for the relevant time periods as indicated in the accompanying non-GAAP reconciliations to the comparable GAAP financial measures:
- 2018 Global Restructuring Program. Mentioned elsewhere in this release.
U.S. tax reform. In the fourth quarter of 2017, the company recognized a net benefit as a result ofU.S. tax reform and related activities.- 2014 Organization Restructuring. In
October 2014 , the company initiated a restructuring program in order to improve organization efficiency and offset the impact of stranded overhead costs resulting from the spin-off of the company's health care business. As a result, the company recognized restructuring charges in 2014, 2015 and 2016. - Venezuelan operations. In the second quarter of 2016, the company recorded a modest amount of income related to an updated assessment of the impact of deconsolidating the company's Venezuelan business at the end of 2015.
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 an adjusted effective tax rate provides improved insight into the tax effects of our ongoing business operations.
Additionally, the
This news release includes information regarding organic sales growth, which describes the impact of changes in volume, net selling prices and product mix on net sales. Changes in foreign currency exchange rates and acquisitions and divestitures also impact the year-over-year change in net sales.
Conference Call
A conference call to discuss this news release and other matters of interest to investors and analysts will be held at
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 80 countries. To keep up with the latest K-C news and to learn more about the company's 146-year history of innovation, visit www.kimberly-clark.com.
Copies of Kimberly-Clark's Annual Report to Stockholders and its proxy statements and other
Certain matters contained in this news release concerning the outlook, anticipated financial and operating results, raw material, energy and other input costs, anticipated currency rates and exchange risks, net income from equity companies, sources and uses of cash, the effective tax rate, the anticipated cost savings from the company's FORCE program, charges and savings from the 2018 Global Restructuring Program, growth initiatives, 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
| ||||||||||
CONSOLIDATED INCOME STATEMENT | ||||||||||
(Millions, except per share amounts) | ||||||||||
Three Months Ended |
||||||||||
2017 |
2016 |
Change | ||||||||
|
$ |
4,582 |
$ |
4,544 |
+1 |
% | ||||
Cost of products sold |
2,984 |
2,866 |
+4 |
% | ||||||
Gross Profit |
1,598 |
1,678 |
-5 |
% | ||||||
Marketing, research and general expenses |
759 |
821 |
-8 |
% | ||||||
Other (income) and expense, net |
27 |
18 |
+50 |
% | ||||||
Operating Profit |
812 |
839 |
-3 |
% | ||||||
Interest income |
3 |
2 |
+50 |
% | ||||||
Interest expense |
(72) |
(81) |
-11 |
% | ||||||
Income Before Income Taxes and Equity Interests |
743 |
760 |
-2 |
% | ||||||
Provision for income taxes |
(143) |
(271) |
-47 |
% | ||||||
Income Before Equity Interests |
600 |
489 |
+23 |
% | ||||||
Share of net income of equity companies |
25 |
29 |
-14 |
% | ||||||
Net Income |
625 |
518 |
+21 |
% | ||||||
Net income attributable to noncontrolling interests |
(8) |
(13) |
-38 |
% | ||||||
Net Income Attributable to |
$ |
617 |
$ |
505 |
+22 |
% | ||||
Per Share Basis |
||||||||||
Net Income Attributable to |
||||||||||
Basic |
$ |
1.76 |
$ |
1.41 |
+25 |
% | ||||
Diluted |
$ |
1.75 |
$ |
1.40 |
+25 |
% | ||||
Cash Dividends Declared |
$ |
0.97 |
$ |
0.92 |
+5 |
% | ||||
Common Shares Outstanding |
|
|||||||||
2017 |
2016 |
|||||||||
Outstanding shares as of |
351.1 |
356.6 |
||||||||
Average diluted shares for three months ended |
353.4 |
359.6 |
||||||||
Unaudited |
| ||||||||||
CONSOLIDATED INCOME STATEMENT | ||||||||||
(Millions, except per share amounts) | ||||||||||
Twelve Months Ended |
||||||||||
2017 |
2016 |
Change | ||||||||
|
$ |
18,259 |
$ |
18,202 |
— |
|||||
Cost of products sold |
11,706 |
11,551 |
+1 |
% | ||||||
Gross Profit |
6,553 |
6,651 |
-1 |
% | ||||||
Marketing, research and general expenses |
3,227 |
3,326 |
-3 |
% | ||||||
Other (income) and expense, net |
27 |
8 |
N.M. |
|||||||
Operating Profit |
3,299 |
3,317 |
-1 |
% | ||||||
Interest income |
10 |
11 |
-9 |
% | ||||||
Interest expense |
(318) |
(319) |
— |
|||||||
Income Before Income Taxes and Equity Interests |
2,991 |
3,009 |
-1 |
% | ||||||
Provision for income taxes |
(776) |
(922) |
-16 |
% | ||||||
Income Before Equity Interests |
2,215 |
2,087 |
+6 |
% | ||||||
Share of net income of equity companies |
104 |
132 |
-21 |
% | ||||||
Net Income |
2,319 |
2,219 |
+5 |
% | ||||||
Net income attributable to noncontrolling interests |
(41) |
(53) |
-23 |
% | ||||||
Net Income Attributable to |
$ |
2,278 |
$ |
2,166 |
+5 |
% | ||||
Per Share Basis |
||||||||||
Net Income Attributable to |
||||||||||
Basic |
$ |
6.44 |
$ |
6.03 |
+7 |
% | ||||
Diluted |
$ |
6.40 |
$ |
5.99 |
+7 |
% | ||||
Cash Dividends Declared |
$ |
3.88 |
$ |
3.68 |
+5 |
% | ||||
Common Shares Outstanding |
|
|||||||||
2017 |
2016 |
|||||||||
Average diluted shares for twelve months ended |
355.9 |
361.7 |
||||||||
N.M. - Not Meaningful |
2017 Data is Unaudited |
|
|||||||||||||
NON-GAAP RECONCILIATIONS |
|||||||||||||
(Millions, except per share amounts) |
|||||||||||||
Three Months Ended |
|||||||||||||
As Reported |
Related |
As Adjusted Non-GAAP |
|||||||||||
Other (income) and expense, net |
$ |
27 |
$ |
24 |
$ |
3 |
|||||||
Operating profit |
812 |
(24) |
836 |
||||||||||
Income before income taxes and equity interests |
743 |
(24) |
767 |
||||||||||
Provision for income taxes |
(143) |
85 |
(228) |
||||||||||
Effective tax rate |
19.2 |
% |
— |
29.7 |
% |
||||||||
Net income attributable to |
617 |
61 |
556 |
||||||||||
Diluted earnings per share(a) |
1.75 |
0.17 |
1.57 |
||||||||||
Three Months Ended |
|||||||||||||
As Reported |
Charges for Organization |
As Adjusted Non-GAAP |
|||||||||||
Cost of products sold |
$ |
2,866 |
$ |
3 |
$ |
2,863 |
|||||||
Gross profit |
1,678 |
(3) |
1,681 |
||||||||||
Marketing, research and general expenses |
821 |
17 |
804 |
||||||||||
Operating profit |
839 |
(20) |
859 |
||||||||||
Income before income taxes and equity interests |
760 |
(20) |
780 |
||||||||||
Provision for income taxes |
(271) |
5 |
(276) |
||||||||||
Effective tax rate |
35.7 |
% |
— |
35.4 |
% |
||||||||
Net income attributable to |
505 |
(15) |
520 |
||||||||||
Diluted earnings per share(a) |
1.40 |
(0.04) |
1.45 |
(a) "As Adjusted Non-GAAP" does not equal "As Reported" plus "Adjustments" as a result of rounding. |
Non-GAAP financial measures are not meant to be considered in isolation or as a substitute for the comparable GAAP measures, and they should be read only in conjunction with the company's consolidated financial statements prepared in accordance with GAAP. 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. |
Unaudited |
|
||||||||||||||||||
NON-GAAP RECONCILIATIONS |
||||||||||||||||||
(Millions, except per share amounts) |
||||||||||||||||||
Twelve Months Ended |
||||||||||||||||||
As Reported |
Related |
As Adjusted Non-GAAP |
||||||||||||||||
Other (income) and expense, net |
$ |
27 |
$ |
24 |
$ |
3 |
||||||||||||
Operating profit |
3,299 |
(24) |
3,323 |
|||||||||||||||
Income before income taxes and equity interests |
2,991 |
(24) |
3,015 |
|||||||||||||||
Provision for income taxes |
(776) |
85 |
(861) |
|||||||||||||||
Effective tax rate |
25.9 |
% |
— |
28.6 |
% |
|||||||||||||
Net income attributable to |
2,278 |
61 |
2,217 |
|||||||||||||||
Diluted earnings per share |
6.40 |
0.17 |
6.23 |
|||||||||||||||
Twelve Months Ended |
||||||||||||||||||
As Reported |
Charges for Organization |
Adjustment Venezuelan |
As Adjusted Non-GAAP |
|||||||||||||||
Cost of products sold |
$ |
11,551 |
$ |
6 |
$ |
— |
$ |
11,545 |
||||||||||
Gross profit |
6,651 |
(6) |
— |
6,657 |
||||||||||||||
Marketing, research and general expenses |
3,326 |
32 |
— |
3,294 |
||||||||||||||
Other (income) and expense, net |
8 |
(3) |
(11) |
22 |
||||||||||||||
Operating profit |
3,317 |
(35) |
11 |
3,341 |
||||||||||||||
Income before income taxes and equity interests |
3,009 |
(35) |
11 |
3,033 |
||||||||||||||
Provision for income taxes |
(922) |
8 |
— |
(930) |
||||||||||||||
Effective tax rate |
30.6 |
% |
— |
— |
30.7 |
% |
||||||||||||
Net income attributable to |
2,166 |
(27) |
11 |
2,182 |
||||||||||||||
Diluted earnings per share |
5.99 |
(0.07) |
0.03 |
6.03 |
Unaudited |
| |||||||
CONSOLIDATED BALANCE SHEET | |||||||
(Millions) | |||||||
| |||||||
2017 |
2016 | ||||||
ASSETS |
|||||||
Current Assets |
|||||||
Cash and cash equivalents |
$ |
616 |
$ |
923 |
|||
Accounts receivable, net |
2,315 |
2,176 |
|||||
Inventories |
1,790 |
1,679 |
|||||
Other current assets |
490 |
337 |
|||||
Total Current Assets |
5,211 |
5,115 |
|||||
Property, Plant and Equipment, Net |
7,436 |
7,169 |
|||||
Investments in Equity Companies |
233 |
257 |
|||||
|
1,576 |
1,480 |
|||||
Other Assets |
695 |
581 |
|||||
TOTAL ASSETS |
$ |
15,151 |
$ |
14,602 |
|||
LIABILITIES AND STOCKHOLDERS' EQUITY |
|||||||
Current Liabilities |
|||||||
Debt payable within one year |
$ |
953 |
$ |
1,133 |
|||
Trade accounts payable |
2,834 |
2,609 |
|||||
Accrued expenses |
1,730 |
1,775 |
|||||
Dividends payable |
341 |
329 |
|||||
Total Current Liabilities |
5,858 |
5,846 |
|||||
Long-Term Debt |
6,472 |
6,439 |
|||||
Noncurrent Employee Benefits |
1,184 |
1,301 |
|||||
Deferred Income Taxes |
395 |
532 |
|||||
Other Liabilities |
299 |
309 |
|||||
|
61 |
58 |
|||||
Stockholders' Equity (Deficit) |
|||||||
|
629 |
(102) |
|||||
Noncontrolling Interests |
253 |
219 |
|||||
Total Stockholders' Equity |
882 |
117 |
|||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
$ |
15,151 |
$ |
14,602 |
2017 Data is Unaudited |
| |||||||||||||||
CONSOLIDATED CASH FLOW STATEMENT | |||||||||||||||
(Millions) | |||||||||||||||
Three Months Ended |
Twelve Months Ended | ||||||||||||||
2017 |
2016 |
2017 |
2016 | ||||||||||||
Operating Activities |
|||||||||||||||
Net income |
$ |
625 |
$ |
518 |
$ |
2,319 |
$ |
2,219 |
|||||||
Depreciation and amortization |
184 |
177 |
724 |
705 |
|||||||||||
Stock-based compensation |
12 |
13 |
76 |
77 |
|||||||||||
Deferred income taxes |
(28) |
(2) |
(69) |
(15) |
|||||||||||
Equity companies' earnings (in excess of) less than dividends paid |
38 |
27 |
26 |
(4) |
|||||||||||
Operating working capital |
6 |
185 |
(148) |
334 |
|||||||||||
Postretirement benefits |
3 |
(54) |
2 |
(50) |
|||||||||||
Other |
23 |
7 |
(1) |
(34) |
|||||||||||
Cash Provided by Operations |
863 |
871 |
2,929 |
3,232 |
|||||||||||
Investing Activities |
|||||||||||||||
Capital spending |
(190) |
(189) |
(785) |
(771) |
|||||||||||
Investments in time deposits |
(91) |
(88) |
(214) |
(221) |
|||||||||||
Maturities of time deposits |
113 |
124 |
183 |
188 |
|||||||||||
Other |
(6) |
(3) |
(35) |
72 |
|||||||||||
Cash Used for Investing |
(174) |
(156) |
(851) |
(732) |
|||||||||||
Financing Activities |
|||||||||||||||
Cash dividends paid |
(342) |
(330) |
(1,359) |
(1,311) |
|||||||||||
Change in short-term debt |
249 |
(71) |
360 |
(908) |
|||||||||||
Debt proceeds |
— |
3 |
937 |
1,293 |
|||||||||||
Debt repayments |
(509) |
(2) |
(1,481) |
(598) |
|||||||||||
Proceeds from exercise of stock options |
7 |
10 |
121 |
107 |
|||||||||||
Acquisitions of common stock for the treasury |
(107) |
(227) |
(911) |
(739) |
|||||||||||
Other |
(39) |
(31) |
(88) |
(29) |
|||||||||||
Cash Used for Financing |
(741) |
(648) |
(2,421) |
(2,185) |
|||||||||||
Effect of Exchange Rate Changes on Cash and Cash Equivalents |
13 |
(28) |
36 |
(11) |
|||||||||||
Change in Cash and Cash Equivalents |
(39) |
39 |
(307) |
304 |
|||||||||||
Cash and Cash Equivalents - Beginning of Period |
655 |
884 |
923 |
619 |
|||||||||||
Cash and Cash Equivalents - End of Period |
$ |
616 |
$ |
923 |
$ |
616 |
$ |
923 |
Unaudited |
| ||||||||||||||||||||||
SELECTED BUSINESS SEGMENT DATA | ||||||||||||||||||||||
(Millions) | ||||||||||||||||||||||
Three Months |
Twelve Months |
|||||||||||||||||||||
2017 |
2016 |
Change |
2017 |
2016 |
Change | |||||||||||||||||
|
||||||||||||||||||||||
Personal Care |
$ |
2,274 |
$ |
2,248 |
+1 |
% |
$ |
9,078 |
$ |
9,046 |
— |
|||||||||||
Consumer Tissue |
1,496 |
1,505 |
-1 |
% |
5,932 |
5,967 |
-1 |
% | ||||||||||||||
K-C Professional |
803 |
779 |
+3 |
% |
3,208 |
3,150 |
+2 |
% | ||||||||||||||
Corporate & Other |
9 |
12 |
N.M. |
41 |
39 |
N.M. |
||||||||||||||||
TOTAL |
$ |
4,582 |
$ |
4,544 |
+1 |
% |
$ |
18,259 |
$ |
18,202 |
— |
|||||||||||
OPERATING PROFIT |
||||||||||||||||||||||
Personal Care |
$ |
483 |
$ |
495 |
-2 |
% |
$ |
1,907 |
$ |
1,857 |
+3 |
% | ||||||||||
Consumer Tissue |
258 |
295 |
-13 |
% |
1,034 |
1,117 |
-7 |
% | ||||||||||||||
K-C Professional |
151 |
146 |
+3 |
% |
633 |
603 |
+5 |
% | ||||||||||||||
Corporate & Other(a) |
(53) |
(79) |
N.M. |
(248) |
(252) |
N.M. |
||||||||||||||||
Other (income) and expense, net(a) |
27 |
18 |
+50 |
% |
27 |
8 |
N.M. |
|||||||||||||||
TOTAL OPERATING PROFIT |
$ |
812 |
$ |
839 |
-3 |
% |
$ |
3,299 |
$ |
3,317 |
-1 |
% | ||||||||||
(a) |
Corporate & Other and Other (income) and expense, net include income and expense not associated with the business segments, including adjustments as indicated in the Non-GAAP Reconciliations. | |||||||||||||||||||||
PERCENTAGE CHANGE IN NET SALES VERSUS PRIOR YEAR |
||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||
Total(a) |
Volume |
Net Price |
Mix/ Other |
Acquisition |
Currency |
Organic(b) | ||||||||||||||
Personal Care |
1 |
2 |
(3) |
1 |
1 |
1 |
— |
|||||||||||||
Consumer Tissue |
(1) |
(1) |
(1) |
— |
— |
2 |
(2) |
|||||||||||||
K-C Professional |
3 |
1 |
— |
— |
— |
2 |
1 |
|||||||||||||
TOTAL CONSOLIDATED |
1 |
— |
(2) |
1 |
— |
1 |
(1) |
|||||||||||||
Twelve Months Ended | ||||||||||||||||||||
Total(a) |
Volume |
Net Price |
Mix/ Other |
Acquisition |
Currency |
Organic(b) | ||||||||||||||
Personal Care |
— |
1 |
(2) |
1 |
— |
1 |
(1) |
|||||||||||||
Consumer Tissue |
(1) |
— |
(1) |
— |
— |
1 |
(1) |
|||||||||||||
K-C Professional |
2 |
1 |
(1) |
— |
— |
1 |
1 |
|||||||||||||
TOTAL CONSOLIDATED |
— |
1 |
(1) |
— |
— |
1 |
— |
(a) |
Total may not equal the sum of volume, net price, mix/other, acquisition and currency due to rounding. |
(b) |
Combined impact of changes in volume, net price and mix/other. |
N.M. - Not Meaningful | |
Unaudited |
| ||||||||||
NON-GAAP RECONCILIATIONS | ||||||||||
OUTLOOK FOR 2018 | ||||||||||
| ||||||||||
ESTIMATED FULL YEAR 2018 DILUTED EARNINGS PER SHARE |
||||||||||
Adjusted earnings per share |
$ |
6.90 |
- |
$ |
7.20 |
|||||
Adjustment for charges related to the 2018 Global Restructuring Program |
(3.00) |
- |
(2.70) |
|||||||
Per share basis - diluted net income attributable to |
$ |
3.90 |
- |
$ |
4.50 |
|||||
ESTIMATED FULL YEAR 2018 EFFECTIVE TAX RATE |
||||||||||
Adjusted effective tax rate |
23 |
% |
- |
26 |
% | |||||
Adjustment for charges related to the 2018 Global Restructuring Program |
1 |
- |
1 |
|||||||
Effective tax rate |
24 |
% |
- |
27 |
% |
[KMB-F]
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