Full-Year 2012 Results
Full-year 2012 sales of $21.1 billion increased 1 percent. Organic sales rose 5 percent, as net selling prices and sales volumes each increased more than 2 percent and product mix improved slightly. Changes in foreign currency rates decreased sales by 3 percent and lost sales in conjunction with pulp and tissue restructuring actions reduced sales volumes by 1 percent. Year-to-date operating profit of $2,686 million increased 10 percent compared to $2,442 million in 2011.
Adjusted operating profit in 2012 of $3,120 million increased 8 percent compared to $2,889 million in 2011. Adjusted operating profit comparisons benefited from organic sales growth, FORCE cost savings of $295 million and input cost deflation of $90 million. These benefits were partially offset by increased marketing, research and general expenses, including $115 million in higher strategic marketing spending.
Administrative and research spending also increased, in part to build further capabilities and support future growth. Foreign currency translation effects reduced operating profit by $55 million as a result of the weakening of several currencies relative to the U.S. dollar. A lower level of income in other (income) and expense, net adversely impacted the operating profit comparison by $45 million. Diluted net income per share was $4.42 in 2012 and $3.99 in 2011.
Adjusted earnings per share were $5.25 in 2012 and $4.80 in 2011. The increase in adjusted earnings per share was primarily due to higher adjusted operating profit.
Adjusted operating profit and adjusted earnings per share in 2012 and 2011 exclude charges for pulp and tissue restructuring actions. Adjusted results in 2012 also exclude charges for European strategic changes. Adjusted results in 2011 also exclude a non-deductible charge in the first quarter as a result of legislation in Colombia that changed the manner in which certain business taxes in that country are assessed. Additional detail on these items and further information about why the company uses these non-GAAP financial measures are provided later in this news release.
- Fourth quarter 2012 net sales of $5.3 billion increased 3 percent compared to the year-ago period. Organic sales rose 5 percent, highlighted by a 9 percent increase in K-C International. Organic sales exclude the impact of changes in foreign currency rates and lost sales as a result of pulp and tissue restructuring actions.
- Diluted net income per share for the fourth quarter of 2012 was $0.68 versus $1.01 in 2011. Full-year diluted net income per share was $4.42 in 2012 and $3.99 in 2011.
- Fourth quarter adjusted earnings per share were $1.37 in 2012 compared to $1.28 in the prior year. The improvement in fourth quarter adjusted earnings per share was driven by organic sales growth and cost savings, partially offset by increased marketing, research and general spending and a higher level of expense in other (income) and expense, net.
Textiles | On 30th Sep 2016
A pan-India textile industry delegation has urged Union textiles...
Textiles | On 30th Sep 2016
Germany based specialty fibre producer Kelheim Fibres has developed a ...
Apparel/Garments | On 30th Sep 2016
Garment workers in Cambodia would get a minimum wage of $153 per...
Biovation II LLC
Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...
Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...
Voith Paper GmbH & Co. KG
The glass mat industry is growing by five to eight per cent annually. Kai...
Company | On 30th Sep 2016