Global Apparel Market – An Overview | Watch NOW! | Ad
Home / Knowledge / News / Textiles / K-C delivers outstanding Q3 results in challenging environment
K-C delivers outstanding Q3 results in challenging environment
23
Oct '09
Kimberly-Clark Corporation reported that net sales in the third quarter of 2009 decreased 1.7 percent to $4.9 billion, as the effect of weaker foreign currency exchange rates more than offset organic sales growth of about 3 percent.

The growth in organic sales was driven by higher net selling prices, which increased approximately 3 percent, while overall sales volumes were essentially even with year-ago levels.Sales volumes continue to reflect challenging economic conditions, particularly affecting the company's K-C Professional and Consumer Tissue businesses in North America and Europe, along with the company's focus on improving net realized revenue. Meanwhile, sales volumes rose approximately 18 percent for K-C's global Health Care business and about 3 percent for the company's operations in developing and emerging markets.

Diluted net income per share for the quarter was an all-time record $1.40 compared with $0.99 in 2008 and prior-year adjusted earnings of $1.02. During the quarter, the company delivered continued double-digit organic sales growth in developing and emerging markets, realized improved net selling prices in North America, generated strong sales and operating profit growth in Health Care, achieved significant cost savings and benefited from lower costs stemming from commodity cost deflation. These factors led to an increase in gross profit margin of nearly 600 basis points and growth in both operating profit and diluted net income per share in excess of 40 percent. The growth in earnings per share was achieved despite unfavorable currency effects of approximately 15 cents per share.

Adjusted earnings per share in the third quarter of 2008 exclude charges for strategic cost reductions. Chairman and Chief Executive Officer Thomas J. Falk said, "We delivered outstanding third quarter results in a challenging environment, while maintaining a strong focus on doing what's right to sustain our long-term growth. Third quarter performance was highlighted by strong margin expansion in each of our four business segments, record earnings per share and excellent cash flow. We realized sizable benefits from improved net realized revenue, and our strategy of driving efficiency in every aspect of our operations led to another quarter of significant cost reductions as well as overhead efficiencies."

"At the same time, we continued to deliver on our targeted growth initiatives, with double-digit organic top-line growth in developing and emerging markets and excellent results in Health Care. In addition, we continued to support our brands with an increase in strategic marketing spending of about $50 million in local currency terms. We also improved our working capital position in the quarter, building further on the progress we made in the first half of the year. All-in-all, we continue to execute our business plans well and I'm really pleased that bottom-line results in the third quarter are spurring a significant increase in our outlook for the year."


Must ReadView All

Courtesy: Asmara Group

Apparel/Garments | On 20th Sep 2018

Fragmented nature of Indian apparel sector major challenge

A major challenge for the Indian apparel sector is its fragmented...

Courtesy: Aditya Birla Retail

Apparel/Garments | On 20th Sep 2018

Indian Aditya Birla Retail to be acquired by Samara-Amazon

India’s Aditya Birla Group has signed a deal to sell Aditya Birla...

India's 2018-19 forward cotton export contract up by 100%

Textiles | On 20th Sep 2018

India's 2018-19 forward cotton export contract up by 100%

Rise in demand from China, lower domestic prices and depreciation of...

Interviews View All

Hannah Lane, Redress

Hannah Lane
Redress

Encouragement from brands will motivate supply chains to become more...

Top executives, Textile industry

Top executives
Textile industry

The foremost issue is bridging the skill gap

Anavila Misra, Anavila Collection

Anavila Misra
Anavila Collection

Fashion shows are also encouraging and highlighting sustainable fashion

Sarah Perkins,

Sarah Perkins

Fairfax, Virginia-based Specialty Graphic Imaging Association (SGIA) is a...

Italtex,

Italtex

Italtex is a leading studio publishing fabric trend-books since 1959....

Franco Ravazzi,

Franco Ravazzi

Italy-based Tessimenti E Orditi Tinti (T.O.T SRL) specialises in stocking...

Marten Alkhagen, Swerea IVF AB

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Silke Brand-Kirsch, Schlegel und Partner

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Eric Scholler, Groz-Beckert

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Silvia Venturini Fendi, Fendi s.r.l

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Amiben Shroff, Shrujan

Amiben Shroff
Shrujan

From its modest beginning in the late 1960s, Shrujan has grown into a...

Varsha Wadhwa, VW

Varsha Wadhwa
VW

Coming from a family that ran a business of jute and linen mills since...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


September 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search