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

Prime Minister Sheikh Hasina. Bayazid Akter | Dreamstime.com

Textiles | On 1st Dec 2021

PM Hasina urges global investors to invest in Bangladesh

Prime Minister Sheikh Hasina recently urged investors from across the ...

Pic: EuroCham

Textiles | On 1st Dec 2021

EU asks Vietnam to improve policies for effective EVFTA implementation

Up to 35 per cent of European business leaders see administrative...

Marta Ortega at the general meeting of shareholders of Inditex on July 16, 2019. Pic: Iago Lopez | Dreamstime.com

Retail | On 30th Nov 2021

Inditex appoints Marta Ortega as chairwoman, Oscar Garcia as CEO

The Board of Directors of Spanish clothing company Inditex has...

Interviews View All

Textile Industry, Head honchos

Textile Industry
Head honchos

Always best to produce under own supervision

Textile Industry, Head honchos

Textile Industry
Head honchos

Trainers faced immense challenges as most were not tech-savvy

International apparel brands, Head honchos

International apparel brands
Head honchos

Launched first collection at onset of Covid

Aashumi Mahajan,

Aashumi Mahajan

The Luxe Maison is a premiere haute couture e-boutique established after...

Andrea Pelissero,

Andrea Pelissero

Located near Milan, Italy, and with 50 years of experience in the textile...

Yawer Ali Shah,

Yawer Ali Shah

Synthetic colours and dyes were all the rage till the very first ban on...

Johann-Philipp Dilo, Dilo Group

Johann-Philipp Dilo
Dilo Group

German company Dilo Group is one of the leading equipment suppliers of...

Silverio Baranzano, Fitesa

Silverio Baranzano
Fitesa

Fitesa is a leader in the nonwoven fabrics industry, specialising in...

Frank Heislitz, Freudenberg

Frank Heislitz
Freudenberg

Freudenberg Performance Materials is a leading global manufacturer of...

Shalini Sharma & Shweta Pundir Sharma, Six Yard Story

Shalini Sharma & Shweta Pundir Sharma
Six Yard Story

Six Yard Story is a premium artisanal brand with a focus to bring handloom ...

Raghavendra Rathore, Label Raghavendra Rathore Jodhpur

Raghavendra Rathore
Label Raghavendra Rathore Jodhpur

Being one of the first designers to use the "Brand India" positioning for...

Gaurang Shah, Label Gaurang Shah

Gaurang Shah
Label Gaurang Shah

Hyderabad based designer <b>Gaurang Shah</b>, has been traversing the...

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


November 2021

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


Advanced Search