Kimberly-Clark Announces Second Quarter 2021 Results
Kimberly-Clark Corporation (KMB) reported second quarter 2021 results with net sales of $4.7 billion, a 2% increase from the previous year, despite a 3% organic sales decline. Diluted earnings per share (EPS) fell to $1.19 from $1.99. The updated full-year EPS outlook is between $6.65 and $6.90, down from previous estimates. Higher input costs led to a projected organic sales decline of 0% to 2%. The company continues to implement pricing strategies and cost management in response to ongoing inflation and reduced consumer tissue demand.
- Net sales increased 2% to $4.7 billion.
- Personal Care segment sales rose 13%.
- Cost savings of $115 million from the FORCE program.
- Organic sales declined 3% with a 4% drop in volumes.
- Diluted EPS decreased from $1.99 to $1.19.
- Operating profit dropped to $613 million from $925 million.
DALLAS, July 23, 2021 /PRNewswire/ -- Kimberly-Clark Corporation (NYSE: KMB) today reported second quarter 2021 results.
Executive Summary
- Second quarter 2021 net sales of
$4.7 billion increased 2 percent compared to the year-ago period, with an organic sales decline of 3 percent. - Diluted net income per share for the second quarter was
$1.19 in 2021 and$1.99 in 2020. - Second quarter adjusted earnings per share were
$1.47 in 2021 compared to$2.20 in 2020. Adjusted earnings per share exclude certain items described later in this news release. - Diluted net income per share for 2021 is anticipated to be
$6.00 to$6.50 . - The company is now targeting full-year 2021 organic sales decline of 0 to 2 percent and adjusted earnings per share of
$6.65 to$6.90 . The prior outlook was for organic sales growth of 0 to 1 percent and adjusted earnings per share of$7.30 to$7.55 . The updated earnings outlook reflects significantly higher input cost inflation and lower sales volumes, partially offset by additional cost savings and reduced discretionary spending.
Chairman and Chief Executive Officer Mike Hsu said, "Our second quarter reflects continued pandemic-driven volatility. We are facing significantly higher input costs and a reversal in consumer tissue volumes from record growth in the year ago period as consumers and retailers in North America continued to reduce home and retail inventory. While we look forward to a return to a more normalized environment, we have moved decisively to take pricing actions to mitigate inflationary headwinds and continue to prudently manage costs. We remain confident in our strategy and in our fundamental brand performance. Our personal care business is performing well, and we continue to improve our market positions in key markets and realize robust growth across Developing and Emerging Markets."
Hsu continued, "We will continue to execute K-C Strategy 2022. While our updated outlook reflects a more challenging near-term environment, we are taking appropriate actions and remain confident in our strategies to create long-term shareholder value."
Second Quarter 2021 Operating Results
Sales of
In North America, organic sales decreased 11 percent in consumer products and 4 percent in K-C Professional. Volumes in North America, particularly consumer tissue, were negatively impacted by consumer and retailer destocking following the stock up that occurred in prior periods related to the global outbreak of COVID-19. Outside North America, organic sales were up 9 percent in developing and emerging (D&E) markets and up 1 percent in developed markets.
Second quarter operating profit was
The second quarter effective tax rate was 22.8 percent in 2021 and 23.2 percent in 2020. The second quarter adjusted effective tax rate was 22.5 percent in 2021 and 22.7 percent in 2020. Kimberly-Clark's share of net income of equity companies in the second quarter was
Cash Flow and Balance Sheet
Cash provided by operations in the second quarter was
Second quarter 2021 share repurchases were 1.2 million shares at a cost of
Second Quarter 2021 Business Segment Results
Personal Care Segment
Second quarter sales of
Sales in North America increased 2 percent. Product mix improved 2 percent, driven by baby and child care, and changes in currency rates increased sales 1 percent. Exited business related to the 2018 Global Restructuring program reduced sales 1 percent.
Sales in D&E markets increased 24 percent. The Softex Indonesia acquisition increased sales by 14 percent while changes in currency rates increased sales 2 percent. Volumes rose 6 percent and the combined impact of changes in net selling prices and product mix increased sales 2 percent. Organic sales increased in Argentina, Brazil, China, India and throughout the Middle East, Africa, Eastern Europe region but declined in ASEAN and most of the rest of Latin America.
Sales in developed markets outside North America (Australia, South Korea and Western/Central Europe) increased 26 percent. Changes in currency rates increased sales 14 percent and volumes rose 12 percent.
Consumer Tissue Segment
Second quarter sales of
Sales in North America decreased 26 percent. Volumes fell 27 percent and product mix was down 2 percent, while net selling prices improved 2 percent.
Sales in D&E markets increased 9 percent including a 3 point favorable impact from changes in currency rates. Volumes rose 3 percent and product mix improved 1 percent, while net selling prices were down 2 percent. The Softex Indonesia acquisition increased sales 4 percent.
Sales in developed markets outside North America increased 1 percent, including a 10 percent benefit from changes in currency rates. Net selling prices were down 6 percent, compared to very low promotion levels in the year-ago period, and volumes were down 1 percent. Exited businesses related to the 2018 Global Restructuring program reduced sales 2 percent.
K-C Professional (KCP) Segment
Second quarter sales of
Sales in North America decreased 3 percent. Volumes were down 11 percent, while net selling prices rose approximately 6 percent and product mix improved 2 percent. Sales were down mid-teens in washroom products and wipers while sales increased double-digits in safety and other products, mostly due to higher net selling prices and favorable product mix.
Sales in D&E markets increased 31 percent including a 3 point benefit from changes in currency rates. Volumes rose 24 percent, compared to a soft year-ago period, while net selling prices increased 5 percent.
Sales in developed markets outside North America were up 13 percent including an 11 percent benefit from changes in currency rates. Net selling prices increased 5 percent while volumes decreased approximately 2 percent.
Year-To-Date Results
For the first six months of 2021, sales of
Year-to-date operating profit was
Through six months, diluted net income per share was
2018 Global Restructuring Program
In January 2018, Kimberly-Clark initiated the 2018 Global Restructuring Program in order to reduce the company's structural cost base and enhance the company's flexibility to invest in its brands, growth initiatives and capabilities critical to delivering future growth. As part of the program, Kimberly-Clark expects to exit or divest some low-margin businesses that generate about 1 percent of company net sales.
The restructuring is expected to be completed in 2021. Total restructuring charges are anticipated to be
2021 Outlook and Key Planning Assumptions
The company updated the following key planning and guidance assumptions for full-year 2021:
- Net sales increase 1 to 4 percent (prior assumption 3 to 5 percent).
- Organic sales decline 0 to 2 percent (prior target 0 to 1 percent increase).
- Foreign currency exchange rates favorable between 1 and 2 percent (no change).
- Softex Indonesia acquisition expected to increase sales 2 percent while exited businesses in conjunction with the 2018 Global Restructuring Program anticipated to reduce sales slightly (no change).
- Adjusted operating profit expected to decline 11 to 14 percent year-on-year (prior assumption decline of 3 to 6 percent).
- Key cost inputs expected to increase
$1,200 to$1,300 million (previous estimate$900 to$1,050 million ). The increased estimate is driven by polymer-based materials and pulp. - Cost savings of
$520 to$560 million , including$400 to$420 million from the FORCE program and$120 to$140 million from the 2018 Global Restructuring Program. The prior estimate was for total savings of$460 to$520 million . - Net income from equity companies similar, to down somewhat, year-on-year (prior outlook similar, to up somewhat).
- Adjusted earnings per share of
$6.65 to$6.90 (prior outlook$7.30 to$7.55 ). - Capital spending of
$1,100 to$1,200 million (prior outlook$1,200 to$1,300 million ). - Share repurchase of
$400 to$450 million (prior outlook$650 to$750 million ).
Prepared Management Remarks and Live Question and Answer Webcast
At approximately 7:00 a.m. (Central time) on July 23, 2021, the company will post management remarks (in PDF format) regarding its second quarter 2021 results and full-year 2021 outlook at www.kimberly-clark.com. At 9:00 am (Central time) on July 23, 2021, the company will host a live question and answer session with investors and analysts. Stockholders and others are invited to listen to the live broadcast or a playback, which will be accessible on the company's website at www.kimberly-clark.com.
Non-GAAP Financial Measures
This news release and the accompanying tables include the following financial measures that have not been calculated in accordance with accounting principles generally accepted in the U.S., or GAAP, and are therefore referred to as non-GAAP financial measures:
- Adjusted earnings and earnings per share
- Adjusted gross and operating profit
- Adjusted effective tax rate
These non-GAAP financial measures exclude the charges for the 2018 Global Restructuring Program (mentioned elsewhere in this release) for the relevant time periods as indicated in the accompanying non-GAAP reconciliations to the comparable GAAP financial measures.
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 Management Development and Compensation Committee of the company's Board of Directors has used certain of the non-GAAP financial measures when setting and assessing achievement of incentive compensation goals. These goals are based, in part, on the company's adjusted earnings per share and improvement in the company's adjusted return on invested capital determined by excluding certain of the adjustments that are used in calculating these non-GAAP financial measures.
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, acquisitions and exited businesses also impact the year-over-year change in net sales.
About Kimberly-Clark
Kimberly-Clark (NYSE: KMB) and its trusted brands are an indispensable part of life for people in more than 175 countries. Fueled by ingenuity, creativity, and an understanding of people's most essential needs, we create products that help individuals experience more of what's important to them. Our portfolio of brands, including Huggies, Kleenex, Scott, Kotex, Cottonelle, Poise, Depend, Andrex, Pull-Ups, GoodNites, Intimus, Neve, Plenitud, Sweety, Softex, Viva and WypAll, hold No. 1 or No. 2 share positions in approximately 80 countries. We use sustainable practices that support a healthy planet, build strong communities, and ensure our business thrives for decades to come. To keep up with the latest news and to learn more about the company's nearly 150-year history of innovation, visit kimberly-clark.com.
Copies of Kimberly-Clark's Annual Report to Stockholders and its proxy statements and other SEC filings, including Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, are made available free of charge on the company's Web site on the same day they are filed with the SEC. To view these filings, visit the Investors section of the company's Web site.
As more fully described in Kimberly-Clark's Quarterly Report on Form 10-Q for the quarter ended June 30, 2021, the company has been actively monitoring the COVID-19 situation and its impact globally. The impact of COVID-19 and measures to prevent its spread are affecting our business in a number of ways. We have experienced increased volatility in demand for some of our products as consumers adapt to the evolving environment. We have also experienced incidents of supply chain disruption and increased currency and commodity volatility. We expect the ultimate significance of the impact on our financial and operational results will be dictated by the length of time that such circumstances continue, which will depend on the currently unknowable extent and duration of the COVID-19 pandemic and governmental and public actions taken in response. COVID-19 also makes it more challenging for management to estimate future business performance, particularly over the near term.
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, including in Argentina, 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, product innovations, 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. In addition, many factors outside our control, including pandemics (including the ongoing COVID-19 outbreak and the related responses of governments, consumers, customers, suppliers and employees), epidemics, the prices and availability of our raw materials, supply chain disruptions due to COVID-19, changes in customer preferences (including consumer tissue destocking following a COVID-19 related stock up in 2020), severe weather conditions or government trade or similar regulatory actions, potential competitive pressures on selling prices for our products, energy costs, failure to realize the expected benefits or synergies from the Softex Indonesia acquisition, fluctuations in foreign currency exchange rates, our ability to maintain key customer relationships, as well as general economic and political conditions globally and in the markets in which we do business, could affect the realization of these estimates.
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 entitled "Risk Factors" in the company's Annual Report on Form 10-K for the year ended December 31, 2020.
KIMBERLY-CLARK CORPORATION | |||||||
CONSOLIDATED INCOME STATEMENTS | |||||||
(Millions, except per share amounts) | |||||||
Three Months Ended June 30 | |||||||
2021 | 2020 | Change | |||||
Net Sales | $ | 4,722 | $ | 4,612 | +2 % | ||
Cost of products sold | 3,242 | 2,835 | +14 % | ||||
Gross Profit | 1,480 | 1,777 | -17 % | ||||
Marketing, research and general expenses | 854 | 844 | +1 % | ||||
Other (income) and expense, net | 13 | 8 | +63 % | ||||
Operating Profit | 613 | 925 | -34 % | ||||
Nonoperating expense | (55) | (6) | +817 % | ||||
Interest income | 2 | 2 | — | ||||
Interest expense | (65) | (65) | — | ||||
Income Before Income Taxes and Equity Interests | 495 | 856 | -42 % | ||||
Provision for income taxes | (113) | (199) | -43 % | ||||
Income Before Equity Interests | 382 | 657 | -42 % | ||||
Share of net income of equity companies | 28 | 35 | -20 % | ||||
Net Income | 410 | 692 | -41 % | ||||
Net income attributable to noncontrolling interests | (6) | (11) | -45 % | ||||
Net Income Attributable to Kimberly-Clark Corporation | $ | 404 | $ | 681 | -41 % | ||
Per Share Basis | |||||||
Net Income Attributable to Kimberly-Clark Corporation | |||||||
Basic | $ | 1.20 | $ | 2.00 | -40 % | ||
Diluted | $ | 1.19 | $ | 1.99 | -40 % | ||
Cash Dividends Declared | $ | 1.14 | $ | 1.07 | +7 % | ||
Common Shares Outstanding | June 30 | ||||||
2021 | 2020 | ||||||
Outstanding shares as of | 336.9 | 341.0 | |||||
Average diluted shares for three months ended | 338.3 | 341.9 | |||||
Unaudited |
KIMBERLY-CLARK CORPORATION | |||||||
CONSOLIDATED INCOME STATEMENTS | |||||||
(Millions, except per share amounts) | |||||||
Six Months Ended June 30 | |||||||
2021 | 2020 | Change | |||||
Net Sales | $ | 9,465 | $ | 9,621 | -2 % | ||
Cost of products sold | 6,396 | 6,053 | +6 % | ||||
Gross Profit | 3,069 | 3,568 | -14 % | ||||
Marketing, research and general expenses | 1,669 | 1,717 | -3 % | ||||
Other (income) and expense, net | 17 | 22 | -23 % | ||||
Operating Profit | 1,383 | 1,829 | -24 % | ||||
Nonoperating expense | (61) | (17) | +259 % | ||||
Interest income | 3 | 4 | -25 % | ||||
Interest expense | (128) | (126) | +2 % | ||||
Income Before Income Taxes and Equity Interests | 1,197 | 1,690 | -29 % | ||||
Provision for income taxes | (260) | (396) | -34 % | ||||
Income Before Equity Interests | 937 | 1,294 | -28 % | ||||
Share of net income of equity companies | 67 | 73 | -8 % | ||||
Net Income | 1,004 | 1,367 | -27 % | ||||
Net income attributable to noncontrolling interests | (16) | (26) | -38 % | ||||
Net Income Attributable to Kimberly-Clark Corporation | $ | 988 | $ | 1,341 | -26 % | ||
Per Share Basis | |||||||
Net Income Attributable to Kimberly-Clark Corporation | |||||||
Basic | $ | 2.92 | $ | 3.93 | -26 % | ||
Diluted | $ | 2.92 | $ | 3.92 | -26 % | ||
Cash Dividends Declared | $ | 2.28 | $ | 2.14 | +7 % | ||
Common Shares Outstanding | June 30 | ||||||
2021 | 2020 | ||||||
Average diluted shares for six months ended | 338.8 | 342.3 | |||||
Unaudited |
KIMBERLY-CLARK CORPORATION | ||||||||
NON-GAAP RECONCILIATIONS | ||||||||
(Millions, except per share amounts) | ||||||||
Three Months Ended June 30, 2021 | ||||||||
As Reported | 2018 Global Restructuring Program | As Adjusted Non-GAAP | ||||||
Cost of products sold | $ | 3,242 | $ | 25 | $ | 3,217 | ||
Gross Profit | 1,480 | (25) | 1,505 | |||||
Marketing, research and general expenses | 854 | 30 | 824 | |||||
Other (income) and expense, net | 13 | 8 | 5 | |||||
Operating Profit | 613 | (63) | 676 | |||||
Nonoperating expense | (55) | (56) | 1 | |||||
Provision for income taxes | (113) | 25 | (138) | |||||
Effective tax rate | 22.8 % | — | 22.5 % | |||||
Net Income Attributable to Kimberly-Clark Corporation | 404 | (94) | 498 | |||||
Diluted Earnings per Share(a) | 1.19 | (0.28) | 1.47 | |||||
Three Months Ended June 30, 2020 | ||||||||
As Reported | 2018 Global Restructuring Program | As Adjusted Non-GAAP | ||||||
Cost of products sold | $ | 2,835 | $ | 60 | $ | 2,775 | ||
Gross Profit | 1,777 | (60) | 1,837 | |||||
Marketing, research and general expenses | 844 | 27 | 817 | |||||
Operating Profit | 925 | (87) | 1,012 | |||||
Provision for income taxes | (199) | 15 | (214) | |||||
Effective tax rate | 23.2 % | — | 22.7 % | |||||
Share of net income of equity companies | 35 | (1) | 36 | |||||
Net income attributable to noncontrolling interests | (11) | 1 | (12) | |||||
Net Income Attributable to Kimberly-Clark Corporation | 681 | (72) | 753 | |||||
Diluted Earnings per Share(a) | 1.99 | (0.21) | 2.20 | |||||
(a) | "As Adjusted Non-GAAP" may not equal "As Reported" plus "Adjustments" as a result of rounding. |
Unaudited | |
KIMBERLY-CLARK CORPORATION | ||||||||
NON-GAAP RECONCILIATIONS | ||||||||
(Millions, except per share amounts) | ||||||||
Six Months Ended June 30, 2021 | ||||||||
As Reported | 2018 Global Restructuring Program | As Adjusted Non-GAAP | ||||||
Cost of products sold | $ | 6,396 | $ | 50 | $ | 6,346 | ||
Gross Profit | 3,069 | (50) | 3,119 | |||||
Marketing, research and general expenses | 1,669 | 39 | 1,630 | |||||
Other (income) and expense, net | 17 | 8 | 9 | |||||
Operating Profit | 1,383 | (97) | 1,480 | |||||
Nonoperating expense | (61) | (56) | (5) | |||||
Provision for income taxes | (260) | 32 | (292) | |||||
Effective tax rate | 21.7 % | — | 21.6 % | |||||
Net income attributable to noncontrolling interests | (16) | 1 | (17) | |||||
Net Income Attributable to Kimberly-Clark Corporation | 988 | (120) | 1,108 | |||||
Diluted Earnings per Share(a) | 2.92 | (0.35) | 3.27 | |||||
Six Months Ended June 30, 2020 | ||||||||
As Reported | 2018 Global Restructuring Program | As Adjusted Non-GAAP | ||||||
Cost of products sold | $ | 6,053 | $ | 130 | $ | 5,923 | ||
Gross profit | 3,568 | (130) | 3,698 | |||||
Marketing, research and general expenses | 1,717 | 50 | 1,667 | |||||
Operating profit | 1,829 | (180) | 2,009 | |||||
Provision for income taxes | (396) | 33 | (429) | |||||
Effective tax rate | 23.4 % | — | 22.9 % | |||||
Share of net income of equity companies | 73 | (1) | 74 | |||||
Net income attributable to noncontrolling interests | (26) | 2 | (28) | |||||
Net income attributable to Kimberly-Clark Corporation | 1,341 | (146) | 1,487 | |||||
Diluted Earnings per Share(a) | 3.92 | (0.43) | 4.34 | |||||
(a) | "As Adjusted Non-GAAP" may 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 |
KIMBERLY-CLARK CORPORATION | |||||
CONSOLIDATED BALANCE SHEETS | |||||
(Millions) | |||||
June 30, 2021 | December 31, 2020 | ||||
ASSETS | |||||
Current Assets | |||||
Cash and cash equivalents | $ | 306 | $ | 303 | |
Accounts receivable, net | 2,340 | 2,235 | |||
Inventories | 2,110 | 1,903 | |||
Other current assets | 816 | 733 | |||
Total Current Assets | 5,572 | 5,174 | |||
Property, Plant and Equipment, Net | 8,018 | 8,042 | |||
Investments in Equity Companies | 350 | 300 | |||
Goodwill | 1,834 | 1,895 | |||
Other Intangible Assets, Net | 803 | 832 | |||
Other Assets | 1,250 | 1,280 | |||
TOTAL ASSETS | $ | 17,827 | $ | 17,523 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||
Current Liabilities | |||||
Debt payable within one year | $ | 1,493 | $ | 486 | |
Trade accounts payable | 3,337 | 3,336 | |||
Accrued expenses and other current liabilities | 2,037 | 2,262 | |||
Dividends payable | 377 | 359 | |||
Total Current Liabilities | 7,244 | 6,443 | |||
Long-Term Debt | 7,591 | 7,878 | |||
Noncurrent Employee Benefits | 875 | 864 | |||
Deferred Income Taxes | 665 | 723 | |||
Other Liabilities | 666 | 718 | |||
Redeemable Preferred Securities of Subsidiaries | 28 | 28 | |||
Stockholders' Equity | |||||
Kimberly-Clark Corporation | 524 | 626 | |||
Noncontrolling Interests | 234 | 243 | |||
Total Stockholders' Equity | 758 | 869 | |||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 17,827 | $ | 17,523 | |
2021 Data is Unaudited |
KIMBERLY-CLARK CORPORATION | |||||||||||||||
CONSOLIDATED CASH FLOW STATEMENTS | |||||||||||||||
(Millions) | |||||||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||
Operating Activities | |||||||||||||||
Net income | $ | 410 | $ | 692 | $ | 1,004 | $ | 1,367 | |||||||
Depreciation and amortization | 189 | 201 | 378 | 414 | |||||||||||
Asset impairments | — | — | 3 | — | |||||||||||
Stock-based compensation | 20 | 39 | 42 | 54 | |||||||||||
Deferred income taxes | (39) | 21 | (74) | 12 | |||||||||||
Net (gains) losses on asset dispositions | 11 | 6 | 15 | 13 | |||||||||||
Equity companies' earnings (in excess of) less than dividends paid | 6 | (9) | (32) | (47) | |||||||||||
Operating working capital | (95) | 634 | (495) | 490 | |||||||||||
Postretirement benefits | 51 | (1) | 36 | (15) | |||||||||||
Other | 12 | (4) | 9 | (5) | |||||||||||
Cash Provided by Operations | 565 | 1,579 | 886 | 2,283 | |||||||||||
Investing Activities | |||||||||||||||
Capital spending | (201) | (284) | (499) | (636) | |||||||||||
Proceeds from dispositions of property | 30 | 4 | 30 | 5 | |||||||||||
Investments in time deposits | (292) | (218) | (451) | (323) | |||||||||||
Maturities of time deposits | 226 | 158 | 433 | 254 | |||||||||||
Other | (5) | 9 | — | 10 | |||||||||||
Cash Used for Investing | (242) | (331) | (487) | (690) | |||||||||||
Financing Activities | |||||||||||||||
Cash dividends paid | (389) | (365) | (748) | (722) | |||||||||||
Change in short-term debt | 216 | (385) | 960 | (667) | |||||||||||
Debt proceeds | — | — | 5 | 1,241 | |||||||||||
Debt repayments | — | — | (253) | (252) | |||||||||||
Proceeds from exercise of stock options | 17 | 27 | 27 | 135 | |||||||||||
Acquisitions of common stock for the treasury | (162) | (49) | (331) | (263) | |||||||||||
Other | (24) | (15) | (54) | (39) | |||||||||||
Cash Used for Financing | (342) | (787) | (394) | (567) | |||||||||||
Effect of Exchange Rate Changes on Cash and Cash Equivalents | 5 | 8 | (2) | (20) | |||||||||||
Change in Cash and Cash Equivalents | (14) | 469 | 3 | 1,006 | |||||||||||
Cash and Cash Equivalents - Beginning of Period | 320 | 979 | 303 | 442 | |||||||||||
Cash and Cash Equivalents - End of Period | $ | 306 | $ | 1,448 | $ | 306 | $ | 1,448 | |||||||
Unaudited |
KIMBERLY-CLARK CORPORATION | |||||||||||||||
SELECTED BUSINESS SEGMENT DATA | |||||||||||||||
(Millions) | |||||||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||
2021 | 2020 | Change | 2021 | 2020 | Change | ||||||||||
NET SALES | |||||||||||||||
Personal Care | $ | 2,517 | $ | 2,229 | +13 % | $ | 4,979 | $ | 4,651 | +7 % | |||||
Consumer Tissue | 1,424 | 1,645 | -13 % | 2,934 | 3,368 | -13 % | |||||||||
K-C Professional | 765 | 724 | +6 % | 1,517 | 1,572 | -3 % | |||||||||
Corporate & Other | 16 | 14 | N.M. | 35 | 30 | N.M. | |||||||||
TOTAL NET SALES | $ | 4,722 | $ | 4,612 | +2 % | $ | 9,465 | $ | 9,621 | -2 % | |||||
OPERATING PROFIT | |||||||||||||||
Personal Care | $ | 454 | $ | 519 | -13 % | $ | 935 | $ | 1,046 | -11 % | |||||
Consumer Tissue | 196 | 428 | -54 % | 465 | 793 | -41 % | |||||||||
K-C Professional | 110 | 155 | -29 % | 236 | 336 | -30 % | |||||||||
Corporate & Other(a) | (134) | (169) | N.M. | (236) | (324) | N.M. | |||||||||
Other (income) and expense, net(a) | 13 | 8 | +63 % | 17 | 22 | -23 % | |||||||||
TOTAL OPERATING PROFIT | $ | 613 | $ | 925 | -34 % | $ | 1,383 | $ | 1,829 | -24 % | |||||
(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 June 30, 2021 | ||||||||||||||
Total(a) | Volume | Net Price | Mix/ Other | Acquisition/ Exited Businesses(b) | Currency | Organic(c) | ||||||||
Personal Care | 13 | 4 | — | 2 | 4 | 3 | 6 | |||||||
Consumer Tissue | (13) | (15) | — | (1) | — | 3 | (17) | |||||||
K-C Professional | 6 | (4) | 5 | 1 | — | 3 | 2 | |||||||
TOTAL CONSOLIDATED | 2 | (4) | 1 | 1 | 2 | 3 | (3) | |||||||
Six Months Ended June 30, 2021 | ||||||||||||||
Total(a) | Volume | Net Price | Mix/ Other | Acquisition/ Exited Businesses(b) | Currency | Organic(c) | ||||||||
Personal Care | 7 | — | — | 2 | 4 | 1 | 2 | |||||||
Consumer Tissue | (13) | (15) | — | (1) | — | 2 | (15) | |||||||
K-C Professional | (3) | (13) | 6 | 1 | — | 2 | (6) | |||||||
TOTAL CONSOLIDATED | (2) | (7) | 1 | 1 | 2 | 2 | (5) | |||||||
(a) | Total may not equal the sum of volume, net price, mix/other, acquisition/exited businesses and currency due to rounding. |
(b) | Combined impact of the acquisition of Softex Indonesia and exited businesses in conjunction with the 2018 Global Restructuring Program. |
(c) | Combined impact of changes in volume, net price and mix/other. |
N.M. - Not Meaningful | |
Unaudited | |
KIMBERLY-CLARK CORPORATION | ||||||
NON-GAAP RECONCILIATIONS | ||||||
OUTLOOK FOR 2021 | ||||||
Estimated Range | ||||||
ESTIMATED FULL YEAR 2021 DILUTED EARNINGS PER SHARE | ||||||
Adjusted earnings per share | $ | 6.65 | - | $ | 6.90 | |
Adjustment for charges related to the 2018 Global Restructuring Program | (0.65) | - | (0.40) | |||
Per share basis – diluted net income attributable to Kimberly-Clark Corporation | $ | 6.00 | - | $ | 6.50 | |
[KMB-F]
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SOURCE Kimberly-Clark Corporation
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