Kimberly-Clark Misses Profit Estimates As Shares Fall
Kimberly-Clark Corp on Wednesday reported quarterly profit that missed Wall Street estimates, as the Kleenex-tissues maker continued to struggle with rising raw materials costs and a strong U.S. dollar, sending its shares down 2.2%.
The company said it paid $215 million more in raw material costs, including $115 million for pulp, a major ingredient in tissues, diapers and sanitary pads.
The higher costs drove net income down 33% to $411 million, or $1.18 per share.
For 2019, Kimberly-Clark forecast net sales to decrease 1-2%.
Challenging Year Ahead
"We expect the environment in 2019 will remain challenging, although somewhat better than in 2018,"Mike Hsu, chief executive officer said in a statement.
Excluding one-time items, the company earned $1.60 per share in the fourth quarter ended 31 December, 5 cents lower than analysts' estimate, according to IBES Refinitiv.
Net sales for the quarter was $4.57 billion, beating analysts' expectation of $4.45 billion.