Kleenex Manufacturer Profits Down

Irving-Based Kimberly-Clark Pays More for Marketing and Materials

Kimberly-Clark says its third-quarter profit declined 9 percent as it paid more for raw materials and ramped up its marketing efforts.

The Irving, Texas-based maker of Huggies diapers says net income declined to $413.1 million, or 99 cents per share, from $453.1 million, or $1.04 per share, last year.

Adjusted earnings for the quarter were $1.02 per share, compared with $1.07.

Revenue rose 8 percent to $5 billion from $4.62 billion, as sales of personal care products benefited from higher volumes and prices as well as currency exchange rates.

Thomson Reuters said analysts, who typically exclude one-time costs, expected profit of $1.01 per share on $4.99 billion in revenue.

Kimberly-Clark says commodity costs rose by $250 million in the quarter while marketing spending rose by $25 million. It also lowered its full-year profit outlook.


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