10.26.10
Consumer products maker Kimberly-Clark Corp.'s third-quarter net income fell 19% on higher costs to make its tissues and diapers, prompting the company to cut its guidance for the year.
Revenue rose 1% to $5 billion.
The company said it earned $469 million, or $1.14 per share in the three months ending Sept. 30. That's down from $582 million, or $1.40 per share, last year.
The company said it earned $469 million, or $1.14 per share in the three months ending Sept. 30. That's down from $582 million, or $1.40 per share, last year.
Analysts expected the company to earn $1.28 per share on revenue of $5 billion, according to Thomson Reuters.
The company said it estimates inflation for materials such as pulp to be in the high end of its prior range of $700 million to $800 million.
It also narrowed its outlook for revenue this year to 3% growth, the bottom end of its its prior range of 3-5%. The company said taking into account results for the first nine months, it expects its volume growth to be lower because of the weak economy in North America.
The Dallas company has been tweaking its products and prices to keep people buying its products amid the downturn. It faces competition from store brands, which cost less. Its profits can also be hurt if it offers too many promotions, which prompt customers to buy but weaken selling prices.
The company now expects earnings per share to range from $4.60 to $4.70 this year, down from its prior guidance of $4.80 to $5, which was given in July. Last year the company earned $4.52 per share.