Continued fluctuations in Venezuela's currency exchange rate contributed to an $83 million net income loss for Irving-based Kimberly-Clark Corp. in its fourth quarter. That compared with a profit of $539 million, or $1.40 a share, in the same quarter a year ago.
Using an exchange rate of 50 bolivars per US dollar, Kimberly-Clark recorded a charge of $462 million in fourth quarter 2014 for its Venezuelan assets. Despite the fact that the exchange rate is expected to reduce total company sales and adjusted operating profit by 3 and 4%, respectively, in 2015, KC plans to continue doing business in the country.
"While we expect significant currency headwinds, we remain optimistic about our future and our prospects to generate attractive returns to shareholders," CEO Tom Falk said.
Net income was down 29% from $2.14 billion to $1.52 billion for the year.
The company reported a 1.4% dip in revenue during the quarter, coming in at $4.32 billion. For the year, however, revenue was up 1% to $19.72 billion.
"Although the environment has become much more volatile recently, we will continue to execute our Global Business Plan strategies and focus on the fundamentals that create shareholder value," Falk said. "In 2015, we will leverage our brands, growth initiatives, innovations and marketing investments to drive organic top-line growth. We will also continue to manage our company with financial discipline, with a strong focus on cost savings, cash flow and allocating capital in shareholder-friendly ways."
Despite Falk's optimism, strong headwinds are still in the company's future. In 2015, net sales are expected to decrease 3 to 6%, though operating profit growth may grow 1 to 4%.