Kimberly-Clark 1Q Net Falls

Dallas-based Kimberly-Clark Corp.’s first-quarter profit fell almost 39% due to restructuring charges, but price increases on some paper products helped it offset higher costs for raw materials.

For the full-year, net profit was $275.1 million (60 cents per share) down from $450.1 million (93 cents per share) a year earlier.

Excluding charges from its ongoing restructuring, the company earned 93 cents per share, meeting the high end of its forecast of 90 cents to 93 cents per share.

On average, analysts expected a 92 cents per share profit, according to Reuters Estimates.

Sales rose 4.2% more than $4.06 billion, topping the analysts’ average forecast of just below $4.04 billion.

Kimberly-Clark said it still expects to earn $3.85 to $3.95 per share this year, before items. For the second quarter, it said earnings before items should be similar to or slightly better than the first quarter, in a range of 93 cents to 95 cents per share.

Analysts on average expect earnings of 94 cents a share for the current second quarter and $3.89 for the year.

Kimberly-Clark is in the midst of cutting about 10% of its work force and closing or selling about 20 plants as it works to improve its diaper and health care businesses and expand in emerging markets. The company unveiled the restructuring plan in July, just months before Procter & Gamble Co. bought Gillette Co., which gave it better leverage in developing regions.

Shares of Kimberly-Clark fell almost 3.2% during the quarter, while P&G shares dipped less than 1.2% in that time.