Q1 Sales Rise 4% at K-C

Kimberly-Clark’s first quarter sales rose 4% to $5.0 billion. Organic sales, which exclude the impact of changes in foreign currency rates, rose more than 2%, driven by higher sales volumes. Diluted net income per share for the quarter was $0.86 compared with $0.92 in the year-ago period.

“We continue to execute our global business plan strategies in a difficult environment,” said Thomas J. Falk, chairman and chief executive officer. “We grew organic sales in the first quarter in line with our full-year plan, as we continue to benefit from innovation and targeted growth initiatives. We are gaining market share in several businesses, and we are launching a number of product innovations to further improve our brands. We also continue to deliver significant ongoing cost savings and allocate capital in shareholder friendly ways, with first quarter share repurchases and dividend payments totaling more than $1.1 billion.”

First quarter adjusted earnings per share were $1.09 in 2011 and $1.14 in 2010. In 2011, adjusted earnings exclude costs for the company’s previously announced pulp and tissue restructuring and a non-deductible business tax charge related to a law change in Colombia. Adjusted earnings per share in 2010 exclude a loss for the remeasurement of the local currency balance sheet in Venezuela as a result of the adoption of highly inflationary accounting. These items are described later in this news release.

Adjusted earnings comparisons benefited from sales growth, cost savings, a decline in the effective tax rate and a lower share count, but those factors were more than offset by input cost inflation. Adjusted earnings per share in 2011 are now expected to be $4.80 to $5.05 compared to the company’s previous guidance of $4.90 to $5.05. The wider outlook includes expectations for significantly higher input cost inflation, along with incremental company plans to improve revenue realization and reduce costs compared to previous assumptions.