Sales Rise 6% at K-C in 2011

Kimberly-Clark Corporation (K-C) reported year-end 2011 results and provided its 2012 outlook.Full-year 2011 sales jumped 6% to $20.8 billion. Full year operating profit fell 12% to $2.4 billion. For 2012, net sales are expected to increase about 1%.

Fourth quarter 2011 net sales rose 2% to $5.2 billion. Operating profit fell 13% to $611 million. Sales in North America decreased about 5%.

Fourth quarter personal care sales increased 2% to $2.2 billion. Operating profit decreased 19% to $341 million in the segment.

Chairman and Chief Executive Officer Thomas J. Falk said, “We delivered solid improvements in organic sales, adjusted operating profit margin and adjusted earnings per share in the fourth quarter despite a continued challenging environment.Reflecting on the full year, bottom-line results were somewhat below our original goal for the year, mostly due to higher-than-expected cost inflation and soft demand in portions of the developed markets.

“Nonetheless, we introduced successful product innovations, executed targeted growth initiatives and improved our market position in several businesses.In addition, we delivered benefits from revenue realization strategies and cost saving programs, made progress with pulp and tissue restructuring actions and allocated approximately $2.3 billion to dividends and share repurchases.I am optimistic that we will build further on these accomplishments going forward.”

Falk added, “Looking ahead to 2012, we expect economic conditions to remain difficult in the near term, particularly in developed markets.And while we expect a much more benign commodity cost environment, foreign currency exchange rates remain volatile and should be a headwind this year.Nonetheless, we plan to deliver improved growth in adjusted earnings per share in 2012 compared to our 2011 performance while we further improve our company for the long term.We will bring a healthy pipeline of innovation to market, invest behind our brands and growth initiatives and continue to achieve strong levels of cost savings.We will also continue to allocate capital in shareholder-friendly ways, with plans for at least $2 billion of dividends and share repurchases.All-in-all, we remain focused on executing our Global Business Plan in order to improve shareholder value.”