Kimberly-Clark said in July that its second-quarter profit fell and cut its full-year outlook as rapidly rising energy costs pressure margins. Diluted net income is expected to be 99 cents per share, down from $1 the year before. The warning was followed by an announcement that the maker of Huggies diapers would implement its second price increase this year across most of its consumer brands later this summer.
K-C, like most consumer products makers have faced rising input costs in light of record oil prices and the weak U.S. economy. In addition to higher costs for natural gas and oil-based materials, Kimberly-Clark also cited a planned higher investment in strategic marketing of nearly $25 million for its earning shortfall.