Net sales for the April to June quarter decreased 11% to $18.7 billion. Unfavorable foreign exchange rates reduced net sales by 9% due to the strengthening of the U.S. dollar against key foreign currencies. Volume declined 5% including a negative 1% percent from divestitures. Organic volume declined 4% driven primarily by significant pricing taken in developing regions to offset the transaction impact of foreign exchange, market contractions mainly in discretionary categories and some share loss in developed regions following price increases. Price increases added 5% to net sales and the product mix had a negative 2% impact on net sales. Organic sales declined 1% for the quarter.
In the personal care product segment, sales declined 2% compared with the second quarter of 2008. Net selling prices increased about 6%, and product mix improved approximately 1%, while weaker currencies reduced sales by 9%. Sales volumes were even with the prior year.K-C also revealed that personal care sales in North America decreased 4% versus the second quarter of 2008. Although net selling prices advanced approximately 2%, sales volumes fell more than 4% and currency effects reduced sales by 1%.According to K-C, the higher selling prices resulted from increases implemented during 2008 across all categories, net of increased competitive promotional activity, mainly for Huggies diapers.Sales volumes for Huggies diapers fell about 7% compared to double-digit growth in the year-ago period, and volumes for the company’s child care brands were down about 6%, reflecting continued category softness. In the baby and child care categories, volume performance was in line with K-C’s expectations and second quarter market shares in both categories improved sequentially from first quarter levels.