10.24.16
Kimberly-Clark reported sales of $4.6 billion in the third quarter of 2016, down approximately 3% compared to the year-ago period. Changes in foreign currency exchange rates reduced sales by more than 2%. Organic sales were essentially even with the prior year.
In the personal care segment, third quarter sales of $2.3 billion decreased 2%. Changes in currency rates reduced sales 3%. Volumes increased approximately 3% while net selling prices were off 1%. Third quarter operating profit of $458 million decreased 5%. The comparison was impacted by unfavorable currencies, changes in net selling prices and product mix and increased marketing, research and general spending on a local currency basis, partially offset by volume growth and cost savings.
Sales in North America decreased 1%. Net selling prices were down 2%, while volumes improved 1% compared to 10% growth in the base period. Child care volumes rose double-digits, with benefits from innovations and category growth. Baby wipes volumes also increased double-digits and market shares improved. Huggies diaper and adult care volumes were down low single-digits and mid-single digits, respectively, compared to double-digit growth in the year-ago period that included benefits from innovation launches and increased promotion shipments. Adult care volumes in 2016 were also impacted by competitive promotion activity.
Sales in developing and emerging markets decreased 4%, including an 8 point drag from unfavorable currency rates. Volumes increased 4%, with gains in China, Eastern Europe and the Middle East/Africa, and declines in Argentina and Brazil. Overall net selling prices were even year-on-year, as increases in response to weaker currency rates and local cost inflation, primarily in Latin America, were offset by decreases in China.
Sales in developed markets outside North America (Australia, South Korea and Western/Central Europe) increased 1%. Volumes advanced 2% and product mix improved slightly, while net selling prices fell 2%.
In the personal care segment, third quarter sales of $2.3 billion decreased 2%. Changes in currency rates reduced sales 3%. Volumes increased approximately 3% while net selling prices were off 1%. Third quarter operating profit of $458 million decreased 5%. The comparison was impacted by unfavorable currencies, changes in net selling prices and product mix and increased marketing, research and general spending on a local currency basis, partially offset by volume growth and cost savings.
Sales in North America decreased 1%. Net selling prices were down 2%, while volumes improved 1% compared to 10% growth in the base period. Child care volumes rose double-digits, with benefits from innovations and category growth. Baby wipes volumes also increased double-digits and market shares improved. Huggies diaper and adult care volumes were down low single-digits and mid-single digits, respectively, compared to double-digit growth in the year-ago period that included benefits from innovation launches and increased promotion shipments. Adult care volumes in 2016 were also impacted by competitive promotion activity.
Sales in developing and emerging markets decreased 4%, including an 8 point drag from unfavorable currency rates. Volumes increased 4%, with gains in China, Eastern Europe and the Middle East/Africa, and declines in Argentina and Brazil. Overall net selling prices were even year-on-year, as increases in response to weaker currency rates and local cost inflation, primarily in Latin America, were offset by decreases in China.
Sales in developed markets outside North America (Australia, South Korea and Western/Central Europe) increased 1%. Volumes advanced 2% and product mix improved slightly, while net selling prices fell 2%.