08.20.14
Across its four business segments—personal care, consumer tissue, K-C Professional and health care—Kimberly-Clark reported sales of $5.3 billion in the second quarter of 2014, which was up just 1 percent compared to the year-ago period. At the same time operating profit dropped to $790 million versus $796 million in 2013. Adjusted operating profit was $860 million, up 5 percent compared to $818 million in the year-ago period.
Commenting on the quarter, chairman and chief executive Thomas Falk said, “We made further progress with targeted growth initiatives, launched product innovations and supported our brands with increased advertising spending.”
In the personal care segment second quarter sales of $2.4 billion increased 2 percent while second quarter operating profit of $453 million increased 5 percent. Sales in North America increased 1 percent while volumes rose 2 percent. Huggies baby wipes volumes rose double-digits, with benefits from product innovation. Adult care volumes increased high-single digits, including benefits from market share gains and innovation on the Depend and Poise brands. Feminine care volumes were up mid-single digits, with continued growth on U by Kotex. Childcare volumes fell mid-single digits and were impacted by category softness, while Huggies diaper volumes were off low-single digits. Sales in K-C International increased 5 percent while sales volumes were up 7 percent. Volumes increased in Brazil, China, Russia, South Africa, South Korea and Venezuela. Sales in Europe decreased 17 percent, however, organic sales volumes increased 2 percent, driven by growth in baby wipes and childcare.
K-C Professional’s (KCP) second quarter sales of $0.9 billion increased 2 percent while operating profit of $154 million decreased 4 percent. Sales in North America decreased 2 percent. Volumes increased in safety products and other categories, mostly offset by a low single-digit decline in washroom products. Sales in K-C International increased 7 percent. Volumes rose 8 percent. Organic growth was driven by increases in Latin America, along with solid performance in Asia. Sales in Europe were up 5 percent.
In the health care segment second quarter sales of $0.4 billion decreased 1 percent. Surgical and infection prevention and medical device volumes were both similar to year-ago levels. Second quarter operating profit of $63 million increased 17 percent, driven by lower marketing, research and general spending and cost savings.
Commenting on the quarter, chairman and chief executive Thomas Falk said, “We made further progress with targeted growth initiatives, launched product innovations and supported our brands with increased advertising spending.”
In the personal care segment second quarter sales of $2.4 billion increased 2 percent while second quarter operating profit of $453 million increased 5 percent. Sales in North America increased 1 percent while volumes rose 2 percent. Huggies baby wipes volumes rose double-digits, with benefits from product innovation. Adult care volumes increased high-single digits, including benefits from market share gains and innovation on the Depend and Poise brands. Feminine care volumes were up mid-single digits, with continued growth on U by Kotex. Childcare volumes fell mid-single digits and were impacted by category softness, while Huggies diaper volumes were off low-single digits. Sales in K-C International increased 5 percent while sales volumes were up 7 percent. Volumes increased in Brazil, China, Russia, South Africa, South Korea and Venezuela. Sales in Europe decreased 17 percent, however, organic sales volumes increased 2 percent, driven by growth in baby wipes and childcare.
K-C Professional’s (KCP) second quarter sales of $0.9 billion increased 2 percent while operating profit of $154 million decreased 4 percent. Sales in North America decreased 2 percent. Volumes increased in safety products and other categories, mostly offset by a low single-digit decline in washroom products. Sales in K-C International increased 7 percent. Volumes rose 8 percent. Organic growth was driven by increases in Latin America, along with solid performance in Asia. Sales in Europe were up 5 percent.
In the health care segment second quarter sales of $0.4 billion decreased 1 percent. Surgical and infection prevention and medical device volumes were both similar to year-ago levels. Second quarter operating profit of $63 million increased 17 percent, driven by lower marketing, research and general spending and cost savings.