DALLAS, Oct. 21, 2014 /PRNewswire/ -- Kimberly-Clark
Corporation (NYSE: KMB) today reported third quarter 2014 results,
updated its guidance for full-year 2014 adjusted earnings per share
to take into account the pending spin-off of its health care
business and initiated an organization
restructuring.
Executive Summary
- Third quarter 2014 net sales of $5.4
billion increased 3 percent compared to the year-ago period.
Organic sales rose 4 percent, including a 10 percent increase in
K-C International. Organic sales exclude the impact of changes in
foreign currency exchange rates and lower sales as a result of
European strategic changes.
- Diluted net income per share for the third quarter was
$1.50 in 2014 and $1.42 in 2013.
- Third quarter adjusted earnings per share were an all-time
record $1.61 in 2014 compared to
$1.44 in the year-ago period.
Performance benefited from organic sales growth, cost savings and a
lower share count, while comparisons were negatively impacted by
input cost inflation, unfavorable foreign currency exchange rate
effects, a higher adjusted effective tax rate and lower net income
from equity companies. Adjusted earnings per share in both years
exclude certain items described later in this press release.
- Full-year adjusted earnings per share in 2014 are expected to
be $5.93 to $6.03, assuming the
spin-off of the company's health care business occurs at the end of
October 2014. This guidance includes
a 10 cent per share impact from the
spin-off of the last two months of 2014 health care earnings. The
previous target for adjusted earnings per share was $6.00 to $6.15 and assumed a full year of results
for the health care business.
- The company is also initiating a restructuring program to
improve organization efficiency and offset the impact of stranded
overhead costs resulting from the health care spin-off. The
restructuring is expected to cost $130 to
$160 million after-tax and generate cumulative pre-tax
savings of $120 to $140 million.
Chairman and Chief Executive Officer Thomas J. Falk said, "We delivered another very
good quarter of results, with solid organic sales growth,
significant cost savings and margin improvement, and double-digit
growth in adjusted earnings per share. We also made further
progress with targeted growth initiatives, launched product
innovations and supported our brands with increased advertising
spending. We generated strong cash flow and continued to
allocate capital in shareholder-friendly ways. I'm encouraged
with our execution in a challenging environment. And our
full-year guidance is consistent with our previous outlook,
adjusting for the spin-off of our health care business."
Falk added, "The restructuring program we are undertaking will
make our organization more efficient, allow us to offset the impact
of stranded overhead costs from the spin-off and give us additional
flexibility to invest for future growth. This effort is
further evidence of how we manage our company with financial
discipline and our commitment to generate attractive returns to
shareholders."
Third Quarter 2014 Operating Results
Sales of $5.4 billion in the third
quarter of 2014 were up more than 3 percent compared to the
year-ago period. Organic sales rose 4 percent, with
volumes and net selling prices each up 2 percent. Lower sales
in conjunction with European strategic changes and changes in
foreign currency exchange rates each reduced sales slightly.
Operating profit was $907 million
in the third quarter of 2014 versus $807 million in
2013. Adjusted operating profit was $948 million in the third quarter of 2014, up 15
percent compared to $821 million in the year-ago period.
Adjusted results in 2014 exclude $40
million of transaction and related costs for the spin-off of
the health care business and $1
million of restructuring costs for European strategic
changes. Adjusted results in 2013 exclude $14 million of restructuring costs for European
strategic changes.
The year-over-year adjusted operating profit comparison
benefited from organic sales growth and $100 million in cost savings from the
company's FORCE (Focused On Reducing Costs Everywhere)
program. Total marketing, research and general expenses were
down slightly versus prior-year levels, despite a $10 million increase in advertising
spending. Input costs increased $55 million overall,
with $35 million of increased costs
for raw materials other than fiber, $10
million of higher fiber costs and $10
million of increased distribution costs. Foreign
currency translation effects had minimal overall impact on
operating profit, while currency transaction effects negatively
impacted the operating profit comparison, primarily in Eastern Europe and Latin America. On an
adjusted basis, other (income) and expense, net was income of
$17 million in the third quarter of
2014, including a gain on the sale of certain non-core assets,
compared to $5 million of expense in
the year-ago period.
The third quarter effective tax rate was 34.5 percent in 2014
compared to 30.3 percent in 2013. The third quarter adjusted
effective tax rate, which excludes the effects of the previously
mentioned items excluded from adjusted earnings per share, was 32.5
percent in 2014 and 30.2 percent in 2013. The company
continues to expect a full-year 2014 adjusted effective tax rate
between 31.0 and 32.5 percent.
Kimberly-Clark's share of net income of equity companies in the
third quarter was $31 million in 2014 and $49 million in 2013. At Kimberly-Clark de
Mexico, S.A.B., results were
negatively impacted by lower net sales and input cost increases,
partially offset by cost savings.
Cash Flow and Balance Sheet
Cash provided by operations in the third quarter of 2014 was
$976 million compared to
$912 million in 2013. The increase was driven by
improved working capital. Capital spending for the third
quarter was $291 million in 2014 and $203 million in
2013. Full-year capital spending is expected to be toward the
low end of the company's target range of $1.0 to $1.2 billion.
Third quarter 2014 share repurchases were 1.8 million shares at
a cost of $191 million.
Kimberly-Clark announced on October 7
that it expects to receive a one-time cash payment from Halyard
Health in conjunction with the health care spin-off and as a result
increased its full-year share repurchase target to $2.0 billion, up from the prior range of
$1.3 to $1.5 billion. Total
debt and redeemable securities was $7.0
billion at September 30, 2014
and $6.3 billion at the end of
2013.
Third Quarter 2014 Business Segment Results
Personal Care Segment
Third quarter sales of $2.5
billion increased 4 percent. Net selling prices rose 3
percent, organic volumes increased 2 percent and product mix
improved slightly. Currency rates were unfavorable by 1
percent and lower sales as a result of European strategic changes
reduced sales slightly. Third quarter operating profit of
$483 million increased
13 percent. The comparison benefited from organic sales
growth and cost savings, partially offset by input cost inflation
and unfavorable effects from changes in currency rates.
Sales in North America
decreased 1 percent. Volumes were down more than 1 percent
while net selling prices were up about 1 percent. Adult care
volumes increased double-digits, including benefits from innovation
and promotion shipments, and Huggies baby wipes volumes rose
mid-single digits. Child care volumes were similar to
year-ago levels, as benefits from the launch of new GoodNites youth
pants were offset by lower Pull-Ups training pants volumes.
Huggies diaper volumes were off low-double digits compared to
mid-single digit growth in the year-ago period and were impacted by
market share declines and competitive promotional
activity.
Sales in K-C International increased 9 percent despite a 3
point negative impact from changes in currency rates. Volumes
and net selling prices each improved 6 percent. The volume
increase was driven by gains in Brazil, China, Russia/Eastern
Europe, South Africa,
South Korea and Vietnam. The
higher net selling prices were driven by increases in Latin America and Eastern Europe in response to weaker currency
rates and cost inflation.
Sales in Europe decreased
5 percent, including a 6 point negative impact from lower
sales in conjunction with European strategic changes. Organic
volumes and net selling prices were each down 2 percent, while
currency rates were favorable by 5 percent.
Consumer Tissue Segment
Third quarter sales of $1.7 billion increased 4 percent.
Organic volumes increased 3 percent and net selling prices rose 1
percent, while product mix was off 1 percent. Currency rates
were favorable by 1 percent. Third quarter operating profit
of $285 million increased 22 percent. The comparison
benefited from organic sales growth and cost savings, partially
offset by input cost inflation.
Sales in North America were up
3 percent. Volumes increased approximately 7 percent, while
changes in product mix reduced sales 2 percent and net selling
prices were off 1 percent. The volume growth included
benefits from market share gains, promotion activity and the launch
of Viva Vantage paper towels earlier this year.
Sales in K-C International increased 6 percent, including a 1
point benefit from changes in currency rates. Net selling
prices increased 7 percent, while volumes and product mix were each
off 1 percent. The higher net selling prices were driven by
increases in Latin America in
response to unfavorable currency rates and cost inflation.
Sales in Europe increased
5 percent. Currency rates were favorable by 5 percent,
while lower sales in conjunction with European strategic changes
reduced sales 1 percent. Organic volumes rose 2 percent,
driven by increases on bathroom tissue, while net selling prices
were off 1 percent.
K-C Professional (KCP) Segment
Third quarter sales of $0.9
billion increased 4 percent. Volumes rose 3 percent
and changes in currency rates increased sales 1 percent.
Third quarter operating profit of $165 million increased
6 percent. The comparison benefited from organic sales
growth, cost savings and lower manufacturing-related costs,
partially offset by input cost inflation.
Sales in North America
decreased 3 percent, driven by lower net selling prices.
Overall volumes were even with year-ago levels, as increases in
safety products and wipers were offset by declines in washroom and
other product categories.
Sales in K-C International increased 14 percent.
Volumes rose 7 percent, net selling prices improved 6 percent and
product mix advanced 1 percent. The growth was driven by
increases in Latin America, along
with solid performance in Asia.
Sales in Europe were up 6
percent, including a 4 point benefit from currency rates.
Volumes increased 3 percent, while net selling prices were off 1
percent.
Health Care Segment
Third quarter sales of $0.4 billion decreased 3 percent, primarily
due to lower net selling prices. Surgical and infection
prevention and medical device volumes were both similar to year-ago
levels. Third quarter operating profit of $52 million
decreased 26 percent, driven by lower sales, unfavorable
effects from changes in currency rates and cost inflation.
Year-To-Date Results
For the first nine months of 2014, sales of $16.1 billion increased 1 percent compared to the
year-ago period. Organic sales rose more than 4 percent,
with higher volumes of 3 percent, increased net selling prices of 2
percent and slightly unfavorable product mix. Foreign
currency exchange rates were unfavorable by 2 percent and lower
sales in conjunction with European strategic changes and pulp and
tissue restructuring actions reduced sales by 1 percent.
Year-to-date operating profit was $2,494
million in 2014 versus $2,386
million in 2013. Adjusted operating profit of
$2,661 million in 2014 increased 7
percent compared to $2,489 million in
2013. Adjusted operating profit comparisons benefited from
organic sales growth, FORCE cost savings of $245 million and $25
million of savings from pulp and tissue restructuring
actions. Total marketing, research and general expenses were
down versus prior-year levels, driven by lower administrative
costs. Input costs were $180
million higher overall versus 2013. Foreign currency
translation effects reduced operating profit by $45 million and currency transaction effects also
negatively impacted the operating profit comparison.
Through nine months, diluted net income per share was
$4.25 in 2014 and $4.13 in 2013. Adjusted earnings per share
of $4.58 in 2014 increased 6 percent
versus $4.33 in 2013. The
increase was primarily due to higher adjusted operating profit and
a lower share count, partially offset by lower equity
income.
Adjusted operating profit and adjusted earnings per share in
2014 exclude transaction and related costs for the company's
spin-off of its health care business, a charge related to a
regulatory dispute in the Middle
East and restructuring costs for European strategic
changes. Adjusted results in 2013 exclude restructuring costs
for European strategic changes and a balance sheet remeasurement
charge due to the February 2013
devaluation of the Venezuelan bolivar.
Health Care Business Spin-Off (Halyard Health) –
Update
In November 2013, Kimberly-Clark
announced that it was pursuing a tax-free spin-off of its health
care business. The spin-off will create a stand-alone,
publicly traded health care company named Halyard Health, Inc. with
approximately $1.7 billion in annual
net sales and leading market positions in both surgical and
infection prevention products and medical devices.
Kimberly-Clark expects that the spin-off will be effective at the
end of the day on October 31, 2014,
the distribution date for the spin-off, subject to market,
regulatory and other conditions.
2014 Organization Restructuring
The company is initiating a restructuring program in order to
improve organization efficiency and offset the impact of stranded
overhead costs resulting from the spin-off of the company's health
care business. The restructuring is intended to improve
Kimberly-Clark's underlying profitability and increase the
company's flexibility to invest in targeted growth initiatives,
brand building and other capabilities critical to delivering future
growth.
The restructuring is expected to be completed by the end of
2016, with total costs anticipated to be $130 to $160 million after tax ($190 to $230 million pre-tax). Cash costs
are projected to be approximately 80 percent of the total
charges. Workforce reductions are expected to be in the range
of 1,100 to 1,300 and primarily impact salaried employees.
Cumulative pre-tax savings from the restructuring are expected to
be $120 to $140 million by the end of
2017.
The company expects that $85 to $105
million of the after tax charges ($125 to $150 million pre-tax) will occur in the
fourth quarter of 2014, while savings from the restructuring are
not anticipated to be significant until 2015. The
company will exclude the restructuring costs when it reports
adjusted results in future periods.
Western and Central European Businesses Strategic Changes
– Update
In October 2012, Kimberly-Clark
initiated strategic changes to its Western and Central European
businesses, including the exit of the diaper category, with the
exception of the Italian market, divestiture or exit of some
lower-margin businesses in certain markets, primarily in the
consumer tissue segment, and streamlining of its manufacturing
footprint and administrative organization. Related
restructuring costs will be incurred through 2014 and are expected
to be between $300 and $350 million
after tax (slightly higher than $400
million pre-tax). Third quarter 2014 restructuring
costs were $1 million pre-tax
($3 million after tax), bringing
cumulative costs to $393 million
pre-tax ($320 million after tax).
2014 Outlook – Update
Adjusted earnings per share in 2014 are expected to be
$5.93 to $6.03 and assume the health
care spin-off occurs at the end of October 2014. The
company's previous target was $6.00 to
$6.15 per share and assumed a full year of results for the
health care business. The updated guidance includes a
10 cent per share impact from the
spin-off of the last two months of 2014 health care
earnings.
After the spin-off, historical results for health care will be
reported as earnings from discontinued operations. The
company's outlook for 2014 adjusted earnings per share of
$5.93 to $6.03 includes $5.46 to $5.56 in adjusted earnings from
continuing operations and $0.47 of
adjusted earnings from discontinued operations. Estimated
adjusted earnings from continuing and discontinued operations for
full-year 2013 and year-to-date 2013 and 2014 are included later in
this press release.
Non-GAAP Financial Measures
This press release and the accompanying tables include the
following financial measures that have not been calculated in
accordance with accounting principles generally accepted in the
U.S., or GAAP, and are therefore referred to as non-GAAP financial
measures:
- Adjusted earnings and earnings per share (including continuing
and discontinued operations)
- Adjusted gross and operating profit
- Adjusted other (income) and expense, net
- Adjusted effective tax rate
These non-GAAP financial measures exclude the following items
for the relevant time periods as indicated in the accompanying
non-GAAP reconciliations to the comparable GAAP financial measures:
- Transaction and related costs for the
company's spin-off of its health care business. In November 2013, the company announced that it was
pursuing a tax-free spin-off of its health care business. As a
result, the company is incurring incremental costs to evaluate,
plan and execute the transaction.
- Charge related to regulatory dispute in
the Middle East. In the first
quarter of 2014, the company recorded a non-deductible charge as a
result of an adverse court ruling regarding the treatment of
capital contributions in prior years to a majority-owned affiliate
in the Middle East.
- Western and Central Europe strategic changes and related
restructuring charges. (See previous discussion in this news
release.)
- Balance sheet remeasurement charge due to
devaluation of Venezuelan bolivar. In the first quarter of
2013, the company recorded a charge for the remeasurement of the
local currency-denominated balance sheet due to the February 2013 devaluation of the Venezuelan
bolivar.
- 2014 organization restructuring. (See
previous discussion in this news release).
In addition, this press release includes information regarding
organic sales, which exclude the impact of changes in foreign
currency rates and lower sales in conjunction with European
strategic changes and pulp and tissue restructuring actions.
The company provides these non-GAAP financial measures as
supplemental information to our GAAP financial measures.
Management and the company's Board of Directors use adjusted
earnings, adjusted earnings per share and adjusted gross and
operating profit to (a) evaluate the company's historical and
prospective financial performance and its performance relative to
its competitors, (b) allocate resources and (c) measure the
operational performance of the company's business units and their
managers. Management also believes that the use of an
adjusted effective tax rate provides improved insight into the tax
effects of our ongoing business operations.
Additionally, the Management Development and Compensation
Committee of the company's Board of Directors has used certain of
the non-GAAP financial measures when setting and assessing
achievement of incentive compensation goals. These goals are
based, in part, on the company's adjusted earnings per share and
improvement in the company's adjusted return on invested capital
and adjusted operating profit return on sales determined by
excluding certain of the charges that are used in calculating these
non-GAAP financial measures.
Conference Call
A conference call to discuss this news release and other matters
of interest to investors and analysts will be held at 9 a.m. (CDT) today. The conference call
will be simultaneously broadcast over the World Wide Web.
Stockholders and others are invited to listen to the live broadcast
or a playback, which can be accessed by following the instructions
set out in the Investors section of the company's Web site
(www.kimberly-clark.com).
About Kimberly-Clark
Kimberly-Clark and its well-known global brands are an
indispensable part of life for people in more than 175
countries. Every day, nearly a quarter of the world's
population trust K-C brands and the solutions they provide to
enhance their health, hygiene and well-being. With brands
such as Kleenex, Scott, Huggies, Pull-Ups, Kotex and Depend,
Kimberly-Clark holds No. 1 or No. 2 share positions in more than 80
countries. To keep up with the latest K-C news and to learn
more about the company's 142-year history of innovation, visit
www.kimberly-clark.com.
Copies of Kimberly-Clark's Annual Report to Stockholders and its
proxy statements and other SEC filings, including Annual Reports on
Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on
Form 8-K, are made available free of charge on the company's Web
site on the same day they are filed with the SEC. To view
these filings, visit the Investors section of the company's Web
site.
Certain matters contained in this news release concerning the
outlook, anticipated financial and operating results, raw material,
energy and other input costs, anticipated currency rates and
exchange risks, net income from equity companies, sources and uses
of cash, the effective tax rate, the anticipated costs, scope,
timing and financial and other effects of the potential spin-off of
the health care business, the 2014 organization restructuring and
the Western and Central Europe
strategic changes, growth initiatives, contingencies and
anticipated transactions of the company constitute forward-looking
statements and are based upon management's expectations and beliefs
concerning future events impacting the company. There can be
no assurance that these future events will occur as anticipated or
that the company's results will be as estimated.
Forward-looking statements speak only as of the date they were
made, and we undertake no obligation to publicly update them.
For a description of certain factors, such as currency rates and
exchange risks, cost savings and reductions, raw material, energy
and other input costs, competition, market demand and economic and
political conditions, that could cause the company's future results
to differ from those expressed in any such forward-looking
statements, see Item 1A of the company's Annual Report on Form 10-K
for the year ended December 31, 2013
entitled "Risk Factors."
KIMBERLY-CLARK
CORPORATION
|
CONSOLIDATED INCOME
STATEMENT
|
(Millions, except per
share amounts)
|
|
|
Three Months
Ended
September 30
|
|
|
|
|
2014
|
|
2013
|
|
Change
|
Net
Sales
|
$
|
5,442
|
|
|
$
|
5,262
|
|
|
+3.4
|
%
|
Cost of products
sold
|
3,541
|
|
|
3,457
|
|
|
+2.4
|
%
|
Gross
Profit
|
1,901
|
|
|
1,805
|
|
|
+5.3
|
%
|
Marketing, research
and general expenses
|
1,011
|
|
|
990
|
|
|
+2.1
|
%
|
Other (income) and
expense, net
|
(17)
|
|
|
8
|
|
|
N.M.
|
Operating
Profit
|
907
|
|
|
807
|
|
|
+12.4
|
%
|
Interest
income
|
5
|
|
|
6
|
|
|
-16.7
|
%
|
Interest
expense
|
(71)
|
|
|
(73)
|
|
|
-2.7
|
%
|
Income Before
Income Taxes and Equity Interests
|
841
|
|
|
740
|
|
|
+13.6
|
%
|
Provision for income
taxes
|
(290)
|
|
|
(224)
|
|
|
+29.5
|
%
|
Income Before
Equity Interests
|
551
|
|
|
516
|
|
|
+6.8
|
%
|
Share of net income
of equity companies
|
31
|
|
|
49
|
|
|
-36.7
|
%
|
Net
Income
|
582
|
|
|
565
|
|
|
+3.0
|
%
|
Net income
attributable to noncontrolling interests
|
(20)
|
|
|
(19)
|
|
|
+5.3
|
%
|
Net Income
Attributable to Kimberly-Clark Corporation
|
$
|
562
|
|
|
$
|
546
|
|
|
+2.9
|
%
|
|
|
|
|
|
|
|
|
|
Per Share
Basis
|
|
|
|
|
|
|
|
|
Net Income
Attributable to Kimberly-Clark Corporation
|
|
|
|
|
|
|
|
|
Basic
|
$
|
1.51
|
|
|
$
|
1.43
|
|
|
+5.6
|
%
|
Diluted
|
$
|
1.50
|
|
|
$
|
1.42
|
|
|
+5.6
|
%
|
Cash Dividends
Declared
|
$
|
0.84
|
|
|
$
|
0.81
|
|
|
+3.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Shares
Outstanding
|
September
30
|
|
|
|
|
2014
|
|
2013
|
|
|
|
Outstanding shares as
of
|
372.5
|
|
|
382.1
|
|
|
|
|
Average diluted
shares for three months ended
|
375.9
|
|
|
385.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
N.M. – Not
Meaningful
|
Unaudited
|
KIMBERLY-CLARK
CORPORATION
|
CONSOLIDATED INCOME
STATEMENT
|
(Millions, except per
share amounts)
|
|
|
Nine Months
Ended
September 30
|
|
|
|
|
2014
|
|
2013
|
|
Change
|
Net
Sales
|
$
|
16,063
|
|
|
$
|
15,847
|
|
|
+1.4
|
%
|
Cost of products
sold
|
10,528
|
|
|
10,420
|
|
|
+1.0
|
%
|
Gross
Profit
|
5,535
|
|
|
5,427
|
|
|
+2.0
|
%
|
Marketing, research
and general expenses
|
3,014
|
|
|
3,029
|
|
|
-0.5
|
%
|
Other (income) and
expense, net
|
27
|
|
|
12
|
|
|
+125.0
|
%
|
Operating
Profit
|
2,494
|
|
|
2,386
|
|
|
+4.5
|
%
|
Interest
income
|
13
|
|
|
16
|
|
|
-18.8
|
%
|
Interest
expense
|
(214)
|
|
|
(211)
|
|
|
+1.4
|
%
|
Income Before
Income Taxes and Equity Interests
|
2,293
|
|
|
2,191
|
|
|
+4.7
|
%
|
Provision for income
taxes
|
(749)
|
|
|
(685)
|
|
|
+9.3
|
%
|
Income Before
Equity Interests
|
1,544
|
|
|
1,506
|
|
|
+2.5
|
%
|
Share of net income
of equity companies
|
114
|
|
|
157
|
|
|
-27.4
|
%
|
Net
Income
|
1,658
|
|
|
1,663
|
|
|
-0.3
|
%
|
Net income
attributable to noncontrolling interests
|
(49)
|
|
|
(60)
|
|
|
-18.3
|
%
|
Net Income
Attributable to Kimberly-Clark Corporation
|
$
|
1,609
|
|
|
$
|
1,603
|
|
|
+0.4
|
%
|
|
|
|
|
|
|
|
|
|
Per Share
Basis
|
|
|
|
|
|
|
|
|
Net Income
Attributable to Kimberly-Clark Corporation
|
|
|
|
|
|
|
|
|
Basic
|
$
|
4.28
|
|
|
$
|
4.16
|
|
|
+2.9
|
%
|
Diluted
|
$
|
4.25
|
|
|
$
|
4.13
|
|
|
+2.9
|
%
|
Cash Dividends
Declared
|
$
|
2.52
|
|
|
$
|
2.43
|
|
|
+3.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Shares
Outstanding
|
September
30
|
|
|
|
|
2014
|
|
2013
|
|
|
|
Average diluted
shares for nine months ended
|
378.8
|
|
|
388.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
KIMBERLY-CLARK
CORPORATION
|
NON-GAAP
RECONCILIATIONS
|
(Millions, except per
share amounts)
|
|
|
|
Three Months Ended
September 30, 2014
|
|
|
As
Reported
|
|
Charges
for
European
Strategic
Changes
|
|
Charges Related
to
Health
Care
Spin-off
|
|
As
Adjusted
Non-GAAP
|
Cost of products
sold
|
|
$
|
3,541
|
|
|
$
|
1
|
|
|
$
|
10
|
|
|
$
|
3,530
|
|
Gross
profit
|
|
1,901
|
|
|
(1)
|
|
|
(10)
|
|
|
1,912
|
|
Marketing, research
and general expenses
|
|
1,011
|
|
|
—
|
|
|
30
|
|
|
981
|
|
Operating
profit
|
|
907
|
|
|
(1)
|
|
|
(40)
|
|
|
948
|
|
Income before income
taxes and equity interests
|
|
841
|
|
|
(1)
|
|
|
(40)
|
|
|
882
|
|
Provision for income
taxes
|
|
(290)
|
|
|
(2)
|
|
|
(1)
|
|
|
(287)
|
|
Effective tax
rate
|
|
34.5
|
%
|
|
—
|
|
|
—
|
|
|
32.5
|
%
|
Income before equity
interests
|
|
551
|
|
|
(3)
|
|
|
(41)
|
|
|
595
|
|
Net income
|
|
582
|
|
|
(3)
|
|
|
(41)
|
|
|
626
|
|
Net income
attributable to Kimberly-Clark Corporation
|
|
562
|
|
|
(3)
|
|
|
(41)
|
|
|
606
|
|
Diluted earnings per
share(a)
|
|
1.50
|
|
|
(0.01)
|
|
|
(0.11)
|
|
|
1.61
|
|
|
|
Three Months Ended
September 30, 2013
|
|
|
As
Reported
|
|
Charges for
European Strategic Changes
|
|
As
Adjusted
Non-GAAP
|
Cost of products
sold
|
|
$
|
3,457
|
|
|
$
|
6
|
|
|
$
|
3,451
|
|
Gross
profit
|
|
1,805
|
|
|
(6)
|
|
|
1,811
|
|
Marketing, research
and general expenses
|
|
990
|
|
|
5
|
|
|
985
|
|
Other (income) and
expense, net
|
|
8
|
|
|
3
|
|
|
5
|
|
Operating
profit
|
|
807
|
|
|
(14)
|
|
|
821
|
|
Income before income
taxes and equity interests
|
|
740
|
|
|
(14)
|
|
|
754
|
|
Provision for income
taxes
|
|
(224)
|
|
|
4
|
|
|
(228)
|
|
Effective tax
rate
|
|
30.3
|
%
|
|
—
|
|
|
30.2
|
%
|
Income before equity
interests
|
|
516
|
|
|
(10)
|
|
|
526
|
|
Net income
|
|
565
|
|
|
(10)
|
|
|
575
|
|
Net income
attributable to Kimberly-Clark Corporation
|
|
546
|
|
|
(10)
|
|
|
556
|
|
Diluted earnings per
share(a)
|
|
1.42
|
|
|
(0.03)
|
|
|
1.44
|
|
(a) "As Adjusted Non-GAAP" does not equal "As Reported"
plus "Charges" as a result of rounding.
|
|
|
Non-GAAP financial
measures are not meant to be considered in isolation or as a
substitute for the comparable GAAP measures, and they should be
read only in conjunction with the company's consolidated financial
statements prepared in accordance with GAAP. There are limitations
to these non-GAAP financial measures because they are not prepared
in accordance with GAAP and may not be comparable to similarly
titled measures of other companies due to potential differences in
methods of calculation and items being excluded. The company
compensates for these limitations by using these non-GAAP financial
measures as a supplement to the GAAP measures and by providing
reconciliations of the non-GAAP and comparable GAAP financial
measures.
|
|
Unaudited
|
KIMBERLY-CLARK
CORPORATION
|
NON-GAAP
RECONCILIATIONS
|
(Millions, except per
share amounts)
|
|
|
|
Nine Months Ended
September 30, 2014
|
|
|
As
Reported
|
|
Charges
for
European
Strategic
Changes
|
|
Charges Related
to
Health
Care
Spin-off
|
|
Charge Related to
Regulatory Dispute in Middle East
|
|
As
Adjusted
Non-GAAP
|
Cost of products
sold
|
|
$
|
10,528
|
|
|
$
|
9
|
|
|
$
|
59
|
|
|
$
|
—
|
|
|
$
|
10,460
|
|
Gross
profit
|
|
5,535
|
|
|
(9)
|
|
|
(59)
|
|
|
—
|
|
|
5,603
|
|
Marketing, research
and general expenses
|
|
3,014
|
|
|
4
|
|
|
56
|
|
|
—
|
|
|
2,954
|
|
Other (income) and
expense, net
|
|
27
|
|
|
—
|
|
|
—
|
|
|
39
|
|
|
(12)
|
|
Operating
profit
|
|
2,494
|
|
|
(13)
|
|
|
(115)
|
|
|
(39)
|
|
|
2,661
|
|
Income before income
taxes and equity interests
|
|
2,293
|
|
|
(13)
|
|
|
(115)
|
|
|
(39)
|
|
|
2,460
|
|
Provision for income
taxes
|
|
(749)
|
|
|
1
|
|
|
21
|
|
|
—
|
|
|
(771)
|
|
Effective tax
rate
|
|
32.7
|
%
|
|
—
|
|
|
—
|
|
|
—
|
|
|
31.3
|
%
|
Income before equity
interests
|
|
1,544
|
|
|
(12)
|
|
|
(94)
|
|
|
(39)
|
|
|
1,689
|
|
Net income
|
|
1,658
|
|
|
(12)
|
|
|
(94)
|
|
|
(39)
|
|
|
1,803
|
|
Net income
attributable to noncontrolling interests
|
|
(49)
|
|
|
—
|
|
|
—
|
|
|
20
|
|
|
(69)
|
|
Net income
attributable to Kimberly-Clark Corporation
|
|
1,609
|
|
|
(12)
|
|
|
(94)
|
|
|
(19)
|
|
|
1,734
|
|
Diluted earnings per
share
|
|
4.25
|
|
|
(0.03)
|
|
|
(0.25)
|
|
|
(0.05)
|
|
|
4.58
|
|
|
|
Nine Months Ended
September 30, 2013
|
|
|
As
Reported
|
|
Charges for
European Strategic Changes
|
|
Charge for
Venezuelan Bolivar Devaluation
|
|
As
Adjusted
Non-GAAP
|
Cost of products
sold
|
|
$
|
10,420
|
|
|
$
|
44
|
|
|
$
|
—
|
|
|
$
|
10,376
|
|
Gross
profit
|
|
5,427
|
|
|
(44)
|
|
|
—
|
|
|
5,471
|
|
Marketing, research
and general expenses
|
|
3,029
|
|
|
20
|
|
|
—
|
|
|
3,009
|
|
Other (income) and
expense, net
|
|
12
|
|
|
3
|
|
|
36
|
|
|
(27)
|
|
Operating
profit
|
|
2,386
|
|
|
(67)
|
|
|
(36)
|
|
|
2,489
|
|
Income before income
taxes and equity interests
|
|
2,191
|
|
|
(67)
|
|
|
(36)
|
|
|
2,294
|
|
Provision for income
taxes
|
|
(685)
|
|
|
15
|
|
|
10
|
|
|
(710)
|
|
Effective tax
rate
|
|
31.3
|
%
|
|
—
|
|
|
—
|
|
|
31.0
|
%
|
Income before equity
interests
|
|
1,506
|
|
|
(52)
|
|
|
(26)
|
|
|
1,584
|
|
Net income
|
|
1,663
|
|
|
(52)
|
|
|
(26)
|
|
|
1,741
|
|
Net income
attributable to Kimberly-Clark Corporation
|
|
1,603
|
|
|
(52)
|
|
|
(26)
|
|
|
1,681
|
|
Diluted earnings per
share
|
|
4.13
|
|
|
(0.13)
|
|
|
(0.07)
|
|
|
4.33
|
|
KIMBERLY-CLARK
CORPORATION
|
CONSOLIDATED BALANCE
SHEET
|
(Millions)
|
|
|
September 30,
2014
|
|
December 31,
2013
|
ASSETS
|
|
|
|
|
|
Current
Assets
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
1,431
|
|
|
$
|
1,054
|
|
Accounts receivable,
net
|
2,542
|
|
|
2,545
|
|
Inventories
|
2,281
|
|
|
2,233
|
|
Other current
assets
|
667
|
|
|
718
|
|
Total Current
Assets
|
6,921
|
|
|
6,550
|
|
Property, Plant
and Equipment, Net
|
7,692
|
|
|
7,948
|
|
Investments in
Equity Companies
|
335
|
|
|
382
|
|
Goodwill
|
3,129
|
|
|
3,181
|
|
Other Intangible
Assets
|
215
|
|
|
243
|
|
Other
Assets
|
584
|
|
|
615
|
|
TOTAL
ASSETS
|
$
|
18,876
|
|
|
$
|
18,919
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
|
Debt payable within
one year
|
$
|
773
|
|
|
$
|
375
|
|
Redeemable preferred
securities of subsidiary
|
506
|
|
|
506
|
|
Trade accounts
payable
|
2,597
|
|
|
2,598
|
|
Accrued
expenses
|
2,071
|
|
|
2,060
|
|
Dividends
payable
|
313
|
|
|
309
|
|
Total Current
Liabilities
|
6,260
|
|
|
5,848
|
|
Long-Term
Debt
|
5,633
|
|
|
5,386
|
|
Noncurrent
Employee Benefits
|
1,090
|
|
|
1,312
|
|
Deferred Income
Taxes
|
902
|
|
|
817
|
|
Other
Liabilities
|
371
|
|
|
344
|
|
Redeemable
Preferred and Common Securities of Subsidiaries
|
72
|
|
|
72
|
|
Stockholders'
Equity
|
|
|
|
|
|
Kimberly-Clark
Corporation
|
4,265
|
|
|
4,856
|
|
Noncontrolling
Interests
|
283
|
|
|
284
|
|
Total
Stockholders' Equity
|
4,548
|
|
|
5,140
|
|
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY
|
$
|
18,876
|
|
|
$
|
18,919
|
|
KIMBERLY-CLARK
CORPORATION
|
CONSOLIDATED CASH
FLOW STATEMENT
|
(Millions)
|
|
|
|
|
|
Three Months
Ended
September 30
|
|
Nine Months
Ended
September 30
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
Operating
Activities
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
|
582
|
|
|
$
|
565
|
|
|
$
|
1,658
|
|
|
$
|
1,663
|
|
Depreciation and
amortization
|
220
|
|
|
208
|
|
|
655
|
|
|
641
|
|
Asset
impairments
|
—
|
|
|
42
|
|
|
42
|
|
|
42
|
|
Stock-based
compensation
|
15
|
|
|
21
|
|
|
51
|
|
|
73
|
|
Deferred income
taxes
|
(6)
|
|
|
58
|
|
|
57
|
|
|
128
|
|
Net (gains) losses on
asset dispositions
|
(6)
|
|
|
(5)
|
|
|
(11)
|
|
|
—
|
|
Equity companies'
earnings in excess of dividends paid
|
9
|
|
|
(9)
|
|
|
(27)
|
|
|
(75)
|
|
(Increase) decrease
in operating working capital
|
152
|
|
|
29
|
|
|
(63)
|
|
|
(259)
|
|
Postretirement
benefits
|
16
|
|
|
13
|
|
|
(119)
|
|
|
(135)
|
|
Other
|
(6)
|
|
|
(10)
|
|
|
12
|
|
|
17
|
|
Cash Provided by
Operations
|
976
|
|
|
912
|
|
|
2,255
|
|
|
2,095
|
|
Investing
Activities
|
|
|
|
|
|
|
|
|
|
|
|
Capital
spending
|
(291)
|
|
|
(203)
|
|
|
(730)
|
|
|
(697)
|
|
Acquisitions of
businesses
|
—
|
|
|
(30)
|
|
|
—
|
|
|
(32)
|
|
Proceeds from
dispositions of property
|
27
|
|
|
27
|
|
|
36
|
|
|
113
|
|
Proceeds from sales
of investments
|
3
|
|
|
6
|
|
|
96
|
|
|
16
|
|
Investments in time
deposits
|
(10)
|
|
|
(46)
|
|
|
(123)
|
|
|
(46)
|
|
Maturities of time
deposits
|
9
|
|
|
46
|
|
|
191
|
|
|
66
|
|
Other
|
18
|
|
|
1
|
|
|
5
|
|
|
(10)
|
|
Cash Used for
Investing
|
(244)
|
|
|
(199)
|
|
|
(525)
|
|
|
(590)
|
|
Financing
Activities
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends
paid
|
(315)
|
|
|
(311)
|
|
|
(942)
|
|
|
(913)
|
|
Change in short-term
borrowings
|
(126)
|
|
|
289
|
|
|
153
|
|
|
22
|
|
Debt
proceeds
|
5
|
|
|
3
|
|
|
621
|
|
|
889
|
|
Debt
repayments
|
(3)
|
|
|
(502)
|
|
|
(109)
|
|
|
(542)
|
|
Cash paid on
redeemable preferred securities of subsidiaries
|
(8)
|
|
|
(7)
|
|
|
(22)
|
|
|
(21)
|
|
Proceeds from
exercise of stock options
|
17
|
|
|
18
|
|
|
98
|
|
|
164
|
|
Acquisitions of
common stock for the treasury
|
(205)
|
|
|
(165)
|
|
|
(1,122)
|
|
|
(959)
|
|
Other
|
(7)
|
|
|
(1)
|
|
|
—
|
|
|
7
|
|
Cash Used for
Financing
|
(642)
|
|
|
(676)
|
|
|
(1,323)
|
|
|
(1,353)
|
|
Effect of Exchange
Rate Changes on Cash and Cash Equivalents
|
(28)
|
|
|
(18)
|
|
|
(30)
|
|
|
(79)
|
|
Increase
(Decrease) in Cash and Cash Equivalents
|
62
|
|
|
19
|
|
|
377
|
|
|
73
|
|
Cash and Cash
Equivalents - Beginning of Period
|
1,369
|
|
|
1,160
|
|
|
1,054
|
|
|
1,106
|
|
Cash and Cash
Equivalents - End of Period
|
$
|
1,431
|
|
|
$
|
1,179
|
|
|
$
|
1,431
|
|
|
$
|
1,179
|
|
KIMBERLY-CLARK
CORPORATION
|
SELECTED BUSINESS
SEGMENT DATA
|
(Millions)
|
|
|
|
Three Months
Ended
September 30
|
|
|
|
|
Nine Months
Ended
September 30
|
|
|
|
|
|
2014
|
|
2013
|
|
Change
|
|
2014
|
|
2013
|
|
Change
|
NET
SALES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Personal
Care
|
|
$
|
2,475
|
|
|
$
|
2,383
|
|
|
+3.9
|
%
|
|
$
|
7,299
|
|
|
$
|
7,170
|
|
|
+1.8
|
%
|
Consumer
Tissue
|
|
1,697
|
|
|
1,626
|
|
|
+4.4
|
%
|
|
5,024
|
|
|
4,969
|
|
|
+1.1
|
%
|
K-C
Professional
|
|
873
|
|
|
843
|
|
|
+3.6
|
%
|
|
2,531
|
|
|
2,477
|
|
|
+2.2
|
%
|
Health
Care
|
|
392
|
|
|
403
|
|
|
-2.7
|
%
|
|
1,186
|
|
|
1,201
|
|
|
-1.2
|
%
|
Corporate &
Other
|
|
5
|
|
|
7
|
|
|
N.M.
|
|
23
|
|
|
30
|
|
|
N.M.
|
TOTAL NET
SALES
|
|
$
|
5,442
|
|
|
$
|
5,262
|
|
|
+3.4
|
%
|
|
$
|
16,063
|
|
|
$
|
15,847
|
|
|
+1.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
PROFIT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Personal
Care
|
|
$
|
483
|
|
|
$
|
427
|
|
|
+13.1
|
%
|
|
$
|
1,393
|
|
|
$
|
1,300
|
|
|
+7.2
|
%
|
Consumer
Tissue
|
|
285
|
|
|
233
|
|
|
+22.3
|
%
|
|
782
|
|
|
713
|
|
|
+9.7
|
%
|
K-C
Professional
|
|
165
|
|
|
155
|
|
|
+6.5
|
%
|
|
455
|
|
|
459
|
|
|
-0.9
|
%
|
Health
Care
|
|
52
|
|
|
70
|
|
|
-25.7
|
%
|
|
187
|
|
|
168
|
|
|
+11.3
|
%
|
Corporate &
Other(a)
|
|
(95)
|
|
|
(70)
|
|
|
N.M.
|
|
(296)
|
|
|
(242)
|
|
|
N.M.
|
Other (income) and
expense, net
|
|
(17)
|
|
|
8
|
|
|
N.M.
|
|
27
|
|
|
12
|
|
|
+125.0
|
%
|
TOTAL OPERATING
PROFIT
|
|
$
|
907
|
|
|
$
|
807
|
|
|
+12.4
|
%
|
|
$
|
2,494
|
|
|
$
|
2,386
|
|
|
+4.5
|
%
|
(a)
|
Corporate & Other
includes charges related to the European strategic changes of $1
and $11 for the three months ended September 30, 2014 and
2013, respectively, and $13 and $64 for the nine months ended
September 30, 2014 and 2013, respectively. In addition,
Corporate & Other includes $40 and $115 for charges related to
the spin-off of our health care business for the three and nine
months ended September 30, 2014, respectively.
|
|
|
|
N.M. – Not
Meaningful
|
|
Unaudited
|
KIMBERLY-CLARK
CORPORATION
|
SELECTED BUSINESS
SEGMENT DATA
|
|
PERCENTAGE CHANGE IN
NET SALES VERSUS PRIOR YEAR
|
|
|
|
Three Months Ended
September 30, 2014
|
|
|
Total
|
|
Organic
Volume
|
|
Restructuring
Impact(a)
|
|
Net
Price
|
|
Mix/
Other(b)
|
|
Currency
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
|
3.4
|
|
|
2
|
|
|
—
|
|
|
2
|
|
|
(1)
|
|
|
—
|
|
Personal
Care
|
|
3.9
|
|
|
2
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
(1)
|
|
Consumer
Tissue
|
|
4.4
|
|
|
3
|
|
|
—
|
|
|
1
|
|
|
(1)
|
|
|
1
|
|
K-C
Professional
|
|
3.6
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
Health
Care
|
|
(2.7)
|
|
|
—
|
|
|
—
|
|
|
(3)
|
|
|
—
|
|
|
—
|
|
|
|
Nine Months Ended
September 30, 2014
|
|
|
Total
|
|
Organic
Volume
|
|
Restructuring
Impact(a)
|
|
Net
Price
|
|
Mix/
Other(b)
|
|
Currency
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
|
1.4
|
|
|
3
|
|
|
(1)
|
|
|
2
|
|
|
(1)
|
|
|
(2)
|
|
Personal
Care
|
|
1.8
|
|
|
4
|
|
|
(1)
|
|
|
2
|
|
|
—
|
|
|
(3)
|
|
Consumer
Tissue
|
|
1.1
|
|
|
1
|
|
|
(2)
|
|
|
2
|
|
|
—
|
|
|
—
|
|
K-C
Professional
|
|
2.2
|
|
|
2
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
(1)
|
|
Health
Care
|
|
(1.2)
|
|
|
1
|
|
|
—
|
|
|
(2)
|
|
|
—
|
|
|
—
|
|
(a)
|
Lower sales related
to the European strategic changes and the 2011 and 2012 pulp and
tissue restructuring actions.
|
(b)
|
Mix/Other includes
rounding.
|
|
|
|
Unaudited
|
KIMBERLY-CLARK
CORPORATION
|
ADDITIONAL NON-GAAP
RECONCILIATIONS
|
(Millions, except per
share amounts)
|
|
|
|
|
|
NINE MONTHS ENDED
SEPTEMBER 30
|
|
2014
|
|
2013
|
|
|
Net
Income
Attributable
to
KCC
|
|
Diluted Earnings
Per Share
|
|
Net
Income
Attributable
to
KCC
|
|
Diluted Earnings
Per Share
|
As adjusted earnings
Non-GAAP
|
|
$
|
1,734
|
|
|
$
|
4.58
|
|
|
$
|
1,681
|
|
|
$
|
4.33
|
|
Separation of health
care business(a)
|
|
(159)
|
|
|
(0.42)
|
|
|
(150)
|
|
|
(0.39)
|
|
Rounding
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.01
|
|
As adjusted earnings
from continuing operations(b)
|
|
$
|
1,575
|
|
|
$
|
4.16
|
|
|
$
|
1,531
|
|
|
$
|
3.95
|
|
FULL YEAR 2013
EARNINGS
|
|
Income
|
|
Diluted Earnings
Per Share
|
|
|
|
|
|
|
|
Previously reported
adjusted earnings
|
|
$
|
2,234
|
|
|
$
|
5.77
|
|
Separation of health
care business(a)
|
|
(203)
|
|
|
(0.52)
|
|
Rounding
|
|
—
|
|
|
(0.01)
|
|
Adjusted earnings
from continuing operations(b)
|
|
2,031
|
|
|
5.24
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Previously reported
adjusted earnings
|
|
$
|
2,234
|
|
|
$
|
5.77
|
|
Adjustments
for:
|
|
|
|
|
|
|
Charges for European
strategic changes
|
|
(66)
|
|
|
(0.17)
|
|
Charge for devaluation
of Venezuelan bolivar
|
|
(26)
|
|
|
(0.07)
|
|
Net income
attributable to Kimberly-Clark Corporation
|
|
$
|
2,142
|
|
|
$
|
5.53
|
|
(a)
|
Represents health
care operating results, excluding overhead costs previously
allocated to health care that will remain part of Kimberly-Clark
after the spin-off, all net of income taxes. Expected to be
equivalent to adjusted earnings from discontinued operations after
the spin-off of the health care business.
|
|
(b)
|
Expected to be
equivalent to adjusted earnings from continuing operations after
the spin-off of the health care business.
|
|
|
|
|
|
Unaudited
|
|
KIMBERLY-CLARK
CORPORATION
|
ADDITIONAL NON-GAAP
RECONCILIATIONS (OUTLOOK)
|
|
|
Estimated
Range
|
|
|
|
|
|
|
|
|
|
ESTIMATED FULL YEAR
2014 DILUTED EARNINGS PER SHARE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings per
share(a)
|
|
$
|
5.93
|
|
|
-
|
|
$
|
6.03
|
|
Separation of health
care business(b)
|
|
(0.47)
|
|
|
-
|
|
(0.47)
|
|
Adjusted earnings per
share from continuing operations(c)
|
|
$
|
5.46
|
|
|
-
|
|
$
|
5.56
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings per
share(a)
|
|
$
|
5.93
|
|
|
-
|
|
$
|
6.03
|
|
Adjustments
for:
|
|
|
|
|
|
|
|
|
Charges related to
spin-off of health care business(d)
|
|
(0.25)
|
|
|
-
|
|
(0.25)
|
|
Charge related to
regulatory dispute in Middle East
|
|
(0.05)
|
|
|
-
|
|
(0.05)
|
|
Charges for European
strategic changes
|
|
(0.07)
|
|
|
-
|
|
(0.06)
|
|
Charges related to
2014 organization restructuring
|
|
(0.28)
|
|
|
-
|
|
(0.23)
|
|
Per share basis –
diluted net income attributable to Kimberly-Clark
Corporation
|
|
$
|
5.28
|
|
|
-
|
|
$
|
5.44
|
|
|
|
|
|
|
|
|
|
|
ESTIMATED FULL YEAR
2014 EFFECTIVE TAX RATE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted effective
tax rate
|
|
31.0
|
%
|
|
-
|
|
32.5
|
%
|
Adjustments
for:
|
|
|
|
|
|
|
|
|
Charges related to
spin-off of health care business(d)
|
|
0.5
|
|
|
-
|
|
0.5
|
|
Charge related to
regulatory dispute in Middle East
|
|
0.4
|
|
|
-
|
|
0.4
|
|
Charges for European
strategic changes
|
|
0.1
|
|
|
-
|
|
0.2
|
|
Charges related to
2014 organization restructuring
|
|
—
|
|
|
|
|
0.1
|
|
Effective tax
rate
|
|
32.0
|
%
|
|
-
|
|
33.7
|
%
|
(a)
|
Includes 10 months of
operating results of the health care business prior to the spin-off
effective October 31, 2014.
|
(b)
|
Represents 10 months
of health care operating results, excluding overhead costs
previously allocated to health care that will remain part of
Kimberly-Clark after the spin-off, all net of income taxes.
Expected to be equivalent to adjusted earnings from discontinued
operations after the spin-off of the health care
business.
|
(c)
|
Expected to be
equivalent to adjusted earnings from continuing operations after
the spin-off of the health care business.
|
(d)
|
Represents
charges through September 30, 2014.
|
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SOURCE Kimberly-Clark Corporation