Kimberly-Clark Q4 Results Top Estimates - Update

(RTTNews) - Healthcare products maker Kimberly-Clark Corp. (KMB) Friday reported a sharp increase in the fourth-quarter profit, reflecting organic sales growth as well as a decline in costs and expenses. Earnings per share and revenues beat analysts' expectations.

For the fourth quarter, net income attributable to the company surged to $539 million or $1.40 per share, from $267 million or $0.68 per share in the same quarter last year. On an adjusted basis, earnings per share for the recent quarter were $1.44, while the company posted $1.37 per share in the prior year.

On average, 17 analysts polled by Thomson Reuters expected the company to report earnings of $1.39 per share for the quarter. Analysts' estimates typically exclude special items.

Quarterly sales were $5.305 billion, compared to $5.307 billion last year. Thirteen analysts estimated revenues of $5.28 billion for the quarter.

Organic sales rose 5 percent, with increased sales volumes of 4 percent and higher net selling prices of 1 percent. The company noted that lost sales in conjunction with European strategic changes and pulp and tissue restructuring actions reduced sales by 3 percent and foreign currency exchange rates were unfavorable by 2 percent.

Cost of products sold declined 7.7 percent to $3.49 billion. Marketing, research and general expenses were $999 million, down 6.3 percent from a year ago.

Chairman and Chief Executive Officer Thomas Falk said, "The strength of our results this past year gives us added confidence that we will continue to execute our Global Business Plan well going forward. In 2014, we will pursue targeted growth initiatives, launch innovations and support our growth opportunities with increased advertising and research spending."

For full-year 2014, the company expects adjusted earnings per share to be in the range of $6.00 to $6.20, up 4 to 7 percent compared to $5.77 in 2013. The company anticipates 2014 net income per share to be between $5.95 and $6.17.

Kimberly-Clark expects 2014 net sales decrease of 1 percent to an increase of 2 percent. It projects Organic sales growth of 3 to 5 percent, with volumes up 2 to 3 percent and changes in net selling prices and product mix, combined, up an additional 1 to 2 percent.

Street currently is looking for fiscal year 2014 earnings of $6.10 per share, on annual revenues of $21.71 billion.

The company expects to increase its dividend by 2 to 4 percent effective April 2014. Share repurchases for 2014 are expected to total $1.3 billion to $1.5 billion.

The firm said its 2014 projections include a full-year estimate for the health care business and do not include transaction and related costs for the potential health care business spin-off, it added. KMB closed Thursday's regular trading at $105.42 on the NYSE. In the pre-market activity on Friday, the shares are up 2.62 percent.