Kimberly-Clark Announces Year-End 2016 Results And 2017 OutlookWritten by Andy Vu
Kimberly-Clark Corporation (NYSE: KMB) today reported year-end 2016 results and provided its 2017 outlook and related key planning assumptions.
- Fourth quarter 2016 net sales of $4.5 billion were even with the prior year. Organic sales increased 1 percent, including 3 percent growth in developing and emerging markets. Changes in foreign currency exchange rates reduced sales by 1 percent.
- Diluted net income per share for the fourth quarter was $1.40 in 2016 and $0.91 in 2015. The comparison benefited from cost savings and a charge in 2015 related to deconsolidating the company's Venezuelan business at the end of 2015.
- Full-year diluted net income per share was $5.99 in 2016 and $2.77 in 2015.
- Fourth quarter adjusted earnings per share were $1.45 in 2016 and $1.42 in 2015. Adjusted earnings per share exclude certain items described later in this news release.
- Full-year adjusted earnings per share were $6.03 in 2016, up 5 percent compared to $5.76 in 2015. The company's previous guidance for adjusted earnings per share was $5.95 to $6.05.
- Full-year 2016 cash provided by operations was $3.2 billion, up 40 percent year-on-year.
- Net sales in 2017 are expected to be similar to 2016, including organic sales growth of approximately 2 percent. Diluted net income per share for 2017 is anticipated to be $6.20 to $6.35.
- The company's Board of Directors has approved a 5.4 percent increase in the quarterly dividend, taking the dividend to 97 cents per share, up from 92 cents per share in 2016. This is the 45th consecutive annual increase in the company's dividend. The dividend will be payable on April 4, 2017, to stockholders of record on March 10, 2017.
Chairman and Chief Executive Officer Thomas J. Falk said, "Our full-year results were consistent with our previous outlook. While we experienced a challenging economic and competitive environment in 2016, our market share positions remained broadly healthy. We also achieved record cost savings, which helped us improve our margins and deliver bottom-line earnings in line with our guidance for the year. In addition, we generated strong cash flow and returned $2.1 billion to shareholders through dividends and share repurchases."
Falk added, "Looking to 2017, we will execute our Global Business Plan strategies in what we expect will be a continued difficult environment. Our teams will invest in innovation, marketing and targeted growth initiatives to keep our brands strong and help us compete effectively. We will also continue to manage our company with financial discipline, with a focus on cost savings, cash flow and shareholder-friendly capital allocation. We remain optimistic about our opportunities to create long-term shareholder value."
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