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Oct. 25, 2021, 7:50 a.m. EDT

Kimberly-Clark announces profit warning as company prepares to raise prices

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By Tonya Garcia

Kimberly-Clark Corp. /zigman2/quotes/201766540/composite KMB -3.43% shares fell 2.7% in Monday premarket trading after the consumer goods company reported third-quarter earnings that missed expectations and lowered its earnings guidance. Net income totaled $469 million, or $1.39 per share, compared with $472 million, or $1.38 per share, last year. Adjusted EPS of $1.62 missed the FactSet consensus for $1.65. Sales of $5.01 billion were up from $4.68 billion last year and ahead of the FactSet consensus for $4.99 billion. "Our earnings were negatively impacted by significant inflation and supply chain disruptions that increased our costs beyond what we anticipated," said Chief Executive Mike Hsu in a statement. "We are taking further action, including additional pricing and enhanced cost management, to mitigate these headwinds as it is becoming clear they are not likely to be resolved quickly." A global restructuring program announced in 2018 is expected to be complete at the end of the year with total charges of $2.1 billion to $2.2 billion pre-tax, and pre-tax annual savings of $550 million to $560 million by the end of 2021. Kimberly-Clark narrowed its sales forecast to growth of 1% to 2% compared to previous guidance of 1% to 4%. Adjusted EPS guidance was lowered to $6.05 to $6.25 from previous guidance of $6.65 to $6.90. The FactSet consensus is for sales of $19.418 billion, implying growth of 1.5%, and EPS of $6.70. Kimberly-Clark stock has fallen 1.3% for the year to date while the S&P 500 index /zigman2/quotes/210599714/realtime SPX -0.15% has gained 21% for the period.

/zigman2/quotes/201766540/composite
US : U.S.: NYSE
$ 134.84
-4.79 -3.43%
Volume: 5.64M
Jan. 26, 2022 4:04p
P/E Ratio
22.91
Dividend Yield
3.38%
Market Cap
$47.02 billion
Rev. per Employee
$419,804
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/zigman2/quotes/210599714/realtime
US : S&P US
4,349.93
-6.52 -0.15%
Volume: 3.23B
Jan. 26, 2022 5:12p
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