Kimberly-Clark beats by $0.03, reports revs in-line; guides FY18 EPS above consensus, revs below consensus; announces new restructuring, raises dividend 3.1% (116.91)
- Reports Q4 (Dec) earnings of $1.57 per share, excluding non-recurring items, $0.03 better than the Capital IQ Consensus of $1.54; revenues rose 0.8% year/year to $4.58 bln vs the $4.61 bln Capital IQ Consensus. Changes in foreign currency exchange rates benefited sales by more than 1%. Organic sales fell about 1%, as lower net selling prices of 2% were partially offset by improved product mix of 1% and slightly higher volumes. In North America, organic sales were down 3% in consumer products and up 1% in K-C Professional. Outside North America, organic sales increased 4% in developing and emerging markets but fell 3% in developed markets.
- Co issues mixed guidance for FY18, sees EPS of $6.90-7.20, excluding non-recurring items, vs. $6.63 Capital IQ Consensus Estimate; sees FY18 revs of +1-2% to ~$18.44-18.62 bln vs. $18.65 bln Capital IQ Consensus Estimate. Organic sales are expected to increase ~1%, driven by higher volumes. Changes in net selling prices and product mix are expected to be similar, or up slightly, year-on-year. Changes in foreign currency exchange rates are anticipated to have a neutral to 1% positive impact on net sales, and the acquisition of the company's joint venture in India should benefit sales slightly. Adjusted operating profit growth of 2 to 5%.
- The co announced a new 2018 Global Restructuring Program to reduce the company's structural cost base by streamlining and simplifying its manufacturing supply chain and overhead organization. The restructuring is expected to generate annual cost savings of $500 to $550 million by the end of 2021 and accelerate the company's return to delivering its long-term growth objectives over time. The company has established a four-year cost savings target of more than $1.5 billion from its ongoing FORCE program over the 2018 to 2021 time period.
- Dividend increase of 3.1% -- the quarterly dividend will increase to $1.00 per share, up from $0.97 per share in 2017.