Kimberly-Clark's Net Income Falls Even Though Sales Rise

Associated Press

DALLAS -- Huggies and Kleenex maker Kimberly-Clark Corporation says its net income fell 8 percent in the third quarter as it continued to struggle with high costs for raw materials.

It also cut its revenue outlook and the high end of its earnings outlook.

Net income fell to $432 million, or $1.09 per share. That was down from $469 million, or $1.14 per share, last year. Adjusted earnings of $1.26 per share were in line with expectations.

Sales were a bright spot. New products, higher prices and strength overseas made up for soft demand in Europe and North America. Revenue rose 8 percent to $5.38 billion. Analysts expected $5.29 billion.

The company, which has a plant in Jenks, Oklahoma says the cost of some raw materials, such as wood pulp, is leveling off.