Kimberly-Clark Posts Softer 1Q Profit, Will Raise Prices (Source: http://fxn.ws/ez8Q70) FOXBusiness By Matt Egan Published April 25, 2011
CHICAGO – Kimberly-Clark (KMB) suffered a steeper-than-expected 8.9% slide in first-quarter profits as the maker of Kleenex tissues grappled with higher prices.
“We continue to execute our global business plan strategies in a difficult environment,” CEO Thomas Falk said in a statement.
Kimberly-Clark announced plans to raise prices in a “number” of its businesses, including North American consumer products.
“The rapid run-up in commodity costs has influenced our near-term profitability, so we are taking aggressive actions in response to the cost environment,” Falk said.
In light of the higher prices, Kimberly-Clark lowered its 2011 non-GAAP EPS forecast to $4.80 to $5.05, compared with $4.90 to $5.05 previously. Yet the company now sees full-year sales rising 4% to 6%, up from 3% to 4% previously. Organic sales are expected to rise 2% to 4%.
Shareholders punished Kimberly-Clark for the earnings miss and new guidance, sending the stock down 3.1% to $64.00 ahead of Monday’s open. The company’s shares finished last week up nearly 5% on the year.
Read more: http://www.foxbusiness.com/industries/2011/04/25/kimberly-clark-posts-lower-profit-says-raise-prices/#ixzz1KXjPHFVH
Thor's Hammer Note: Inflationary pressures continue to build throughout the economy. The thought of inflation was laughed at a couple of years ago and now it is impossible to read current news articles without noting some reference to the inflation spectre. Expect continued price increases in all of our daily expenses. Also expect to see confusion on the part of politicians as they struggle with an issue that they have contributed to. We are in trouble folks ...
© 2011 - Jim Lindell