Kimberly-Clark reports quarterly results

Kimberly-Clark Corporation reported that net sales in the first quarter of 2010 increased 7.6 percent to $4.8 billion, including an approximate 5 percent benefit from stronger foreign currency exchange rates. Organic sales rose 2 percent, with sales volumes and net selling prices each up 1 percent. The combined impact of the I-Flow Corporation and Jackson Safety acquisitions added an additional point of sales growth in the quarter. The organic volume growth was highlighted by an 8 percent increase for the company's global Health Care business and a 5 percent gain for K-C's international operations in Asia, Latin America, the Middle East, Eastern Europe and Africa.

Diluted net income per share for the quarter was $0.92 and adjusted earnings per share were $1.14 compared with diluted net income per share of $0.98 in 2009. Bottom-line results were favorably impacted by the growth in net sales, improved gross margin of more than 150 basis points and a lower level of foreign currency transaction losses. On the other hand, strategic marketing spending increased by $60 million in the quarter to support the Company's product innovation activities and targeted growth initiatives. In addition, the Company's effective tax rate in the first quarter was significantly higher than the year-ago period, including a one-time charge equivalent to 5 cents per share related to recent changes in tax law regarding health care reform legislation.

Adjusted earnings per share in 2010 exclude an after tax charge of $96 million for the remeasurement of the local currency balance sheet in Venezuela as a result of the adoption of highly inflationary accounting in January 2010.