K-C Unveils Second Quarter Results

Personal care products giant Kimberly-Clark reported $4.9 billion in net sales for the second quarter of 2010, an increase of 2.8%. Organic sales rose 2%, driven by higher net selling prices of 2%, while sales volumes and product mix were even with year-ago levels. The combined impact of the I-Flow Corporation and Jackson Safety acquisitions completed in 2009 added an additional point of sales growth, while changes in foreign currency rates had no overall impact on sales in the quarter. The growth in organic sales was highlighted by a 6% gain for K-C's international operations in Asia, Latin America, the Middle East, Eastern Europe and Africa.

In the Personal Care Products segment, sales increased 2.8% compared with the second quarter of 2009. Sales volumes rose more than 2% and net selling prices advanced 1%, while changes in currency rates reduced sales by approximately 1%.

Personal care sales in North America increased 7 % versus the second quarter of 2009. Sales volumes were up 3% and net selling prices rose 2%, driven by a lower level of promotional activity for Huggies diapers. In addition, changes in product mix and currency exchange rates each added 1 point of growth. Feminine care sales volumes grew at a double-digit rate for the second consecutive quarter as a result of the U by Kotex line extension. Adult care volumes also increased double-digits, with benefits from recent innovation on the Poise and Depend brands and supporting marketing campaigns. In other areas of the business, sales volumes for the company's child care brands advanced 2%, while volumes for Huggies baby wipes were off 2% and volumes for Huggies diapers were down slightly.

Sales of health care products increased 2.7% in the second quarter. Growth was driven by an 11% benefit from the acquisition of I-Flow Corporation and a 1 point increase from favorable currency exchange rates. On the other hand, organic sales volumes declined 6% and net selling prices fell 3%. The organic volume comparison was adversely affected by approximately 5 points due to increased demand in 2009 for face masks as a result of the H1N1 flu virus. In addition, volume performance in 2010 was impacted by unanticipated distributor and end-user inventory reductions. The company believes that most of these reductions are now complete.

From: www.nonwovens-industry.com