The maker of household products under the Kleenex, Scott and Kotex brands said inflationary pressure from higher raw materials and energy costs will lead it to pass some of those costs onto consumers of its bathroom tissue products as well as baby and child care products.
Kimberly-Clark shares rose 0.8% to close at $63.79 on Thursday. Kimberly-Clark said net selling prices in the U.S. and Canada for its Huggies baby wipes and diapers, Pull-Ups training pants and GoodNites youth pants will increase between 3% and 7%, on average. The price hikes will go into effect between June 19 and Aug. 17 of this year. Additionally, Kimberly-Clark will raise net selling prices in the U.S. for Cottonelle and Scott 1000 bathroom tissue products by around 7%, effective June 19. Price increases will vary by brand and pack size, the company said. Kimberly-Clark said net sales in North America for the consumer products facing price increases came to over $4 billion in 2010. A number of consumer goods makers have reported adverse effects from rising input costs in recent months, including Procter & Gamble (PG), Colgate-Palmolive (CL), Sara Lee (SDE), Starbucks (SBUX) and McDonald's (MCD), among others. Several of these companies also chose to pass on the higher costs to consumers.
>To contact the writer of this article, click here: Miriam Reimer. >To follow the writer on Twitter, go to http://twitter.com/miriamsmarket. >To submit a news tip, send an email to: firstname.lastname@example.org.
>>See our new stock quote page. Get more stock ideas and investing advice on our sister site, Stockpickr.com.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV