This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Kimberly-Clark Misses on Costs, Raises Prices

Stocks in this article: KMB

DALLAS ( TheStreet) -- Kimberly-Clark (KMB - Get Report) cut its earnings forecast and said it will raise prices again this year as rising costs led it to miss quarterly profit expectations.

Kimberly-Clark said higher costs for materials like wood pulp led to an 8.9% decline in quarterly earnings, and the maker of Huggies diapers and Kleenex tissues will once again look to pass on those higher costs to consumers.

Disappointed investors bid Kimberly-Clark shares 3% lower to $64.04 at midday Monday amid heavier-than-normal volume. Around 4.2 million shares changed hands less than halfway through the day's session, compared with their average daily volume of just 2.6 million.

In March Kimberly-Clark said inflationary pressure from higher raw materials and energy costs led it to raise consumer prices on its Cottonelle and Scott bathroom tissue products as well as baby and child care products under the Huggies, Pull-Ups and GoodNites brands .


Kimberly-Clark now expects costs this year to be nearly double its previous expectations, and it cut its 2011 profit outlook by 10 cents per share to a range of $4.80 to $5.05.

Costs are expected to increase between $450 million to $550 million in 2011, compared with its prior estimate for cost increase assumptions between $200 and $250 million.

Price increases on most of Kimberly-Clark's products -- and a weaker dollar -- should help pad the company's top-line however, and the company raised its sales growth forecast to a range of 4% to 6%, up from 3% to 4%.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,672.60 -141.38 -0.79%
S&P 500 2,051.82 -11.33 -0.55%
NASDAQ 4,757.8790 +7.4820 0.16%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs