Kimberly-Clark ( KMB) said first-quarter earnings will be higher than previously forecast thanks to better-than-expected volume growth and the beneficial impact on exports of a weakening dollar.

The consumer products company expects to earn 91 cents a share on revenue of $3.8 billion in the quarter ended March 31. Analysts surveyed by Thomson First Call had been forecasting earnings of 87 cents a share on revenue of $3.69 billion.

The shares were recently up $1.21, or 1.9%, to $65 on the Instinet premarket session.

Kimberly-Clark also warned that second-quarter earnings could be hurt by higher costs for raw materials, particularly fiber. It said price increases planned for the third quarter would help offset the cost increase in the second half, and it currently expects full-year earnings toward the high end of its $3.55 to $3.65 a share range.

Analysts surveyed by Thomson First Call were forecasting second-quarter earnings of 89 cents a share on sales of $3.72 billion, and full-year earnings of $3.61 a share on revenue of $14.93 billion.

Kimberly-Clark's main rival, Procter & Gamble ( PG), said on March 9 that first-quarter earnings would beat estimates by a penny or two a share. It also cited volume improvements and the weak dollar.

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