Kimberly-Clark Corporation (NYSE:KMB) launched its shares skyward after reporting first-quarter 2019 results.
Q1 2019 net sales were $4.6 billion, down 2% compared to the year-ago period. Changes in foreign currency exchange rates reduced sales by 5%, while organic sales increased 3% including higher net selling prices of 4%.
KMB reported diluted net income per share for the first quarter was $1.31 in 2019 and $0.26 in 2018.
First-quarter adjusted earnings per share were $1.66 in 2019 and $1.71 in 2018.
First-quarter operating profit was $655 million in 2019 and $247 million in 2018. Results in both periods include charges related to the 2018 Global Restructuring Program. First-quarter adjusted operating profit was $807 million in 2019 and $824 million in 2018.
Results were impacted by $135 million of higher input costs, driven by $60 million in pulp and $45 million in other raw materials. In addition, foreign currency translation effects reduced operating profit by $25 million and transaction effects also negatively impacted the comparison.
Finally, the company continues to target full-year 2019 organic sales growth of 2% and adjusted earnings per share of $6.50 to $6.70.
Chief Executive Officer Mike Hsu said, "I'm encouraged with our first quarter results. We made excellent progress driving higher selling prices to help offset commodity and currency headwinds.
"We also continued to launch innovations, pursue our growth priorities and invest in our brands. In addition, we generated $115 million of cost savings and returned $510 million to shareholders through dividends and share repurchases. We are confirming our previous full-year outlook while we maintain a strong focus on executing K-C Strategy 2022 for long-term success."
Shares jumped $7.74, or 6.3%, to $131.29
