Kimberly-Clark Kleenex brand toilet tissue.
Kimberly-Clark said its fourth-quarter profit was hurt by rising costs, and provided financial forecasts that fell short of what Wall Street had expected.
The stock fell 5.8% to $131.50 in premarket trading.
Net income in the latest quarter was $357 million, much lower than the $539 million reported in the same period of 2020. Analysts tracked by FactSet had expected $421.9 million in profits.
All three of Kimberly-Clark ‘s business segments—personal care, consumer tissue, and K-C Professional—were affected by an increase in expenses totaling $530 million, driven by pulp and polymer-based materials, distribution, and energy costs.
The company also provided full-year 2022 guidance, saying it expects earnings per share of $5.60 to $6.00 for the full year, below analysts’ expectation of $6.74 a share.
“While we expect inflation and supply-chain disruption to persist into 2022, we are committed to recovering margins to pre-pandemic levels over time, and we are optimistic about gradual improvement later in the year,” said CEO Mike Hsu.
Kimberly-Clark said it expects to buy back roughly $100 million of stock this year. It is increasing its quarterly dividend to $1.16 per share from $1.14 per share in 2021, marking the 50th annual increase in the payout.
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