By Micah Maidenberg
Kimberly-Clark Corp. reported a weaker third-quarter profit but said demand picked up as shoppers sought out its various consumer products to use during the Covid-19 pandemic.
The company behind Huggies diapers, Cottonelle toilet paper and other items reported net income of $472 million, or $1.38 a share, down from $671 million, or $1.94 a share, for the year-earlier period. An adjusted profit for the quarter of $1.72 a share missed expectations from analysts by 4 cents.
Kimberly-Clark said operating income fell in part because last year's third quarter included a one-time gain tied to the sale of a factory.
Some manufacturing costs, including expenses related to the coronavirus pandemic, rose. Costs for marketing, research and certain other efforts jumped 13% year-over-year.
Net sales for the third quarter totaled $4.68 billion, up from $4.64 billion. On a comparable basis, sales were up 3%. Analysts were looking for about $4.59 billion in sales, according to FactSet.
Chief Executive Mike Hsu said demand increased due to the pandemic.
The company said sales in its personal-care unit in North America rose 6% year-over-year, helped by volume gains among baby and child care items. Volumes in the consumer-tissue business rose 11% in the U.S. and Canada, matching the sales increase for those items.
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(END) Dow Jones Newswires