Doug Osterberg, President and Chief Executive Officer of Appleton Coated LLC, and Guy Spinelli, President and Chief Executive Officer of Spectra Jet Inc., announce that they have entered into an agreement for Appleton Coated to acquire the principal business of Spectra Jet Inc., a developer and distributor of sublimation transfer papers headquartered in Woodstock, Illinois. The transaction is expected to close in the second half of 2017. However, beginning immediately, Appleton Coated and Spectra Jet will both promote Spectra Jet’s Silverback3 brand of sublimation papers and associated products through a coordinated sales and marketing program. Spectra Jet Inc. was founded in 2006 by its current owners, Guy Spinelli and Paul DeWyngaert. Since 2015, Appleton Coated has been the exclusive producer, for Spectra Jet, of Silverback3 paper, a product that utilizes Spectra Jet’s proprietary technology. The paper is produced at Appleton Coated’s manufacturing facility in Combined Locks, Wisconsin. Click Read More below for additional detail.
Kimberly-Clark Corporation (NYSE: KMB) today reported first quarter 2019 results.
- First quarter 2019 net sales of $4.6 billion decreased 2 percent compared to the year-ago period. Changes in foreign currency exchange rates reduced sales by 5 percent, while organic sales increased 3 percent including higher net selling prices of 4 percent.
- 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. Adjusted earnings per share exclude certain items described later in this news release.
- The company continues to target full-year 2019 organic sales growth of 2 percent 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.”
First Quarter 2019 Operating Results
Sales of $4.6 billion in the first quarter of 2019 were down 2 percent compared to the year-ago period. Changes in foreign currency exchange rates reduced sales by 5 percent. Organic sales increased 3 percent. Net selling prices rose approximately 4 percent and product mix improved 1 percent, while volumes fell about 2 percent. In North America, organic sales increased 1 percent in both consumer products and K-C Professional. Outside North America, organic sales rose 7 percent in developing and emerging markets and 1 percent in developed markets.
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. Advertising spending also increased year-on-year. On the other hand, results benefited from higher net selling prices, $60 million of cost savings from the 2018 Global Restructuring Program and $55 million of cost savings from the company’s FORCE (Focused On Reducing Costs Everywhere) program.
The first quarter effective tax rate was 24.6 percent in 2019 and 59.8 percent in 2018, which included an $82 million net charge associated with U.S. tax reform related matters. The first quarter adjusted effective tax rate was 23.7 percent in 2019 and 22.0 percent in 2018. The rate in 2018 benefited from the resolution of certain tax matters.
Kimberly-Clark’s share of net income of equity companies in the first quarter of 2019 was $27 million, even with the year-ago period. Results were impacted by higher input costs, but benefited from organic sales growth and cost savings.