UPM-Kymmene Inc. and Northern SC Paper Corp., a subsidiary of the New York Times Company, announced today the sale of Madison Paper Industries' mill site located in Madison, Maine to a joint venture of New Mill Capital Holdings of NY, Perry Videx of Hainesport, NJ and Infinity Asset Solutions of Toronto. The sale is a continuation of the dissolution of the partnership that was announced in March 2016. The hydro power assets located at the mill site are currently being marketed separate of today's transaction.
Kimberly-Clark Corporation (NYSE: KMB) today reported second quarter 2015 results and narrowed its previous guidance for full-year 2015 adjusted earnings per share.
◦Second quarter 2015 net sales of $4.6 billion decreased 6 percent compared to the year-ago period, as changes in foreign currency exchange rates reduced sales 10 percent. Organic sales rose 4 percent, including a 10 percent increase in developing and emerging markets.
◦Diluted net income per share for the second quarter was a loss of $0.83 in 2015, driven by non-cash pension settlement charges, compared to income of $1.32 from continuing operations in 2014. Including earnings from the health care business (discontinued operations) that was spun off at the end of October 2014, diluted net income per share was $1.35 for the second quarter of 2014.
◦Second quarter adjusted earnings per share were $1.41 in 2015 compared to adjusted earnings per share from continuing operations of $1.33 in the prior year. Performance benefited from organic sales growth, cost savings, input cost deflation and a lower share count. Comparisons were negatively impacted by unfavorable foreign currency exchange rate effects and higher other expense. Adjusted earnings per share in both years exclude certain items described later in this news release.
◦Full-year adjusted earnings per share in 2015 are anticipated to be $5.65 to $5.80 compared to the company’s previous guidance range of $5.60 to $5.80.
Chairman and Chief Executive Officer Thomas J. Falk said, “We continue to execute our Global Business Plan strategies well. In the second quarter, we delivered mid-single digit growth in organic sales and adjusted earnings per share from continuing operations. We also achieved significant cost savings and improvements in adjusted gross and operating margins. In addition, we made further progress with targeted growth initiatives, launched product innovations and allocated capital in shareholder-friendly ways. In terms of our full-year earnings outlook, we are raising the low end of our previous guidance by 5 cents per share. This reflects our strong performance in the first half of the year, additional cost savings and more investments behind our brands and growth initiatives than we previously planned. We continue to be optimistic about our prospects to generate attractive returns to shareholders.”
Second Quarter 2015 Operating Results
Sales of $4.6 billion in the second quarter of 2015 were down 6 percent compared to the year-ago period. Changes in foreign currency exchange rates reduced sales 10 percent as a result of the weakening of most currencies relative to the U.S. dollar. Organic sales rose 4 percent, as volumes increased 3 percent and product mix/other was favorable by 1 percent.
Second quarter operating profit was a loss of $544 million in 2015 and profit of $775 million in 2014. Adjusted operating profit was $790 million in the second quarter of 2015 compared to $777 million in the year-ago period. Adjusted results in 2015 exclude $1,322 million of charges for pension settlements and $12 million of 2014 Organization Restructuring costs. Adjusted results in 2014 exclude $2 million of restructuring costs for European strategic changes.
The year-over-year adjusted operating profit comparison benefited from organic sales growth, $105 million in cost savings from the company’s FORCE (Focused On Reducing Costs Everywhere) program and $20 million of savings from the 2014 Organization Restructuring. Input costs decreased $40 million overall, including $35 million of lower costs for raw materials other than fiber and $5 million of lower energy costs. Translation effects due to changes in foreign currency exchange rates lowered operating profit by $80 million and transaction effects also negatively impacted comparisons. The currency impacts were most significant in Latin America and Eastern Europe. On an adjusted basis, other (income) and expense, net was expense of $10 million in 2015 and income of $13 million in 2014. Results in 2015 were driven by foreign currency transaction losses, while prior-period results benefited from a gain on an asset sale.