Sales of $4.7 billion in the first quarter of 2018 were up 5 percent compared to the year-ago period. Changes in foreign currency exchange rates benefited sales by 3 percent. Organic sales improved 2 percent, as volumes increased 3 percent while net selling prices were down 1 percent. In North America, organic sales increased 3 percent in consumer products and 2 percent in K-C Professional. Outside North America, organic sales rose 2 percent in developed markets and 1 percent in developing and emerging markets. First quarter operating profit was $247 million in 2018 and $848 million in 2017. Results in 2018 included $577 million of charges related to the 2018 Global Restructuring Program. First quarter 2018 adjusted operating profit was $824 million. Results were impacted by $175 million of higher input costs, driven by a $105 million increase in pulp and a $45 million increase in other raw materials. The operating profit comparison was also affected by lower net selling prices. Click Read More below for additional information.
Neenah, Inc. (NYSE: NP) today announced that it had not closed on its agreement to acquire Vectorply Corporation (“Vectorply”) on April 1 as originally contemplated. Neenah had agreed to acquire Vectorply from MSouth Equity Partners for $155 million in cash.
“Regarding our ongoing business during this challenging time, the health and safety of our employees are paramount and we’ve taken actions across our company to protect them, while also carefully managing costs, capital expenditures and working capital,” said John O’Donnell, Chief Executive Officer. “We exited 2019 with a conservative leverage position and our liquidity today is strong. Our primary near-term focus is the health and welfare of our employees and business, and we feel confident in our ability to weather the current crisis.”