K-C Reports Even Sales
Kimberly-Clark reported sales of $4.5 billion in the first quarter of 2017, which were even with the
year-ago period. Changes in foreign currency exchange rates increased sales by
1%. Organic sales were down 1%, as net
selling prices fell more than 1%, while volumes rose approximately 1%.
In its personal care segment, first quarter sales of $2.3 billion increased 2%.
Changes in currency rates benefited sales
2%. Volumes increased 2%, while net selling prices fell 2%. First quarter operating profits of $481 million increased 7%.
The comparison benefited from volume
growth, cost savings and favorable currency effects, partially offset by lower net
selling prices and input cost inflation.
Sales in North America decreased 1%
due to lower volumes. Total volumes in
infant and child care were off in the low-single digits, as a mid-single digit decline
in Huggies diapers was partially offset by
a mid-single digit increase in child care.
Baby wipes volumes increased mid-single
digits, while feminine care volumes were
down mid-single digits.
Sales in developing and emerging markets increased 9% including a three point
benefit from favorable currency rates. Volumes increased 9%, while net selling prices were down 3%. The volume increase
included gains in China, Eastern Europe
and Latin America, led by Brazil. The decline in net selling prices was primarily in
China and secondarily in Eastern Europe.
Sales in developed markets outside
North America (Australia, South Korea
and Western/Central Europe) decreased
8% despite a one point benefit from favorable currency rates. Net selling prices
declined 5% and volumes fell 4%, with the
changes mostly in South Korea.
P&G Sales Down 1%
Procter & Gamble’s net sales in the third
quarter of fiscal year 2017 were $15.6 billion, a decrease of 1% versus prior year,
including a negative 2% impact from foreign exchange. Organic sales increased
1% driven by a 1% increase in organic
shipment volume. Pricing and mix had no
net impact on sales for the quarter. All-in
volume was unchanged including the impacts of minor brand divestitures.
Baby, Feminine and Family Care segment organic sales increased 1% driven by
volume growth in Family Care and favorable mix in Feminine Care. Baby Care organic sales decreased low single digits due
mainly to competitive activity. Feminine
Care organic sales increased mid-single
digits from favorable product mix due to
Always Discreet premium innovation.
Family Care organic sales grew low single
digits driven primarily by product innovation and increased marketing support.
Suominen’s Sales Grow
In January–March 2017, Suominen’s net
sales increased by 9% from the comparison period to €112.9 million ($123 million). Net sales improved mainly due to
increased sales volumes. Competition
remained tight, especially in nonwovens for baby wipes and flushables. The
strengthening of the USD compared to
EUR increased the net sales by €2.7 million ($2.9 million).
Suominen has two business areas, Convenience and Care. Convenience business
area supplies nonwovens as roll goods for
wiping products. Care business area manufactures nonwovens for hygiene products and medical applications. Net sales
of the Convenience business area were
€101.9 million ($111 million) and net sales
of the Care business area were € 11.1 million ($12 million).
The main application areas for non-
woven materials supplied by Suominen
in January–March were baby wipes (ac-
counting for 39% of the sales), household
wipes (21%), personal care wipes (19%),
hygiene and medical products (10%) and
wipes for workplace use (9%). All non-
wovens for wiping products belong to the
Convenience business area and nonwo-
vens for hygiene and medical products to
the Care business area.
The proportions of household wipes,
baby wipes as well as medical and hygiene
products grew from the comparison period while the share of nonwovens for personal care declined. The growth in medical
and hygiene products was partially related
to the reclassification of a customer.
Ahlstrom Announces Final
Ahlstrom’s net sales in the first quarter of
2017 were €272.7 million ($297.5 million),
showing a gain of 2.1%. Comparable net
sales increased by 7.6% at constant cur-
rency rates. Adjusted EBITDA was € 42. 6
million ($46.4 million), representing 15.6%
( 10.5%) of net sales. Operating profit in
the quarter was € 32. 4 million ($35.3 mil-
lion), up from € 10. 6 million ($11.6 million)
in the first quarter of 2016. Adjusted oper-
ating profit was € 30. 7 million ($33.5 mil-
lion), representing 11.2% of net sales.
Ahlstrom and Munksjö Oyj recently
completed the merger to create a leader
in sustainable and innovative-fiber solu-
tions. The name of the combined company
was changed to Ahlstrom-Munksjö Oyj.
Sakari Ahdekivi, interim president &
CEO of Ahlstrom, comments: “Ahlstrom’s
financial accounts show an excellent result
as our quarterly adjusted operating profit
and margin reached an all-time high in
the structure we have had since the be-
ginning of this decade. This was driven by
very strong sales growth across all of our
business units as well as improved opera-
tional efficiency and lower fixed costs.
“We were able to achieve a remarkable turnaround in our performance in
the last three years and I would like to
take this opportunity thank our employees and all our stakeholders for this great
achievement. We were able to achieve
our financial targets ahead of schedule.