DALLAS — Personal care products maker Kimberly-Clark Corp. said Thursday its second-quarter net income rose 22 percent as higher selling prices, cost cuts and strong international results helped offset the stronger dollar.
The company raised guidance for the year due to higher sales expectations and lower commodity costs for materials like pulp.
“Halfway through the year, we are tracking ahead of our 2012 plan on most key financial metrics, and I’m encouraged by our execution in a continued volatile environment,” said CEO Thomas Falk in a note to investors.
Like many businesses, the maker of Kleenex tissues, Huggies diapers and other household goods, which has a significant amount of business overseas, is facing the impact of the stronger dollar, which lessens the value of international sales. Changes in foreign currency rates hurt revenue by more than 3 percentage points, Kimberly-Clark said.
Still, net income rose to $498 million, or $1.26 per share. That compares with $408 million, or $1.03 per share, last year. Excluding one-time items, income totaled $1.30 per share.
Net income was helped by sales growth, cost cuts and lower commodity costs. That was partly offset by higher marketing, research and general spending and unfavorable currency exchange, Dallas-based Kimberly-Clark said.
Revenue was nearly flat at $5.27 billion versus $5.26 billion last year.
Personal care revenue rose 3 percent to $2.4 billion, while consumer tissue revenue fell 5 percent to $1.6 billion, hurt by restructuring and lower volume.
The company makes diapers and tissues in its plant in Beech Island.