Kimberly-Clark Tops Profit Estimates, To Cut Up To 1,300 Staff

Kimberly-Clark Corp. said Tuesday it had net income of $562 million, or $1.50 a share, in the third quarter, up from $546 million, or $1.42 a share, in the same period a year ago. The consumer products maker said adjusted per-share earnings came to $1.61, ahead of the FactSet consensus of $1.54. Sales rose 3.4% to $5.442 billion, compared with a FactSet consensus of $5.353 billion. The company said it expects full-year per-share earnings of $5.93 to $6.03, assuming it completes the spin-off of its health care businesses at the end of October. Its previous full-year outlook was for $6.00 to $6.15, which assumed a full year of earnings from the health care business. The company said it is planning a restructuring to offset the impact of the spin-off, and will cut 1,100 to 1,300 employees and book a charge of $130 million to $160 million after-tax. The restructuring is expected to generate savings of $120 million to $140 million by the end of 2017. Shares were not yet active in premarket trade, but are up 3.4% in the year to date, while the S&P 500 has gained 3%.