Investing.com – Kimberly-Clark Corporation (NYSE:KMB) stock fell more than 5% on Monday as the maker of Huggies diapers and Kleenex tissues cut its guidance for the third straight quarter after earnings fell short of expectations.
Higher prices of raw materials and supply disruptions held the company back in the quarter from July through September. According to Chairman and Chief Executive Officer Mike Hsu, the company will hike prices and optimize costs “to mitigate these headwinds as it is becoming clear they are not likely to be resolved quickly."
The company now expects 2021 net sales to grow by 1.5% at midpoint compared to its previous guidance of around 2.5% growth at center of the range.
The first estimate, given by the company in January, had pegged net sales to grow by 6% at midpoint.
Sales of $5 billion were 7% higher and beat expectations even as product costs rose 14%. Organic sales increased 4% on higher product prices and more sales of higher-margin products.
Net profit fell 1%, to $469 million.