Kimberly Clark reduces costs and profits in the first quarter

Kimberly Clark, American multinational consumer sector, ended the first quarter of this year with net profit of $563 million, an increase of 3% compared to the same period in 2016. With stable sales, cost reduction was important for the company to expand the last line of your swing.
American''s net revenue, owner of brands such as Kleenex, Scott, Huggies, Intimus and snow, totaled $4.5 billion from January to March, in line with a year earlier. Organic sales--which exclude the foreign exchange effect — retreated 1% in the quarter, with the drop of 1% of the sales price, despite advance of 1% in volume.
The operating profit amounted to $834 million in the quarter, an increase of 4%, driven by a cost saving of $110 million.
Chief Executive Thomas Falk said in comments accompanying the balance sheet, the prospect for the exchange rate has improved, while the commodity inflation increased a little and the growth of the category remains relatively modest. Despite the difficulties in North America, the performance remains positive in emerging and developing markets, where organic revenue increased by 4% in the quarter.
In the personal care segment, global sales rose 2% in the three months to March, to $2.25 billion. The company has benefited from the growth of volumes, cost savings and favorable foreign exchange effects, but had lower sales prices and increased cost of raw materials.
The company expects net sales to rise from 1% to 2% in 2017. The previous estimate was for stability.