Changes in foreign currency exchange rates reduced sales by 3% while organic sales increased 1%. Net sales declined 2% to $4.6 billion. Net selling prices and product mix each improved 1%, while volumes slid 1%.
In North America, organic sales declined 1% in consumer products and increased slightly in K-C Professional. Outside North America, organic sales rose 3% in developing and emerging markets and 1% in developed markets.
Sales from Personal Care Segment declined 1% and that from Consumer Tissue Segment decreased 3%. The segments were hurt by changes in currency rates.
In January 2018, Kimberly-Clark initiated the 2018 Global Restructuring Program. The company expects the program will generate annual pre-tax cost savings of $500 million to $550 million by the end of 2021, driven by workforce reductions along with manufacturing supply chain efficiencies.
As part of the program, Kimberly-Clark expects to exit or divest some low-margin businesses that generate about 1% of company net sales. To implement the program, the company expects to incur restructuring charges of $1.35 billion to $1.5 billion by the end of 2020. The restructuring charges for the third quarter of 2018 were $119 million, bringing cumulative charges to $649 million after tax.
Looking ahead into the full year 2018, the company continues to expect organic sales growth of about 1% and adjusted EPS of $6.60 to $6.80, a year-on-year increase of 6% to 9%. Adjusted effective tax rate outlook was lowered to the range of 21% to 22% from the prior forecast at the low end of 23% to 26% range.
Shares of Kimberly-Clark ended Friday’s regular session up 0.69% at $110.23 on the NYSE. The stock has fallen over 8% in the year so far and over 2% in the past year.