Latest news with #MikeHsu
Yahoo
4 days ago
- Business
- Yahoo
Kimberly-Clark, Suzano form $3.4B tissue joint venture
This story was originally published on Manufacturing Dive. To receive daily news and insights, subscribe to our free daily Manufacturing Dive newsletter. Kleenex tissue maker Kimberly-Clark and pulp producer Suzano are forming a $3.4 billion global consumer and professional tissue joint venture in an effort to bolster their long-term growth strategies, the companies announced Thursday. Suzano has agreed to pay the tissue manufacturer $1.7 billion to acquire 51% of the new entity, which will be based in the Netherlands. The deal includes 9,000 employees and 22 manufacturing facilities across Europe, Asia, the Middle East, South and Central America, Africa and Oceania. Kimberly-Clark will own the remaining 49% and retain its consumer and professional entities in the United States, as well as existing joint ventures in Mexico, South Korea and Bahrain, among other countries. The transaction is expected to close in mid-2026. The joint venture is part of Kimberly-Clark's long-term growth strategy introduced last year, Chairman and CEO Mike Hsu said in a statement. The plan aims to save the company more than $3 billion through improved productivity and accelerate the growth of its brands and businesses, particularly its North America and international personal care segments. More than 40 of Kimberly-Clark's regional brands under its international family care and professional portfolio will be transferred into the joint venture. Additionally, Suzano plans to enter a long-term license with the new company for the use of global brands, including Kleenex, Scott, Cottonelle, WypAll, Viva and Kimberly-Clark Professional, the Brazil-based pulp producer said in its press release. The deal follows Suzano's acquisition of Kimberly-Clark's Brazilian tissue assets and brands in 2023, the paper maker said in its release. The pending transaction aligns with Suzano's long-term cost-effective and growth strategy that's focused on scalable businesses where it can strengthen its operational efficiency. Once the deal closes, approximately two-thirds of Kimberly-Clark's net revenues will come from its personal care categories, progressing its long-term growth, profitability and returns on investment, according to the tissue maker's press release. The joint venture is expected to reduce Kimberly-Clark's exposure to volatile input costs, improving the company's ability to deliver expected and deliverable margins and profitability over time. Kimberly-Clark anticipates $300 million in additional costs from tariffs this year, Hsu said in his remarks during an April earnings call. The majority of products sold in the U.S. are sourced and domestically produced, Kimberly-Clark CFO Nelson Urdaneta said in the earnings call. In terms of raw materials and finished goods, the company's exposure to China, Mexico and Canada was around or less than 10% of its total cost of goods. 'If we factor in all of our raw materials and finished goods imports for our US business, 80% of our total costs in the U.S. are U.S.-based, so only 20% of our U.S. costs are exposed to tariffs,' Urdaneta said. The volatile tariff backdrop is affecting Kimberly-Clark on three fronts. The 145% duty on China drives about two-thirds of the $300 million, Urdaneta said. The U.S.'s reciprocal tariffs account for 10% and retaliatory tariffs from other countries represent 25% of the impact costs, he added. The company is working fast to mitigate the costs, Urdaneta said. Still, he added that Kimberly-Clark is in a much better position to handle many of these headwinds. 'You can't solve that overnight because we're having to reaccommodate some of the elements of our supply chain, and we intend to already be able to address about a third of the impact this year,' Urdaneta said. 'Now it'll take us through 2026 to pretty much be able to address the whole element in a consistent manner based on what's been enacted today.' The joint venture is one of many actions Kimberly-Clark has taken to make progress on its strategy and alleviate tariff costs. Last month, the Scott paper towel maker announced plans to invest more than $2 billion over the next five years in its North America segment, expanding its U.S. manufacturing capacity and modernizing its supply chain. Recommended Reading Kimberly-Clark to invest over $2B in US operations
Yahoo
5 days ago
- Business
- Yahoo
Kimberly-Clark To Sell Majority of $3.4B Global Tissue Business
Kimberly-Clark said Thursday that it agreed to create a new venture with Brazilian paper products firm Suzano. Suzano will own a 51% stake in the company's international tissue and paper products business, while Kimberly-Clark owns the remaining 49%. The Kleenex and Huggies parent said earlier this year it was looking to focus on higher growth businesses with higher profit (KMB) on Thursday announced a partnership with Brazilian pulp and paper producer Suzano (SUZ) to split ownership of Kimberly-Clark's international tissue and paper products business. The parent company of Cottonelle toilet paper and Huggies diapers said Thursday it will own a 49% stake in the business, which Kimberly-Clark named its "International Family Care and Professional" (IFP) segment in a restructuring effort earlier this year, with Suzano owning the majority 51% stake. The international tissue business Kimberly-Clark is offering up generated about $3.3 billion in sales in 2024, the company said, valuing it currently at about $3.4 billion. The IFP segment has more than 40 regional brands that the new venture will own the rights to, while five global brands like Kleenex and Scott's paper towels will be licensed to the venture, excluding Kimberly-Clark's operations in Mexico and South Korea. "Following years of deliberate investments that have strengthened Kimberly-Clark and IFP, we are excited to expand our partnership with Suzano and focus Kimberly-Clark's portfolio on our higher growth, higher margin businesses," Kimberly-Clark CEO Mike Hsu said. Suzano will later have the chance to potentially buy out Kimberly-Clark's 49% stake "at certain specified times and subject to certain conditions," the companies said. The deal announced Thursday is expected to close by the middle of next year. Kimberly-Clark's first quarter profits had topped estimates while sales fell short. When the company reported its results in April, it also lowered its full-year profit forecasts to account for the potential impact of tariffs. Shares of Kimberly-Clark were down about 2% in early trading Thursday, while Suzano's U.S.-listed shares jumped 5%. Read the original article on Investopedia
Yahoo
5 days ago
- Business
- Yahoo
Kimberly-Clark Announces Major Step Forward in its Powering Care Transformation
Forms Strategic Partnership with Suzano That Will Create Preeminent International Tissue and Professional Products Company Sharpens Kimberly-Clark's Focus on Higher Growth, Higher Margin Personal Care and North America Tissue and Professional Categories Clears Path to Capture Huge Opportunities Across Kimberly-Clark and Newly Formed Venture to Drive Significant Shareholder Returns DALLAS and SíO PAULO, June 5, 2025 /PRNewswire/ -- Kimberly-Clark Corporation (NASDAQ: KMB) ("Kimberly-Clark" or the "Company") today announced that it has entered into an agreement with Suzano (NYSE: SUZ) to form a strategic partnership, creating a preeminent international tissue and professional products company and sharpening Kimberly-Clark's focus on its higher growth, higher margin businesses. Kimberly-Clark will own a 49% interest in the new venture, which will include substantially all the assets of its International Family Care and Professional ("IFP") business, and Suzano will own 51%. "This transaction is a powerful step forward in the transformation strategy we laid out last year," said Kimberly-Clark Chairman and Chief Executive Officer, Mike Hsu. "Following years of deliberate investments that have strengthened Kimberly-Clark and IFP, we are excited to expand our partnership with Suzano and focus Kimberly-Clark's portfolio on our higher growth, higher margin businesses. Together, this positions each business to move forward with clarity and seize the tremendous opportunities ahead. We are grateful to our global teams who have made this moment possible." Jeff Melucci, Kimberly-Clark's Chief Strategy, Business Development and Administrative Officer, said, "Suzano is a leader in its field, whose deep industrial manufacturing and fiber expertise complement Kimberly-Clark's leading brands and world-class commercial capabilities. We look forward to working closely with Suzano to ensure a smooth transition to this exciting venture for IFP, our customers and other stakeholders to deliver on the promise inherent in the business." Compelling Strategic and Financial Benefits Creates a preeminent international tissue and professional products company with significant, new operational efficiency opportunities. Since standing up IFP as a separate business in 2024, Kimberly-Clark has enhanced its margins and improved market share momentum. Joining forces with Suzano will enable the business to capture its full potential. The parties' combined capabilities and infrastructure is expected to reduce total delivered product costs and supply both branded and private label offerings across markets to benefit consumers and customers. Sharpens Kimberly-Clark's Powering Care focus on proprietary, right to win spaces that improve its growth trajectory. The transaction focuses Kimberly-Clark on its higher growth and higher margin business segments – North America and International Personal Care – and shifts its business mix towards its iconic, global brands. Upon completion of the transaction, approximately two-thirds of the Company's net revenues will come from personal care categories, improving its long-term growth trajectory, profitability and returns on investment. Optimizes value and enables return of capital to shareholders. Through the venture, IFP is expected to create more value for shareholders than Kimberly-Clark could achieve running IFP on its own. Kimberly-Clark will receive meaningful upfront cash proceeds that it expects to return to shareholders through share repurchases following the close of the transaction. Improves cost management. Following the completion of the transaction, Kimberly-Clark will reduce its exposure to more volatile input costs, enhancing its ability to deliver more predictable and consistent margins and profit growth over time. "This transaction generates immediate returns and long-term shareholder value as we capture the upside from a stronger international tissue and professional franchise and accelerate growth and innovation at Kimberly-Clark," said Nelson Urdaneta, Kimberly-Clark's Chief Financial Officer. "As the largest fiber manufacturer in the world, Suzano has been an instrumental strategic partner in our efforts to build a more efficient and effective global supply chain. We look forward to strengthening that partnership in the years to come." Transaction and Financial Details Kimberly-Clark will contribute substantially all the assets of its IFP business to the venture, which encompasses sales in more than 70 countries, 22 manufacturing facilities and approximately 9,000 employees. IFP's more than 40 regional brands will be owned by the new entity and its five global brands, including Scott, Kleenex, Viva, WypAll and Kimberly-Clark Professional, will be licensed to the venture by Kimberly-Clark under a long-term agreement. Kimberly-Clark's interests in Mexico and its joint venture in South Korea are outside the scope of this transaction. The business Kimberly-Clark is contributing to the venture generated approximately $3.3 billion of net sales in 2024.1 The transaction contemplates an implied current enterprise value for the business of approximately $3.4 billion, subject to certain purchase price adjustments at closing. The Company noted that, upon closing, the transaction is expected to be approximately $0.30-0.40 dilutive to Adjusted Earnings Per Share2 in the first full year following close, including the Company's expectation to return the initial cash proceeds from the transaction, net of taxes and transaction costs, to shareholders through share repurchases. The Company also noted its expectation to classify the IFP businesses included in the transaction as discontinued operations within its financial disclosures beginning with its second quarter earnings results. The Company currently anticipates reporting its second quarter and six months results by early August. The transaction is not subject to any financing contingency. At certain specified times and subject to certain conditions, Suzano will have the option to purchase Kimberly-Clark's remaining 49% ownership interest under an agreed valuation framework. Timing and Approvals The transaction is subject to the satisfaction of customary consultation requirements and closing conditions, including obtaining required regulatory approvals. The transaction has been unanimously approved by Kimberly-Clark's Board of Directors and is expected to close in mid-2026. Advisors Centerview Partners and Goldman Sachs are serving as financial advisors to Kimberly-Clark, and Kirkland & Ellis LLP and Baker McKenzie LLP are serving as legal counsel. Freshfields LLP is serving as legal counsel to Suzano. About Kimberly-Clark Kimberly-Clark (NASDAQ: KMB) and its trusted brands are an indispensable part of life for people in more than 175 countries and territories. Fueled by ingenuity, creativity, and an understanding of people's most essential needs, we create products that help individuals experience more of what's important to them. Our portfolio of brands, including Huggies, Kleenex, Scott, Kotex, Cottonelle, Poise, Depend, Andrex, Pull-Ups, GoodNites, Intimus, Plenitud, Sweety, Softex, Viva and WypAll, hold No. 1 or No. 2 share positions in approximately 70 countries. We use sustainable practices that support a healthy planet, build strong communities, and ensure our business thrives for decades to come. We are proud to be recognized as one of the World's Most Ethical Companies® by Ethisphere for the seventh year in a row and one of Fortune's Most Innovative Companies in America in 2024. To keep up with the latest news and to learn more about the company's more than 150-year history of innovation, visit the Kimberly-Clark website. About Suzano Suzano is the world's largest pulp supplier, a major paper and packaging producer in the Americas, and one of Brazil's biggest employers. Driven by a deep commitment to sustainability and innovation, Suzano produces responsibly-grown raw materials that are exported to more than 100 countries around the world, meeting the global demand for bio-based solutions. These are used to make everyday items that reach more than two billion people, including toilet paper and tissue, packaging, printing and writing paper, personal hygiene products, and textiles. Founded in Brazil over 100 years ago, today Suzano operates across Latin America, North America, Europe and Asia. The company's shares are listed on the B3 in São Paulo (SUZB3) and the New York Stock Exchange (SUZ). Learn more at: Forward-Looking Statements This press release contains certain forward-looking statements concerning Kimberly-Clark and the proposed transaction with Suzano to acquire an interest in the IFP business. All statements other than statements of fact, including information concerning future results, are forward-looking statements. These forward-looking statements are generally identified by the words "plan," "anticipate," "believe," "estimate," "expect," "intend," "may," "could" or similar expressions. Such forward-looking statements include, but are not limited to, statements about the benefits of the proposed transaction, including anticipated future financial and operating results, Kimberly-Clark's and the joint venture entity's (the "JV") objectives, expectations and intentions, expectations regarding the JV's performance, and the expected timing of completion of the proposed transaction. There are several factors which could cause actual plans and results to differ materially from those expressed or implied in forward-looking statements. Such factors include, but are not limited to, the failure to satisfy any of the conditions to the proposed transaction on a timely basis or at all; the occurrence of events that may give rise to a right of one or both of the parties to terminate the definitive agreements; adverse effects on the market price of Kimberly-Clark's common stock and on Kimberly-Clark's operating results because of a failure to complete the proposed transaction in the anticipated timeframe or at all; negative effects of the pendency or consummation of the proposed transaction on the market price of Kimberly-Clark's common stock and on Kimberly-Clark's operating results; the risk of litigation or regulatory actions; the possibility that Kimberly-Clark may not fully realize the projected benefits of the proposed transaction within the expected timeframe or at all; business disruption during the pendency of or following the proposed transaction; diversion of management time from ongoing business operations due to the proposed transaction; the risk of any unexpected costs or expenses resulting from the proposed transaction; the risk that the proposed transaction and its announcement or Kimberly-Clark's strategy generally could have an adverse effect on the ability of Kimberly-Clark or the JV to retain customers and retain and hire key personnel and maintain relationships with customers, suppliers, employees, stockholders and other business relationships and on its operating results and business generally; the effects of developments related to tariffs and proposed increases in tariffs on imported goods and the impacts it may have on Kimberly-Clark's operations and financial results; and other risks and uncertainties detailed in Kimberly-Clark's Annual Report on Form 10-K for the fiscal year ended December 31, 2024, including in the sections thereof captioned "Risk Factors" as well as in its subsequent reports on Form 8-K and Form 10-Q, all of which are filed with the SEC and available at and Forward-looking statements are based on current expectations and assumptions, which are subject to risks and uncertainties that may cause actual results to differ materially from those expressed in or implied by such forward-looking statements. Given these risks and uncertainties, persons reading this communication are cautioned not to place undue reliance on such forward-looking statements. Kimberly-Clark assumes no obligation to update or revise the information contained in this communication (whether as a result of new information, future events or otherwise), except as required by applicable law. References to our and the SEC's website are inactive textual references only. Information contained on our and the SEC's website is not incorporated by reference in this communication and should not be considered to be a part of this communication. [KMB-F] [KMB-C] _______________________________ 1 The geographic distribution of net sales is approximately 33% Europe (ex UK), Middle East & Africa; 21% UK; 19% Latin America; 16% Asia; and 11% Australia & New Zealand2 Refer to our most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q for information on this non-GAAP measure. The Company does not provide a reconciliation of this forward-looking non-GAAP financial measure to the most directly comparable GAAP financial measure on a forward-looking basis because it is unable to predict certain adjustment items without unreasonable effort. View original content to download multimedia: SOURCE Kimberly-Clark Corporation Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
24-05-2025
- Business
- Yahoo
How To Put $100 In Your Retirement Fund Each Month With Kimberly-Clark Stock
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Kimberly-Clark Corp. (NYSE:KMB) manufactures and markets personal care products in more than 175 countries and territories. The 52-week range of Kimberly-Clark stock price was $124.10 to $150.45. Kimberly-Clark's dividend yield is 3.58%. It paid $5.04 per share in dividends during the last 12 months. Don't Miss: Hasbro, MGM, and Skechers trust this AI marketing firm — Deloitte's fastest-growing software company partners with Amazon, Walmart & Target – On April 22, the company announced its Q1 2025 earnings, posting adjusted EPS of $1.93, beating the analyst consensus estimate of $1.89, as reported by Benzinga. The quarterly revenues of $4.84 billion missed the street view of $4.88 billion. "The current environment will now mean greater costs across our global supply chain versus our expectations at the beginning of the year," warned CEO Mike Hsu. The company now expects its full-year 2025 adjusted operating profit to be flat to positive on a constant-currency basis. Last year, the expectation was high single-digit growth. Adjusted EPS is now expected to be flat to positive on a constant-currency basis. Check out this article by Benzinga for nine analysts' insights on Kimberly-Clark. Trending: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — If you want to make $100 per month — $1,200 annually — from Kimberly-Clark dividends, your investment value needs to be approximately $33,520, which is around 238 shares at $140.79 each. Understanding the dividend yield calculations: When making an estimate, you need two key variables — the desired annual income ($1,200) and the dividend yield (3.58% in this case). So, $1,200 / 0.0358 = $33,520 to generate an income of $100 per month. You can calculate the dividend yield by dividing the annual dividend payments by the current price of the stock. The dividend yield can change over time. This is the outcome of fluctuating stock prices and dividend payments on a rolling instance, assume a stock that pays $2 as an annual dividend is priced at $50. Its dividend yield would be $2/$50 = 4%. If the stock price rises to $60, the dividend yield drops to 3.33% ($2/$60). A drop in stock price to $40 will have an inverse effect and increase the dividend yield to 5% ($2/$40). In summary, income-focused investors may find Kimberly-Clark stock an attractive option for making a steady income of $100 per month by owning 238 shares of stock. There may be more upside to come as investors benefit from the company's consistent dividend hikes. Kimberly-Clark has raised its dividend consecutively for the last 53 years. Read Next: Invest Where It Hurts — And Help Millions Heal: 'Scrolling To UBI' — Deloitte's #1 fastest-growing software company allows users to earn money on their phones. Image: Shutterstock Send To MSN: 0 This article How To Put $100 In Your Retirement Fund Each Month With Kimberly-Clark Stock originally appeared on
Fibre2Fashion
24-04-2025
- Business
- Fibre2Fashion
France's Kimberly-Clark sees Q1 dip, full-year plan remains on track
American company of consumer goods and personal care Kimberly-Clark has reported net sales of $4.8 billion in the first quarter (Q1) of 2025, witnessing a decline of 6 per cent, including negative impacts of approximately 2.4 per cent from foreign currency translation and approximately 2.0 per cent from a combination of the personal protective equipment (PPE) divestiture. The gross margin of the company stood at 35.8 per cent in Q1 2025, inclusive of $53 million, or approximately 110 basis points (bps) of charges related to the 2024 transformation initiative. Excluding these charges, adjusted gross margin was 36.9 per cent, down 20 bps versus the prior year. Kimberly-Clark has reported net sales of $4.8 billion in Q1 2025, down 6 per cent. Organic sales decreased by 1.6 per cent. Adjusted operating profit fell 6 per cent, while EPS decreased 4 per cent. The company remains confident in offsetting rising global supply chain costs and maintaining long-term growth, with organic sales growth expected to exceed industry averages. The organic sales of the company decreased by 1.6 per cent driven by a 1.5 per cent decrease in price while volume and mix were in line with a year ago, Kimberly-Clark said in a press release. The operating profit was $769 million, and adjusted operating profit was $844 million, down 6.0 per cent versus the prior year and inclusive of an unfavourable impact from currency translation of 2.2 per cent. Diluted earnings per share (EPS) in Q1 2025 were $1.70 on a reported basis. On an adjusted basis, EPS decreased 4.0 per cent to $1.93 as the benefits from a lower adjusted effective tax rate were partially offset by lower adjusted operating profit and lower net income of equity companies. 'Building on the strong foundation we established in 2024, we made further progress across the three pillars of our Powering Care strategy in the first quarter of 2025," said Mike Hsu, chairman and chief executive officer (CEO) at Kimberly-Clark. 'Despite the evolving external landscape, our first quarter was consistent with our full-year plan. At the same time, the current environment will now mean greater costs across our global supply chain versus our expectations at the beginning of the year.' 'However, we remain confident in our ability to offset these costs over time and unlock our long-term potential. Our strong productivity momentum is fuelling investments to advance our competitive advantage and driving profitability. Our innovation across the good-better-best value spectrum is winning with consumers and enabling us to gain share. I am proud of the effort of our teams around the world. Their commitment has positioned Kimberly-Clark to usher in our next chapter of growth and continue to deliver better care for a better world,' added Hsu. Kimberly-Clark's 2025 outlook aligns with its long-term growth strategy, projecting organic sales growth that will exceed the average growth in the categories and regions it operates in, which are currently growing at 1.5-2 per cent. Net sales are expected to be negatively impacted by around 200 bps due to currency translation, an improvement from the earlier forecast of 300 bps. Additionally, a 240-bps decline is anticipated from the divestiture of PPE and the exit from the US private label diaper business. Fibre2Fashion News Desk (SG)
