Kimberly-Clark to cut up to 1,300 jobs

AP News
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Posted: Oct 21, 2014 11:16 AM

DALLAS (AP) — Kimberly-Clark plans to eliminate up to 1,300 jobs as part of restructuring efforts aimed at reducing costs and making its business more efficient.

The consumer products company behind brands such as Kleenex and Huggies has 58,000 workers worldwide, according to its website. That means the cuts would amount to about 2 percent of its workforce.

Kimberly-Clark Corp. said Tuesday that it anticipates restructuring costs between $130 million and $160 million, after taxes. The company foresees between $120 million and $140 million in savings by the end of 2017.

The restructuring is expected to be completed by the end of 2016.

Kimberly-Clark also cut its 2014 adjusted profit forecast to account for the spinoff of its health care business. The Dallas company now expects an adjusted profit between $5.93 and $6.03 per share, down from its prior range of $6 to $6.15 per share. Analysts polled by FactSet expect $6.06 per share.

Kimberly-Clark announced in November 2013 that it wanted to spin off its health care business. The move will create a separate, publicly traded company named Halyard Health Inc. The spinoff is expected to be effective by the end of October.

For the third quarter, Kimberly-Clark reported an adjusted profit of $1.61 per share on revenue of $5.44 billion. This topped Wall Street's forecast for earnings of $1.54 per share on revenue of $5.35 billion.

Shares of the company gained $2.07, or 1.9 percent, to $110.11 in morning trading.