Kimberly-Clark’s sales of $4.6 billion in the second quarter of 2020 increased slightly compared to the year-ago period. Changes in foreign currency exchange rates reduced sales approximately 4%, while organic sales increased 4%. Volumes increased 2% and changes in net selling prices and product mix each improved 1%. In North America, organic sales increased 12% in consumer products but fell 3% in K-C Professional. Outside North America, organic sales rose 3% in developed markets but fell 3% in developing and emerging markets, driven by Latin America.

Chairman and chief executive officer Mike Hsu says, “We continue to focus on protecting the health and safety of our employees and consumers and operating our supply chain with excellence to meet the needs of our consumers and customers during this unprecedented time period. I am extremely proud of how our teams are managing these near-term operating priorities. At the same time, our underlying business momentum is good, our market share positions are healthy overall and we are delivering excellent financial results.”

He continues, “We achieved very good organic sales growth and all-time record adjusted earnings and cash flow in the second quarter. We also delivered significant cost savings, helping us achieve strong margin improvements. While the environment remains uncertain, visibility has improved from three months ago and we are restoring forward-looking guidance. We have increased our 2020 outlook for organic sales and earnings compared to our original plan. We are also further increasing our growth investments to position us for future success. We continue to execute well, operate our business with a balanced approach and remain very optimistic about our opportunities to create shareholder value.”

In the Personal Care Segment, second quarter sales of $2.2 billion decreased 2%. Changes in currency rates reduced sales by 5%. Product mix improved 2% and volumes and net selling prices each increased slightly. Second quarter operating profit of $519 million increased 7%. The comparison benefited from organic sales growth, cost savings and lower input costs. Results were impacted by unfavorable currency effects, other manufacturing cost increases, higher advertising spending and increased general and administrative costs.

Sales in North America increased 4%. Volumes increased 2%, product mix improved 2% and net selling prices rose 1%. The improved volumes and product mix were driven by baby and child care.

Sales in developing and emerging markets decreased 9%. Changes in currency rates reduced sales 11%. Product mix improved 2% and volumes rose slightly, while net selling prices were down 1%.

Sales in developed markets outside North America (Australia, South Korea and Western/Central Europe) decreased 8%. Changes in currency rates reduced sales 5%. Volumes fell 6%, while the combined impact of changes in net selling prices and product mix improved sales 3%.