(Bloomberg) -- Kimberly-Clark Corp. shares slid after its outlook for 2022 fell short of Wall Street estimates and the company cautioned about a tough year ahead.
Earnings excluding some items will be in the range of $5.60 to $6 a share this year with organic sales growth of 3% to 4%, Kimberly-Clark said in a statement Wednesday. Analysts surveyed by Bloomberg were looking for profit of about $6.72 a share and organic sales growth of about 5.4%.
The maker of Kleenex tissues and Huggies diapers expects a “challenging” year with continued inflation, supply-chain disruptions and uncertainty around the pandemic. The company said key input costs in 2022 are expected to increase $750 million to $900 million due to elevated prices for raw materials like polymer-based products and pulp, as well as distribution and energy costs.
“While we expect inflation and supply-chain disruption to persist into 2022, we are committed to recovering margins to pre-pandemic levels over time, and we are optimistic about gradual improvement later in the year,” Chief Executive Officer Mike Hsu said in the statement.
Shares of Kimberly-Clark fell 5.6% in premarket trading at 8:29 a.m. New York time. The stock had gained 2% in the 12 months through Tuesday, trailing a 15% gain for peers in the S&P 500 Consumer Staples Index.
The company has announced more price hikes that go in effect this quarter, adding to previous increases in the second and third quarters of 2021. That should offset the majority of the impact of inflation, Hsu said in prepared remarks.
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