Monday, April 25, 2011

More Signs of Inflation: Kimberly Clark to Raise Prices 8.9%

More signs of rising inflation, at least for normal people that is:
Kimberly-Clark says it plans to raise prices on most products it sells in North America.

Q1 fearnings fell 8.9% due to rising costs for key materials like wood pulp.

Kimberly-Clark's says the company expects costs for the year to be twice as high as it expected last quarter.

So you will pay more for Kleenex tissues and diapers.

According to the Wall Street Journal, the actions "may not be enough to prevent weaker earnings". The company reduced the low-end of its full-year earnings outlook by a dime to a range of $4.80 to $5.05 a share, "even as it raised its sales forecast projection to an increase of 4% to 6% from 3% to 4% amid anticipated price increases and a weaker dollar".

While the weak dollar causes oil to jump, it is now expected to increase sales by about 2% for the year, up from a prior estimate of 1%.

"Kimberly-Clark's plans for another round of price increases come after the company last month said it was rising prices on bathroom tissue, diapers and other products to combat higher costs".

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