Kimberly Clark CEO stepping down as company reports operating profit fall due to rising commodity costs
October 25, 2018
IRVING, Texas (From news reports) -- Kimberly Clark CEO Thomas Falk has announced he is to step down as the company reports a fall in its full-year adjusted operating profit due to a rise in commodity costs such as plastic, pulp and oil.
The operating profit decline has sent shares in the company falling by 5 percent, with commodity costs now expected to be at the higher end of the previous forecast of between $675 million to $775 million.
Speaking on a conference call, Chief Operating Officer Michael Hsu stated, "We expect commodity and currency to be further headwind next year."
Falk will step down from his position on 1st January, 2019, and will take on the role of executive chairman.
In Q3 results, Kimberly Clark reported a net sales loss of 2 percent to $4.58bn with net income dropping from $579m to $462m, according to the Financial Times. Results were affected by charges relating to restructuring costs.