Kimberly-Clark posts preliminary results above estimates, China clears formamide claims

Oct 15 — Kimberly-Clark on Thursday reported preliminary third-quarter sales ​and profit above expectations on the back of steady demand and cost-saving ‌measures.

The results come hours after Chinese authorities said no formamide ⁠was detected in ​the company's products, disproving ⁠Chinese social media claims that Huggies diapers ‌contained the toxic ‌substance, which had hurt sales.

Here are ⁠more details:

• Shares of ⁠the company, which also reaffirmed its full-year 2026 targets, rose 3% in premarket trading

• The Dallas-based company expects third-quarter net sales of $4.13 billion, compared with analysts' average estimate ‌of $4.10 billion, according to ​data compiled by LSEG

• It expects adjusted profit of $1.70 per share for the quarter, above estimates of $1.59

• The company, which is set to complete its roughly $40 billion acquisition of Kenvue by the end of the year, ​said the preliminary results would "open the ‌calendar to accommodate ‌potential ⁠close-related activities, including debt issuance"

• The investigation update removes a meaningful overhang on the stock, RBC analyst Nik Modi said.

• Kimberly-Clark ‌will release its third-quarter ​results on November ‌5

(Reporting by Koyena ⁠Das and ​Neil J Kanatt in Bengaluru; Editing by Shreya ​Biswas)

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