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Kimberly-Clark wipes out
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March 13, 1998: 2:04 p.m. ET
Shares of paper products maker take a big hit after earnings warning
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NEW YORK (CNNfn) - Kimberly-Clark Corp. shares fell sharply Friday, a day after the maker of Kleenex tissues said operating profits won't meet analyst estimates in the first quarter of 1998.
Shares of the Dallas-based personal paper products maker (KMB) plummeted 7-1/16 to 50 1/16 in late morning trading Friday on the New York Stock Exchange.
Blaming troubles in its European market, Kimberly-Clark said it will post first-quarter operating profit in a range of 54 to 58 cents a share. Analysts were expecting 62 cents a share. The company is expected to release the results late next month.
The company said cost-cutting measures and stiff new competition in Europe were the main reasons for the lowered targets. Europe has long been a rough spot for Kimberly-Clark, analysts said, but investors believed the company had finally gotten past the troubles.
The stock hit its 52-week high of 59-7/16 on Wednesday - and analysts said the big sell-off Friday was punishment for false hopes.
"All of a sudden - boom - now we get another knock," said Linda Lieberman, an analyst with Bear Stearns. "There's no excuse for this; it's horrendous."
"Those are problems that really need to be addressed," she added.
Shares of rivals Procter & Gamble Co. (PG) and Fort James Corp. (FJ) were also lower in Friday trading following the news at Kimberly-Clark.
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Kimberly-Clark Corp.
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