|Published:||Apr 25, 2011 7:14 PM EDT|
|Updated:||Apr 25, 2011 4:14 PM EDT|
DALLAS (AP) - Kimberly-Clark Corp., the maker of Huggies and Kleenex, said Monday it plans to raise prices, its third such announcement since the middle of March.
The company said it's only passing along the higher prices that it has to pay for raw materials like oil and wood pulp. Its predictions for inflation on those materials have more than doubled since a year ago, the company said.
It's a refrain that's becoming familiar in corporate America this spring. Some, including Kimberly-Clark, are also blaming the higher commodities prices for their declining earnings.
Kimberly-Clark also said Monday that its first-quarter net income fell 9 percent over the same quarter last year. Its stock fell about 3 percent by midday, to $64.03.
Its price hikes are likely to clear a path for competitors like Procter & Gamble Co. and Colgate-Palmolive Co., which report earnings Thursday, to continue to raise prices.
CEO Tom Falk acknowledged that customers won't welcome the news.