The Kimberly-Clark manufacturing plant in Conway, as seen from Interstate 40.
Paper products giant Kimberly-Clark Corp. of Irving, Texas, reported Tuesday second-quarter net income of $455 million, down 14 percent from the same quarter of last year. Diluted earnings per share were also down, to $1.30 from $1.49.
Net sales were $4.6 billion for the second quarter, up 1 percent from the same time last year.
The company has operations in Conway and Maumelle that together employ about 700 people. Arkansas and Conway economic development leaders are closely watching the company, which said it may close its Conway facility as part of a reorganization announced earlier this year.
The Conway plant employs about 350 people, according to a Kimberly-Clark spokesperson.
Kimberly-Clark officials surprised the Conway Chamber of Commerce earlier this month with news that the company was considering closing the Conway mill.
Jamie Gates, executive vice president of the Conway Chamber, said that the Conway plant’s fate could depend on whether Kimberly-Clark closes its plants in Cold Spring and Neenah, Wisconsin.
On Tuesday, the Post-Crescent newspaper in Appleton, Wisconsin, reported that the Wisconsin plants could be off the chopping block if Kimberly-Clark is persuaded by a new United Steelworkers agreement ratified Monday night and if Wisconsin lawmakers approve a new package of tax incentives.
The Wisconsin plants employ about 600 people.
Executives did not talk about specific plant closings in an earnings call Tuesday morning. But they said the “2018 Global Restructuring Program” is “on track” and has seen “good early progress.” The restructuring is expected to generate annual pre-tax cost savings of
Executives said the plan has generated $40 million in savings so far, prompting the company to adjust its full-year target for savings to $100 million to $120 million from its original target of $50 million to $70 million.
Second-quarter results included $102 million in after-tax charges related to the restructuring.
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