Jan 28 - Kimberly-Clark ( KMB ) forecast annual adjusted

profit growth ahead of Wall Street estimates and reported

better-than-expected quarterly sales on Tuesday as the Kleenex

tissue maker benefited from a recovery in demand.

The company has let go of its private label diaper-making

business and has chosen instead to invest in marketing and

advertising of its own brands such as Huggies.

While Kimberly-Clark ( KMB ) has tempered price hikes, much like

other consumer goods companies, volumes recovered in the fourth

quarter and rose 1.5%, while prices increased 0.6%.

The company's quarterly net sales of $4.93 billion beat the

average analyst estimate of $4.86 billion, according to data

compiled by LSEG.

The results were in line with those from consumer goods

bellwether Procter & Gamble ( PG ), which beat quarterly profit

and sales estimates on resilient demand in the United States, as

well a recovery in China.

Kimberly-Clark ( KMB ) has also maintained a tight lid on operating

costs, helping gross margins rise 50 basis points, compared with

last year on an adjusted basis, despite higher manufacturing and

supply chain costs in the quarter.

Annual adjusted earnings per share are expected to rise by a

mid-to-high single-digit percentage on a constant-currency

basis, compared with estimates of a 3.2% increase to $7.58 per

share.

Volumes in Kimberly-Clark's ( KMB ) North America business grew 1.9%

in the quarter ended Dec. 31.

On an adjusted basis, the company earned $1.50 per share,

compared with estimates of $1.51.