Kimberly-Clark shares retreat following news of factory closures

<p>Kimberly-Clark shares are down on the New York Stock Exchange following news it is discontinuing Huggies in Europe.</p>

On Wall Street this afternoon (October 24th) shares in Kimberly-Clark retreated following news the company will be closing two of its British nappy-manufacturing facilities.

The business has announced it will be discontinuing its well-known Huggies brand of nappies throughout Europe, with the exception to Italy, instead focusing on producing non-fastening products such as pull-ups and Little Swimmers.

As a result of this decision, it will close its nappy mill in Barton, near Hull, as well as part of its facility in Flint, North Wales, threatening nearly 440 jobs overall.

The announcement followed Kimberly-Clark's results for the three months to the end of September, during which time its net sales were down by three per cent compared to the same time in 2011, while net income rose by 17.2 per cent year-on-year to $537 million (£335 million).

At 16:30 BST, Kimberly-Clark shares were down by 0.7 per cent to $85.26 per share.

Learn all about CFD trading strategies and the Dow Jones at City Index.

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.