IN BRIEF Diaper, tissue and toilet paper prices likely to rise as KimberlyClark warns of inflation pressures

Prices of toilet paper, diapers, facial tissues and paper towels will likely rise in coming weeks as consumer giant KimberlyClark warned Monday that inflation and supply chain concerns aren’t “likely to be resolved quickly.”

The maker of household items such as Huggies diapers, Kleenex facial tissues and Scott paper towels also cut its annual forecast for the third consecutive quarter. Adjusted earnings will be $6.05 to $6.25 a share this year, the company said, down from a prior projection of as much as $6.90.

CEO Michael Hsu said the company is facing a “volatile and difficult macro environment.”

“Our earnings were negatively impacted by significant inflation and supply chain disruptions that increased our costs beyond what we anticipated,” he said in a statement as the company reported earnings for the July through September period. “We are taking further action, including additional pricing and enhanced cost management, to mitigate these headwinds as it is becoming clear they are not likely to be resolved quickly.”

Hsu’s price hike warning comes despite double-digit growth in quarterly sales for several of Kimberly-clark’s personal care products and improving performance in its tissue and professional supplies business.

Quarterly sales totaled $5 billion, up 7% from the same period a year ago. In North America, Kimberly-clark reported a 3% sales increase in consumer goods and 16% increase in professional products. Outside North America, sales were up 6% in developing and emerging countries and were even with year-ago in developed markets.