CHICAGO (S&P Global Ratings) July 23, 2021--Kimberly-Clark Corp. lowered its earnings guidance for the second consecutive quarter after reporting weaker-than-expected operating profit primarily because of elevated commodity costs and a steep drop in revenue in its consumer tissue business. Surging raw materials costs, particularly for resins and pulp, were a $345 million headwind to operating profit in the second quarter. Further weighing on results was a 26% sales decline in the company's North American consumer tissue business as benefits from consumer pantry stocking a year ago reversed. Profit margins were also hurt by weaker fixed-cost absorption because of the much lower tissue volumes. The company has acted to alleviate these pressures by increasing prices and tightening discretionary spending, but those
