Kimberly-Clark reported lower profit and revenue that missed estimates in the second quarter, as false allegations about diaper quality in China disrupted sales. The company's net income fell to $345 million, or $1.04 a share, down from $509 million, or $1.53 a share, a year earlier. Revenue rose 0.6% to $4.19 billion, missing the $4.22 billion expected by analysts.

The maker of Huggies, Kleenex and Pull-Ups said the impact of the claims on diaper sales is expected to continue affecting sales and profit in the near term. The company attributed the decline to false allegations regarding product quality in its China market, which significantly disrupted its diaper business.