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KMB · Kimberly-Clark

34 filings

10-K

KMB 10-K Annual Reports

Kimberly-Clark - 34 annual reports

Filing record · 2016–202610-K1110-Q328-K112

2025
Kimberly-Clark Annual Report, Year Ended Dec 31, 2025
Kimberly-Clark Corporation reported 2025 net sales from continuing operations of $16.45 billion, down 2.1% from $16.81 billion in 2024, with organic sales growth of 1.7% driven by volume gains of 2.5%, partially offset by lower pricing. Operating profit fell 12.9% to $2.35 billion, including $351 million of 2024 Transformation Initiative charges and a $32 million Kenvue Acquisition cost. Adjusted operating profit was $2.73 billion, in line with the prior year. Diluted EPS from continuing operations was $4.86 versus $6.41, and adjusted EPS was $6.12 versus $6.16. Net income attributable to Kimberly-Clark was $2.02 billion, and cash provided by operations declined to $2.78 billion from $3.23 billion. The company entered into a Merger Agreement on November 2, 2025 to acquire Kenvue, Inc. for 0.14625 Kimberly-Clark shares plus $3.50 cash per Kenvue share, with roughly 280 million shares and about $6.7 billion of merger consideration expected. Kimberly-Clark stockholders approved the share issuance on January 29, 2026, and the HSR waiting period expired February 4, 2026; completion is expected in the second half of 2026 subject to foreign regulatory approvals. The filing states that K-C stockholders would own about 54% of the combined company. Total debt from continuing operations was $7.2 billion at year-end, and the company arranged a $4.0 billion revolving credit facility and a $1.8 billion delayed draw term loan to fund the cash consideration. Also pending is the International Family Care and Professional (IFP) transaction, under which Suzano will acquire a 51% interest in a joint venture for approximately $1.7 billion, with Kimberly-Clark retaining 49%; closing is expected in mid-2026. IFP results are reported as discontinued operations, which contributed $400 million of net income in 2025.
Feb 12, 2026
2024
Kimberly-Clark Annual Report, Year Ended Dec 31, 2024
Kimberly-Clark Corporation's 2024 Annual Report reports net sales of $20.1 billion, down 1.8% from 2023, driven primarily by unfavorable currency impacts and divestitures and business exits. Organic sales increased 3.2%, led by a 1.9% increase in net price, primarily in hyperinflationary economies, along with volume and mix gains. Operating profit rose 36.9% to $3.2 billion and net income attributable to Kimberly-Clark increased 44.3% to $2.5 billion, with diluted EPS of $7.55 versus $5.21. The filing notes that results benefited from higher gross margins and a $565 million gain on the sale of the PPE business, partially offset by 2024 Transformation Initiative charges of $456 million. Adjusted EPS, a non-GAAP measure, was $7.30 versus $6.57, an increase of 11.1%. The company launched its 2024 Transformation Initiative in March 2024 to streamline its operating structure and reorganized into three reportable segments: North America, International Personal Care, and International Family Care and Professional. Total pre-tax costs are expected to be approximately $1.5 billion, with $3.0 billion in expected gross productivity savings, and workforce reductions of 4% to 5%. The program is expected to be completed by the end of 2026. Cash provided by operations was $3.2 billion, capital spending was $721 million, and the company returned $2.6 billion to shareholders through dividends and share repurchases. Total debt declined to $7.4 billion from $8.0 billion. The filing highlights ongoing risks, including input cost inflation, currency and hyperinflationary exposures, a shift toward private-label products, and dependence on key retailers, with Walmart representing approximately 14% of 2024 net sales. The company expects net input costs to be inflationary in 2025 and projects capital spending of $1.0 to $1.2 billion for 2025.
Feb 13, 2025
2023
Kimberly-Clark Annual Report, Year Ended Dec 31, 2023
Kimberly-Clark Corporation's 2023 Annual Report (Form 10-K filed February 8, 2024) reports net sales of $20.4 billion, up 1 percent from $20.2 billion in 2022, with organic sales up 5 percent, offset by currency (a 3 percent decrease) and exited business (a 1 percent decrease). Operating profit fell to $2,344 million from $2,681 million, driven largely by an $658 million impairment of intangible assets tied to Softex Indonesia and Thinx. Diluted earnings per share were $5.21 versus $5.72 in 2022. Excluding the impairment, the sale of the Brazil tissue and K-C Professional business, and pension settlements, adjusted diluted EPS was $6.57, which the filing says increased 17 percent from $5.63 in 2022. Adjusted operating profit was $2,958 million versus $2,617 million. Cash provided by operations was $3,542 million in 2023, compared with $2,733 million in 2022. Capital spending was $766 million, and the company paid $1.6 billion in dividends and repurchased 1.8 million shares for $225 million. Total debt was $8.0 billion at year-end, down from $8.4 billion. The Board approved a 3.4 percent dividend increase for 2024, and the filing cites 2023 as the 51st consecutive annual dividend increase. Capital spending is expected to be approximately $900 million in 2024. The filing also discloses an ongoing U.S. Department of Justice investigation related to surgical gowns made by the former health care business, Avanos Medical, and a proposed U.S. IRS adjustment on transition tax, along with a Brazilian tax dispute of approximately $50 million. Management states it does not expect these to have a material effect, although the DOJ matter could involve substantial monetary damages.
Feb 8, 2024
2022
Kimberly-Clark Annual Report, Year Ended Dec 31, 2022
Kimberly-Clark Corporation's 2022 Annual Report (Form 10-K, filed February 9, 2023) reports net sales of $20.2 billion, up 4 percent from 2021, with organic sales up 7 percent and changes in foreign currency exchange rates decreasing sales by 4 percent. Operating profit rose to $2,681 million from $2,561 million, and net income attributable to Kimberly-Clark was $1,934 million, or $5.72 diluted earnings per share, versus $5.35 in 2021. Adjusted operating profit fell to $2,617 million from $2,836 million, and adjusted earnings per share decreased 9 percent to $5.63. Management attributes the margin pressure to $1.5 billion of higher input costs, higher marketing, research and general expenses, and unfavorable foreign currency effects, partly offset by net price increases and $290 million of FORCE program savings. By segment, Personal Care net sales were $10,622 million with operating profit of $1,787 million, Consumer Tissue net sales were $6,243 million with operating profit of $806 million, and K-C Professional net sales were $3,256 million with operating profit of $457 million. Cash provided by operations was $2,733 million, capital spending was $876 million, and the company paid $1.6 billion in dividends and repurchased $100 million of shares. Short-term debt was $373 million and total debt was $8.4 billion at year-end, and the company maintains a $2.0 billion revolving credit facility expiring in June 2026. The filing also discloses a pending agreement to sell the Neve tissue brand and related assets in Brazil for $175 million, expected to close in the first half of 2023, and the completed acquisition of a controlling 58 percent interest in Thinx for total consideration of $181 million.
Feb 9, 2023
2021
Kimberly-Clark Annual Report, Year Ended Dec 31, 2021
Kimberly-Clark Corporation's 2021 Annual Report reports net sales of $19.44 billion, up 2 percent from $19.14 billion in 2020, while organic sales decreased 1 percent. Operating profit fell to $2,561 million from $3,244 million, and net income attributable to Kimberly-Clark declined to $1,814 million from $2,352 million. Diluted earnings per share were $5.35 versus $6.87 in 2020. Adjusted earnings per share, which excludes restructuring charges, were $6.18 versus $7.74 in 2020. The filing attributes the decline mainly to higher input costs of $1,490 million, driven by pulp, polymer-based materials, distribution and energy, partly offset by higher net selling prices and $410 million of FORCE program savings. By segment, Personal Care net sales rose to $10.27 billion while its operating profit declined 4 percent to $1,856 million. Consumer Tissue net sales fell 10 percent to $6.03 billion and operating profit fell 39 percent to $888 million, reflecting elevated pandemic-era shipments in the prior year. K-C Professional net sales were $3.07 billion, with operating profit down 23 percent to $404 million. The company completed its 2018 Global Restructuring Program in 2021 and acquired Softex Indonesia in October 2020 for approximately $1.2 billion. Cash provided by operations was $2.7 billion, down from $3.7 billion, and the company paid $1.5 billion in dividends and repurchased $400 million of shares during 2021. Management cites ongoing COVID-19 disruption, record input cost inflation and private label competition as key pressures, and expects the higher cost environment to continue in 2022. The Board approved a 1.8 percent dividend increase for 2022, and the company targets approximately $100 million of share repurchases in 2022 and capital spending of $1.0 billion to $1.1 billion.
Feb 10, 2022
2020
Kimberly-Clark Annual Report, Year Ended Dec 31, 2020
Kimberly-Clark Corporation's 2020 Annual Report (Form 10-K, filed February 11, 2021) reports net sales of $19.1 billion, up 4 percent from 2019, with organic sales up 6 percent and currency reducing sales by 2 percent. Operating profit rose to $3,244 million from $2,991 million, and net income attributable to Kimberly-Clark was $2,352 million, or $6.87 diluted earnings per share, versus $6.24 in 2019. Adjusted diluted EPS was $7.74, up 12 percent from $6.89, excluding restructuring charges under the 2018 Global Restructuring Program, Softex Indonesia acquisition costs and a Brazil business tax credit benefit. Results were driven by Consumer Tissue, where net sales rose 12 percent and operating profit rose 44 percent on elevated COVID-19 at-home demand, while K-C Professional net sales fell 8 percent and operating profit fell 20 percent on lower away-from-home demand. Cash provided by operations was $3.7 billion in 2020, up from $2.7 billion in 2019, driven by improved working capital and higher earnings. In October 2020 the company acquired Softex Indonesia for approximately $1.2 billion in cash, funded through commercial paper, cash on hand and a $600 million bond. Total debt was $8.4 billion at year-end 2020, compared with $7.7 billion a year earlier. Share repurchases and dividends totaled $2.15 billion in 2020, and the Board approved a 6.5 percent dividend increase for 2021 along with a new authorization to repurchase up to 40 million shares, subject to a $5 billion limit. The 2018 Global Restructuring Program's expected annual pre-tax savings were raised to $540 to $560 million by the end of 2021. The filing identifies COVID-19 as a key risk, citing demand volatility, supply chain disruption and currency and commodity volatility. It also notes exposure to pulp and petroleum-based input costs, which the company generally does not hedge with derivatives, and to foreign market risks, since about half of net sales come from outside the U.S. Deloitte & Touche LLP issued an unqualified opinion on both the financial statements and internal control over financial reporting.
Feb 11, 2021
2019
Kimberly-Clark Annual Report, Year Ended Dec 31, 2019
Kimberly-Clark Corporation's 2019 Form 10-K reports net sales of $18.5 billion, even with 2018, with organic sales up 4 percent and currency reducing sales by 3 percent. Operating profit rose to $2,991 million from $2,229 million, and net income attributable to Kimberly-Clark was $2,157 million, or $6.24 diluted earnings per share, compared with $4.03 in 2018. The 2018 results included large restructuring charges, so the year-over-year comparison is distorted. On an adjusted basis (non-GAAP), operating profit was $3,281 million, up 5 percent, and adjusted diluted earnings per share were $6.89, up 4 percent from $6.61. Segment performance was mixed. Personal Care net sales were $9,108 million with operating profit of $1,904 million. Consumer Tissue operating profit rose 15 percent to $1,007 million on higher net selling prices and cost savings, though volumes fell. K-C Professional net sales declined to $3,292 million, with operating profit of $657 million. Cash provided by operations fell to $2.7 billion from $3.0 billion, mainly due to higher working capital and tax payments. The company paid $1.4 billion in dividends and repurchased $800 million of shares, and it guided to a 3.9 percent dividend increase for 2020. The 2018 Global Restructuring Program is central to the outlook. Annual pre-tax savings are expected to reach $500 to $550 million by 2021, with $165 million realized in 2019 and $300 million cumulative. Total program costs are estimated at $1.7 billion to $1.9 billion pre-tax, with restructuring charges of $300 to $500 million expected in 2020. The filing also discloses a Department of Justice investigation tied to the former health care business and a $25 million Bahamas Surgery Center judgment that the company is contesting.
Feb 13, 2020
2018
Kimberly-Clark Annual Report, Year Ended Dec 31, 2018
Kimberly-Clark Corporation's 2018 results were shaped by its 2018 Global Restructuring Program and rising input costs. Net sales rose 1 percent to $18.5 billion ($18,486 million), with organic sales growth of more than 1 percent partly offset by unfavorable currency. Operating profit fell to $2,229 million from $3,358 million, and diluted EPS was $4.03 versus $6.40 in 2017. Adjusted operating profit was $3,138 million and adjusted diluted EPS was $6.61 (non-GAAP), which excludes restructuring charges of $2.24 per share and a $0.33 per share net charge for U.S. tax reform matters. Input cost inflation of $795 million, driven by $460 million in pulp, was partly offset by $375 million in FORCE program savings and $135 million in restructuring savings. The company is restructuring to reduce its cost base. The 2018 Global Restructuring Program is expected to cost $1.7 billion to $1.9 billion pre-tax through 2020, with annual pre-tax savings of $500 to $550 million by 2021. It includes closing or selling about 10 manufacturing facilities and workforce reductions of 5,000 to 5,500. Cash flow from operations was $2.97 billion in 2018, and the company paid $1.4 billion in dividends and repurchased $800 million of stock. Total stockholders' equity was negative $46 million at year-end 2018, down from $882 million, with accumulated other comprehensive loss of $3,299 million. For 2019, management guides to diluted EPS of $4.85 to $5.35 and adjusted EPS of $6.50 to $6.70. The guidance assumes net sales decline of 1 to 2 percent, organic sales growth of about 2 percent, and an adjusted effective tax rate of 23 to 25 percent. Walmart accounted for approximately 14 percent of net sales in 2018, and the company has over 20 consecutive years of dividend increases, having raised its dividend 3.1 percent in 2018 to a 46th consecutive annual increase.
Feb 7, 2019
2017
Kimberly-Clark Annual Report, Year Ended Dec 31, 2017
Kimberly-Clark Corporation reported 2017 net sales of $18.3 billion, up slightly from $18.2 billion in 2016, with favorable currency rates adding less than 1 percent. Organic sales were similar year over year as volumes rose about 1 percent, offset by lower net selling prices and $355 million of higher input costs. Operating profit was $3,299 million, compared with $3,317 million in 2016, and net income attributable to the company was $2,278 million. Diluted earnings per share were $6.40, up from $5.99, and included a net benefit of $0.17 from U.S. tax reform. Adjusted diluted EPS was $6.23, compared with $6.03 in 2016. The effective tax rate fell to 25.9 percent from 30.6 percent. In January 2018 the company announced the 2018 Global Restructuring Program, which is expected to be completed by the end of 2020. Total pre-tax costs are estimated at $1.7 billion to $1.9 billion, with cash costs of $900 million to $1.0 billion, and annual pre-tax savings of $500 million to $550 million by 2021. The program targets about 10 manufacturing facility closures or sales and workforce reductions of 5,000 to 5,500. For 2018, the company guided to diluted EPS of $3.90 to $4.50 and adjusted EPS of $6.90 to $7.20, excluding restructuring charges of $2.70 to $3.00 per share. Cash provided by operations was $2.9 billion in 2017, down from $3.2 billion, reflecting higher tax payments. The company repurchased 7.2 million shares for $900 million and paid $1.4 billion in dividends, and it raised its dividend by 5.4 percent in 2017 with a further 3.1 percent increase approved for 2018. Total debt was $7.4 billion at year-end. Walmart Inc. accounted for approximately 14 percent of net sales in each of 2017, 2016 and 2015.
Feb 8, 2018
2016
Kimberly-Clark Annual Report, Year Ended Dec 31, 2016
Kimberly-Clark Corporation's 2016 Form 10-K reports net sales of $18.2 billion, down 2 percent from 2015, with foreign currency changes reducing sales by 4 percent and organic sales increasing 2 percent. Operating profit rose to $3,317 million from $1,613 million, a comparison distorted by $1,358 million of pension settlement charges and Venezuela-related charges in 2015. Adjusted operating profit increased 4 percent to $3,341 million, and diluted earnings per share from continuing operations were $5.99, versus $2.77 in 2015. Adjusted diluted EPS rose 5 percent to $6.03 (from $5.76). Cash provided by operations was $3.2 billion, up 40 percent from $2.3 billion in 2015, driven by improved working capital and lower pension contributions. The company returned cash to shareholders, repurchasing $750 million of stock and paying $1.3 billion in dividends, and raised its dividend 4.5 percent in 2016, the 44th consecutive annual increase. Total debt was $7.6 billion at year-end, down from $7.8 billion, and a $2.0 billion revolving credit facility remained unused. For 2017, the company guided to EPS of $6.20 to $6.35, organic sales growth of approximately 2 percent, operating profit up 2 to 4 percent versus adjusted 2016 results, at least $400 million of FORCE cost savings, and share repurchases of $800 million to $1 billion. Management also flagged currency headwinds, with unfavorable foreign currency translation expected to reduce operating profit growth by 2 percent.
Feb 8, 2017
2015
Kimberly-Clark Annual Report, Year Ended Dec 31, 2015
Kimberly-Clark Corporation's 2015 Form 10-K reports net sales of $18.59 billion, down 5.7 percent from $19.72 billion in 2014, as changes in foreign currency exchange rates reduced net sales by 10 percent. Organic net sales increased 5 percent, with volumes up 4 percent. Operating profit fell 36.0 percent to $1.61 billion, and diluted earnings per share from continuing operations fell to $2.77 from $3.91. The decline was driven largely by a $1.36 billion pre-tax charge for pension settlements tied to the transfer of $2.5 billion of U.S. pension obligations to two insurers, along with a $108 million pre-tax charge from deconsolidating the Venezuelan business. Excluding these and other adjusting items, adjusted operating profit rose 1 percent to $3.21 billion and adjusted diluted EPS rose to $5.76 from $5.51 in 2014. Cash provided by operations was $2.3 billion in 2015, down from $2.8 billion, reflecting higher pension contributions and increased operating working capital. The company repurchased 7.1 million shares for $800 million and paid $1.3 billion in dividends, and it raised its dividend 5 percent, its 43rd consecutive annual increase. Total debt rose to $7.8 billion at year-end from $7.0 billion, and stockholders' equity fell to $40 million from $999 million, largely due to the pension-related charges and share repurchases. For 2016, the company expects adjusted earnings per share between $5.95 and $6.15, with sales volume, net selling price and mix growth of 3 to 5 percent, currency headwinds to net sales of 5 to 6 percent, FORCE cost savings of at least $350 million, share repurchases of $600 million to $900 million, and capital spending of $950 million to $1,050 million. Management also plans to increase the quarterly dividend by mid-single digits effective April 2016, subject to Board approval.
Feb 11, 2016
2014
Kimberly-Clark Annual Report, Year Ended Dec 31, 2014
Kimberly-Clark Corporation's 2014 Form 10-K reports net sales of $19.72 billion, up 1 percent from $19.56 billion in 2013, while operating profit fell 13.2 percent to $2.52 billion from $2.90 billion. The decline was driven largely by a $462 million non-deductible charge from remeasuring the Venezuelan balance sheet, $133 million of charges for the new 2014 organization restructuring, and $33 million for European strategic changes. Diluted earnings per share were $4.04, down from $5.53, and diluted EPS from continuing operations was $3.91, down from $5.01. Net income attributable to Kimberly-Clark was $1.53 billion, versus $2.14 billion in 2013. Organic sales volumes and net selling prices each rose 2 percent, while currency reduced net sales by 2 percent. The company completed the spin-off of its health care business, Halyard Health, Inc., on October 31, 2014, which is presented as discontinued operations. Halyard had approximately $1.7 billion in annual net sales, and shareholders received one Halyard share for every 8 Kimberly-Clark shares held. Cash provided by operations was $2.8 billion, and the company repurchased 18 million shares for $2.0 billion. Total assets fell to $15.53 billion from $18.92 billion, and total stockholders' equity fell to $999 million from $5.14 billion, largely reflecting the spin-off. Management guided to 2015 GAAP EPS of $5.46 to $5.72, and planned to repurchase $0.8 billion to $1.0 billion of shares and raise the quarterly dividend by mid-single digits effective April 2015. Key risks highlighted include the Venezuelan currency situation, in which management stated it is evaluating the implications of the government's mid-February 2015 changes to its exchange system. Other risks include pulp and petroleum-based input price volatility, dependence on large retailers (Wal-Mart Stores, Inc. accounted for approximately 13 percent of net sales), and the 2014 restructuring, which is expected to cost $190 to $230 million pre-tax and reduce the workforce by 1,100 to 1,300 people.
Feb 18, 2015
2013
Kimberly-Clark Annual Report, Year Ended Dec 31, 2013
Kimberly-Clark Corporation's 2013 Form 10-K reports essentially flat net sales of $21.15 billion (versus $21.06 billion in 2012), while operating profit rose 19.4% to $3.21 billion and diluted earnings per share increased 25% to $5.53 from $4.42. The improvement was driven by lower restructuring charges, organic volume growth of 3%, net selling price gains of 1%, and $310 million in FORCE cost savings, partially offset by input cost inflation of $205 million and unfavorable currency effects. Net sales were held back by a 2% currency drag and lost sales from European strategic changes and pulp and tissue restructuring. Cash provided by operations was $3.04 billion, and the company repurchased $1.2 billion of stock and paid dividends, totaling $2.4 billion in shareholder returns for 2013. The company announced in November 2013 that its Board authorized management to pursue a potential tax-free spin-off of its Health Care business, which has approximately $1.6 billion in annual net sales. The current target is completion by the end of the third quarter of 2014, though the filing states there are no assurances on timing or completion. The filing notes that the IRS will no longer issue advance tax-free spin-off rulings, so the company expects to rely on an opinion of counsel that is not binding on the IRS. For 2014, management guided GAAP diluted EPS to a range of $5.95 to $6.17 and planned $1.3 billion to $1.5 billion in share repurchases, excluding spin-off costs. The balance sheet shows total assets of $18.92 billion and long-term debt of $5.39 billion at year-end 2013. Redeemable preferred securities of a subsidiary totaling $500 million are classified as current liabilities because they are due for redemption in December 2014. Goodwill of $3.18 billion was tested and not impaired, and the company disclosed a $36 million pre-tax charge from the Venezuelan bolivar devaluation.
Feb 14, 2014
2012
Kimberly-Clark Annual Report, Year Ended Dec 31, 2012
Kimberly-Clark Corporation's 2012 Annual Report (Form 10-K) reports net sales of $21.06 billion, up from $20.85 billion in 2011, and net income attributable to Kimberly-Clark Corporation of $1.75 billion, compared with $1.59 billion in 2011. Diluted earnings per share were $4.42, versus $3.99 in 2011. Operating profit rose to $2.69 billion from $2.44 billion. Results include pre-tax charges of $299 million related to the European strategic changes, and $135 million for pulp and tissue restructuring actions, compared with $415 million for that restructuring in 2011. The company approved strategic changes in October 2012 for its Western and Central European consumer and professional businesses. It will exit the diaper category in that region, except Italy, and divest or exit lower-margin businesses, mostly in consumer tissue. The actions involve selling or closing five European manufacturing facilities and reducing the European workforce by approximately 1,300 to 1,500 positions. The restructuring is expected to be completed by December 31, 2014, with cumulative charges of approximately $300 to $400 million pre-tax. Cash flow improved, with cash provided by operations of $3.29 billion, up from $2.29 billion, and the company repurchased $1.3 billion of common stock. Looking ahead, the company plans to repurchase $1.0 billion to $1.2 billion of stock in 2013 and increased its regular quarterly dividend by 9 percent for 2013. It also expects an after-tax charge of $25 to $35 million in the first quarter of 2013 from the remeasurement of its Venezuelan balance sheet following the February 13, 2013 currency devaluation.
Feb 22, 2013
2011
Kimberly-Clark Annual Report, Year Ended Dec 31, 2011
Kimberly-Clark Corporation's 2011 results show net sales rising to $20.85 billion from $19.75 billion, with operating profit falling to $2.44 billion from $2.77 billion, reflecting $415 million of pretax charges for the pulp and tissue restructuring and $580 million of cost inflation in key inputs. Net income attributable to Kimberly-Clark decreased to $1.59 billion from $1.84 billion, and diluted earnings per share were $3.99 compared with $4.45 in 2010. Management reported that cost savings of about $265 million and net selling price increases of 2 percent partially offset these pressures, and that Kimberly-Clark International (KCI) accounted for about 36 percent of company sales. Cash provided by operations fell to $2.29 billion from $2.74 billion, driven mainly by higher defined benefit pension contributions of $679 million versus $245 million in 2010. The company repurchased $1.24 billion of common stock in 2011, paid $1.10 billion in dividends, and expects 2012 share repurchases of $900 million to $1.1 billion and capital spending of $1.0 to $1.1 billion. The dividend was raised 6 percent for 2012, the 39th consecutive annual increase. Looking ahead, the company expects commodity cost inflation to moderate in 2012 but anticipates negative currency effects from a weaker foreign currency versus the U.S. dollar. Two restructuring actions are expected to be substantially completed by December 31, 2012, with cumulative charges of approximately $550 million to $600 million before tax across 2011 and 2012, and are projected to reduce 2013 annual net sales by $250 million to $300 million while increasing operating profit by at least $75 million in 2013 and $100 million in 2014.
Feb 29, 2012
2010
Kimberly-Clark Annual Report, Year Ended Dec 31, 2010
Kimberly-Clark Corporation's 2010 Form 10-K reports net sales of $19.75 billion, up from $19.12 billion in 2009, with net income attributable to Kimberly-Clark of $1.84 billion, down from $1.88 billion, and diluted EPS of $4.45 versus $4.52. Operating profit was $2.77 billion, compared with $2.83 billion in 2009. The company cites inflation in key input costs (about $790 million), higher marketing spending, and a $98 million pretax charge from adopting highly inflationary accounting for its Venezuelan subsidiary, partially offset by cost savings of $370 million. Cash provided by operations fell to $2.74 billion from $3.48 billion, and capital spending was $964 million. The filing discloses a pulp and tissue restructuring plan initiated January 21, 2011, to exit remaining integrated pulp operations and streamline or close 5 to 6 manufacturing facilities by the end of 2012. The company expects cumulative pretax charges of $400 million to $600 million, and expects annual net sales to decline by $250 million to $300 million by 2013 while operating profit rises by at least $75 million. Management also expects 2011 share repurchases of $1.5 billion and has increased its regular quarterly dividend for 2011. Total long-term debt was $5.39 billion at year-end, and total debt and redeemable securities were $6.5 billion. Key risks cited include raw material and energy cost inflation (particularly pulp and petroleum-based materials), intense competition from private label and low-cost producers, economic weakness, and dependence on large retailers. Wal-Mart Stores accounted for approximately 13 percent of net sales in 2010.
Feb 23, 2011
2009
Kimberly-Clark Annual Report, Year Ended Dec 31, 2009
Kimberly-Clark Corporation's 2009 Form 10-K reports net sales of $19.115 billion, down from $19.415 billion in 2008, while operating profit rose to $2.825 billion from $2.547 billion and net income attributable to Kimberly-Clark was $1.884 billion, versus $1.690 billion in 2008. Diluted earnings per share were $4.52, compared with $4.03 in 2008. Management attributes the sales decline to unfavorable currency effects and lower sales volumes, partly offset by higher net selling prices. Operating profit benefited from higher net selling prices, cost savings of about $240 million and deflation in key cost components of approximately $675 million, partially offset by negative currency effects of about $355 million, severance charges of $128 million and higher pension expense of about $155 million. Cash provided by operations increased to $3.481 billion from $2.516 billion, and the ratio of total debt and redeemable securities to capital improved to 53.1 percent from 62.2 percent. During 2009 the company acquired the remaining interest in its Andean subsidiary for $289 million, Jackson Products for approximately $155 million net of cash acquired, and I-Flow for $262 million net of cash acquired, while cutting about 1,600 salaried positions. The filing states that the company resumed share repurchases in 2010 and increased its regular quarterly dividend. It also notes that a Venezuelan currency devaluation in January 2010 is expected to produce a one-time after-tax charge of $60 million to $90 million in the first quarter of 2010. The company's outlook calls for a slow and modest economic recovery in 2010, with expected benefits from sales growth, cost savings and stronger currency exchange rates expected to more than offset inflation in key cost inputs and planned increases in marketing spending.
Feb 24, 2010
2008
Kimberly-Clark Annual Report, Year Ended Dec 31, 2008
Kimberly-Clark Corporation reported 2008 net sales of $19.42 billion, up from $18.27 billion in 2007, but net income fell to $1.69 billion from $1.82 billion and diluted earnings per share declined to $4.04 from $4.09. The filing attributes the margin pressure to significant raw material cost inflation: inflation in key cost components totaled more than $725 million, which more than offset higher net selling prices, volume gains and about $171 million in cost savings. Operating profit fell 2.6% to $2.55 billion, and operating margin declined to 13.1% from 14.3%. Segment results were mixed, with Personal Care operating profit rising 5.6% while Consumer Tissue fell 14.4%, K-C Professional & Other fell 10.5% and Health Care fell 26.7%. Balance sheet and capital allocation shifted notably in 2008. Total assets declined to $18.09 billion and stockholders' equity fell to $3.88 billion from $5.22 billion, largely reflecting a $900 million unrealized translation loss and a $687 million employee postretirement benefit charge within accumulated other comprehensive loss. Long-term debt rose to $4.88 billion, and total debt and redeemable preferred securities reached $7.0 billion. The company repurchased $625 million of stock in 2008 but does not expect to repurchase shares in 2009, citing an expected $530 million pension contribution. Pension expense is estimated at about $295 million for 2009, compared with $97 million in 2008. The company expects 2009 results to be negatively affected by weaker foreign currencies and higher pension expense, partly offset by anticipated moderation in commodity costs. It intends to accelerate cost reductions and focus on cash flow. The strategic cost reduction plan was completed in 2008, with cumulative pretax charges of $880 million and expected annual savings of $385 million.
Feb 27, 2009
2007
Kimberly-Clark Annual Report, Year Ended Dec 31, 2007
Kimberly-Clark Corporation's 2007 Form 10-K reports net sales of $18.27 billion, up 9.1 percent from $16.75 billion in 2006, with operating profit rising 24.5 percent to $2.62 billion and net income of $1.82 billion, or $4.09 per diluted share, up 25.8 percent in diluted EPS. The filing attributes growth to higher sales volumes, favorable currency effects, increased net selling prices and improved product mix, while noting significant raw materials cost inflation of about $350 million. Lower Strategic Cost Reduction Plan charges of $377.2 million helped drive the profit improvement. Cash provided by operations was $2.43 billion, a decrease of 5.8 percent. The company returned $3.7 billion to shareholders in 2007 through dividends and share repurchases, including $2 billion under an accelerated share repurchase agreement funded by $2.1 billion of long-term notes issued in July 2007. Total debt and redeemable preferred securities rose to $6.5 billion from $4.4 billion at year-end 2006, and the debt-to-capital ratio reached 53.2 percent versus 40.3 percent a year earlier. Standard & Poor's lowered the senior unsecured rating to A+ with a negative outlook, and Moody's lowered it to A2. Management expects top-line growth in 2008 and plans to keep reducing costs, while investing more in innovation, marketing and customer development. The Strategic Cost Reduction Plan is expected to reach cumulative pretax charges of approximately $880 million to $910 million by the end of 2008, with anticipated annual pretax savings of at least $350 million by 2009.
Feb 22, 2008
2006
Kimberly-Clark Annual Report, Year Ended Dec 31, 2006
Kimberly-Clark Corporation's 2006 annual report, filed February 22, 2007, shows net sales up 5.3 percent to $16,746.9 million, but operating profit fell 9.0 percent to $2,101.5 million and net income declined 4.4 percent to $1,499.5 million, with diluted EPS of $3.25. The filing attributes the margin pressure to about $385 million of cost inflation and approximately $484 million of charges under the Strategic Cost Reduction Plan, partly offset by about $265 million of cost savings. Operating profit as a percent of net sales declined to 12.5 percent from 14.5 percent. The company describes growth driven by higher sales volumes, increased net selling prices and improved product mix, with the developing and emerging markets growing net sales 14 percent. Cash provided by operations rose 12 percent to $2.6 billion, and the company returned $1.6 billion to shareholders through dividends and share repurchases, including $750 million of repurchases in 2006. Management expects competition to remain intense in 2007 and plans to continue the Global Business Plan. The Strategic Cost Reduction Plan now carries estimated cumulative pretax charges of approximately $950 million to $1.0 billion through 2008, with anticipated annual pretax savings of at least $350 million by 2009 and a net workforce reduction of about 10 percent. Moody's downgraded the long-term credit rating to Aa3 with a stable outlook in October 2006, while Standard & Poor's kept its AA- rating.
Feb 22, 2007
2005
Kimberly-Clark Annual Report, Year Ended Dec 31, 2005
Kimberly-Clark Corporation's 2005 results show net sales rising 5.4 percent to $15.90 billion, while operating profit fell 7.8 percent to $2.31 billion and net income decreased 12.9 percent to $1.57 billion, with diluted EPS down 9.1 percent to $3.28 (the filing states $3.28 for 2005 versus $3.61 in 2004). Management attributes the profit decline to cost inflation of about $400 million, competitive pricing pressure in North American and European diaper and pants categories, and $228.6 million of charges for the Competitive Improvement Initiatives. Cost savings of nearly $210 million and higher volumes did not fully offset these pressures. Developing and emerging markets were a bright spot, with consumer product sales growing almost 16 percent. The Competitive Improvement Initiatives, launched in July 2005, are a multi-year program expected to be substantially completed by December 31, 2008. The company expects cumulative pretax charges of approximately $900 million to $1.1 billion and annual pretax savings rising to $300-$350 million by 2009, with a planned net workforce reduction of about 6,000 employees. In January 2006 the company authorized two further phase projects, including a workforce reduction in Europe and the closure of two manufacturing facilities. Capital returns remained significant: the company returned $2.3 billion to shareholders through dividends and share repurchases, including $1.5 billion of buybacks in 2005. Cash provided by operations was $2.31 billion, down from $2.73 billion, mainly due to working capital investment and higher tax payments. Total debt and preferred securities rose to $4.6 billion, and the company's credit ratings were unchanged at Aa2 (Moody's) and AA- (S&P).
Feb 23, 2006
2004
Kimberly-Clark Annual Report, Year Ended Dec 31, 2004
Kimberly-Clark Corporation reported 2004 net sales of $15.08 billion, up 7.5 percent from $14.03 billion in 2003, with operating profit of $2.51 billion, up 7.5 percent, and net income of $1.80 billion, or $3.61 per diluted share. Income from continuing operations rose 7.7 percent and diluted earnings per share from continuing operations rose 9.9 percent to $3.55. Growth came from higher sales volumes across all three segments (Personal Care, Consumer Tissue and Business-to-Business), partly offset by lower net selling prices, higher fiber costs and increased energy and distribution expenses. Cash provided by operations reached a record $2.73 billion, and the company repurchased 24.8 million shares for about $1.6 billion. The November 30, 2004 spin-off of Neenah Paper, Inc., which held the U.S. fine and technical paper businesses and Canadian pulp mills, was a major structural event. Neenah's results are presented as discontinued operations, and the company received a $213.4 million cash payment from Neenah. The company now relies on a long-term pulp supply agreement with Neenah, and internal pulp supply fell from about 40 percent to about 10 percent of virgin fiber needs, which the filing flags as increasing commodity price risk. Competitive pressure in diapers and tissue, particularly in North America and Europe, remained intense, and the filing notes that aggressive competitive actions in 2003 and 2004 required increased promotional spending. For 2005, management targets sales growth of 3 to 5 percent, cost savings of $150 million, and earnings of $3.70 to $3.85 per share, with at least $1 billion of share repurchases planned and a 12.5 percent dividend increase effective with the April payment. Capital spending is estimated at $800 million. Management reported a $2.2 billion year-end debt-related position, with total debt and preferred securities at $4.2 billion, and noted that no changes occurred in credit ratings during 2004.
Feb 24, 2005
2003
Kimberly-Clark Annual Report, Year Ended Dec 31, 2003
Kimberly-Clark Corporation's 2003 Form 10-K reports net sales of $14.35 billion, up from $13.57 billion in 2002, with net income of $1.69 billion ($3.33 diluted EPS) versus $1.67 billion ($3.22 diluted) a year earlier. Operating profit declined to $2.41 billion from $2.46 billion, reflecting intense competition and promotional spending, higher fiber, energy and distribution costs, and roughly $140 million of higher pension expense. Cash provided by operations reached a record $2.61 billion, and the company repurchased 10.4 million shares for $529 million while raising its dividend. Stockholders' equity rose to $6.77 billion, and total debt and preferred securities declined to $4.2 billion. The company guided to 2004 net sales growth of 3 to 5 percent, cost savings of about $150 million, and diluted EPS of $3.55 to $3.65. It also announced it was evaluating a tax-free spin-off of its Neenah Paper and Technical Paper businesses and related pulp and timber assets, expected in the second half of 2004 subject to Board approval. Management noted that its credit ratings were downgraded by S&P to AA- in July 2003, and Moody's changed its outlook to negative. A synthetic fuel partnership acquired in 2003 reduced the income tax provision by $131.3 million, lowering the effective tax rate to 23.8 percent from 29.0 percent in 2002. The benefit added $.05 per share to 2003 earnings, and the company expects the benefit to continue through 2007.
Feb 26, 2004
2002
Kimberly-Clark Annual Report, Year Ended Dec 31, 2002
Kimberly-Clark Corporation's 10-K for fiscal 2002, dated March 14, 2003, reports net sales of $13,566.3 million, up from $13,287.6 million in 2001, with net income of $1,674.6 million, or $3.22 per diluted share, compared with $3.02 in 2001. Operating profit rose to $2,463.8 million from $2,338.2 million. The company describes itself as a global consumer products company organized into three reportable segments: Personal Care ($5,101.7 million in net sales), Consumer Tissue ($5,018.6 million) and Business-to-Business ($3,593.0 million). Management cites intense competition, higher promotional spending, and a weak North American economy as pressures, while cash provided by operations rose to $2,424.2 million and capital spending fell to $870.7 million. The filing also details several items affecting 2002 results, including $67 million of business improvement and other charges, a $21 million charge for the Safeskin securities litigation settlement, and a $26.5 million charge for purchased Brazilian tax credits later found to be invalid. Net income includes an $11.4 million after-tax cumulative effect charge from the adoption of EITF 01-9 on customer coupons. Long-term debt increased to $2,844.0 million, and the company repurchased 11.85 million shares for $675.5 million during 2002, with authority for an additional 20 million shares announced in February 2003. For 2003, the outlook in the MD&A anticipates net sales rising in the low-to-mid single digits, cost reductions of $175 million to $200 million, an anticipated increase in pension costs of approximately $145 million, and capital spending of approximately $900 million. The company also states it expects to raise its dividend by 13.3 percent, marking its 31st consecutive annual increase.
Mar 14, 2003
2001
Kimberly-Clark Annual Report, Year Ended Dec 31, 2001
Kimberly-Clark Corporation's 2001 Form 10-K reports net sales of $14.52 billion, up from $13.98 billion in 2000, with net income of $1.61 billion, or $3.02 per diluted share, down from $1.80 billion, or $3.31 per diluted share, in 2000. Operating profit fell to $2.34 billion from $2.63 billion, and the filing attributes $212.9 million of unusual charges in 2001, including $43.2 million of arbitration settlements, a $52.6 million North American mill closing and write-off charge, and a $32.5 million Latin American asset plan charge. Excluding unusual items, earnings were $3.27 per diluted share in 2001 compared with $3.32 in 2000. The company reorganized into three segments (Personal Care, Consumer Tissue, and Business-to-Business) and reported that Personal Care was the largest by sales at $5.68 billion. Cash provided by operations was $2.25 billion, capital spending was $1.10 billion, and the company repurchased 15.0 million shares for about $900 million. Total debt and preferred securities reached $4.2 billion, and the net debt and preferred securities ratio was 38.9 percent, which the filing states is within its targeted range of 30 to 40 percent. Management expects volume gains in the mid-single digits in 2002 and notes that the EITF 00-25 and 00-14 reclassifications will reduce reported net sales by approximately $1 billion for 2001 without changing reported earnings. The filing also discloses ongoing litigation, including about 300 product liability suits against Safeskin, securities actions related to Safeskin, and a series of disputes with Mobile Energy Services Company arising from the Mobile pulp mill closure, along with asbestos-related suits. Management states that none of the legal proceedings is expected to have a material adverse effect on the company.
Mar 18, 2002
2000
Kimberly-Clark Annual Report, Year Ended Dec 31, 2000
Kimberly-Clark Corporation's 10-K for fiscal 2000 reports net sales of $13.98 billion, up from $13.01 billion in 1999, and net income of $1.80 billion, or $3.31 per diluted share, compared with $1.67 billion, or $3.09 per diluted share, in 1999. Operating profit rose to $2.63 billion from $2.44 billion. Management states that excluding unusual items, operating profit increased 12.6 percent and earnings from operations were $3.32 per diluted share versus $2.98 in 1999. Results were aided by the consolidation of Safeskin and S-K Corporation acquisitions and by a $75.8 million patent settlement and accrued liability reversal recorded in operating profit, while sales volumes rose approximately 9 percent and selling prices nearly 2 percent, offset by currency effects of almost 3 percent. The company's total assets grew to $14.48 billion, and total debt reached $3.5 billion, an increase of almost $0.8 billion. Cash provided by operations was $2.13 billion, essentially flat year over year, while capital spending rose to $1.17 billion from $786.4 million. The company repurchased 21.0 million shares for nearly $1.2 billion in 2000, and the net debt-to-capital ratio was 35.2 percent, within its targeted range of 30 to 40 percent. Management's outlook for 2001 targets sales increases of 6 to 8 percent and double-digit earnings-per-share growth from operations annually, and the company plans to launch Cottonelle Fresh rollwipes with more than $50 million in marketing and start-up costs. The filing also notes the completed Linostar acquisition on January 31, 2001, and that the 1997 and 1998 restructuring plans were completed as of December 31, 2000. The filing reports that pending litigation, including the Safeskin securities actions, the Mobile Energy Services Company matter, and environmental matters, is not expected to have a material adverse effect on the company's financial condition, though the MESC settlement remains subject to court approval and the company has developed contingency plans for its Mobile tissue mill.
Mar 23, 2001
1999
Kimberly-Clark Annual Report, Year Ended Dec 31, 1999
Kimberly-Clark Corporation's 10-K for fiscal 1999 describes a company that has been transitioning into a global consumer products business built on tissue, personal care and health care. Net sales were $13,006.8 million in 1999, up from $12,297.8 million in 1998, and operating profit rose to $2,435.4 million from $1,697.7 million. Net income was $1,668.1 million, or $3.09 diluted per share, compared with $1,103.1 million, or $1.99 per share, in 1998. Management reported that excluding unusual items, 1999 earnings from operations were $2.98 per share versus $2.44 in 1998. Net sales in the Personal Care segment rose to $5,138.1 million, and the Tissue segment reached $6,968.8 million. The company generated $2,134.3 million of cash from operations in 1999 and repurchased 13.5 million shares for about $750 million. Net debt to capital was 28.9 percent at year-end, below the targeted range of 30 to 40 percent, and total debt was $2.7 billion. Total assets were $12,815.5 million and stockholders' equity was $5,093.1 million at December 31, 1999. The filing notes that the company completed several acquisitions in 1999, including Attisholz Holding AG for $365 million and Ballard Medical Products at about $788 million. It also announced the pending acquisition of Safeskin Corporation, valued at about $800 million. The filing states that management expects sales to rise 6 to 8 percent annually and earnings per share to grow at double-digit rates. Restructuring programs from 1995, 1997 and 1998 were substantially completed by December 31, 1999. The company also faces ongoing antitrust litigation over away-from-home tissue pricing, which management does not expect to be material.
Mar 24, 2000
1998-A
Kimberly-Clark Annual Report (Amendment), Year Ended Dec 31, 1998
Kimberly-Clark Corporation's Form 10-K/A for the year ended December 31, 1998 restates its 1996, 1997 and 1998 financial statements, following discussions with the SEC's Division of Corporation Finance. The restatement shifts certain merger-related costs from the 1995 Scott merger into later periods when incurred, revises how changes in restructuring estimates and accelerated depreciation are recorded, and records a Mobile, Alabama pulp mill energy contract termination penalty ($24.3 million) and severance ($18.0 million) in 1998 rather than the planned third quarter of 1999. Restated 1998 net income is $1,103.1 million, diluted EPS of $1.99, versus $1,165.8 million and $2.11 as previously reported. Restated 1998 operating profit is $1,573.3 million, against $1,676.1 million previously reported, while restated 1997 net income is $1,002.9 million (previously $901.5 million). Net sales for 1998 were $12,297.8 million, down from $12,546.6 million in 1997. Stockholders' equity fell to $4,031.5 million at December 31, 1998, from $4,340.3 million, and long-term debt rose to $2,068.2 million. Cash provided by operations was $1,991.3 million in 1998, and the company repurchased 19.5 million shares for approximately $900 million. The filing also describes pending transactions: the sale of about 460,000 acres of Southeast Timberlands to Joshua Management, LLC for approximately $400 million, expected to produce a net gain, and the acquisition of Ballard Medical Products valued at approximately $764 million, expected to close by September 30, 1999. The filing notes a putative antitrust class action regarding away-from-home tissue pricing, which the company does not expect to be material.
Aug 6, 1999
1998
Kimberly-Clark Annual Report, Year Ended Dec 31, 1998
Kimberly-Clark Corporation's 1998 Form 10-K describes a company transitioning from diversified businesses into a global consumer products company organized into three segments: Tissue, Personal Care, and Health Care and Other. In 1998, net sales were $12,297.8 million (versus $12,546.6 million in 1997), operating profit rose to $1,676.1 million (from $1,303.2 million), and net income was $1,165.8 million, or $2.11 diluted per share (versus $901.5 million, or $1.61 diluted, in 1997). Excluding unusual items, the company reported earnings per share from operations of $2.46, up from $2.44 in 1997. Results were affected by a $108.8 million 1998 Charge and a $123.2 million facility consolidation charge, as well as a $101.5 million restructuring line item, and the company reports that the Announced Plan is expected to reduce operating costs by about $220 million annually by 2000. Key portfolio actions in the filing include the August 1998 sale of K-C Aviation for $250 million in cash, the acquisition of a 50 percent interest in Klabin Tissue in Brazil, and a definitive agreement announced December 23, 1998 to acquire Ballard Medical Products for a value of approximately $764 million, payable in Kimberly-Clark common stock. Cash provided by operations was $1,991.3 million, and the company repurchased 19.5 million shares for about $900 million in 1998. Total stockholders' equity declined to $3,887.2 million from $4,133.3 million, and the ratio of net debt to capital rose to 36.4 percent from 33.5 percent. The filing also flags risks, including intense competition, raw material price swings in pulp, foreign market exposure in 38 manufacturing countries, and a pending antitrust complaint filed by the State of Florida and related class actions over away-from-home tissue pricing, which management does not expect to have a material adverse effect.
Mar 26, 1999
1997
Kimberly-Clark Annual Report, Year Ended Dec 31, 1997
Kimberly-Clark Corporation's 10-K for fiscal 1997 describes a company in transition from diversified businesses to a global consumer products company built on core technologies, trademarks and consumer product franchises. In 1997 it divested Coosa Pines pulp and newsprint operations for approximately $600 million, sold its interest in Scott Paper Limited for approximately $127 million, and acquired Tecnol Medical Products for an exchange of about 8.7 million shares. Consolidated net sales fell 4.6% to $12,546.6 million, while operating profit dropped 36.5% to $1,303.2 million after a $701.2 million pretax restructuring charge under the Announced Plan (18 facility sales, closures or downsizings and about 5,000 job cuts). Net income was $901.5 million, or $1.61 diluted EPS, versus $1,403.8 million and $2.48 in 1996. Excluding the charge, the filing states EPS rose 3.0% to $2.44 from $2.37. The filing highlights weaker selling prices, particularly for tissue, plus transitional issues in North American away-from-home business and heightened European competition. Personal Care Products was the bright spot, with segment net sales up 8.2% and operating profit up 22.5%, while Tissue-Based Products sales fell 10.3% and operating profit fell 16.7%. Management expects the Announced Plan to save about $100 million in 1998 and $200 million annually by 2000, and said first-quarter 1998 earnings from operations would be 54 to 58 cents per share. Balance sheet and liquidity remain sound. Cash provided by operations was $1,406.6 million, and the ratio of total debt to capital rose to 36.5% from 32.9%, against a stated target of 30 to 40%. Long-term debt securities are rated Double-A, and the company repurchased 17.9 million shares for roughly $900 million during 1997. Litigation includes a Florida-led antitrust complaint and about 45 related class actions over away-from-home tissue pricing, which management does not expect to have a material adverse effect.
Mar 26, 1998
1996
Kimberly-Clark Annual Report, Year Ended Dec 31, 1996
Kimberly-Clark Corporation's 1996 annual report (filed on Form 10-K) shows net sales of $13.15 billion, down from $13.37 billion in 1995, while net income rose to $1.40 billion ($4.98 per share) from $33.2 million ($0.12 per share) in 1995. The 1995 results included a one-time pretax charge of $1,440.0 million tied to the Scott Paper merger and restructuring. Operating profit reached $2.05 billion, with operating margin of 15.6% of net sales versus 1.6% in 1995. Cash provided by operations was $1.67 billion, and the ratio of total debt to capital fell to 32.9% from 41.9%. The filing centers on a strategic shift away from pulp. The company agreed to sell its Coosa Pines, Alabama pulp and newsprint operations to Alliance Forest Products for approximately $600 million in cash, expected to close in late March 1997. It also plans to sell pulp operations at Terrace Bay, Ontario; New Glasgow, Nova Scotia; and Miranda, Spain by mid-1998, and to sell its 50.1% interest in Scott Paper Limited to Kruger, Inc. Management says internal pulp operations will fall from about 80% to below 30% of virgin fiber needs. Management also announced a 2-for-1 stock split and a 4.3% quarterly dividend increase, both effective April 2, 1997, and set a goal of doubling earnings per share from operations between 1995 and 2000. Key risks include exposure to pulp price cycles after the divestitures, foreign market and currency risk across 35 countries, and pending litigation including asbestos, breast implant, and West Virginia tobacco-related claims, which management does not expect to be materially adverse. Cluster Rule environmental capital spending is estimated at $370 million to $400 million, falling to $305 million to $335 million if the Coosa Pines sale closes.
Mar 21, 1997
1995
Kimberly-Clark Annual Report, Year Ended Dec 31, 1995
Kimberly-Clark Corporation's 10-K for fiscal year ended December 31, 1995 reports that the December 12, 1995 merger with Scott Paper Company, accounted for as a pooling of interests, was the defining event of the year. Net sales rose to $13,788.6 million from $11,979.2 million in 1994, but operating profit fell to $213.0 million from $1,277.1 million after a $1,440.0 million pretax restructuring and other unusual charge recorded in the fourth quarter. Net income was $33.2 million, or $.12 per share, compared with $753.8 million, or $2.71 per share, in 1994. Excluding the one-time charge, the filing states operating profit improved 29.4 percent in absolute terms, and the company's 1995 net income return on average stockholders' equity excluding the charge was 28.4 percent. The company's three segments are Personal Care Products (net sales of $4,342.1 million), Tissue-Based Products ($7,982.0 million) and Newsprint, Paper and Other ($1,584.3 million). The integration plan is expected to yield annual pretax benefits of approximately $250 million in 1996, $400 million in 1997 and $500 million in 1998, and involves selling up to 12 mills and eliminating about 6,000 jobs. Management states that the merger will be additive to earnings per share in 1996 and that the securities analysts' consensus estimate of $4.94 per share is realistic. The balance sheet shows total assets of $11,439.2 million, long-term debt of $1,984.7 million and stockholders' equity of $3,650.4 million at year-end. Cash provided by operations was $931.6 million and capital spending was $817.6 million. The ratio of total debt to capital was 41.9 percent, outside the company's target range of 28 to 32 percent, which management attributes primarily to the one-time charge. The filing also describes ongoing asbestos and breast implant litigation that management believes will not have a material adverse effect.
Mar 26, 1996
1994
Kimberly-Clark Annual Report, Year Ended Dec 31, 1994
Kimberly-Clark Corporation's 1994 Form 10-K reports net sales of $7,364.2 million, up from $6,972.9 million in 1993, and net income of $535.1 million, or $3.33 per share, compared with $510.9 million, or $3.18 per share, a year earlier. Operating profit rose to $819.1 million from $793.5 million, but the company states that operating profit declined as a percentage of sales (11.1% versus 11.4%) due mainly to lower selling prices, higher labor and fiber costs, and lower training pant volumes in North America. Cash provided by operations fell to $669.0 million from $746.7 million, largely because operating working capital needs increased by $184.2 million. Capital spending declined to $485.2 million from $654.5 million, and the total debt to capital ratio was 38.9%, above the company's 28% to 32% target range. The company's Class I products (tissue, infant, child, feminine and incontinence care) generated $5,911.4 million in net sales and $655.6 million in operating profit. Europe posted an operating loss of $59.4 million, which management attributes largely to the cost of launching Huggies diapers, and expects losses in 1995 to be less than in 1994. Net income was reduced by a nonoperating after-tax charge of $39.2 million ($.24 per share) for the company's 43 percent-owned Mexican affiliate's foreign currency losses following the December 1994 peso devaluation. Management says it cannot yet assess the effect of this currency risk on 1995 net income. The filing also discloses a 1995 outlook of expected tissue, newsprint and paper price increases, planned 1995 capital spending of $500 million to $600 million, and a decision to retain North American pulp and newsprint operations for now rather than divest them. Legal matters include a West Virginia Attorney General suit seeking medical cost recovery from tobacco-related illnesses, asbestos claims tied to the Coosa Pines mill (with tentative settlements in four actions), and potentially responsible party designations at 28 waste disposal sites.
Mar 24, 1995
1993
Kimberly-Clark Annual Report, Year Ended Dec 31, 1993
Kimberly-Clark Corporation's 10-K for the fiscal year ended December 31, 1993 reports net sales of $6,972.9 million, down from $7,091.1 million in 1992, while net income rose to $510.9 million ($3.18 per share) from $135.0 million ($0.84 per share). The 1992 comparison was depressed by a $250.0 million pretax restructuring charge and a $210.0 million cumulative effect of accounting changes. Operating profit was $793.5 million, or 11.4% of net sales, versus 7.7% in 1992. The company attributed the sales decline to lower selling prices and currency translation, and cited a $147 million currency translation effect on sales. Management described Huggies diapers as the number one selling U.S. brand, though it flagged more intense competition in training pants in 1994 and heavy investment to launch diapers in Europe. Balance sheet and cash flow data show total assets of $6,380.7 million, long-term debt of $933.1 million, and stockholders' equity of $2,457.2 million. Cash provided by operations was $746.7 million against capital spending of $654.5 million. The ratio of total debt to capital was 39.1%, outside the company's 28 to 32 percent target range, and the company reported a Double-A rating on its long-term debt. Dividends paid totaled $1.70 per share in 1993, compared with $1.29 declared, and the company has 25,121 stockholders of record. Legal and environmental matters are disclosed in the filing, including retiree medical benefit litigation, asbestos suits involving about 4,713 individuals, a patent suit against Drypers Corporation with trial set for June 7, 1994, and potentially responsible party designations at 21 waste disposal sites, none of which management believes would have a material adverse effect.
Mar 24, 1994