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Kimberly-Clark Annual Report, Year Ended Dec 31, 1999

Filing Date
Filed March 24, 2000
Period End
December 31, 1999
Security
KMB
In the record · 2016–202610-K1110-Q328-K111

KMB filed 11 annual reports (10-K), 32 quarterly reports (10-Q) and 111 current reports (8-K) between 2016 and 2026.

  1. FY2016 annual report10-K · Feb ’17Feb ’17
  2. Leadership change8-K · Sep ’19Sep ’19
  3. Change in control8-K · Sep ’21Sep ’21
  4. Leadership change8-K · Nov ’25Nov ’25

01—Abstract

Summary

Summary of the 10-K filed March 24, 2000. Cited figures are marked; the original filing is the authoritative source.

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 milliona 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 millionb, 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 millionc 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.

02—Key points

Key Highlights

  1. Net sales rose to $13,006.8 million in 1999 from $12,297.8 million in 1998.
  2. Diluted net income was $3.09 per share in 1999, compared with $1.99 per share in 1998.
  3. Operating profit increased to $2,435.4 million, and excluding unusual items it was $2,338.1 million versus $1,977.8 million in 1998.
  4. Cash provided by operations was $2,134.3 million, and the company repurchased 13.5 million shares for about $750 million.
  5. Net debt to capital was 28.9 percent at December 31, 1999, below the targeted range of 30 to 40 percent.
  6. Acquisitions in 1999 included Attisholz Holding AG for $365 million and Ballard Medical Products for about $788 million, with Safeskin Corporation pending at about $800 million.
  7. Management expects sales to grow 6 to 8 percent annually and earnings per share to grow at double-digit rates.

03—Questions

Frequently Asked Questions

  1. How did Kimberly-Clark's earnings change in 1999?

    Net income was $1,668.1 million, or $3.09 per diluted share, compared with $1,103.1 million, or $1.99 per share, in 1998. Management stated that excluding unusual items and other one-time effects, earnings from operations were $2.98 per share in 1999 versus $2.44 per share in 1998.

  2. Which business segments drove sales in 1999?

    Tissue net sales were $6,968.8 million and Personal Care net sales were $5,138.1 million, compared with $6,733.1 million and $4,596.5 million in 1998. Health Care and Other net sales were $936.4 million, down from $1,001.5 million in 1998. The filing attributes the Personal Care increase largely to higher volumes and the Colombian Investment.

  3. What acquisitions and divestitures did the company make?

    In 1999 the company bought Attisholz Holding AG's European tissue businesses for $365 million and acquired Ballard Medical Products for about $788 million. It sold timberlands to Joshua Timberlands, LLC for notes with a fair value of about $383 million and completed the sale of a portion of Southeast Timberlands. It also agreed to acquire Safeskin Corporation for about $800 million.

  4. What does the filing say about the company's financial position and capital returns?

    At December 31, 1999 total debt was $2.7 billion, and net debt to capital was 28.9 percent, which the filing describes as below the targeted range of 30 to 40 percent. Revolving credit facilities of $1.1 billion were in place, and the company's long-term debt carried a Double-A rating. The company repurchased 13.5 million shares for about $750 million during 1999.

  5. What are the main risks the filing discloses?

    The filing cites intense competition from branded and private label products, reliance on new products and line extensions, and exposure to cellulose fiber price swings tied to pulp markets. It also lists foreign market risks in more than 150 countries, including currency fluctuations and economic instability in developing markets. Antitrust class actions over away-from-home tissue pricing are pending, and management does not expect them to have a material adverse effect.

04—Continue

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