Kimberly-Clark Reports Third Quarter 2003 Results
Sales Rose More Than 4 Percent to $3.6 Billion; Diluted EPS Were
83 Cents Per Share vs. 85 Cents Per Share in 2002; Continued Strong
Cash Flow Boosted by Working Capital Improvements
DALLAS, October 22, 2003--Kimberly-Clark Corporation (NYSE: KMB) today
reported that sales in the third quarter of 2003 were $3.6 billion, an
increase of more than 4 percent over the prior year. Diluted net income
of 83 cents per share for the quarter declined approximately 2 percent
compared with 85 cents per share in 2002.
Earnings before unusual items were 85 cents per share in the third
quarter of 2003 versus 87 cents per share in the year-ago period. The
unusual items are described in more detail below.
Sales growth in the third quarter of 2003 was driven by improvement in
currency exchange rates and higher sales volumes of 3 percent and 2
percent, respectively. Sales volumes benefited from shipments of new
and improved products as well as the consolidation of Klabin Kimberly
S.A., the company's former equity affiliate in Brazil. Net selling
prices were down about 1 percent as a result of increased levels of
competitive promotional spending.
Compared with the prior year, third quarter results were also impacted
by higher noncash pension expense of about $35 million.
For the quarter, cash provided by operations was a record $810 million,
45 percent higher than in 2002, and free cash flow more than doubled to
$386 million.
Thomas J. Falk, chairman and chief executive officer of Kimberly-Clark,
said, "Our third quarter sales and earnings per share improved
sequentially despite intense competitive activity. I am encouraged by
the trends in our personal care business, where operating profit margin
has recovered to more than 21 percent. Moreover, sales volumes of
Huggies diapers in North America were up 5 percent sequentially and
third quarter shipments of Pull-Ups training pants in North America set
an all-time quarterly record. I'm also pleased with the results of our
cost cutting efforts. Our businesses delivered savings of nearly
$50 million in the quarter, putting us on track to achieve our annual
target of $175 million to $200 million.
- more -
- 2 -
"Meanwhile, our focus on cash flow continues to pay off, with a
reduction of more than $120 million in primary working capital during
the third quarter contributing to our strong gains."
Unusual items
As previously announced, the company redeemed $200 million of
7.875 percent debentures and $200 million of 7 percent debentures in
the third quarter of 2003, enabling the company to substantially lower
its financing costs. The one-time pretax costs of calling the
debentures totaled $18 million, equivalent to 2 cents per share. Last
year's third quarter results included pretax charges of approximately
$12 million, or about 2 cents per share, primarily for business
improvement programs in Latin America and Europe.
Kimberly-Clark management believes that, because of the nature of these
unusual items, investors' understanding of the company's performance is
enhanced by disclosing earnings per share before unusual items as a
reasonable basis for comparison of the company's ongoing results of
operations. The attached Earnings Summary schedule provides a
reconciliation of earnings per share before unusual items to diluted
net income per share determined in accordance with generally accepted
accounting principles.
Review of third quarter sales
All three of the company's business segments - Consumer Tissue,
Personal Care and Business-to-Business - posted higher sales. In August
2003, the company increased its ownership of Klabin Kimberly, S.A. from
50 percent to 100 percent. Consolidation of the former equity
affiliate's operating results added approximately 1 percent to sales in
the quarter.
Sales of consumer tissue products were up more than 7 percent, driven
primarily by currency effects in Europe and Australia and the
acquisition in Latin America.
Overall consumer tissue sales volumes increased approximately 3 percent
following growth of 10 percent in the third quarter of 2002. Net
selling prices were about the same as last year, as response to
competitive promotional activity in North America and Europe offset
list price increases in Europe and Latin America.
In North America, sales volumes of consumer tissue products declined 1
percent compared with a strong overall performance in the third quarter
of 2002, and net pricing was lower by almost 2 percent. Sales volumes
of Viva towels and Scott bathroom tissue improved, while shipments of
Kleenex facial tissue were below the prior year. Although sales of new
Cottonelle Ultra bathroom tissue were solid, sales volumes for
Cottonelle bathroom tissue overall decreased in the face of
significantly higher levels of promotion spending by competitors.
- more -
- 3 -
In Europe, consumer tissue sales increased 15 percent primarily as a
result of improvement in currency exchange rates for the euro and the
British pound. Sales volumes rose about 4 percent. Net selling prices
were only 1 percent higher despite increases in list prices averaging
8 percent. Meanwhile, consumer tissue sales were up approximately
9 percent in Asia, as currency benefits in Australia and volume gains
in Australia and Korea were partially offset by lower sales volumes
elsewhere in the region. In Latin America, consumer tissue sales
increased more than 30 percent primarily as a result of the
consolidation of Klabin Kimberly, Brazil's leading tissue manufacturer.
Sales of personal care products were up 1 percent in the third quarter.
Currency-related gains of more than 3 percent were partially offset by
lower net selling prices of about 1 percent and product mix. Sales
volumes were flat. Although strong volume growth continued in Australia
and for the company's child care and incontinence care products in
North America, overall sales volumes were constrained by intense
competition in the diaper category in a number of key markets.
In North America, Personal Care sales volumes increased more than 2
percent versus the prior year, driven by record third quarter
shipments of improved Pull-Ups training pants with Easy Open sides,
GoodNites youth pants and Depend and Poise incontinence care products.
Sales of new Huggies Convertibles diaper-pants contributed to the
sequential improvement in shipments of Huggies diapers; however, the
brand's sales volumes were still 3 percent lower than the third quarter
of 2002. Net selling prices of personal care products in North America
declined 2 percent from last year, primarily as a result of actions to
counter price reductions implemented by a competitor in the training
pant category.
Personal care sales in Europe increased more than 2 percent in the
quarter. Currency effects boosted sales nearly 9 percent, while lower
sales of diaper products led to a 6 percent decline in sales volumes
overall. In Asia, personal care sales rose approximately 7 percent in
the third quarter, highlighted by strong double-digit growth in
Australia from a combination of currency benefits and higher sales
volumes. Finally, in Latin America, personal care sales decreased 9
percent. Sales improved significantly in Brazil; however, this gain was
more than offset by reduced sales volumes throughout most of the rest
of the region.
Sales of business-to-business products increased approximately 5
percent in the quarter, driven by volume growth of about 3 percent and
currency benefits of nearly 3 percent. Sales of the company's global
Health Care business set a new third quarter record. Its sales volumes
rose 6 percent, with continued strong growth outside North America. K-C
Professional's sales volumes in North America
- more -
- 4 -
increased for the seventh consecutive quarter, with a gain of more than
2 percent. In other regions, K-C Professional's volumes grew at a
double-digit rate in Asia and Latin America, but were down about 4
percent in Europe.
Other third quarter operating results
Operating profit in the third quarter of 2003 was $604.0 million, about
6 percent below the prior year. Before unusual items, third quarter
operating profit declined 5 percent to $622.4 million from $656.4
million in 2002. Over and above the positive contributions from volume
growth and changes in foreign exchange rates, the company reduced costs
by about $50 million in the third quarter of 2003, bringing the total
for the year-to-date to nearly $140 million. These improvements,
however, were not sufficient to overcome the combined impact of lower
net selling prices and higher pension expense, as well as increased
fiber, distribution and energy costs of about $40 million.
A slightly lower effective tax rate in this year's third quarter was
driven by resolution of certain matters related to prior years' taxes.
Kimberly-Clark's share of net income of equity companies in the third
quarter decreased to $21.9 million in 2003 from $28.1 million in 2002
primarily due to lower net income at Kimberly-Clark de Mexico, S.A. de
C.V. (KCM). Most of the decrease was attributable to currency effects
as a result of changes in the value of the Mexican peso.
Year-to-date results
For the first nine months of 2003, sales of $10.6 billion were up 4
percent from $10.2 billion in the prior year. Excluding currency
effects, sales were up about 1 percent. Operating profit declined 7
percent to $1,790.2 million in 2003 versus $1,934.0 million in 2002.
Diluted earnings per share for the first nine months of 2003 were $2.42
versus $2.50 in 2002, a decline of 3 percent. Diluted earnings before
unusual items of $2.47 per share in 2003 were about 5 percent lower
than last year's level of $2.59 per share.
Cash provided by operations for the first nine months of the year rose
8 percent to $2.0 billion, and free cash flow reached $866 million,
about 6 percent higher than in 2002. For the year-to-date, the company
repurchased 7.0 million shares of its common stock at a cost of about
$339 million. At September 30, 2003, net debt and preferred securities
totaled $3.8 billion, compared with $3.9 billion at the end of 2002.
Outlook
Commenting on the outlook, Mr. Falk said, "Given the intensity of the
competitive environment in our categories, we remain focused on
increasing sales volumes and aggressively reducing costs over the
balance of the year.
- more -
- 5 -
"Looking at our three business segments, we are encouraged by the
earnings growth in Personal Care and the continued strong operating
profit margins in our B2B operations. Our product initiatives and cost
reduction efforts have improved our competitive position. Still, we are
not expecting any letup in competitive spending. In particular, we
expect fourth quarter profit comparisons in Consumer Tissue will be
pressured by higher fiber costs and continued high levels of promotion
spending. Meanwhile, we are confident that we will continue to generate
excellent cost savings across all our businesses.
"All-in-all, we are comfortable with external expectations for our
bottom-line results for 2003."
Conference call
A conference call to discuss this news release and other matters of
interest to investors and analysts will be held at 9 a.m. (CDT) today.
The conference call will be simultaneously broadcast over the World
Wide Web. Stockholders and others are invited to listen to the live
broadcast or a playback, which can be accessed by following the
instructions set out in the Investors section of the company's Web site
(www.kimberly-clark.com).
About Kimberly-Clark
Kimberly-Clark and its well-known brands are an indispensable part of
life for people in more than 150 countries. Every day, one in four
people around the world trust K-C's brands to enhance their health,
hygiene and well-being -- brands such as Kleenex, Scott, Huggies,
Pull-Ups, Kotex and Depend. For the second consecutive year,
Kimberly-Clark has been named to Fortune magazine's list of "100 Best
Companies to Work For In America." With nearly 64,000 employees
worldwide, the company has received similar recognition in the U.K.,
Argentina, Australia, Czech Republic, Korea and Thailand. To keep up
with the latest K-C news and to learn more about the company's 131-year
history of innovation, visit www.kimberly-clark.com.
Copies of Kimberly-Clark's Annual Report to Stockholders and its proxy
statements and other SEC filings, including Annual Reports on Form
10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K,
are made available free of charge on the company's Web site on the same
day they are filed with the SEC. To view these filings, visit the
Investors section of the company's Web site.
Certain matters contained in this news release concerning the business
outlook, including new product introductions, cost savings and
acquisitions, anticipated financial and operating results, strategies,
contingencies and anticipated transactions of the company constitute
forward-looking statements and are based upon management's expectations
and beliefs concerning future events impacting the company. There can
be no assurance that these future
- more -
- 6 -
events will occur as anticipated or that the company's results will be
as estimated. For a description of certain factors that could cause the
company's future results to differ materially from those expressed in
any such forward-looking statements, see the section of Part I, Item 1
of the company's Annual Report on Form 10-K for the year ended
December 31, 2002 entitled "Factors That May Affect Future Results."
- more -
- 7 -
KIMBERLY-CLARK CORPORATION
PERIOD ENDED SEPTEMBER 30
(Millions, except per share amounts)
EARNINGS SUMMARY:
The following tables present the reconciliation of earnings before unusual items
to GAAP net income.
Three Months Ended September 30
-----------------------------------------------------------------------
2003 2002
-------------------------------- -----------------------------------
Diluted Diluted
Income Earnings Income Earnings
(Expense) Per Share (Expense) Per Share
Earnings Before Unusual
Items.......................................... $ 431.1 $ .85 $ 449.4 $ .87
Charges for Unusual Items:
Callable Bonds................................. (11.4) (.02) - -
Business Improvement
Programs..................................... - - (8.2) (.02)
---------- ----------- --------- ----------
Net Income....................................... $ 419.7 $ .83 $ 441.2 $ .85
========== =========== ========= ==========
Average Diluted Common
Shares Outstanding............................. 507.8 519.1
Three Months Ended
September 30
------------------------
2003 2002 Change
------ ------ ------
Operating Profit
Before Unusual Items........................... $622.4 $656.4 -5.2%
Callable Bonds................................. (18.4) - N.M.
Business Improvement
Programs..................................... - (11.6) N.M.
------ ------
Operating Profit
As Reported...................................... $604.0 $644.8 -6.3%
====== ======
- more -
- 8 -
KIMBERLY-CLARK CORPORATION
PERIOD ENDED SEPTEMBER 30
(Millions, except per share amounts)
Nine Months Ended September 30
-----------------------------------------------------------------
2003 2002
---------------------------- -------------------------
Diluted Diluted
Income Earnings Income Earnings
(Expense) Per Share (Expense) Per Share
--------- --------- --------- ---------
Earnings Before Unusual
Items.......................................... $1,257.2 $ 2.47 $1,353.5 $ 2.59
Charges for Unusual Items:
European Legal
Judgment..................................... (11.1) (.02) - -
Callable Bonds................................. (11.4) (.02) - -
Brazil Tax Credits............................. - - (13.5) (.03)
Change in Accounting
Principle.................................... - - (11.4) (.02)
Business Improvement
Programs..................................... - - (23.6) (.04)
Rounding......................................... - (.01) - -
-------- ------ -------- ------
Net Income....................................... $1,234.7 $ 2.42 $1,305.0 $ 2.50
======== ====== ======== ======
Average Diluted Common
Shares Outstanding............................. 509.5 521.7
OTHER INFORMATION:
Nine Months
Ended September 30
-------------------------
2003 2002
-------- --------
Cash Dividends Declared
Per Share...................................... $1.02 $.90
As Of September 30
-------------------------
2003 2002
-------- --------
Number of Common Shares
Outstanding.................................... 504.8 515.0
N.M.-Not meaningful
Unaudited
- more -
- 9 -
KIMBERLY-CLARK CORPORATION
PERIOD ENDED SEPTEMBER 30
(Millions, except per share amounts)
Three Months
Ended September 30
------------------------------
2003 2002 Change
---------- ---------- ------
Net Sales...................................................... $ 3,641.6 $ 3,486.7 + 4.4%
Cost of products sold........................................ 2,426.7 2,246.5 + 8.0%
---------- ----------
Gross Profit................................................... 1,214.9 1,240.2 - 2.0%
Marketing, research and general
expenses................................................... 589.6 579.1 + 1.8%
Other (income) expense, net.................................. 21.3 16.3 N.M.
---------- ----------
Operating Profit............................................... 604.0 644.8 - 6.3%
Interest income.............................................. 4.8 3.6 +33.3%
Interest expense............................................. (40.6) (45.1) -10.0%
---------- ----------
Income Before Income Taxes..................................... 568.2 603.3 - 5.8%
Provision for income taxes................................... 157.8 176.4 -10.5%
---------- ----------
Income Before Equity Interests................................. 410.4 426.9 - 3.9%
Share of net income of equity
companies.................................................. 21.9 28.1 -22.1%
Minority owners' share of
subsidiaries' net income................................... (12.6) (13.8) - 8.7%
---------- ----------
Net Income .................................................... $ 419.7 $ 441.2 - 4.9%
========== ==========
Net Income Per Share - Diluted................................. $ .83 $ .85 - 2.4%
========== ==========
- more -
- 10 -
KIMBERLY-CLARK CORPORATION
PERIOD ENDED SEPTEMBER 30
(Millions, except per share amounts)
Notes (Three Months):
1. In 2003, charges of $18.4 million for unusual items are included in other
(income) expense, net. The income tax effect is $7.0 million.
2. In 2002, charges (credits) for unusual items are included as follows: cost
of products sold - $2.5 million; marketing, research and general
expenses - $9.1 million (income tax effect of these items is
$2.0 million); share of net income of equity companies - $.3 million; and
minority owners' share of subsidiaries' net income - $(1.7) million.
3. The Corporation accounts for stock-based compensation using the
intrinsic-value method. The following presents pro forma information about
net income and earnings per share as if the Corporation had applied fair
value expense recognition to all employee stock options granted.
(Millions of dollars, except per share amounts) 2003 2002
-----------------------------------------------------------------------------
Pro forma net income..................................$406.6 $423.6
Pro forma earnings per share - diluted................ .80 .82
N.M.-Not meaningful
Unaudited
- more -
- 11 -
KIMBERLY-CLARK CORPORATION
PERIOD ENDED SEPTEMBER 30
(Millions, except per share amounts)
Nine Months
Ended September 30
----------------------------
2003 2002 Change
---------- ---------- ------
Net Sales...................................................... $ 10,645.9 $ 10,226.5 + 4.1%
Cost of products sold........................................ 7,020.2 6,531.1 + 7.5%
---------- ----------
Gross Profit................................................... 3,625.7 3,695.4 - 1.9%
Marketing, research and general
expenses................................................... 1,758.0 1,732.6 + 1.5%
Other (income) expense, net.................................. 77.5 28.8 N.M.
---------- ----------
Operating Profit............................................... 1,790.2 1,934.0 - 7.4%
Interest income.............................................. 13.9 10.8 +28.7%
Interest expense............................................. (128.2) (136.9) - 6.4%
---------- ----------
Income Before Income Taxes..................................... 1,675.9 1,807.9 - 7.3%
Provision for income taxes................................... 480.2 524.7 - 8.5%
---------- ----------
Income Before Equity Interests................................. 1,195.7 1,283.2 - 6.8%
Share of net income of equity
companies.................................................. 78.2 82.0 - 4.6%
Minority owners' share of
subsidiaries' net income................................... (39.2) (48.8) -19.7%
---------- ----------
Income Before Cumulative Effect
of Accounting Change......................................... 1,234.7 1,316.4 - 6.2%
Cumulative effect of accounting
change, net of income taxes.................................. - (11.4) N.M.
----------- ----------
Net Income .................................................... $ 1,234.7 $ 1,305.0 - 5.4%
=========== ==========
Per Share Basis - Diluted:
Income Before Cumulative Effect
of Accounting Change....................................... $ 2.42 $ 2.52 - 4.0%
Cumulative effect of accounting
change, net of income taxes................................ - (.02) N.M.
----------- -----------
Net Income................................................... $ 2.42 $ 2.50 - 3.2%
=========== ===========
- more -
- 12 -
KIMBERLY-CLARK CORPORATION
PERIOD ENDED SEPTEMBER 30
(Millions, except per share amounts)
Notes (Nine Months):
1. In 2003, charges of $34.0 million for unusual items are included in other
(income) expense, net. The income tax effect is $11.5 million.
2. In 2002, charges (credits) for unusual items are included as follows: cost
of products sold - $16.6 million; marketing, research and general
expenses - $19.0 million; other (income) expense, net - $26.5 million
(income tax effect of these items is $17.7 million); share of net income
of equity companies - $1.7 million; minority owners' share of
subsidiaries' net income - $(9.0) million; and cumulative effect of
accounting change, net of income taxes - $11.4 million.
3. The Corporation accounts for stock-based compensation using the
intrinsic-value method. The following presents pro forma information about
net income and earnings per share as if the Corporation had applied fair
value expense recognition to all employee stock options granted.
(Millions of dollars, except per share amounts) 2003 2002
--------------------------------------------------------------------------------
Pro forma net income.................................. $1,192.2 $1,252.5
Pro forma earnings per share - diluted.................... 2.34 2.40
N.M.-Not meaningful
Unaudited
- more -
- 13 -
KIMBERLY-CLARK CORPORATION
PERIOD ENDED SEPTEMBER 30
(Millions)
Supplemental Financial Information:
September 30 December 31
2003 2002
------------ -----------
Preliminary Balance Sheet Data:
Cash and cash equivalents...................................... $ 305.0 $ 494.5
Accounts receivable............................................ 1,795.3 1,952.1
Inventories.................................................... 1,549.6 1,430.1
Total assets................................................... 16,405.7 15,585.8
Accounts payable............................................... 1,071.8 1,122.0
Debt payable within one year................................... 971.4 1,086.6
Long-term debt................................................. 2,821.8 2,844.0
Preferred securities of subsidiary............................. 562.6 553.5
Stockholders' equity........................................... 6,506.0 5,650.3
Nine Months
Ended September 30
------------------------------------
2003 2002
--------- -----------
Preliminary Cash Flow Data:
"Free Cash Flow" Reconciled to
Cash Provided by Operations:
Free cash flow............................................ $ 865.9 $ 813.6
Capital spending.......................................... 653.2 603.4
Cash dividends paid....................................... 500.0 457.9
---------- ---------
Cash provided by operations.................................... $ 2,019.1 $ 1,874.9
========== =========
Cash used for investing........................................ $ (1,121.3) $(1,016.7)
========== =========
Cash used for financing........................................ $ (1,099.6) (808.5)
========== =========
Depreciation................................................ $ 550.7 $ 518.3
Unaudited
- more -
- 14 -
KIMBERLY-CLARK CORPORATION
SELECTED BUSINESS SEGMENT DATA
PERIOD ENDED SEPTEMBER 30
Three Months Nine Months
Ended September 30 Ended September 30
------------------------------------ ---------------------------------------
2003 2002 Change 2003 2002 Change
-------- -------- ------ --------- --------- ------
NET SALES:
Personal Care................... $1,330.9 $1,314.1 + 1.3% $ 3,942.3 $ 3,900.4 + 1.1%
Consumer Tissue................. 1,379.2 1,285.2 + 7.3% 3,991.6 3,755.2 + 6.3%
Business-to-
Business..................... 970.9 928.4 + 4.6% 2,826.1 2,679.7 + 5.5%
Intersegment
Sales........................ (39.4) (41.0) N.M. (114.1) (108.8) N.M.
-------- -------- --------- ---------
Consolidated.................... $3,641.6 $3,486.7 + 4.4% $10,645.9 $10,226.5 + 4.1%
======== ======== ========= =========
OPERATING PROFIT: (a)
Personal Care................... $ 281.9 $ 273.5 + 3.1% $ 815.8 $ 830.9 - 1.8%
Consumer Tissue................. 188.3 232.2 +18.9% 620.0 698.4 -11.2%
Business-to-
Business..................... 179.4 179.3 + 0.1% 505.2 510.3 - 1.0%
Other income (expense),
net.......................... (21.3) (16.3) N.M. (77.5) (28.8) N.M.
Unallocated items -
net.......................... (24.3) (23.9) N.M. (73.3) (76.8) N.M.
-------- -------- ------- --------
Consolidated.................... $ 604.0 $ 644.8 - 6.3% $ 1,790.2 $ 1,934.0 - 7.4%
======== ======== ========= =========
<FN>
Notes:
(a) Operating profit includes charges for unusual items as follows:
</FN>
Three Months Nine Months
Ended September 30 Ended September 30
--------------------- --------------------
2003 2002 2003 2002
------ ------ ------ ------
Personal Care.................................... $ - $ 4.2 $ - $ 12.2
Consumer Tissue.................................. - 5.5 - 17.0
Business-to-Business............................. - 1.9 - 6.4
Other income (expense),
net........................................... (18.4) - (34.0) 26.5
------ ------ ------ ------
Consolidated..................................... $(18.4) $ 11.6 $(34.0) $ 62.1
====== ====== ====== ======
- more -
- 15 -
Description of Business Segments
The Corporation is organized into operating segments based on product groupings.
These operating segments have been aggregated into three reportable global
business segments: Personal Care; Consumer Tissue; and Business-to-Business.
Each reportable segment is headed by an executive officer who reports to the
Corporation's Chief Executive Officer and is responsible for the development and
execution of global strategies to drive growth and profitability of the
Corporation's worldwide personal care, consumer tissue and business-to-business
operations. These strategies include global plans for branding and product
positioning, technology and research and development programs, cost reductions
including supply chain management, and capacity and capital investments for each
of these businesses. The principal sources of revenue in each of our global
business segments are described below.
The Personal Care segment manufactures and markets disposable diapers, training
and youth pants and swimpants; feminine and incontinence care products; and
related products. Products in this segment are primarily for household use and
are sold under a variety of brand names, including Huggies, Pull-Ups, Little
Swimmers, GoodNites, Kotex, Lightdays, Depend, Poise and other brand names.
The Consumer Tissue segment manufactures and markets facial and bathroom tissue,
paper towels and napkins for household use; wet wipes; and related products.
Products in this segment are sold under the Kleenex, Scott, Cottonelle, Viva,
Andrex, Scottex, Page, Huggies and other brand names.
The Business-to-Business segment manufactures and markets facial and bathroom
tissue, paper towels, wipers and napkins for away-from-home use; health care
products such as surgical gowns, drapes, infection control products,
sterilization wraps, disposable face masks and exam gloves, respiratory
products, and other disposable medical products; printing, premium business and
correspondence papers; specialty and technical papers; and other products.
Products in this segment are sold under the Kimberly-Clark, Kleenex, Scott,
Kimwipes, WypAll, Surpass, Safeskin, Tecnol, Ballard and other brand names.
N.M.-Not meaningful
Unaudited
- more -
- 16 -
KIMBERLY-CLARK CORPORATION
Supplemental Information
DEFINITIONS
- -----------
Net Debt and Preferred Securities
- ---------------------------------
Net debt is total debt less cash and cash equivalents and time deposits.
Primary Working Capital
- -----------------------
Primary working capital is accounts receivable and inventories less accounts
payable.
Unaudited