Kimberly-Clark Corporation (NYSE: KMB, BMV: Kimber) is an American corporation that produces mostly paper-based consumer products. Kimberly-Clark brand name products include "Kleenex" facial tissue, "Kotex" feminine hygiene products, "Cottonelle", Scott and Andrex toilet paper, Wypall utility wipes, "KimWipes" scientific cleaning wipes, and "Huggies" disposable diapers. Based in Irving, Texas, it has approximately 56,000 employees. Kimberly-Clark UK holds a Royal Warrant from Queen Elizabeth II and the Prince of Wales in the United Kingdom.
Kimberly-Clark Corporation (Kimberly-Clark), incorporated in 1928, is a global company focused on building its personal care, consumer tissue, K-C Professional and Other and health care brands. The Company is principally engaged in the manufacturing and marketing of a range of products worldwide. The Company operates in four segments: Personal Care; Consumer Tissue; K-C Professional & Other, and Health Care. On January 21, 2011, Kimberly-Clark initiated a pulp and tissue restructuring plan to exit its remaining integrated pulp manufacturing operations. The Company’s geographical areas cover the United States, Canada, Europe, and Asia, Latin America and other.
Personal Care
The Personal Care segment manufactures and markets disposable diapers, training and youth pants, swimpants, baby wipes, feminine and incontinence care products, and related products. Products in this segment are primarily for household use and are sold under a range of brand names, including Huggies, Pull-Ups, Little Swimmers, GoodNites, Kotex, Lightdays, Depend, Poise and other brand names.
Consumer Tissue
The Consumer Tissue segment manufactures and markets facial and bathroom tissue, paper towels, napkins and related products for household use. Products in this segment are sold under the Kleenex, Scott, Cottonelle, Viva, Andrex, Scottex, Hakle, Page and other brand names.
K-C Professional & Other
The K-C Professional & Other segment manufactures and markets facial and bathroom tissue, paper towels, napkins, wipers and a range of safety products for the away-from-home marketplace. Products in this segment are sold under the Kimberly-Clark, Kleenex, Scott, WypAll, Kimtech, KleenGuard, Kimcare and Jackson brand names.
Health Care
The Health Care segment manufactures and markets health care products, such as surgical drapes and gowns, infection control products, face masks, exam gloves, respiratory products, pain management products and other disposable medical products. Products in this segment are sold under the Kimberly-Clark, Ballard, ON-Q and other brand names.
Starting in the late 1980s, Kimberly-Clark began another diversification program--this time geographically, targeting Europe--although the company's largest international growth would come in the early and mid-1990s. To keep the company growing at a healthy pace, Smith began to increase Kimberly-Clark's presence in Europe in 1988. From that year to 1992, the company invested nearly $1 billion in European plants. Although revenues from its European operations increased steadily, the huge investments (totaling $700 million in 1993 alone) and restructuring charges that went along with them began to affect the company's profits. Net income of $435.2 million in 1991 fell to $150.1 million in 1992 before recovering slightly to $231 million in 1993.
Meanwhile, the company further reduced its commodity papers operation in 1991 when it sold Spruce Falls Power and Paper. The following year, Smith, the architect of Kimberly-Clark's restructuring and diversification efforts since 1972, retired as chairman and was succeeded by Wayne R. Sanders. The new chairman had worked his way up the ranks and had spearheaded the risky endeavor of developing Huggies Pull-Ups. The year 1992 also saw the introduction of Huggies Ultra Trim diapers.
Under Sanders's leadership, it appeared as if the company would divest itself completely of its commodity papers roots. Kimberly-Clark announced in late 1994 that it would explore the sale of its North American pulp and newsprint operations. The following year, however, the company decided not to sell because pulp and newsprint prices rose so high it no longer made economic sense to do so. Kimberly-Clark did divest its cigarette papers business in mid-1995 by spinning it off into a company called Schweitzer-Maudit International Inc. after shareholders initiated a proxy fight in 1994, concerned about the potential costs of liability lawsuits against tobacco, which were then beginning to gain strength.
In 1995 Sanders engineered the deal that would usher in a new era for the company: the merger of Kimberly-Clark with the Scott Paper Co. The deal was the logical culmination of Kimberly-Clark's international expansion, since Scott was globally strong and held the number one position in tissue in Europe. The $9.4 billion deal led to a 1995 charge of $1.4 billion for Kimberly-Clark to consolidate the merger, which led to the layoff of 6,000 workers and the sale of several plants. To pass antitrust muster, Kimberly-Clark had to sell the Scotties facial tissue operation, two of four tissue plants in the United States, and its Baby Fresh, Wash-a-Bye Baby, and Kid Fresh brands (which it sold to Procter & Gamble).
The late 1990s would be a period of transition for Kimberly-Clark as it worked to integrate the Scott Paper operations into its own. The company hoped that its newfound international clout, however, would make it a more formidable rival of the industry leader, Procter & Gamble, for years to come.
Principal Subsidiaries: Avent, Inc.; Carlton Paper Corporation Limited (South Africa; 50%); Chengdu Comfort & Beauty Sanitary Articles Co., Ltd. (China; 98.1%); CPM Inc.; Handan Comfort & Beauty (Group) Co., Ltd. (China; 90%); Housing Horizons, LLC; Kimberly-Clark Inova a.s. (Czech Republic); K-C Aviation Inc.; Kimberly-Clark Argentina S.A. (51%); Kimberly-Clark Benelux Operations B.V. (Netherlands); Kimberly-Clark Canada Inc.; Kimberly-Clark de Centro America, S.A. (El Salvador, 75%); Kimberly-Clark Costa Rica, S.A. (75%); Kimberly-Clark Far East Pte. Limited (Singapore); Kimberly-Clark GmbH (Germany); Kimberly-Clark International, S.A. (Panama); Kimberly-Clark Limited (U.K.); Kimberly-Clark Malaysia Sendirian Berhad (51%); Kimberly-Clark Peru, S.A. (68%); Kimberly-Clark Philippines Inc. (87%); Kimberly-Clark Puerto Rico, Inc.; Kimberly-Clark Sopalin, S.A. (France); Kimberly-Clark Thailand Limited; Kunming Comfort & Beauty Hygienic Products Co., Ltd. (China; 97.9%); Nanjing Comfort & Beauty Sanitary Products Co., Ltd. (China; 97.9%); Scott Continental N.V. (Belgium); Scott GmbH (Germany); Scott Iberica, S.A. (Spain; 99.7%); Scott India; Scott Japan Limited; Scott Limited (U.K.); Scott Paper Indonesia; Scott Paper B.V. (Netherlands); Scott Paper Limited (Canada; 50.1%); Scott Paper Company; Scott Paper Company de Costa Rica, S.A. (51%); Scott Paper Company - Honduras, S.A. de C.V.; Scott Paper GmbH (Germany); Scott Paper (Guangzhou) Limited (China; 75%); Scott Paper (Hong Kong) Limited; Scott Paper (Malaysia) Sdn. Bhd.; Scott Paper Portugal Lda.; Scott Paper (Shanghai) Co., Ltd. (China; 56%); Scott Paper (Singapore) Pte. Ltd.; Scott S.N.C. (France); Scott S.p.A. (Italy); Taiwan Scott Paper Corporation (66.7%); Thai-Scott Paper Company Limited (Thailand; 99.6%); Venekim, C.A. (Venezuela; 60%); YuHan-Kimberly, Limited (South Korea, 60%).
Principal Operating Units: Health Care and Nonwovens Sector; Household Products Sector; International Consumer & Service Sector; Logistics Sector; North American Pulp & Paper Sector; Personal Care Sector; Service & Industrial Sector; U.S. Pulp and Newsprint.
OVERALL
Beta: 0.43
Market Cap (Mil.): $27,085.57
Shares Outstanding (Mil.): 403.06
Annual Dividend: 2.80
Yield (%): 4.17
FINANCIALS
KMB.N Industry Sector
P/E (TTM): 15.29 5.82 23.96
EPS (TTM): -1.34 -- --
ROI: -- 1.59 17.94
ROE: -- 3.07 17.97
Statistics:
Public Company
Incorporated: 1880 as Kimberly & Clark Company
Employees: 55,341
Sales: $13.79 billion (1995)
Stock Exchanges: New York Midwest Pacific
SICs: 2297 Nonwoven Fabrics; 2381 Dress & Work Gloves, Except Knit & Leather; 2621 Paper Mills; 2676 Sanitary Paper Products; 3841 Surgical & Medical Instruments & Apparatus; 4581 Airports, Flying Fields & Airport Terminal Services
Name Age Since Current Position
Falk, Thomas 52 2003 Chairman of the Board, Chief Executive Officer
Buthman, Mark 50 2003 Chief Financial Officer, Senior Vice President
Abernathy, Robert 56 2008 Group President, North Atlantic Consumer Products
Bauer, Joanne 55 2006 President - Global Health Care
Black, Robert 51 2008 Group President - K-C International Markets
Brickman, Christian 46 2010 President - Global Kimberly Clark Professional
Palmer, Anthony 51 2006 Senior Vice President, Chief Marketing Officer
Mielke, Thomas 52 2007 Senior Vice President - Law and Government Affairs, Chief Compliance Officer
Spencer, Jan 55 2010 Senior Vice President - Continuous Improvement, Sourcing and Sustainability
Gottung, Lizanne 54 2008 Senior Vice President, Chief Human Resources Officer
Stock, Elane 46 2010 Senior Vice President, Chief Strategy Officer
Shapiro, Marc 63 2008 Lead Independent Director
Rice, Linda 53 1995 Independent Director
Bergstrom, John 64 1987 Independent Director
Decherd, Robert 59 2008 Independent Director
Jemison, Mae 54 2002 Independent Director
Sullivan, G. Craig 70 2004 Independent Director
Bru, Abelardo 62 2005 Independent Director
Alm, John 65 2006 Independent Director
Jenness, James 64 2007 Independent Director
Read, Ian 57 2007 Independent Director
Karch, Nancy 63 2010 Independent Director
Address:
P.O. Box 619100
Dallas, Texas 75261-9100
U.S.A.
Kimberly-Clark Corporation (Kimberly-Clark), incorporated in 1928, is a global company focused on building its personal care, consumer tissue, K-C Professional and Other and health care brands. The Company is principally engaged in the manufacturing and marketing of a range of products worldwide. The Company operates in four segments: Personal Care; Consumer Tissue; K-C Professional & Other, and Health Care. On January 21, 2011, Kimberly-Clark initiated a pulp and tissue restructuring plan to exit its remaining integrated pulp manufacturing operations. The Company’s geographical areas cover the United States, Canada, Europe, and Asia, Latin America and other.
Personal Care
The Personal Care segment manufactures and markets disposable diapers, training and youth pants, swimpants, baby wipes, feminine and incontinence care products, and related products. Products in this segment are primarily for household use and are sold under a range of brand names, including Huggies, Pull-Ups, Little Swimmers, GoodNites, Kotex, Lightdays, Depend, Poise and other brand names.
Consumer Tissue
The Consumer Tissue segment manufactures and markets facial and bathroom tissue, paper towels, napkins and related products for household use. Products in this segment are sold under the Kleenex, Scott, Cottonelle, Viva, Andrex, Scottex, Hakle, Page and other brand names.
K-C Professional & Other
The K-C Professional & Other segment manufactures and markets facial and bathroom tissue, paper towels, napkins, wipers and a range of safety products for the away-from-home marketplace. Products in this segment are sold under the Kimberly-Clark, Kleenex, Scott, WypAll, Kimtech, KleenGuard, Kimcare and Jackson brand names.
Health Care
The Health Care segment manufactures and markets health care products, such as surgical drapes and gowns, infection control products, face masks, exam gloves, respiratory products, pain management products and other disposable medical products. Products in this segment are sold under the Kimberly-Clark, Ballard, ON-Q and other brand names.
Starting in the late 1980s, Kimberly-Clark began another diversification program--this time geographically, targeting Europe--although the company's largest international growth would come in the early and mid-1990s. To keep the company growing at a healthy pace, Smith began to increase Kimberly-Clark's presence in Europe in 1988. From that year to 1992, the company invested nearly $1 billion in European plants. Although revenues from its European operations increased steadily, the huge investments (totaling $700 million in 1993 alone) and restructuring charges that went along with them began to affect the company's profits. Net income of $435.2 million in 1991 fell to $150.1 million in 1992 before recovering slightly to $231 million in 1993.
Meanwhile, the company further reduced its commodity papers operation in 1991 when it sold Spruce Falls Power and Paper. The following year, Smith, the architect of Kimberly-Clark's restructuring and diversification efforts since 1972, retired as chairman and was succeeded by Wayne R. Sanders. The new chairman had worked his way up the ranks and had spearheaded the risky endeavor of developing Huggies Pull-Ups. The year 1992 also saw the introduction of Huggies Ultra Trim diapers.
Under Sanders's leadership, it appeared as if the company would divest itself completely of its commodity papers roots. Kimberly-Clark announced in late 1994 that it would explore the sale of its North American pulp and newsprint operations. The following year, however, the company decided not to sell because pulp and newsprint prices rose so high it no longer made economic sense to do so. Kimberly-Clark did divest its cigarette papers business in mid-1995 by spinning it off into a company called Schweitzer-Maudit International Inc. after shareholders initiated a proxy fight in 1994, concerned about the potential costs of liability lawsuits against tobacco, which were then beginning to gain strength.
In 1995 Sanders engineered the deal that would usher in a new era for the company: the merger of Kimberly-Clark with the Scott Paper Co. The deal was the logical culmination of Kimberly-Clark's international expansion, since Scott was globally strong and held the number one position in tissue in Europe. The $9.4 billion deal led to a 1995 charge of $1.4 billion for Kimberly-Clark to consolidate the merger, which led to the layoff of 6,000 workers and the sale of several plants. To pass antitrust muster, Kimberly-Clark had to sell the Scotties facial tissue operation, two of four tissue plants in the United States, and its Baby Fresh, Wash-a-Bye Baby, and Kid Fresh brands (which it sold to Procter & Gamble).
The late 1990s would be a period of transition for Kimberly-Clark as it worked to integrate the Scott Paper operations into its own. The company hoped that its newfound international clout, however, would make it a more formidable rival of the industry leader, Procter & Gamble, for years to come.
Principal Subsidiaries: Avent, Inc.; Carlton Paper Corporation Limited (South Africa; 50%); Chengdu Comfort & Beauty Sanitary Articles Co., Ltd. (China; 98.1%); CPM Inc.; Handan Comfort & Beauty (Group) Co., Ltd. (China; 90%); Housing Horizons, LLC; Kimberly-Clark Inova a.s. (Czech Republic); K-C Aviation Inc.; Kimberly-Clark Argentina S.A. (51%); Kimberly-Clark Benelux Operations B.V. (Netherlands); Kimberly-Clark Canada Inc.; Kimberly-Clark de Centro America, S.A. (El Salvador, 75%); Kimberly-Clark Costa Rica, S.A. (75%); Kimberly-Clark Far East Pte. Limited (Singapore); Kimberly-Clark GmbH (Germany); Kimberly-Clark International, S.A. (Panama); Kimberly-Clark Limited (U.K.); Kimberly-Clark Malaysia Sendirian Berhad (51%); Kimberly-Clark Peru, S.A. (68%); Kimberly-Clark Philippines Inc. (87%); Kimberly-Clark Puerto Rico, Inc.; Kimberly-Clark Sopalin, S.A. (France); Kimberly-Clark Thailand Limited; Kunming Comfort & Beauty Hygienic Products Co., Ltd. (China; 97.9%); Nanjing Comfort & Beauty Sanitary Products Co., Ltd. (China; 97.9%); Scott Continental N.V. (Belgium); Scott GmbH (Germany); Scott Iberica, S.A. (Spain; 99.7%); Scott India; Scott Japan Limited; Scott Limited (U.K.); Scott Paper Indonesia; Scott Paper B.V. (Netherlands); Scott Paper Limited (Canada; 50.1%); Scott Paper Company; Scott Paper Company de Costa Rica, S.A. (51%); Scott Paper Company - Honduras, S.A. de C.V.; Scott Paper GmbH (Germany); Scott Paper (Guangzhou) Limited (China; 75%); Scott Paper (Hong Kong) Limited; Scott Paper (Malaysia) Sdn. Bhd.; Scott Paper Portugal Lda.; Scott Paper (Shanghai) Co., Ltd. (China; 56%); Scott Paper (Singapore) Pte. Ltd.; Scott S.N.C. (France); Scott S.p.A. (Italy); Taiwan Scott Paper Corporation (66.7%); Thai-Scott Paper Company Limited (Thailand; 99.6%); Venekim, C.A. (Venezuela; 60%); YuHan-Kimberly, Limited (South Korea, 60%).
Principal Operating Units: Health Care and Nonwovens Sector; Household Products Sector; International Consumer & Service Sector; Logistics Sector; North American Pulp & Paper Sector; Personal Care Sector; Service & Industrial Sector; U.S. Pulp and Newsprint.
OVERALL
Beta: 0.43
Market Cap (Mil.): $27,085.57
Shares Outstanding (Mil.): 403.06
Annual Dividend: 2.80
Yield (%): 4.17
FINANCIALS
KMB.N Industry Sector
P/E (TTM): 15.29 5.82 23.96
EPS (TTM): -1.34 -- --
ROI: -- 1.59 17.94
ROE: -- 3.07 17.97
Statistics:
Public Company
Incorporated: 1880 as Kimberly & Clark Company
Employees: 55,341
Sales: $13.79 billion (1995)
Stock Exchanges: New York Midwest Pacific
SICs: 2297 Nonwoven Fabrics; 2381 Dress & Work Gloves, Except Knit & Leather; 2621 Paper Mills; 2676 Sanitary Paper Products; 3841 Surgical & Medical Instruments & Apparatus; 4581 Airports, Flying Fields & Airport Terminal Services
Name Age Since Current Position
Falk, Thomas 52 2003 Chairman of the Board, Chief Executive Officer
Buthman, Mark 50 2003 Chief Financial Officer, Senior Vice President
Abernathy, Robert 56 2008 Group President, North Atlantic Consumer Products
Bauer, Joanne 55 2006 President - Global Health Care
Black, Robert 51 2008 Group President - K-C International Markets
Brickman, Christian 46 2010 President - Global Kimberly Clark Professional
Palmer, Anthony 51 2006 Senior Vice President, Chief Marketing Officer
Mielke, Thomas 52 2007 Senior Vice President - Law and Government Affairs, Chief Compliance Officer
Spencer, Jan 55 2010 Senior Vice President - Continuous Improvement, Sourcing and Sustainability
Gottung, Lizanne 54 2008 Senior Vice President, Chief Human Resources Officer
Stock, Elane 46 2010 Senior Vice President, Chief Strategy Officer
Shapiro, Marc 63 2008 Lead Independent Director
Rice, Linda 53 1995 Independent Director
Bergstrom, John 64 1987 Independent Director
Decherd, Robert 59 2008 Independent Director
Jemison, Mae 54 2002 Independent Director
Sullivan, G. Craig 70 2004 Independent Director
Bru, Abelardo 62 2005 Independent Director
Alm, John 65 2006 Independent Director
Jenness, James 64 2007 Independent Director
Read, Ian 57 2007 Independent Director
Karch, Nancy 63 2010 Independent Director
Address:
P.O. Box 619100
Dallas, Texas 75261-9100
U.S.A.