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Kimberly-Clark's Focus On Insights Will Drive Innovations And Growth Shareholders Told At Annual Meeting

Kimberly-Clark's Focus On Insights Will Drive Innovations And Growth Shareholders Told At Annual Meeting

Dallas, April 28, 2005 - At Kimberly-Clark's (NYSE: KMB) annual meeting today, Chairman and CEO Thomas J. Falk described how the company is using customer, shopper and user insights to drive innovation and growth throughout its businesses.

In voting matters at the meeting, three directors were re-elected to three-year terms expiring in 2008. Directors who were re-elected are John F. Bergstrom, Chairman and Chief Executive Officer, Bergstrom Corporation; Robert W. Decherd, Chairman of the Board, President and Chief Executive Officer, Belo Corp.; and G. Craig Sullivan, former Chairman and Chief Executive Officer, The Clorox Company.

Shareholders also approved the selection of Deloitte & Touche LLP as independent auditors for Kimberly-Clark. In addition, shareholders defeated a stockholder proposal regarding adoption of global human rights standards based on international labor organization conventions.

Expecting Solid Growth

Commenting on the outlook for 2005, Falk said the company is poised to meet its goals of revenue growth of 3-5 percent and earnings growth in the mid-to high-single digits. This is in line with Kimberly-Clark's long-term Global Business Plan objectives. Cash flow is expected to remain strong, supporting the company's plan to again return healthy amounts of cash to shareholders in the form of dividends and share repurchases.

The company is off to a good start, Falk said, delivering good first quarter results in a highly inflationary and challenging business environment.

"While we are meeting our financial objectives, our goal is to take Kimberly-Clark to the next level of performance," Falk said. "We're looking outside the company more frequently and challenging our teams to design solutions that meet the needs of our customers and shoppers as well as the users of our products."

Turning Insights Into Solutions

Falk cited recent examples of how Kimberly-Clark is turning insights into innovative solutions.

 

  • Kleenex Moist Cloths - Introduced a few weeks ago, these thick, soft disposable cloths provide a quick and convenient way to clean hands and faces following the sticky messes that occur around the home. Kleenex Moist Cloths are packaged in a facial tissue-type carton, designed to blend in with home décor, so that the product may be kept out for ready use.
     
  • Scott Extra Soft Bathroom Tissue - Based on the desire by pragmatic consumers for a bathroom tissue that was both longer-lasting and softer, the company has launched 600-sheet Scott Extra Soft. This is the first line extension in the brand's nearly 100-year history.
     
  • Pull-Ups Training Pants - As every child toilet trains differently, the brand now offers parents a choice of products. For the majority of parents who prefer toilet training aids that provide positive reinforcement, K-C has added learning designs to the inside and outside of its pants - fun graphics that fade when the product is wet, signaling an accident. For parents who prefer an alternate approach, the Pull-Ups brand also offers pants that keep a child dry, but make him or her feel wet temporarily. 
     
  • WypAll Towels - In the B2B businesses, K-C has leveraged its proprietary nonwovens technology to create a portfolio of high margin wiping products. WypAll towels perform better than cloth, at a fraction of the cost, making them an ideal replacement for cloth rags.

Forging Strategic Partnerships

Falk told shareholders that building strategic partnerships can expand capabilities, reduce costs and speed time to market for innovations. K-C's new Huggies Bath & Baby products illustrate this approach. This line includes an innovative, proprietary liquid baby powder that goes on wet and dries after application, as well as disposable wash mitts, shampoo and other toiletries. By using outside partners for manufacturing, Kimberly-Clark took this line of products from insight to concept to launch in less than 12 months with limited capital investment.

K-C Professional is collaborating with customers in the profitable and growing do-it-yourself market to understand shoppers' needs and then provide quality solutions. Through these combined efforts, K-C Professional has introduced Scott shop towels and an integrated Comfort Zone line of masks, gloves and coveralls. These solutions drive sales and profits for both Kimberly-Clark and its customers.

The company is also engaging customers earlier in the product development cycle and developing coordinated business plans prior to a product launch. This approach helped Kleenex Anti-Viral tissue gain a 5 percent market share within three months of its launch.

Expanding K-C's Presence In Developing and Emerging Markets

"Our commitment to using market insights extends to Developing and Emerging markets, which have considerable growth potential as demonstrated by K-C's robust sales there in the first quarter," Falk said. "We're putting our resources behind a targeted group of six countries that we call BRICIT - Brazil, Russia, India, China, Indonesia and Turkey."

These six countries alone account for nearly half the world's population, and the estimated size for K-C's products in these markets is about $6 billion today.

"People at all income levels value quality, branded consumer products," Falk said. "They aspire to buy products that deliver the best care they can afford for their families. Based on our shopper and user insights, we're providing a full range of products to pull people into the category, to permit occasional users to become full-time users and to meet the needs of the growing number of consumers who can afford the very best for their families."

Replay of Business Review from 2005 Annual Meeting

Stockholders and others are invited to listen to an audio playback and view a PowerPoint presentation of the business review portion of the 2005 annual meeting.

This replay can be accessed shortly after the meeting by following instructions set out in the Investors section of the company's Web site at www.kimberly-clark.com.

About Kimberly-Clark

Kimberly-Clark and its well-known global brands are an indispensable part of life for people in more than 150 countries. Every day, 1.3 billion people--nearly a quarter of the world's population--trust K-C brands and the solutions they provide to enhance their health, hygiene and well-being. With brands such as Kleenex, Scott, Huggies, Pull-Ups, Kotex and Depend, Kimberly-Clark holds the No. 1 or No. 2 share position in more than 80 countries. To keep up with the latest K-C news and to learn more about the company's 133-year history of innovation, visit www.kimberly-clark.com.