Kimberly-Clark Board Approves Plan To Spin-Off Technical And Fine Paper Businesses And Canadian Pulp OperationsDALLAS, June 8, 2004--Kimberly-Clark Corporation (NYSE: KMB) today announced that its board of directors has approved the previously announced plan to spin-off its paper and Canadian pulp operations. The board also authorized the repurchase of 25 million shares of Kimberly-Clark common stock during the next several years.
Details of the spin-off--which includes Neenah Paper, the company's fine paper business, Technical Paper, its specialty paper business, and its pulp and timber operations in Canada--will be provided when Kimberly-Clark files its Form 10 registration statement with the Securities and Exchange Commission. The company expects to file its Form 10 early in the third quarter.
"Today's actions are consistent with our global business plan and are aimed at increasing shareholder value," said Thomas J. Falk, chairman and chief executive officer. "The approval to proceed with the spin-off of our paper and pulp operations allows us to further enhance our position as a highly focused and innovative health and hygiene company, while the stock repurchase authorization reflects Kimberly-Clark's strong balance sheet and our continuing ability to increase cash flow."
The new stock repurchase authorization augments approximately 13 million shares remaining from a February 2003 program. Given the company's current plans for share repurchases, it is anticipated that the 2003 authorization will be completed in the first several months of 2005. The actual number of shares purchased and the timing of the transactions will depend upon prevailing market conditions.
In April, Kimberly-Clark increased its target for share repurchases in 2004 to about $1 billion, nearly double the previous forecast. Through the first five months of this year, the company has spent about $395 million to buy back 6.2 million shares, bringing the total number of shares repurchased since the beginning of 1996 to more than 115 million. In 2003, Kimberly-Clark bought 10.4 million shares at a cost of about $529 million.
Kimberly-Clark and its well-known 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 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 132-year history of innovation, visit www.kimberly-clark.com.
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 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, 2003 entitled "Factors That May Affect Future Results".
Details of the spin-off--which includes Neenah Paper, the company's fine paper business, Technical Paper, its specialty paper business, and its pulp and timber operations in Canada--will be provided when Kimberly-Clark files its Form 10 registration statement with the Securities and Exchange Commission. The company expects to file its Form 10 early in the third quarter.
"Today's actions are consistent with our global business plan and are aimed at increasing shareholder value," said Thomas J. Falk, chairman and chief executive officer. "The approval to proceed with the spin-off of our paper and pulp operations allows us to further enhance our position as a highly focused and innovative health and hygiene company, while the stock repurchase authorization reflects Kimberly-Clark's strong balance sheet and our continuing ability to increase cash flow."
The new stock repurchase authorization augments approximately 13 million shares remaining from a February 2003 program. Given the company's current plans for share repurchases, it is anticipated that the 2003 authorization will be completed in the first several months of 2005. The actual number of shares purchased and the timing of the transactions will depend upon prevailing market conditions.
In April, Kimberly-Clark increased its target for share repurchases in 2004 to about $1 billion, nearly double the previous forecast. Through the first five months of this year, the company has spent about $395 million to buy back 6.2 million shares, bringing the total number of shares repurchased since the beginning of 1996 to more than 115 million. In 2003, Kimberly-Clark bought 10.4 million shares at a cost of about $529 million.
Kimberly-Clark and its well-known 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 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 132-year history of innovation, visit www.kimberly-clark.com.
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 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, 2003 entitled "Factors That May Affect Future Results".