Kimberly-Clark Announces Organizational and Senior Management Changes to Further Its Global Business Plan
Kimberly-Clark Announces Organizational and Senior Management Changes to Further Its Global Business Plan
North Atlantic Personal Care and Consumer Tissue Organizations Formed;
Developing and Emerging Markets Business Unit Created
DALLAS, January 19, 2004 - Kimberly-Clark Corporation (NYSE: KMB) today announced organizational and senior management changes that will help increase the company's speed in translating consumer and customer insights into innovative products, streamline its decision-making and help deliver cost reductions on a sustainable basis.
"The Global Business Plan we announced in July of last year set a strategic path for Kimberly-Clark that balances the growth and profitability of our operations to drive improved returns," said Thomas J. Falk, chairman and chief executive officer. "It also marked a dramatic shift in K-C's approach to allocating capital, setting priorities and managing the company at all levels. The changes we are announcing today, which are effective immediately, are another important step in delivering on the plan and in building on our presence as a more unified global organization."
In the new organization, K-C's North American and European Personal Care groups will be combined under a single North Atlantic management team, as will the North American and European Consumer Tissue businesses. These new structures will leverage the collective strengths of K-C's teams and provide the support needed to execute winning strategies in these developed markets.
To maximize growth opportunities in Asia, Latin America and Eastern Europe, the company has formed a Developing and Emerging Markets business unit. This new unit will ensure that resources are dedicated to growth businesses in these regions, including opportunities like value-tier diapers, light-end incontinence and Health Care products.
"These changes will increase our speed in pursuing growth opportunities around the world, improve our execution of global strategies and enable more consistent brand positioning and deployment of other best practices," Falk said.
The company will maintain its three global business segments--Personal Care, Consumer Tissue and Business-to-Business--for financial reporting purposes. As part of the reorganization, however, responsibility for baby wipes will be moved from Consumer Tissue to Personal Care.
Leaders of Personal Care, Consumer Tissue, Developing and Emerging Markets and Business-to-Business Named
"A new organizational structure is only part of the solution to delivering sustainable growth," Falk said. "Strong leadership skills of talented senior managers are also required to energize our more than 64,000 employees to deliver results. I'm pleased to say the four individuals selected to head these business units are respected, highly motivated and seasoned leaders whose talents are well-suited to capitalize on the growth opportunities that exist for each of our major businesses."
Steve Kalmanson, 51, has been named head of the North Atlantic Personal Care unit. He has a highly successful record of driving change and delivering strong results as group president of North American Family Care, a position he has held since 1995. Kalmanson has extensive experience in Personal Care, contributing to consistent sales and earnings growth in previous assignments as president of K-C's North American Child Care and Adult Care businesses and as marketing director of Infant Care.
Rob van der Merwe, 51, will lead the North Atlantic Consumer Tissue unit. As head of K-C Europe since 1998, he has overseen dramatic improvements in the company's European consumer businesses, increasing market share for its Kleenex, Andrex and Scottex tissue brands and the profitability of its Personal Care operations. Under van der Merwe's leadership, K-C Europe has transitioned from a group of country operations to a focused regional operation with centralized brand and customer management and a significantly improved cost structure. He previously served as president of K-C's North American Feminine Care and Adult Care businesses.
Robert Abernathy, 49, will lead the newly created Developing and Emerging Markets business unit. Abernathy has experience in all three of the company's business segments as well as in Asia, having managed K-C Australia. As head of Business-to-Business since 1998, he has driven solid top- and bottom-line growth in K-C's Health Care business and improved profitability in the company's Professional tissue business despite difficult market conditions.
Dudley Lehman, 52, will head the Business-to-Business Group. Lehman, previously Group President of Child and Infant Care for North America, has driven significant volume and profit growth behind a stream of product innovations in Huggies diapers and the launch of Pull-Ups, GoodNites and Little Swimmers pants. He brings a global and consumer products mindset to the job of building K-C's strong brand positions in its Business-to-Business operations and improving the group's supply chain capabilities.
Seifert and Geisler Plan to Retire
Falk also announced the planned retirements in 2004 of Executive Vice President Kathi Seifert, who will turn 55 in March, and Asia/Pacific Group President Paul Geisler, 62. Seifert and Geisler have been with Kimberly-Clark for 26 and 22 years, respectively. Their retirements are part of an orderly succession plan that has been in place for some time. Both executives will remain through mid-2004 to ensure a smooth transition of responsibilities.
"Kathi has long planned to retire at 55 in order to devote more time to her family, outside Board commitments and community activities. Likewise, Paul has reached the age at which he planned to retire to pursue his personal interests," Falk said. "Both Kathi and Paul will be greatly missed at K-C, and we salute them for their countless contributions and dedicated years of service to the company."
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, one in four people around the world trust K-C's 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 brand 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, 2002 entitled "Factors That May Affect Future Results".
