UPDATE 3-Kimberly-Clark backs 2010 EPS view; shares rise

* Still sees 2010 EPS $4.80-$5.00, Street view $4.87

* Sees mid-to-high single digit EPS growth through 2015

* Sees sales growth of 3-5 pct through 2015

* Marketing spending to outpace sales growth

* Shares rise 2.6 percent (Adds product and marketing details, updates stock activity)

By Jessica Wohl

NEW YORK, March 22 (Reuters) - Kimberly-Clark Corp (KMB.N) backed its fiscal 2010 profit forecast and said it would spend more on marketing to reignite sales of goods ranging from toilet paper to tampons.

Now is the right time bring out new items, including premium-priced ones, even though U.S. consumers are "still cautious," Chairman and Chief Executive Thomas Falk said during a meeting with analysts on Monday.

Executives said they can continue to cut costs and use those savings to promote new products. Still, the company is being hit by higher costs for pulp and other commodities, and will update its cost input forecast in April, Falk said.

Last year, Kimberly-Clark cut about 1,700 jobs and made investments such as acquisitions in the healthcare sector to improve its strategy while facing stepped-up pressure from cheaper private-label products such as paper towels.

The changes left the company with a "good launch pad into 2010," Falk said at the New York event.

While Falk opted not to pick a favorite among the new products, saying he loved all of the company's "children" equally, a good deal of attention during Monday's event was paid to U by Kotex, a brightly packaged line of feminine pads and tampons aimed at young women.

Other new goods for the U.S. market include softer, stronger Cottonelle toilet paper, Depend underwear in colors and prints and Kleenex disposable towels for bathroom use.

Kimberly-Clark plans to keep raising marketing spending at a faster rate than net sales growth through 2015, said Chief Marketing Officer Tony Palmer. While Palmer would not quantify the increase, he called it "significant."

LIMITED EDITION DIAPERS

U by Kotex, launched in Australia in 2004, is getting a U.S. makeover including black cardboard boxes with neon accents and a commercial that pokes fun at typical feminine care ads.

The new tampons will be priced at parity to Tampax Pearl, a premium line from Procter & Gamble Co (PG.N), while pads will be priced at a premium to competitors, said Andrew Meurer, vice president of Kimberly-Clark's North American feminine, adult and senior care products.

In the diaper category, Falk is "very comfortable" with the Huggies line despite stepped up competition from P&G's thinner, more absorbent Pampers. [ID:nN22211732] [ID:nN25129541]

Huggies is updating its diapers and training pants in North America, including bringing a diaper designed to look like a pair of jeans to the market for a limited time.

Those diapers, first sold in Israel, will be priced at a 5 percent to 7 percent premium to regular Huggies, Falk said in an interview as he stood near a display of the line.

Several products sold internationally, such as Australia's Viva wipes for stainless steel appliances, are not available in the United States. Other ideas being tried out overseas include selling feminine care products next to lingerie in Korean department stores.

LOWER CAPITAL SPENDING TARGET

Kimberly-Clark, which plans to focus on fast-growing markets such as China, Russia and Latin America, still expects fiscal 2010 adjusted earnings of $4.80 to $5.00 per share, with sales up 5 percent to 6 percent.

Some analysts have said the high end of the profit forecast may be too lofty. The average analyst estimate tracked by Thomson Reuters I/B/E/S is $4.87 per share.

Kimberly-Clark shares ended 2.6 percent higher at $63 by the close of regular trading on the New York Stock Exchange.

They have lagged larger rival P&G so far this year. Higher prices for pulp after Chile's earthquake have a bigger impact on Kimberly-Clark since more of its products are paper goods.

Kimberly-Clark expected to pay $300 million to $400 million more for pulp, oil-based materials and other inputs this year and is probably seeing costs at or above the high end of that range now, Falk said.

Kimberly-Clark now expects to cut $400 million to $450 million in costs through a three-year program ending in 2010 versus its original target of $350 million to $450 million. It aims to save $400 million to $500 million from 2011 to 2013 in part by forming a global procurement organization.

Kimberly-Clark lowered its long-term capital spending target to 4.5 percent to 5.5 percent of net sales, compared with its prior view of 5 percent to 6 percent. (Reporting by Jessica Wohl in New York, additional reporting by Renju Jose in Bangalore; Editing by Maureen Bavdek and Tim Dobbyn)