Kimberly-Clark Announces Year-End 2012 Results And 2013 Outlook

Fri Jan 25, 2013 7:15am EST

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DALLAS,  Jan. 25, 2013  /PRNewswire/ -- Kimberly-Clark Corporation (NYSE: KMB)
today reported year-end 2012 results and provided its 2013 outlook and related
key planning assumptions.      

(Logo:  http://photos.prnewswire.com/prnh/20110928/DA76879LOGO)  

Executive Summary

* Fourth quarter 2012 net sales of  $5.3 billion  increased 3 percent compared
to the year-ago period.  Organic sales rose 5 percent, highlighted by a 9
percent increase in K-C International.  Organic sales exclude the impact of
changes in foreign currency rates and lost sales as a result of pulp and tissue
restructuring actions.  
* Diluted net income per share for the fourth quarter of 2012 was  $0.68  versus
 $1.01  in 2011.  Full-year diluted net income per share was  $4.42  in 2012 and
 $3.99  in 2011.   
* Fourth quarter adjusted earnings per share were  $1.37  in 2012 compared to 
$1.28  in the prior year.  The improvement in fourth quarter adjusted earnings
per share was driven by organic sales growth and cost savings, partially offset
by increased marketing, research and general spending and a higher level of
expense in other (income) and expense, net.   
* Full-year adjusted earnings per share were  $5.25  in 2012 compared to  $4.80 
in 2011 and the company's previous guidance of  $5.15 to $5.25.  Fourth quarter
and full-year adjusted earnings per share in both periods exclude costs for pulp
and tissue restructuring actions.  Fourth quarter adjusted earnings per share in
2012 also exclude costs for the European strategic changes announced in October
of 2012.   Full-year adjusted earnings per share in 2011 also exclude a business
tax charge related to a law change in  Colombia.  
* Cash provided by operations in the fourth quarter of 2012 was an all-time
record  $1,119 million, up 116 percent compared to the prior year.  
* Adjusted earnings per share in 2013 are expected to be  $5.50 to $5.65, up 5
to 8 percent compared to 2012.  Adjusted earnings per share in 2013 exclude
costs for the European strategic changes.   
* The company expects to increase its dividend at a high-single digit rate
effective April 2013.  This will represent the company's 41st  consecutive
annual increase in the dividend.  
* Share repurchases are anticipated to total  $1.0 to $1.2 billion  in 2013.

Chairman and Chief Executive Officer  Thomas J. Falk  said, "Our fourth quarter
results capped off a year of excellent performance for Kimberly-Clark.  For the
full year of 2012, we delivered organic sales growth of 5 percent, highlighted
by 10 percent growth in K-C International.  We launched a number of product
innovations and increased strategic marketing spending by  $115 million  and
research and development spending at a double-digit rate.  We improved adjusted
gross margin by 230 basis points and adjusted operating profit margin by 90
basis points, aided by  $335 million  of cost savings from our ongoing FORCE
program and restructuring actions.  We grew adjusted earnings per share by 9
percent, above our original plan for the year and at the high end of our
long-range target.  Finally, we generated very strong cash flow, which allowed
us to return  $2.5 billion  to shareholders through dividends and share
repurchases.  Overall, we had a very good year of financial performance and I'm
encouraged by the progress we made in 2012."      

Falk added, "The strength of our results this past year gives us added
confidence that we will continue to execute our Global Business Plan well going
forward.  In 2013, we will continue to pursue targeted growth initiatives,
launch product innovations and support our brands with increased strategic
marketing spending.  We expect to achieve healthy levels of cost savings, which
should help us overcome moderate commodity cost inflation.  We will continue to
manage our company with financial discipline, including a strong focus on cash
generation and shareholder-friendly capital allocation.  We are optimistic about
our plans and continue to believe that successful execution of our strategies
will generate strong returns to shareholders."       

Fourth Quarter 2012 Operating Results  

Sales of  $5.3 billion  in the fourth quarter of 2012 were up 3 percent compared
to the year-ago period.  Organic sales rose 5 percent, with increased sales
volumes of 3 percent and higher net selling prices of 2 percent.  Changes in
foreign currency rates and lost sales from exiting non-strategic products in
conjunction with pulp and tissue restructuring actions each reduced sales by 1
percent.   

Operating profit was $449 million in the fourth quarter of 2012, down 27 percent
from $611 million in 2011.  Adjusted operating profit was  $798 million  in the
fourth quarter of 2012, up 5 percent compared to $759 million in the year-ago
period.  Adjusted results exclude costs for pulp and tissue restructuring
actions of  $50 million  in 2012 and  $148 million  in 2011.  Adjusted results
in 2012 also exclude  $299 million  of costs for European strategic changes.  

The increase in year-over-year adjusted operating profit included benefits from
organic sales growth and  $80 millionin cost savings from the company's FORCE
(Focused On Reducing Costs Everywhere) program.  In addition, costs for key
materials were $15 million lower overall versus 2011, with  $20 million  of
lower fiber costs and a  $15 million  decrease for other raw materials,
partially offset by $15 million of higher distribution costs and  $5 million  of
higher energy costs.  Higher production volumes in 2012 positively affected the
operating profit comparison by  $15 million.  Overall marketing, research and
general expenses increased versus the year-ago period.  The higher spending
included increased administrative expenses, in part to support future growth,
particularly in K-C International.  Strategic marketing spending rose  $10
million, primarily to support product innovations and targeted growth
initiatives.  Other (income) and expense, net was $9 million of expense in the
fourth quarter of 2012 compared to $24 million of income in the prior year.  The
change was driven by a gain on the sale of a small venture investment in a
health care start-up company in 2011.

The company's fourth quarter effective tax rate was 38.5 percent in 2012 and
29.6 percent in 2011.  The fourth quarter adjusted effective tax rate, which
excludes the effects of the previously mentioned items excluded from adjusted
earnings per share calculations, was 30.6 percent in 2012 and 29.2 percent in
2011.  The full-year adjusted effective tax rate in 2012 was 30.6 percent,
consistent with the company's expectation for an adjusted rate between 30 and 32
percent.   

Kimberly-Clark's share of net income of equity companies in the fourth quarter
of 2012 was $51 million compared to  $39 million  in 2011.  At Kimberly-Clark de
 Mexico, S.A.B. de C.V., results benefited from double-digit sales growth and
increased operating profit margins.

Cash Flow and Balance Sheet  

Cash provided by operations in the fourth quarter of 2012 was an all-time record
and totaled  $1,119 million  compared to $517 million in the prior year.  The
increase was driven by improved working capital and lower defined benefit
pension plan contributions.  Fourth quarter pension contributions totaled  $15
million  in 2012 and  $265 million  in 2011.  Cash provided by operations for
the full year was  $3,288 million  in 2012 compared to  $2,288 million  in 2011.
 The increase was driven by higher cash earnings, improved working capital and
lower pension contributions ($110 million  in 2012 compared to  $680 million  in
2011).     

Capital spending for the fourth quarter was $330 million in 2012 and $312
million in 2011.  Full-year 2012 spending totaled  $1,093 million, consistent
with the company's target for spending in a range of  $1.0 to $1.1 billion. 
During the fourth quarter, the company repurchased approximately 3.8 million
shares of its common stock at a cost of  $320 million.  Full-year 2012 share
repurchases totaled 16.4 million shares at a cost of  $1.3 billion.  Total debt
and redeemable securities was  $6.7 billion  at  December 31, 2012  and at the
end of 2011.

Fourth Quarter 2012 Business Segment Results

Personal Care Segment

Fourth quarter sales of  $2.4 billion  increased 8 percent.  Sales volumes rose
6 percent and net selling prices improved 3 percent, while changes in currency
rates reduced sales by 1 percent.  Fourth quarter operating profit of  $419
million  increased 23 percent.  The improvement included benefits from organic
sales growth, cost savings and higher production volumes, partially offset by
increased marketing, research and general expenses and higher manufacturing
costs.

Sales in  North America  increased 5 percent.  Net selling prices rose 4
percent, including improved revenue realization for Huggies diapers and baby
wipes, and overall sales volumes rose 1 percent.  Adult care volumes increased
high-single digits, including benefits from continued market share gains. 
Feminine care volumes increased mid-single digits, boosted by continued momentum
on the U by Kotex brand.  Huggies baby wipes volumes were up mid-single digits
and child care volumes advanced low-single digits compared to a soft year-ago
performance.  Huggies diaper volumes were down low-single digits, primarily
reflecting category declines.  Volumes of non-branded offerings were also below
year-ago levels.      

Sales increased 10 percent in K-C International.  Sales volumes were up 9
percent, with double-digit growth in  Asia  and the  Middle East/Eastern
Europe/Africa  region and a mid-single digit gain in Latin America.  Volume
performance was strong in a number of markets, including  Brazil,  China,  Peru,
 Russia,  South Africa,  South Korea,  Turkey  and Venezuela.  Overall net
selling prices improved 2 percent compared to the year-ago period, driven by
increases in  Latin America, and product mix advanced 1 point.  Changes in
currency rates reduced sales by 2 percent.

Sales in  Europe  increased 4 percent.  Sales volumes rose 6 percent and net
selling prices were up 2 percent.  Currency rates were unfavorable by 3 percent
and changes in product mix reduced sales 1 percent.  The overall volume increase
was driven by growth in non-branded offerings, child care products and Huggies
baby wipes, partially offset by declines in Huggies diapers.      

Consumer Tissue Segment

Fourth quarter sales of  $1.7 billion declined 2 percent.  Lost sales in
conjunction with pulp and tissue restructuring actions reduced sales volumes by
3 percent and changes in currency rates and product mix each decreased sales by
1 percent.  Net selling prices improved 2 percent and organic sales volumes were
up 1 percent.  Fourth quarter operating profit of $235 million decreased 4
percent.  The operating profit comparison was negatively impacted by increased
marketing, research and general expenses, mostly offset by benefits from cost
savings and organic sales growth.   

Sales in  North America  were down 2 percent compared to the prior year,
including a 5 point negative impact from lost sales in conjunction with pulp and
tissue restructuring actions.  Organic sales volumes increased 3 percent, driven
by gains in bathroom tissue and paper towels.  Overall net selling prices were
up 2 percent, while changes in product mix reduced sales 2 percent.    

Sales increased 1 percent in K-C International.  Net selling prices increased
approximately 3 percent, reflecting strategies to improve net realized revenue
and profitability.  Currency rates were unfavorable 2 percent and organic sales
volumes were off 1 percent.    

Sales in  Europe  decreased 7 percent.  Sales volumes were down 2 percent,
driven by declines in bathroom tissue and facial tissue.  Net selling prices
fell 2 percent and changes in product mix reduced sales 1 percent, as economic
conditions remain difficult.  Currency rates were unfavorable 2 percent.      

K-C Professional (KCP) Segment

Fourth quarter sales of  $0.8 billion  increased 1 percent.  Organic sales
volumes were up 2 percent and net selling prices improved 1 percent.  Changes in
currency rates and lost sales in conjunction with pulp and tissue restructuring
actions each reduced sales by 1 percent.  Fourth quarter operating profit of
$138 million increased 9 percent.  The improvement was driven by cost savings,
organic sales growth and input cost deflation, partially offset by higher
manufacturing costs.  

Sales in  North America  fell 1 percent, as sales volumes and product mix were
each off slightly.  Volumes in most product categories were similar to or
slightly below year-ago levels.   

Sales increased 9 percent in K-C International.  Sales volumes were up 9
percent, with high-single digit growth in  Asia  and Latin America.  Overall net
selling prices rose approximately 3 percent, while unfavorable currency rates
and changes in product mix each reduced sales by about 1 percent.

Sales in  Europe  decreased 6 percent.  Lost sales in conjunction with pulp and
tissue restructuring actions reduced sales volumes 4 percent, currency rates
were unfavorable 3 percent and organic sales volumes were off slightly.  Net
selling prices increased approximately 2 percent.   

Health Care Segment

Fourth quarter sales of  $0.4 billion decreased 2 percent.  Changes in sales
volumes, net selling prices and currency rates each reduced sales about 1
percent.  Fourth quarter operating profit of $61 million increased 2 percent. 
The improvement was driven by input cost deflation and lower marketing, research
and general expenses, mostly offset by increased manufacturing costs and the
negative impact of lower organic sales.  

Surgical and infection prevention (medical supply) volumes were off slightly
compared to double-digit growth in the year-ago period.  Medical device volumes
decreased 1 percent.

Western and Central European Businesses  -  Strategic Changes

In October of 2012, the company decided to make strategic changes in its Western
and Central European businesses in order to improve underlying profitability and
to focus the company's resources and investments on its strongest market
positions and growth opportunities that can deliver more sustainable returns. 
These changes include the exit of the diaper category in Western and  Central
Europe, with the exception of the Italian market, and the divestiture or exit of
some lower-margin businesses in certain markets, mostly in the consumer tissue
segment.  To align its cost structure with these strategic decisions, the
company will streamline its European manufacturing footprint and administrative
organization.   

Restructuring costs for these actions will be incurred through 2014 and are
expected to total  $250 to $350 million  after tax ($300 to $400 million 
pre-tax).  Cash costs are projected to be approximately 50 to 60 percent of the
total charges.  These estimates are unchanged from the projections announced in
October 2012.  The businesses that will be exited or divested generate annual
net sales of approximately  $500 million  and negligible operating profit. 
Fourth quarter 2012 restructuring costs were  $242 million  after tax ($299
million  pre-tax).             

Pulp andTissue Restructuring Actions

In January of 2011, the company initiated a two-year pulp andtissue
restructuring in order to exit its remaining integrated pulp manufacturing
operations and improve the underlying profitability and return on invested
capital of its consumer tissue and K-C Professional businesses.  In addition, in
January of 2012, the company decided to streamline an additional facility in 
North America  to further enhance the profitability of the consumer tissue
business.  As a result of the restructuring actions, versus the 2010 baseline,
the company expects that by 2013 annual net sales will decrease by  $250  to
$300 million, and that operating profit will increase by at least $75 million in
2013 and at least $100 million in 2014.  These estimates are unchanged from the
projections announced in  January 2012.

Charges for the restructuring actions were completed at the end of 2012, as
expected.  Fourth quarter 2012 charges totaled $30 million after tax ($50
million pre-tax), bringing cumulative charges to  $375 million  after tax ($550
million pre-tax), in line with the company's original projections.  Cash costs
were 32 percent of the total cumulative charges.  Fourth quarter 2012 operating
profit benefits from restructuring actions were $10 million, bringing cumulative
benefits to $60 million.

Full-Year 2012 Results

Full-year 2012 sales of  $21.1 billion  increased 1 percent.  Organic sales rose
5 percent, as net selling prices and sales volumes each increased more than 2
percent and product mix improved slightly.  Changes in foreign currency rates
decreased sales by 3 percent and lost sales in conjunction with pulp and tissue
restructuring actions reduced sales volumes by 1 percent.  Year-to-date
operating profit of  $2,686 million  increased 10 percent compared to  $2,442
million  in 2011.  Adjusted operating profit in 2012 of  $3,120 million 
increased 8 percent compared to  $2,889 million  in 2011.  Adjusted operating
profit comparisons benefited from organic sales growth, FORCE cost savings of 
$295 million  and input cost deflation of  $90 million.  These benefits were
partially offset by increased marketing, research and general expenses,
including  $115 million  in higher strategic marketing spending.  Administrative
and research spending also increased, in part to build further capabilities and
support future growth.  Foreign currency translation effects reduced operating
profit by  $55 million  as a result of the weakening of several currencies
relative to the U.S. dollar.  A lower level of income in other (income) and
expense, net adversely impacted the operating profit comparison by  $45 million.
 Diluted net income per share was  $4.42  in 2012 and  $3.99  in 2011.  Adjusted
earnings per share were  $5.25  in 2012 and  $4.80  in 2011.  The increase in
adjusted earnings per share was primarily due to higher adjusted operating
profit.  

Adjusted operating profit and adjusted earnings per share in 2012 and 2011
exclude charges for pulp and tissue restructuring actions.  Adjusted results in
2012 also exclude charges for European strategic changes.  Adjusted results in
2011 also exclude a non-deductible charge in the first quarter as a result of
legislation in  Colombia  that changed the manner in which certain business
taxes in that country are assessed.  Additional detail on these items and
further information about why the company uses these non-GAAP financial measures
are provided later in this news release.  

2013 Outlook and Key Assumptions

The company's key planning and guidance assumptions for 2013 are as follows:

* Net sales increase of 0 to 3 percent.

* Organic sales are expected to grow 3 to 5 percent.  Organic volumes are
anticipated to grow 2 to 3 percent, while the combination of higher net selling
prices and improved product mix should contribute 1 to 2 points of additional
growth, driven by price increases in K-C International and a global focus on
improving mix.  
* Lost sales as a result of European strategic changes and pulp and tissue
restructuring actions are expected to reduce sales volumes by 2 percent.  
* Currency rates are expected to decrease sales by 0 to 1 percent.

* Adjusted operating profit growth of 3 to 6 percent.

* Cost savings from the company's FORCE program should total  $250 to $300
million.  
* Inflation in key cost inputs of  $150 to $250 million, primarily due to higher
pulp, recycled fiber and distribution costs.  This assumes average market
pricing for benchmark northern softwood pulp to  $890 to $910  per metric ton
and average oil prices of  $90 to $100  per barrel.  
* Strategic marketing spending is planned to increase faster than sales,
primarily supporting product innovations and targeted growth initiatives. 
Research and development and selling expenses are also expected to rise faster
than sales to support growth initiatives and further improve capabilities.  
* The company's growth in adjusted operating profit assumes an approximate 1
point negative impact related to uncertainties in the Venezuelan operating
environment.

* Interest expense is expected to increase somewhat in 2013.  
* The adjusted effective tax rate in 2013 is anticipated to be in the 30 to 32
percent range.  
* The company's share of net income from equity companies is expected to
increase somewhat, driven by improved results at K-C de  Mexico.  
* Adjusted earnings per share in a range of  $5.50 to $5.65, up 5 to 8 percent
compared to adjusted earnings per share of  $5.25  in 2012.  
* Capital spending should total  $1.0 to $1.1 billion, in line with the
company's long-term target of 4 ½ to 5 ½ percent of net sales.  
* Cash contributions to the company's defined benefit pension plans are expected
to be  $100 to $300 million.  
* Average primary working capital cash conversion cycle is anticipated to
improve 1 day.  
* A high-single digit increase in the dividend is anticipated  April 2013,
subject to approval by the Board of Directors.  
* Share repurchases are expected to total  $1.0 to $1.2 billion, subject to
market conditions.

Non-GAAP Financial Measures  

This press release and the accompanying tables include the following financial
measures that have not been calculated in accordance with accounting principles
generally accepted in the U.S., or GAAP, and are therefore referred to as
non-GAAP financial measures:

* Adjusted earnings and earnings per share  
* Adjusted gross and operating profit  
* Adjusted effective tax rate

These non-GAAP financial measures exclude the following items:

* Western and  Central Europe  strategic changes and related restructuring
charges.  In  October 2012, the company initiated strategic changes and a
related restructuring in its Western and Central European businesses in order to
improve underlying profitability and focus its resources on its strongest market
positions and growth opportunities.  The restructuring is expected to be
completed by  December 31, 2014.  Restructuring charges related to these
strategic changes were excluded from the calculation of the company's earnings
and earnings per share, gross and operating profit and effective tax rate,
calculated in accordance with GAAP, for the three and twelve months ended 
December 31, 2012, and the estimated earnings per share and estimated effective
tax rate, calculated in accordance with GAAP, for 2013.  
* Pulp and tissue restructuring charges.  In  January 2011, the company
initiated a pulp and tissue restructuring to exit its remaining integrated pulp
manufacturing operations and improve the underlying profitability and return on
invested capital of its consumer tissue and K-C Professional businesses.  In
addition, in  January 2012, the company decided to streamline an additional
facility in  North America  to further enhance the profitability of the consumer
tissue business.  The restructuring actions were substantially completed by
December 31, 2012, including the pending sale of a manufacturing facility that
is expected to close in the first half of 2013.  Pulp and tissue restructuring
charges were excluded from the calculation of the company's earnings and
earnings per share, gross and operating profit and the effective tax rate,
calculated in accordance with GAAP, for the three and twelve months ended 
December 31, 2012  and  December 31, 2011.  
* Non-deductible business tax charge in  Colombia  due to legislative change. 
The company recorded a non-deductible charge in the first quarter of 2011 as a
result of legislation in  Colombia  that changed the manner in which certain
business taxes in that country are assessed.  This assessment covers the period
from 2011 through 2014 and impacted results for both our consolidated operations
and our equity company in Colombia.  This item was excluded from the calculation
of the company's earnings and earnings per share, operating profit and effective
tax rate, calculated in accordance with GAAP, for the twelve months ended 
December 31, 2011.

In accordance with the SEC's requirements, reconciliations of the non-GAAP
financial measures to the comparable GAAP financial measures are attached.

In addition, this press release includes information regarding organic sales,
which exclude the impact of changes in foreign currency rates and lost sales in
conjunction with pulp and tissue restructuring actions.  

The company provides these non-GAAP financial measures as supplemental
information to our GAAP financial measures.  Management and the company's Board
of Directors use adjusted earnings, adjusted earnings per share and adjusted
gross and operating profit to (a) evaluate the company's historical and
prospective financial performance and its performance relative to its
competitors, (b) allocate resources and (c) measure the operational performance
of the company's business units and their managers.  Management also believes
that the use of adjusted effective tax rate provides improved insight into the
tax effects of our ongoing business operations.  

Additionally, the Management Development and Compensation Committee of the
company's Board of Directors has used certain of the non-GAAP financial measures
when setting and assessing achievement of incentive compensation goals.  These
goals are based, in part, on the company's adjusted earnings per share and
improvement in the company's adjusted return on invested capital and adjusted
operating profit return on sales determined by excluding certain of the charges
that are used in calculating these non-GAAP financial measures.

In addition, Kimberly-Clark management believes that investors' understanding of
the company's performance is enhanced by including these non-GAAP financial
measures as a reasonable basis for comparing the company's ongoing results of
operations.  Many investors are interested in understanding the performance of
our businesses by comparing our results from ongoing operations from one period
to the next.  By providing these non-GAAP financial measures, together with
reconciliations, we believe we are enhancing investors' understanding of our
businesses and our results of operations.  Also, many financial analysts who
follow our company focus on and publish both historical results and future
projections based on non-GAAP financial measures.  We believe that it is in the
best interests of our investors for us to provide this information to analysts
so that those analysts accurately report the non-GAAP financial information.

These non-GAAP financial measures are not meant to be considered in isolation or
as a substitute for the comparable GAAP measures.  There are limitations to
these non-GAAP financial measures because they are not prepared in accordance
with GAAP and may not be comparable to similarly titled measures of other
companies due to potential differences in methods of calculation and items being
excluded.  The company compensates for these limitations by using these non-GAAP
financial measures as a supplement to the GAAP measures and by providing
reconciliations of the non-GAAP and comparable GAAP financial measures.  The
non-GAAP financial measures should be read only in conjunction with the
company's consolidated financial statements prepared in accordance with GAAP.

Conference Call

A conference call to discuss this news release and other matters of interest to
investors and analysts will be held at  9 a.m. (CST)  today.  The conference
call will be simultaneously broadcast over the World Wide Web.  Stockholders and
others are invited to listen to the live broadcast or a playback, which can be
accessed by following the instructions set out in the Investors section of the
company's Web site (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 175 countries.  Every day, 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 No. 1 or No. 2 share
positions in more than 80 countries.  To keep up with the latest K-C news and to
learn more about the company's 141 year history of innovation, visit 
www.kimberly-clark.com.

Copies of Kimberly-Clark's Annual Report to Stockholders and its proxy
statements and other SEC filings, including Annual Reports on Form 10-K,
Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, are made
available free of charge on the company's Web site on the same day they are
filed with the SEC.  To view these filings, visit the Investors section of the
company's Web site.

Certain matters contained in this news release concerning the business outlook,
including anticipated financial and operating results, the anticipated costs,
scope, timing and financial and other effects of the Western and  Central Europe
 strategic changes and the pulp and tissue restructuring actions, dividends and
share repurchases, marketing, research, innovation, capital and other spending
and expenses, cost savings and reductions, raw material, energy and other input
costs, cash flow sources and uses of cash, changes in finished product selling
prices, market demand and economic conditions, anticipated currency rates and
exchange risks, the effective tax rate, 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.  Forward-looking
statements speak only as of the date they were made, and we undertake no
obligation to publicly update them.  For a description of certain factors that
could cause the company's future results to differ from those expressed in any
such forward-looking statements, see Item 1A of the company's Annual Report on
Form 10-K for the year ended  December 31, 2011  entitled  "Risk Factors."

 KIMBERLY-CLARK CORPORATION                                                                                                                 
 
CONSOLIDATED INCOME STATEMENT                                                                                                             
 
(Millions, except per share amounts)                                                                                                      
                                                                                  Three Months Ended                                     
                                                                                  
December 31                                           
                                                                                  2012                    2011                 Change  
 Net sales                                                                        $    5,307            $    5,176         +2.5%   
 Cost of products sold                                                            3,783                  3,632               +4.2%   
 Gross profit                                                                     1,524                  1,544               -1.3%   
 Marketing, research and general expenses                                         1,066                  957                 +11.4%  
 Other (income) and expense, net                                                  9                      (24)                N.M.    
 Operating profit                                                                 449                    611                 -26.5%  
 Interest income                                                                  5                      5                   -       
 Interest expense                                                                 (72)                   (72)                -       
 Income before income taxes and equity interests                                  382                    544                 -29.8%  
 Provision for income taxes                                                       (147)                  (161)               -8.7%   
 Income before equity interests                                                   235                    383                 -38.6%  
 Share of net income of equity companies                                          51                     39                  +30.8%  
 Net income                                                                       286                    422                 -32.2%  
 Net income attributable to noncontrolling interests                              (19)                   (21)                -9.5%   
 Net income attributable to Kimberly-Clark Corporation                            $    267              $    401           -33.4%  
                                                                                                                                       
 Per share basis - diluted net income attributable to Kimberly-Clark Corporation  $    0.68             $    1.01          -32.7%  
                                                                                                                                       
                                                                                                                                       
                                                                                                                                       
                                                                                                                                       
                                                                                                                                       
 COMMON SHARES INFORMATION                                                                                                             
                                                                                  December 31                                            
                                                                                  2012                    2011                         
 Outstanding shares as of                                                         389.3                  395.7                       
 Average diluted shares for three months ended                                    393.5                  397.8                       
                                                                                                                                       
 Cash dividends declared per share for three months ended                         $    0.74             $    0.70                  
                                                                                                                                   
 N.M. - Not meaningful                                                                                                             


 KIMBERLY-CLARK CORPORATION                                                                                                                          
 
CONSOLIDATED INCOME STATEMENT                                                                                                                      
 
(Millions, except per share amounts)                                                                                                               
                                                                                  Twelve Months Ended                                             
                                                                                  
December 31                                                    
                                                                                  2012                      2011                   Change       
 Net sales                                                                        $     21,063            $     20,846         +1.0%        
 Cost of products sold                                                            14,314                   14,694                -2.6%        
 Gross profit                                                                     6,749                    6,152                 +9.7%        
 Marketing, research and general expenses                                         4,069                    3,761                 +8.2%        
 Other (income) and expense, net                                                  (6)                      (51)                  -88.2%       
 Operating profit                                                                 2,686                    2,442                 +10.0%       
 Interest income                                                                  18                       18                    -            
 Interest expense                                                                 (284)                    (277)                 +2.5%        
 Income before income taxes and equity interests                                  2,420                    2,183                 +10.9%       
 Provision for income taxes                                                       (768)                    (660)                 +16.4%       
 Income before equity interests                                                   1,652                    1,523                 +8.5%        
 Share of net income of equity companies                                          176                      161                   +9.3%        
 Net income                                                                       1,828                    1,684                 +8.6%        
 Net income attributable to noncontrolling interests                              (78)                     (93)                  -16.1%       
 Net income Attributable to Kimberly-Clark Corporation                            $     1,750             $     1,591          +10.0%       
                                                                                                                                                
 Per share basis - diluted net income attributable to Kimberly-Clark Corporation  $     4.42              $     3.99           +10.8%       
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                
                                                                                                                                                
 COMMON SHARES INFORMATION                                                                                                                      
                                                                                  December 31                                                     
                                                                                  2012                      2011                                
 Average diluted shares for twelve months ended                                   396.1                    398.6                              
                                                                                                                                                
 Cash dividends declared per share for twelve months ended                        $     2.96              $     2.80                        


 KIMBERLY-CLARK CORPORATION                                                                                                                                                                
 
NON-GAAP RECONCILIATIONS                                                                                                                                                                 
 
(Millions, except per share amounts)                                                                                                                                                     
                                                    Three Months Ended December 31, 2012                                                                                                 
                                                    As                        Pulp and                    Charges for European Strategic Changes              As                   
                                                    
Reported                 
Tissue                                                                         
Adjusted            
                                                                              
Restructuring                                                                  
Non-GAAP            
                                                                              
Charges                                                                                             
 Cost of products sold                              $     3,783             $      45                 $              250                                $     3,488        
 Gross profit                                       1,524                    (45)                       (250)                                              1,819               
 Marketing, research and general expenses           1,066                    4                          49                                                 1,013               
 Other (income) and expense, net                    9                        1                          -                                                  8                   
 Operating profit                                   449                      (50)                       (299)                                              798                 
 Income before income taxes and equity interests    382                      (50)                       (299)                                              731                 
 Provision for income taxes                         (147)                    20                         57                                                 (224)               
 Effective tax rate                                 38.5          %          -                          -                                                  30.6          %     
 Income before equity interests                     235                      (30)                       (242)                                              507                 
 Net income                                         286                      (30)                       (242)                                              558                 
 Net income attributable to Kimberly-Clark          267                      (30)                       (242)                                              539                 
 
   Corporation                                                                                                                                                               
 Diluted earnings per share                         0.68                     (0.08)                     (0.61)                                             1.37                


                                                    Three Months Ended December 31, 2011                                             
                                                    As                         Pulp and                     As                   
                                                    
Reported                  
Tissue                      
Adjusted            
                                                                               
Restructuring               
Non-GAAP            
                                                                               
Charges                                          
 Cost of products sold                              $     3,632              $      145                 $     3,487        
 Gross profit                                       1,544                     (145)                       1,689               
 Marketing, research and general expenses           957                       1                           956                 
 Other (income) and expense, net                    (24)                      2                           (26)                
 Operating profit                                   611                       (148)                       759                 
 Income before income taxes and equity interests    544                       (148)                       692                 
 Provision for income taxes                         (161)                     41                          (202)               
 Effective tax rate                                 29.6          %           -                           29.2          %     
 Income before equity interests                     383                       (107)                       490                 
 Net income                                         422                       (107)                       529                 
 Net income attributable to Kimberly-Clark          401                       (107)                       508                 
 
   Corporation                                                                                                              
 Diluted earnings per share                         1.01                      (0.27)                      1.28                


 KIMBERLY-CLARK CORPORATION                                                                                                                                                                
 
NON-GAAP RECONCILIATIONS                                                                                                                                                                 
 
(Millions, except per share amounts)                                                                                                                                                     
                                                    Twelve Months Ended December 31, 2012                                                                                                
                                                    As                         Pulp and                    Charges for European Strategic Changes            As                    
                                                    
Reported                  
Tissue                                                                       
Adjusted             
                                                                               
Restructuring                                                                
Non-GAAP             
                                                                               
Charges                                                                                            
 Cost of products sold                              $     14,314             $      128                250                                              $     13,936        
 Gross profit                                       6,749                     (128)                      (250)                                            7,127                
 Marketing, research and general expenses           4,069                     6                          49                                               4,014                
 Other (income) and expense, net                    (6)                       1                          -                                                (7)                  
 Operating profit                                   2,686                     (135)                      (299)                                            3,120                
 Income before income taxes and equity interests    2,420                     (135)                      (299)                                            2,854                
 Provision for income taxes                         (768)                     49                         57                                               (874)                
 Effective tax rate                                 31.7           %          -                          -                                                30.6           %     
 Income before equity interests                     1,652                     (86)                       (242)                                            1,980                
 Share of net income of equity companies            176                       -                          -                                                176                  
 Net income                                         1,828                     (86)                       (242)                                            2,156                
 Net income attributable to Kimberly-Clark          1,750                     (86)                       (242)                                            2,078                
 
   Corporation                                                                                                                                                               
 Diluted earnings per share                         4.42                      (0.22)                     (0.61)                                           5.25                 


                                                    Twelve Months Ended December 31, 2011                                                                      
                                                    As                         Pulp and                    Business                As                    
                                                    
Reported                  
 Tissue                    
Tax                    
Adjusted             
                                                                               
Restructuring              
Charge                 
Non-GAAP             
                                                                               
Charges                                                                  
 Cost of products sold                              $     14,694             $      407                $     -               $     14,287        
 Gross profit                                       6,152                     (407)                      -                      6,559                
 Marketing, research and general expenses           3,761                     6                          32                     3,723                
 Other (income) and expense, net                    (51)                      2                          -                      (53)                 
 Operating profit                                   2,442                     (415)                      (32)                   2,889                
 Income before income taxes and equity interests    2,183                     (415)                      (32)                   2,630                
 Provision for income taxes                         (660)                     126                        -                      (786)                
 Effective tax rate                                 30.2           %          -                          -                      29.9           %     
 Income before equity interests                     1,523                     (289)                      (32)                   1,844                
 Share of net income of equity companies            161                       -                          (3)                    164                  
 Net income                                         1,684                     (289)                      (35)                   2,008                
 Net income attributable to Kimberly-Clark          1,591                     (289)                      (35)                   1,915                
 
   Corporation                                                                                                                                     
 Diluted earnings per share(a)                      3.99                      (0.73)                     (0.09)                 4.80                 


 (a)  The sum of the diluted earnings per share shown for "Pulp and Tissue Restructuring Charges", "Business Tax Charge" and "As Adjusted Non-GAAP" does not equal "As Reported" as a result of rounding.  


 KIMBERLY-CLARK CORPORATION                                                                                     
 
SUPPLEMENTAL FINANCIAL INFORMATION                                                                            
 
(Millions)                                                                                                    
 PRELIMINARY BALANCE SHEET DATA                                                                              
                                                             December 31              December 31            
                                                             
2012                    
2011                  
 Assets                                                                                                      
 Cash and cash equivalents                                   $      1,106           $      764           
 Accounts receivable, net                                    2,642                   2,602                 
 Inventories                                                 2,348                   2,356                 
 Total current assets                                        6,589                   6,283                 
 Total assets                                                19,873                  19,373                
                                                                                                             
 Liabilities and Stockholders' Equity                                                                        
 Trade accounts payable                                      $      2,443           $      2,388         
 Debt payable within one year                                1,115                   706                   
 Total current liabilities                                   6,091                   5,397                 
 Long-term debt                                              5,070                   5,426                 
 Redeemable preferred and common securities of subsidiaries  549                     547                   
 Total stockholders' equity                                  5,287                   5,529                 


 PRELIMINARY CASH FLOW DATA                                                                                         
                                  Three Months Ended                         Twelve Months Ended                        
                                  
December 31                               
December 31                               
                                  2012                  2011               2012                  2011               
 Depreciation and amortization    $    215            $    270         $    857            $    1,091       
 Cash provided by operations      1,119                517               3,288                2,288             
 Capital spending                 330                  312               1,093                968               
 Cash used for investing          455                  286               1,184                681               
 Cash dividends paid              292                  275               1,151                1,099             
 Cash used for financing          816                  710               1,802                1,741             


 KIMBERLY-CLARK CORPORATION                                                                                                                                            
 
SELECTED BUSINESS SEGMENT DATA                                                                                                                                       
 
(Millions)                                                                                                                                                           
                                       Three Months Ended                                            Twelve Months Ended                                           
                                       
December 31                                                  
December 31                                                  
                                       2012                    2011                    Change    2012                     2011                     Change  
 NET SALES                                                                                                                                                 
                                                                                                                                                           
 Personal Care                         $    2,380            $    2,210            +7.7%     $    9,576             $    9,128             +4.9%   
 Consumer Tissue                       1,675                  1,716                  -2.4%     6,527                   6,770                   -3.6%   
 K-C Professional & Other              825                    817                    +1.0%     3,283                   3,294                   -0.3%   
 Health Care                           410                    420                    -2.4%     1,622                   1,606                   +1.0%   
 Corporate & Other                     17                     13                     N.M.      55                      48                      N.M.    
 Consolidated                          $    5,307            $    5,176            +2.5%     $    21,063            $    20,846            +1.0%   
                                                                                                                                                           
 OPERATING PROFIT                                                                                                                                          
                                                                                                                                                           
 Personal Care                         $    419              $    341              +22.9%    $    1,660             $    1,526             +8.8%   
 Consumer Tissue                       235                    246                    -4.5%     887                     775                     +14.5%  
 K-C Professional & Other              138                    127                    +8.7%     545                     487                     +11.9%  
 Health Care                           61                     60                     +1.7%     229                     219                     +4.6%   
 Corporate & Other(a)(b)               (395)                  (187)                  N.M.      (641)                   (616)                   N.M.    
 Other (income) and expense, net(c)    9                      (24)                   N.M.      (6)                     (51)                    -88.2%  
 Consolidated                          $    449              $    611              -26.5%    $    2,686             $    2,442             +10.0%  


 (a)  For the three months ended December 31, 2012 and 2011, Corporate & Other includes charges related to the pulp and tissue restructuring actions of $49 million and $146 million, respectively.  In addition, for the three months ended December 31, 2012, Corporate & Other includes charges of $299 million related to the European strategic changes.                                                                                                                                                                       
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
 (b)  For the twelve months ended December 31, 2012 and 2011, Corporate & Other includes charges related to the pulp and tissue restructuring actions of $134 million and $413 million, respectively.  For the twelve months ended December 31, 2012 charges of $299 million related to the European strategic changes were included in Corporate & Other.  In addition, for the twelve months ended December 31, 2011, Corporate & Other includes a non-deductible business tax charge of $32 million related to a law change in   
      Colombia.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
 (c)  For the three and twelve month periods, Other (income) and expense, net includes pulp and tissue restructuring charges of $1 million in 2012 and $2 million in 2011.                                                                                                                                                                                                                                                                                                                                                          
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
 N.M. - Not meaningful                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               


 KIMBERLY-CLARK CORPORATION                                                                                                                                                                         
 
SELECTED BUSINESS SEGMENT DATA                                                                                                                                                                    
 PERCENTAGE CHANGE IN NET SALES VERSUS PRIOR YEAR                                                                                                                                                   
                             Three Months Ended December 31, 2012                                                                                                                                
                             Total            Organic Volume           Restructuring Impact on Volume(a)          Total            Net              Mix/               Currency       
                                                                                                                  
Volume          
Price           
Other(b)                         
                                                                                                                                                                                      
 Consolidated                2.5             3                       (1)                                       2               2               -                 (1)           
 Personal Care               7.7             6                       -                                         6               3               -                 (1)           
 Consumer Tissue             (2.4)           1                       (3)                                       (2)             2               (1)               (1)           
 K-C Professional & Other    1.0             2                       (1)                                       1               1               -                 (1)           
 Health Care                 (2.4)           (1)                     -                                         (1)             (1)             1                 (1)           


                             Twelve Months Ended December 31, 2012                                                                                                                               
                             Total            Organic Volume           Restructuring Impact on Volume(a)          Total            Net              Mix/               Currency       
                                                                                                                  
Volume          
Price           
Other(b)                         
                                                                                                                                                                                      
 Consolidated                1.0             2                       (1)                                       1               2               1                 (3)           
 Personal Care               4.9             5                       -                                         5               3               -                 (3)           
 Consumer Tissue             (3.6)           -                       (3)                                       (3)             2               (1)               (2)           
 K-C Professional & Other    (0.3)           2                       (1)                                       1               1               -                 (2)           
 Health Care                 1.0             2                       -                                         2               -               -                 (1)           


  (a)  Lost volume related to the pulp and tissue restructuring actions.  
  (b)  Mix/Other includes rounding.                                       


 KIMBERLY-CLARK CORPORATION                                                                                                  
 
PERIODS ENDED DECEMBER 31                                                                                                  
 OUTLOOK FOR 2013                                                                                                            
 
                                                                                                                           
                                                                                                                             
 
ESTIMATED FULL YEAR 2013 DILUTED EARNINGS PER SHARE                                                                        
 Adjusted earnings per share                                                        $    5.50      -    $  5.65    
 Adjustment for charges related to European strategic changes                       (.22)           -    -           
 Per share basis - diluted net income attributable to Kimberly-Clark Corporation    $    5.28      -    $  5.65    


 ESTIMATED FULL YEAR 2013 EFFECTIVE TAX RATE                                                                    
 Adjusted effective tax rate                                                   30.0  %    -    32.0  %  
 Adjustment for restructuring charges related to European strategic changes    -          -    1.0      
 Effective tax rate                                                            30.0  %    -    33.0  %  


SOURCE  Kimberly-Clark Corporation


Investor Relations, Paul Alexander, +1-972-281-1440, palexand@kcc.com, or Media
Relations, Bob Brand, +1-972-281-5335, bob.brand@kcc.com

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