FORM 8-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report: November 30, 1999
(Date of earliest event reported)
KIMBERLY-CLARK CORPORATION
(Exact name of registrant as specified in its charter)
Delaware 1-225 39-0394230
(State or other jurisdiction (Commission File (IRS Employer
of incorporation) Number) Identification No.)
P.O. Box 619100, Dallas, Texas 75261-9100
(Address of principal executive offices) (Zip Code)
(972) 281-1200
(Registrant's telephone number, including area code)
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Item 5. Other Events
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Attached hereto as Exhibit 99 is a press release issued by Kimberly-Clark
Corporation in connection with an improved product, the Corporation's outlook
and other matters.
SIGNATURE
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Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
KIMBERLY-CLARK CORPORATION
Date: December 3, 1999 By: /s/ John W. Donehower
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John W. Donehower
Senior Vice President and
Chief Financial Officer
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EXHIBIT INDEX
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(99) Press release issued by Kimberly-Clark Corporation in connection with
an improved product, the Corporation's outlook and other matters.
KIMBERLY-CLARK TO ROLL OUT IMPROVED KLEENEX COTTONELLE BATHROOM TISSUE
WITH 20 PERCENT MORE FIBER PER SHEET, IMPROVED PRODUCT TOPS LEADING PREMIUM
BATHROOM TISSUE IN CONSUMER TESTS
COMPANY ALSO ANNOUNCES 11 MILLION SHARES REPURCHASED IN 1999 AND SAYS IT'S
COMFORTABLE WITH ANALYSTS' FOURTH QUARTER EARNINGS ESTIMATES
FOCUS ON SHAREHOLDER RETURNS STRENGTHENED WITH
NEW STOCK OWNERSHIP GUIDELINES
NEW YORK, November 30, 1999 - Kimberly-Clark Corporation (NYSE:KMB) today
announced it is launching an improved, thicker Kleenex Cottonelle bathroom
tissue with 20 percent more fiber per sheet. The improvement will make the
brand the thickest premium bathroom tissue on the market. Consumer tests show
the improved product is preferred over the leading premium bathroom tissue.
At a meeting of securities analysts and investors here today, Thomas J. Falk,
president and chief operating officer of Kimberly-Clark, said the improvement
builds on the recent success of Kleenex Cottonelle bathroom tissue, which has
gained market share since it was relaunched last year with a unique, rippled
texture.
"The improved product with 'thicker ripples' will replace our existing product
and is consumer-preferred versus the leading brand," Mr. Falk said. "The
flexibility of our cost-advantaged, proprietary technology allows us to easily
add the additional fiber, while still retaining the rippled texture that
consumers like. The end result is a thicker, softer and more absorbent
product that is getting tremendous reviews in consumer testing."
To accommodate the thicker sheets on each roll and to bring sheet count in
line with competing products in the premium bathroom tissue category, there
will be 200 sheets on each regular roll of the new product and 400 sheets on a
double roll.
"By providing a superior-performing product that matches the competition in
sheet count, we're in excellent position to continue growing our shares in the
premium bathroom tissue market," Mr. Falk said.
In dollar terms, Kimberly-Clark's brands account for 24 percent of the $4.2
billion U.S. bathroom tissue market, with the Kleenex Cottonelle brand
accounting for half of that total and the Scott brand, the leader in the value
segment, representing the remainder.
In addition, Kleenex Cottonelle bathroom tissue was recognized in the winter
edition of Forbes FYI, the quarterly lifestyle supplement to Forbes magazine,
as one of "The 100 Things Worth Every Penny." The product was 15th on that
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list, which included such items as an honest mechanic, a great nanny
and heated car seats.
Nationwide shipments of the improved product will begin on February 1. New
Kleenex Cottonelle bathroom tissue will be supported by continued strong
levels of advertising, promotion and consumer marketing.
STOCK REPURCHASES
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At the meeting, the company also reported that it has repurchased 11.0 million
shares of Kimberly-Clark stock so far this year, including 2.75 million during
the fourth quarter. In so doing, the company has purchased, at an average
cost of less than $54 per share, the shares that will be reissued for the
acquisition of Safeskin Corporation, a leading maker of disposable gloves.
The Safeskin acquisition agreement, which was announced earlier this month,
calls for Kimberly-Clark to issue approximately 10.5 million shares in
exchange for Safeskin's shares. The transaction is expected to be completed
in early 2000.
Since 1995, Kimberly-Clark has repurchased nearly 55 million shares of its
common stock.
STOCK OWNERSHIP GUIDELINES
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To further align management's financial interests with those of shareholders,
the company announced the implementation of new stock ownership guidelines for
about 400 key managers. At a minimum, managers will be required to own
Kimberly-Clark stock in an amount equivalent to their annual salary. Most
company officers, however, will be required to own three times their annual
salary in stock, while the chief executive officer must own stock equivalent
to six times annual salary.
Wayne R. Sanders, chairman and chief executive officer of Kimberly-Clark, told
investors, "We have put our money where our mouth is. The bottom-line message
to shareholders is that our interests are most definitely aligned with yours."
OUTLOOK: STRONG MOMENTUM EXPECTED TO CONTINUE
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Regarding the company's outlook, Mr. Sanders said, "We're comfortable with
estimates for the fourth quarter. In short, our strong momentum is continuing
and we're on track to have an excellent year in 1999. Our outlook for 2000 is
also very positive."
The consensus of analysts' earnings estimates for the fourth quarter is 76
cents per share, which represents a 12 percent increase over the same period a
year ago.
* * * * *
Kimberly-Clark Corporation is a leading global manufacturer of tissue,
personal care and health care products. The company's global brands include
Huggies, Pull-Ups, Kotex, Depend, Kleenex, Scott, Kimberly-Clark, Tecnol,
Kimwipes, Scottex, Page, Popee and Kimbies. Kimberly-Clark also is
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a major producer of premium business, correspondence and technical papers.
The company has manufacturing operations in 40 countries and sells its
products in more than 150 countries.
Certain matters contained in this news release concerning the business
outlook, anticipated financial and operating results, strategies,
contingencies and transactions of the company constitute forward-looking
statements and are based upon management's expectations and beliefs concerning
future events impacting the company. 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/A for the year ended
December 31, 1998 entitled "Factors That May Affect Future Results."
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