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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): JANUARY 19, 1998
DRYPERS CORPORATION
(Exact name of registrant as specified in its charter)
DELAWARE 0-23422 76-0344044
(State of Incorporation) (Commission File No.)(IRS Employer Identification No.)
5300 MEMORIAL, SUITE 900
HOUSTON, TEXAS 77007
(Address of principal executive offices) (Zip Code)
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: (713) 869-8693
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ITEM 5. OTHER EVENTS
On December 12, 1997, Drypers Corporation ("the Company") announced that it
would be launching a national media campaign for its premium US diapers, in line
with the Company's strategy of positioning Drypers(R) as a national brand.
A copy of the Company's press release dated December 12, 1997, which
describes the foregoing, is filed as Exhibit 99.1 to this Current Report on Form
8-K and is incorporated herein by reference thereto.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits.
The following document is filed as an exhibit to this report in accordance
with Item 601 of Regulation S-K.
99.1 Press release of Drypers Corporation dated December 12, 1997.
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SIGNATURES
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.
DRYPERS CORPORATION
Dated: January 19, 1998 By: /s/ Walter V. Klemp
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Walter V. Klemp
Chairman of the Board and
Co-Chief Executive Officer
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EXHIBIT 99.1
NEWS RELEASE
FOR: Drypers Corporation
APPROVED BY: Walter V. Klemp
Chairman & Co-Chief
Executive Officer
(713) 869-8693
FOR IMMEDIATE RELEASE
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CONTACT: Cheryl Schneider/Tessa Lavender
Press: Michael McMullan
Morgen-Walke Associates
(212) 850-5600
DRYPERS CORPORATION ANNOUNCES LAUNCH OF NATIONAL MEDIA CAMPAIGN
- EXPECTS IMPACT ON 1998 EARNINGS PER SHARE -
- ANNOUNCES PLANS FOR INITIAL LAUNCH OF NEW DETERGENT PRODUCT -
HOUSTON, TEXAS, December 12, 1997 -- Drypers Corporation (Nasdaq: DYPR)
today announced it will launch a national media campaign in the United States
for its premium diapers, in line with the Company's strategy of positioning
Drypers(R) as a national brand. The campaign, which will be focused primarily
on broadcast advertising, is expected to begin in the first half of 1998.
Walter V. Klemp, Chairman and Co-Chief Executive Officer, said, "The
initiation of a national media campaign is key to developing the Drypers(R)
brand in North America to its fullest potential by helping to increase
distribution. Building brand equity through advertising represents a natural
evolution in Drypers' marketing strategy in the United States, as the campaign
should allow us to gradually reduce our dependence on direct promotional
spending and improve our ability to compete on a basis other than price. We
believe our investment in the Drypers(R) brand will provide us with the
opportunity to take sales and earnings to a significantly higher level in the
second half of 1998 and establish a strong foundation upon which to begin 1999."
Mr. Klemp continued, "Drypers with Aloe Vera has been an overwhelming
success, creating a healthy momentum from which to launch this campaign. The
product has several innovative features that differentiate it from the
competition, such as baking soda and aloe vera, in addition to a breathable
cloth-like outer cover bearing the images of Sesame Street(R) characters. We
believe now is the perfect time to invest in national brand awareness."
- more -
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DYPR: ANNOUNCES LAUNCH OF
NATIONAL MEDIA CAMPAIGN PAGE 2
Mr. Klemp added, "We are also excited about the launch in the first half of
1998 of our new and innovative detergent product, which was recently cited by
Advertising Age as one of America's top 10 `hottest new products.' The unique
technology and specialty nature of the product give Drypers an opportunity to
develop a profitable niche within the $4.2 billion consumer laundry detergent
business. This opportunity requires only a modest investment and will leverage
off of the existing Drypers' sales and marketing organization. While the
Company's new laundry product is expected to lead to an increase in sales during
the second half of 1998, the costs associated with its launch will likely cause
the product to be only marginally profitable in 1998."
Mr. Klemp commented, "We're making some significant investments in 1998 and
are expecting these investments to pay off immediately in the form of another
high growth sales year. When combined with our continued strong outlook for
international growth, we expect 1998 sales to increase approximately 35% over
1997 levels. This won't come without a short-term price, however, as we expect
the combination of our investment in advertising--without an initial
corresponding reduction of promotional costs--as well as costs associated with
both the launch of our detergent business and increasing our international
capacity, to result in cost increases of approximately $8 million in the first
quarter of 1998 and $2 million in the second quarter of 1998. However, with the
anticipated acceleration of distribution and, in turn, sales volume, we expect
to see the second half of 1998 operating well above current analysts'
expectations."
Mr. Klemp concluded, "Our core business continues to be healthy and we
anticipate that the Company will meet analysts' earnings expectations in the
fourth quarter of 1997. While the investments we are making in both our
national advertising campaign and our new detergent product will impact
operating results in the near-term, these are important steps in the evolution
of our Company."
- more -
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DYPR: ANNOUNCES LAUNCH OF
NATIONAL MEDIA CAMPAIGN PAGE 3
Drypers Corporation manufactures and markets disposable baby diapers and
other consumer products under the Drypers(R) and other brand names. The Company
also produces private label diapers and related products. The Company's
products are sold through grocery stores and mass merchants throughout the
United States, Latin America and other international markets.
This press release contains, and any oral statements made by the Company
concerning this release may contain, forward-looking statements that involve
assumptions and uncertainties. The Company's actual results could differ
materially. Some of the more significant factors that could cause or contribute
to such differences are noted in the Company's Reports on Form 10-K and 10-Q,
and include, but are not limited to, effectiveness of advertising and
promotional activities, lack of acceptance by consumers of new products,
competitive and economic factors, price changes by competitors, changes in costs
of raw materials, timing of technological advances by the Company and its
competitors, and fluctuations in currency values and economic conditions in
international markets.
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