Global Salaried Workforce Reduction of Approximately 1,600 Positions
Expected to Yield Annualized Savings of About $150 Million
Charges Will Total $140 to $150 Million, or Approximately 25 Cents Per
Share, Mostly Affecting Second Quarter Results; Related Savings of About 10
Cents Per Share Expected During the 2nd Half of 2009
DALLAS, June 25 /PRNewswire-FirstCall/ -- Kimberly-Clark Corporation
(NYSE: KMB) today announced actions designed to improve its competitive
position and become a stronger, faster, and leaner organization. The company
said it will reduce its worldwide salaried workforce by approximately 1,600
positions by the end of the year.
In light of the challenging business environment, the company previously
indicated it was preparing plans to streamline its organization and that it
would also accelerate its cost reduction programs, particularly for sourcing
and supply chain activities.
It is expected that the organizational changes announced today will
generate annualized pre-tax savings of about $150 million, further
strengthening Kimberly-Clark's profitability and cash flow. Anticipated
savings of approximately $60 million, or 10 cents per share, will benefit the
company's results during the second half of 2009. Severance and related costs
to streamline the organization will be recorded during the second, third and
fourth quarters of the year, totaling $140 million to $150 million pre-tax,
equivalent to about 25 cents per share. Approximately $110 million of the
costs will be recorded in the second quarter.
"These actions, while difficult, are necessary to help us emerge from
this demanding economic environment as a stronger company," said Tom Falk,
Kimberly-Clark Chairman and CEO. "Through these changes we will be a more
effective organization, with faster decision-making helping to drive
efficiency throughout all aspects of our operations. In addition, by
increasing our cash generation, we will be in a better position to take
advantage of future growth and innovation opportunities."
Reductions in the workforce will come from all regions and business
segments of Kimberly-Clark's global operations and will primarily affect
salaried and non-production jobs. The company does not plan to close any of
its manufacturing facilities as part of these actions.
The effects of today's announcement on 2009 results were not included in
the company's previous earnings guidance. Guidance will be updated in
Kimberly-Clark's second quarter earnings announcement on July 23.
Kimberly-Clark and its well-known global brands are an indispensable part
of life for people in more than 150 countries. Every day, 1.3 billion people -
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 the 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 137-year history of innovation, visit www.kimberly-clark.com.
Certain matters contained in this news release concerning the business
outlook, including expected savings, 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
Item 1A of the company's Annual Report on Form 10-K for the year ended
December 31, 2008 entitled "Risk Factors."
For further information:
For further information: Media, Dave Dickson, +1-972-281-1481,
firstname.lastname@example.org, Investors, Mike Masseth, +1-972-271-1478, email@example.com,
both of Kimberly-Clark Corporation Web Site: http://www.kimberly-clark.com