Kimberly-Clark Announces First Quarter 2007 Results



    
    1Q Net Sales Increased 8 Percent to a Record $4.4 Billion in 2007;
    GAAP-Basis EPS Were 98 Cents vs. 60 Cents in 2006

    Adjusted EPS Rose 11 Percent to $1.03, Consistent With Updated Guidance
for
    the Quarter

    Company Reaffirms Adjusted EPS Guidance of $4.10 to $4.20 for the Full
Year
    of 2007
    

    DALLAS, April 23 /CNW/ -- Kimberly-Clark Corporation (NYSE:   KMB) today
reported that net sales in the first quarter of 2007 rose 7.8 percent to $4.4
billion, a new quarterly high.  Highlights included a tenth consecutive
quarter of double-digit gains in developing and emerging markets, strong
innovation-driven volume growth for the company's Personal Care business in
North America and higher net selling prices overall.
    Diluted net income per share was 98 cents compared with 60 cents in the
prior year.  Adjusted earnings in the first quarter of 2007 were $1.03 per
share, an increase of nearly 11 percent from 93 cents per share in 2006.  The
improvement in adjusted earnings per share versus the year-ago quarter was
driven by the higher sales, continued success in reducing costs, a lower
effective tax rate and results at   K-C de Mexico.  In late March, the company
announced it anticipated positive results for the quarter, with adjusted
earnings per share expected to be at or slightly above the high end of its
previous guidance range of $0.99 to $1.01 per share.
    Adjusted earnings exclude charges for strategic cost reductions to
streamline the company's operations in both years and certain incremental
implementation costs related to the strategic cost reduction plan in 2007.
Further information about adjusted earnings and other non-GAAP financial
measures is provided on pages 5-7.
    Chairman and Chief Executive Officer Thomas J. Falk said, "With excellent
top-line growth in the first quarter and bottom-line results ahead of our
original expectations, we are off to a very good start in 2007.  I'm
encouraged by the progress K-C teams around the world are making under our
Global Business Plan, successfully implementing our targeted growth
initiatives and driving costs out of the system.  As a result, we delivered a
solid improvement in operating profit, overcoming $80 million of inflation
while at the same time funding a stepped-up level of spending for strategic
marketing.  Moreover, the underlying strength of our cash flow enabled us to
again boost the dividend and buy back a healthy amount of K-C stock."

    
    Review of first quarter sales
    
    The increase in first quarter sales was driven by sales volume growth of
more than 3 percent, along with improved net selling prices and product mix,
each approximately 1 percent better than the prior year.  In addition,
stronger foreign currencies benefited sales by about 3 percent.
    Sales of personal care products advanced 10.6 percent in the first
quarter, highlighted by sales volume growth in excess of 8 percent.  Favorable
currency effects of more than 2 percent and better product mix of 1 percent
also contributed to the increase in sales, while net selling prices declined
approximately 1 percent.
    Personal care sales in North America increased about 8 percent compared
with the first quarter of 2006, driven entirely by higher sales volumes.  Net
selling prices were essentially unchanged.  Sales volumes for Huggies diapers
and baby wipes grew at a double-digit rate on the strength of innovations to
the brand's high-margin, super-premium offerings in both categories.  Sales
momentum for the company's market-leading Pull-Ups training pants remained
strong, lifting sales volumes for the company's child care brands to a new
first quarter record.  Although Kotex feminine care sales volumes were down
year-over-year, they were similar to fourth quarter 2006 levels.  In Europe,
personal care sales rose more than 12 percent in the quarter, with currency
effects accounting for the entire increase.  Sales volumes were up 1 percent,
as strong gains for diapers were mostly offset by lower sales volumes in other
areas.  Meanwhile, net selling prices were down approximately 1 percent
compared with the prior year.  Positive customer and consumer response to new
Huggies Newborn and Natural Fit diapers and Huggies Little Walkers diaper
pants, launched in the second half of 2006, resulted in 9 percent volume
growth for Huggies diapers in core European markets - the U.K., France, Italy
and Spain.  In developing and emerging markets, personal care sales climbed
about 16 percent, driven by a 12 percent increase in sales volumes and
currency benefits of 3 percent.  Sales growth was particularly strong
throughout Latin America, as well as in China and Russia.
    Sales of consumer tissue products rose 6.4 percent versus the first
quarter of 2006, as net selling prices improved 3 percent and changes in
currency exchange rates also benefited sales by 3 percent.  Favorable product
mix added about 2 percent to sales; however, sales volumes were lower by 2
percent.
    In North America, first quarter sales of consumer tissue products rose
approximately 4 percent, driven primarily by higher net selling prices, up 4
percent, and improved product mix of 1 percent, partially offset by a 1
percent decrease in sales volumes compared with the prior year.  The rise in
net selling prices was mainly attributable to list price increases implemented
during the first half of 2006.  Meanwhile, growth in higher-margin facial
tissue and bathroom tissue product offerings enhanced product mix.  Sales
volumes for Kleenex facial tissue in the first quarter increased despite a
weaker cold and flu season than in 2006; however, overall volumes for bathroom
tissue and paper towels were down, due in part to the timing of promotional
activities.  In Europe, consumer tissue sales were up about 6 percent.  Net
selling prices increased about 1 percent, product mix improved by 2 percent
and stronger currencies boosted sales by 10 percent.  Sales volumes decreased
approximately 7 percent, as the company has continued to maintain a
disciplined approach to pricing and has also shed low-margin business
following the sale or closure of certain facilities in the region.  Consumer
tissue sales in developing and emerging markets rose approximately 11 percent,
with growth in all regions, primarily reflecting higher net selling prices,
favorable product mix and currency benefits.
    Sales of K-C Professional & other products were 6.8 percent above the
year-ago quarter.  Higher sales volumes and currency effects both contributed
about 3 percent to the increase in sales.  Product mix improved 1 percent,
while net selling prices for the segment were up slightly, as U.S. price
increases in K-C Professional (KCP) were tempered by lower prices for other
products.  As a result of its focused strategy to expand in the attractive
workplace and safety markets, sales of KCP's differentiated apparel, glove and
wiper products in North America and Europe continued to grow at above the
segment average.  In addition, KCP continued to capitalize on opportunities in
rapidly-growing international markets, generating double-digit sales increases
in the first quarter in both Asia and Latin America.
    Sales of health care products were up 0.7 percent in the first quarter,
as favorable product mix and currency benefits of 1 percent each were
partially offset by a 1 percent decline in sales volumes.  Although most
product categories experienced solid growth, overall sales volumes were down
as a result of the company's decision in the second half of last year to exit
the latex exam glove business.  In the near term, additional manufacturing
capacity is needed to satisfy the growing demand for nitrile exam gloves,
particularly new Sterling Nitrile gloves, as customers and users are
transitioning to these more cost-effective, better-performing solutions faster
than expected.  As a result, the company has accelerated plans to bring new
capacity on line over the next several months.

    
    Other first quarter operating results
    
    Operating profit was $616 million in the first quarter of 2007, compared
with $420 million in 2006.  Excluding charges for the company's strategic cost
reduction plan and related implementation costs, adjusted operating profit for
the quarter increased approximately 6 percent to $669 million from $629
million in the prior year.  Top-line growth, along with FORCE (Focused On
Reducing Costs Everywhere) cost savings of $29 million and strategic cost
reductions of $33 million enabled the company to more than offset about $80
million of cost inflation.  The inflationary increases were driven primarily
by higher fiber costs, which were up nearly $60 million versus the first
quarter of 2006.  As planned, strategic marketing spending increased at a
faster rate than sales, rising nearly $20 million, principally to support new
and improved products and other targeted growth initiatives.
    The company's effective tax rate in the first quarter was 20.6 percent in
2007 and 27.8 percent in 2006.  Excluding the effects of charges for the
company's strategic cost reduction plan and related implementation costs, as
well as net benefits from synthetic fuel partnerships in both years, the
adjusted effective tax rate for the quarter declined to 28.3 percent in 2007
from 29.6 percent in 2006 primarily due to settlements of tax issues related
to prior years.  Including the net benefit from synthetic fuel partnership
activities of about $7 million in 2007, the overall effect of tax initiatives
on adjusted earnings per share was less than 1 cent favorable versus guidance
for the quarter.
    As previously disclosed, the company adopted FASB Interpretation No. 48,
Accounting for Uncertainty in Income Taxes, an interpretation of FASB
Statement 109 (FIN 48) in the first quarter.  The adoption of FIN 48 resulted
in an increase in income tax liabilities and a corresponding charge to
retained earnings of approximately $34 million.
    Kimberly-Clark's share of net income of equity companies in the first
quarter increased 15 percent to $45 million in 2007 from $39 million in 2006,
due mainly to higher net income at Kimberly-Clark de Mexico, S.A.B. de C.V.
(KCM).  The increase was achieved despite the absence of earnings from pulp
and paper operations that were sold in the fourth quarter of last year, driven
by continued strong performance of KCM's consumer business as well as a lower
level of currency transaction losses than in 2006.

    Competitive improvement initiatives - update on strategic cost reduction
plan
    The company's strategic cost reduction plan is part of a comprehensive,
multi-year effort announced in July 2005 to further improve its competitive
position.  The plan calls for streamlining manufacturing and administrative
operations primarily in North America and Europe, with expected annual savings
of at least $350 million by 2009 earmarked for reinvestment in targeted growth
opportunities and to improve key capabilities as well as to support margin
improvement.
    During the first quarter, the company continued to successfully execute
planned cost reduction activities, incurring pretax charges totaling $53
million (approximately $23 million after tax) for the plan and related
incremental implementation costs.  Major components of the charges were for
consolidating consumer tissue operations in Europe and infant and child care
operations in North America, as well as streamlining administrative operations
in North America and Europe, partially offset by gains on the sale of several
facilities.  As noted above, year-over-year savings of $33 million were
realized in the quarter, putting the company in good position to meet or
potentially exceed its target to save $75 to $100 million for the full year.
    To date, employees have been notified about workforce reductions and
other actions at 22 of the approximately 24 facilities slated for sale,
closure or streamlining as part of the cost reduction plan, and more than 75
percent of the total charges expected through the end of 2008 (approximately
$950 million

    to $1.0 billion before tax, or $665 to $700 million after tax) have now
been recorded.

    
    Cash flow and balance sheet
    
    Cash provided by operations in the first quarter increased to $525
million from $519 million in 2006, reflecting higher cash earnings primarily
offset by an increased investment in working capital compared with the
year-ago quarter. The change in working capital was mainly attributable to
payment of accrued liabilities.  Capital spending for the quarter was $282
million compared with $179 million in the prior year.  As previously
announced, capital spending in 2007 is expected to total $900 million to $1
billion.  At March 31, 2007, total debt and preferred securities was $4.4
billion, essentially the same level as the end of 2006.
    During the first quarter, the company repurchased approximately 2.2
million shares of its common stock at a cost of $150 million, in line with its
target to spend $600 to $800 million for share repurchases for the full year.

    
    Outlook
    
    Commenting on the outlook, Falk said, "Our first quarter results give us
confidence that we will continue to execute our Global Business Plan well.  We
have good momentum and plans in place that should enable us to generate solid
improvement in sales and earnings for the balance of the year.  Although
escalation in fiber costs is driving a higher level of inflation than we
assumed coming into the year, we expect to offset the additional cost pressure
with continued strong business performance.  At the same time, we will
maintain our commitment to increase customer development and strategic
marketing spending to support our growth initiatives and further improve brand
equity.  Finally, we will remain focused on increasing cash flow from
operations, deploying our cash wisely and improving returns for our
shareholders.
    "Overall, we remain comfortable that we will deliver top- and bottom-line
growth in 2007 in line with the long-term objectives of our Plan.
Specifically, we expect adjusted earnings per share for the year will be in a
range of $4.10 to $4.20 per share, up 5 to 8 percent versus $3.90 per share in
2006.
    "As for the second quarter, we anticipate adjusted earnings per share
will be similar to the first quarter, in a range of $1.01 to $1.03 per share. 
This will represent improvement of 6 to 8 percent versus the year-ago quarter,
consistent with the rate of growth we're targeting for the full year."

    
    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 operating profit
    -- adjusted effective tax rate
    

    These non-GAAP financial measures exclude certain items that are included
in the company's earnings, earnings per share, operating profit and effective
tax rate calculated in accordance with GAAP. A detailed explanation of each of
the adjustments to the comparable GAAP financial measures is given below.  In
accordance with the requirements of Regulation G, reconciliations of the non-
GAAP financial measures to the comparable GAAP financial measures are
attached.
    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 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.  Additionally,
the Management Development and Compensation Committee of the company's Board
of Directors uses these 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
return on invested capital determined by excluding 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 and for understanding the company's effective
tax rate.  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 the non-GAAP financial measures, together
with the reconciliations, we believe we are enhancing investors' understanding
of our businesses and our results of operations, as well as assisting
investors in evaluating how well the company is executing the material changes
to our enterprise contemplated by the strategic cost reduction plan.  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.
    We calculate adjusted earnings, adjusted earnings per share, adjusted
operating profit and adjusted effective tax rate by excluding from the
comparable GAAP measure (i) charges related to our strategic cost reduction
plan for streamlining the company's operations, (ii) certain incremental
implementation costs relating to our strategic cost reduction plan, and (iii)
the net effect of the company's investment in synthetic fuel partnerships on
the company's effective tax rate.  Each of these adjustments and the basis for
such adjustments are described below:

    
    -- Strategic cost reduction plan.   In July 2005, the company authorized a
       strategic cost reduction plan aimed at streamlining manufacturing and
       administrative operations, primarily in North America and Europe.  The
       strategic cost reduction plan commenced in the third quarter of 2005
       and is expected to be substantially completed by December 31, 2008.  At
       the time we announced the plan, we advised investors that we would
       report our earnings, earnings per share and operating profit excluding
       the strategic cost reduction plan charges so that investors could
       compare our operating results without the plan charges from period to
       period and could assess our progress in implementing the plan.
       Management does not consider these charges to be part of our earnings
       from ongoing operations for purposes of evaluating the performance of
       its business units and their managers and excludes these charges when
       making decisions to allocate resources among its business units.

    -- Implementation costs. In connection with our strategic cost reduction
       plan, the company will incur incremental implementation costs related
       to the transfer of certain administrative processes to third party
       providers.  These costs will be incurred primarily in the first six
       months of 2007.  Management intends to exclude these implementation
       costs from our earnings from ongoing operations for purposes of
       evaluating the performance of our business units and their managers and
       to exclude these costs when making decisions to allocate resources
       among its business units.

    -- Adjusted effective tax rate.  In the analysis of its effective tax
       rate, the company excludes the effects of charges for the strategic
       cost reduction plan and related implementation costs, as well as net
       benefits from the company's investment in synthetic fuel partnerships.
       We believe that adjusting for these items provides improved insight
       into the tax effects of our ongoing business operations.
    

    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 they 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 supplements to the
GAAP measures and by providing the 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. (CDT) 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 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 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 135-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 new product introductions, cost savings and acquisitions,
anticipated costs and benefits related to the Competitive Improvement
Initiatives, 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, 2006 entitled "Risk
Factors."


    
    Investor Relations contacts:  Mike Masseth, 972-281-1478, mmasseth@kcc.com
                                  Paul Alexander, 972-281-1440,
                                  palexander@kcc.com
    Media Relations contact:      Dave Dickson, 972-281-1481, ddickson@kcc.com




                          KIMBERLY-CLARK CORPORATION
                        CONSOLIDATED INCOME STATEMENT
                            PERIODS ENDED MARCH 31
               (Millions of dollars, except per share amounts)

                                                Three Months
                                               Ended March 31
                                              2007         2006        Change

    Net Sales                               $4,385.3     $4,067.9      + 7.8%
      Cost of products sold                  3,033.0      2,914.8      + 4.1%

    Gross Profit                             1,352.3      1,153.1      +17.3%
      Marketing, research and general
       expenses                                732.6        712.5      + 2.8%
      Other (income) expense, net                3.6         20.2      -82.2%

    Operating Profit                           616.1        420.4      +46.6%
      Nonoperating expense                     (27.6)       (15.8)     +74.7%
      Interest income                            6.6          6.4      + 3.1%
      Interest expense                         (50.9)       (54.3)     - 6.3%

    Income Before Income Taxes
     and Equity Interests                      544.2        356.7      +52.6%
      Provision for income taxes              (112.1)       (99.3)     +12.9%
    Income Before Equity Interests             432.1        257.4      +67.9%
      Share of net income of equity
       companies                                45.0         39.0      +15.4%
      Minority owners' share of
       subsidiaries' net income                (25.1)       (21.3)     +17.8%

    Net Income                               $ 452.0     $  275.1      +64.3%

    Net Income Per Share Basis
     - Diluted                              $    .98     $    .60      +63.3%

    Unaudited



                          KIMBERLY-CLARK CORPORATION

    PERIODS ENDED MARCH 31
    (Millions of dollars, except per share amounts)

    Notes:
    1. Charges for the Strategic Cost Reductions are included in the
       Consolidated Income Statement as follows:

                                                          Three Months
                                                         Ended March 31
                                                       2007        2006

    Cost of products sold                             $  41.8     $ 155.7

    Marketing, research and general expenses              8.1        42.0

    Other (income) and expense, net                      (9.3)      (10.9)

    Provision for income taxes                          (25.6)      (53.4)

    Strategic Cost Reductions after taxes                15.0       155.2

    Minority interest                                       -        (1.6)

    Net Charges                                       $  15.0     $ 153.6
    

    In addition, charges of $12.2 million in 2007 for the related
implementation costs are included in marketing, research and general expenses.


    2. Other Information:

    
                                                    Three Months
                                                    Ended March 31
                                                   2007        2006

    Cash Dividends Declared
      Per Share                                   $  .53      $  .49

                                                       March 31
    Common Shares (Millions)                       2007        2006

    Outstanding, as of                             455.3       460.0

    Average Diluted for:

      Three Months Ended                           459.9       461.8

    Unaudited



                          KIMBERLY-CLARK CORPORATION
                            PERIODS ENDED MARCH 31
                            (Millions of dollars)

    Supplemental Financial Information:

    Preliminary Balance Sheet Data:

                                                    March 31      December 31
                                                      2007            2006

    Cash and cash equivalents                      $   342.0      $   360.8

    Accounts receivable                              2,296.7        2,336.7

    Inventories                                      2,085.8        2,004.5

    Total assets                                    17,181.6       17,067.0

    Accounts payable                                 1,540.1        1,530.8

    Debt payable within one year                     1,288.8        1,326.4

    Total current liabilities                        4,613.0        5,015.8

    Long-term debt                                   2,277.0        2,276.0

    Preferred securities of subsidiary                 802.6          793.4

    Stockholders' equity                             6,355.0        6,097.4


                                                         Three Months
                                                        Ended March 31
    Preliminary Cash Flow Data:                       2007           2006

    Cash provided by operations                    $   524.5      $   518.9

    Cash used for investing                        $  (198.1)     $  (143.7)

    Cash used for financing                        $  (347.8)     $  (353.2)

       Depreciation and amortization               $   214.6      $   261.0

       Capital spending                            $   281.8      $   179.1

       Cash dividends paid                         $   224.1      $   208.6

    Unaudited



                          KIMBERLY-CLARK CORPORATION
                            PERIODS ENDED MARCH 31

    Description of Business Segments
    

    The Corporation is organized into operating segments based on product
groupings. These operating segments have been aggregated into four reportable
global business segments:  Personal Care; Consumer Tissue; K-C Professional &
Other; and Health Care. The reportable segments were determined in accordance
with how the Corporation's executive managers develop and execute the
Corporation's global strategies to drive growth and profitability of the
Corporation's worldwide Personal Care, Consumer Tissue, K-C Professional &
Other, and Health Care operations. These strategies include global plans for
branding and product positioning, technology, research and development
programs, cost reductions including supply chain management, and capacity and
capital investments for each of these businesses. Segment management is
evaluated on several factors, including operating profit. Segment operating
profit excludes other income and (expense), net; income and expense not
associated with the business segments; and the costs of corporate decisions
related to the Strategic Cost Reductions.  Corporate & Other includes the
costs of the Strategic Cost Reductions.
    The principal sources of revenue in each of our global business segments
are described below.
    The Personal Care segment manufactures and markets disposable diapers,
training and youth pants and swimpants; baby wipes; feminine and incontinence
care products; and related products. Products in this segment are primarily
for household use and are sold under a variety of brand names, including
Huggies, Pull-Ups, Little Swimmers, GoodNites, Kotex, Lightdays, Depend, Poise
and other brand names.
    The Consumer Tissue segment manufactures and markets facial and bathroom
tissue, paper towels, napkins and related products for household use. Products
in this segment are sold under the Kleenex, Scott, Cottonelle, Viva, Andrex,
Scottex, Hakle, Page and other brand names.
    The K-C Professional & Other segment manufactures and markets facial and
bathroom tissue, paper towels, napkins, wipers and a range of safety products
for the away-from-home marketplace. Products in this segment are sold under
the Kimberly-Clark, Kleenex, Scott, WypAll, Kimtech, Kleenguard and Kimcare
brand names.
    The Health Care segment manufactures and markets health care products
such as surgical gowns, drapes, infection control products, sterilization
wrap, disposable face masks and exam gloves, respiratory products and other
disposable medical products. Products in this segment are sold under the
Kimberly-Clark, Ballard and other brand names.



    Unaudited

    
                          KIMBERLY-CLARK CORPORATION
                            PERIODS ENDED MARCH 31

    SELECTED BUSINESS SEGMENT DATA
    (Millions of dollars)

                                               Three Months
                                              Ended March 31

                                             2007       2006      Change
    NET SALES:

    Personal Care                          $1,797.6   $1,625.0    +10.6%
    Consumer Tissue                         1,593.1    1,497.2    + 6.4%
    K-C Professional & Other                  697.4      652.8    + 6.8%
    Health Care                               302.7      300.5    +  .7%

    Corporate & Other                           8.0        9.0    -11.1%

    Intersegment Sales                        (13.5)     (16.6)   -18.7%

    Consolidated                           $4,385.3   $4,067.9    + 7.8%


    OPERATING PROFIT:

    Personal Care                          $  347.2   $  300.2    +15.7%
    Consumer Tissue                           207.1      209.0    -  .9%
    K-C Professional & Other                  108.7      104.5    + 4.0%
    Health Care                                55.6       51.3    + 8.4%

    Corporate & Other                         (98.9)    (224.4)   -55.9%

    Other income and (expense), net            (3.6)     (20.2)   -82.2%

    Consolidated                           $  616.1   $  420.4    +46.6%

    Note: Corporate & Other and Other income and (expense), net, include the
          following amounts of pre-tax charges for the Strategic Cost
          Reductions.  In 2007, Corporate & Other also includes the related
          implementation costs.


                                                   Three Months
                                                   Ended March 31
                                                 2007        2006

          Corporate & Other                    $ (62.1)   $ (197.7)

          Other income and (expense), net          9.3       (10.9)

    Unaudited



                          KIMBERLY-CLARK CORPORATION

    PERIODS ENDED MARCH 31
    SELECTED BUSINESS SEGMENT DATA

    PERCENTAGE CHANGE IN NET SALES VERSUS PRIOR YEAR

                                   Three Months Ended March 31, 2007

                                                      Net       Mix/
                                 Total    Volume    Price    Other(1) Currency

    Consolidated                   7.8        3        1         1         3

       Personal Care              10.6        8       (1)        2         2

       Consumer Tissue             6.4       (2)       3         2         3

       K-C Professional & Other    6.8        3        -         1         3

       Health Care                  .7       (1)       -         1         1

     (1) Mix/Other includes rounding.



                          KIMBERLY-CLARK CORPORATION

    PERIODS ENDED MARCH 31
    (Millions of dollars, except per share amounts)

    NON-GAAP RECONCILIATION SCHEDULES
    
    The tables on the following pages present the reconciliation of non-GAAP
financial measures to GAAP financial measures.

    
    EARNINGS SUMMARY:
                                            Three Months Ended March 31
                                           2007                    2006
                                               Diluted                 Diluted
                                     Income   Earnings     Income     Earnings
                                  (Expense)  Per Share   (Expense)   Per Share

    Adjusted Earnings             $  474.7   $   1.03    $  428.7    $    .93

    Adjustments for:

       Strategic Cost Reduction
        charges                      (15.0)      (.03)     (153.6)       (.33)

       Implementation costs           (7.7)      (.02)          -           -

    Net Income                    $  452.0   $    .98    $  275.1    $    .60


    OPERATING PROFIT SUMMARY:

                                                   Three Months
                                                   Ended March 31
                                                 2007        2006

          Adjusted Operating Profit             $ 668.9     $ 629.0

          Adjustments for:

            Strategic Cost Reduction
            charges                               (40.6)     (208.6)

           Implementation costs                   (12.2)          -

           Operating Profit                     $ 616.1     $ 420.4



                          KIMBERLY-CLARK CORPORATION
    PERIODS ENDED MARCH 31
    (Millions of dollars)
    

    Effective Income Tax Rate Reconciliation - Adjustments(1) and Synthetic
Fuel Partnership Activities:

    
                      Three Months Ended March 31, 2007
                                                             Synthetic Fuel
                       As                   Excluding     Effect of  Excluding
                 Reported  Adjustments(1) Adjustments(1) Activities Activities

    Income Before
      Income Taxes  $544.2    $   (52.8)  $   597.0      $  (27.6)   $  624.6

    Provision for
      Income Taxes   112.1        (30.1)      142.2         (34.7)      176.9

    Net Synthetic
      Fuel Benefit                                       $    7.1

    Effective Income
      Tax Rate        20.6%

    Adjusted Effective
      Income Tax Rate                          23.8%                     28.3%


                            Three Months Ended March 31, 2006
                                                            Synthetic Fuel
                       As                   Excluding     Effect of  Excluding
                 Reported  Adjustments(1) Adjustments(1) Activities Activities

    Income Before
      Income Taxes  $356.7    $  (208.6)  $   565.3      $  (15.8)   $  581.1

    Provision for
      Income Taxes    99.3        (53.4)      152.7         (19.5)      172.2

    Net Synthetic
      Fuel Benefit                                       $    3.7

    Effective Income
      Tax Rate        27.8%

    Adjusted Effective
      Income Tax Rate                          27.0%                     29.6%


    (1) Charges for Strategic Cost Reductions and related implementation costs
        in 2007 and Strategic Cost Reductions in 2006.


                          KIMBERLY-CLARK CORPORATION

    PERIODS ENDED MARCH 31


    OUTLOOK FOR 2007

    Estimated Full-Year 2007 Diluted Earnings Per Share:

    Adjusted Earnings Per Share                  $4.10 - $4.20

    Strategic Cost Reductions                    (.31) - (.28)

    Implementation costs                         (.04) - (.04)

    Earnings Per Share - Diluted                 $3.75 - $3.88



    Estimated Second Quarter 2007 Diluted Earnings Per Share:

    Adjusted Earnings Per Share                  $1.01 - $1.03

    Strategic Cost Reductions                    (.09) - (.07)

    Implementation costs                         (.02) - (.02)

    Earnings Per Share - Diluted                  $.90 - $.94

    




For further information:

For further information: Investor Relations: Mike Masseth, 
+1-972-281-1478, mmasseth@kcc.com, Paul Alexander, +1-972-281-1440, 
palexander@kcc.com, Media Relations: Dave Dickson, +1-972-281-1481, 
ddickson@kcc.com, both of Kimberly- Clark Corporation Web Site:
http://www.kimberly-clark.com/

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