Kimberly-Clark Announces First Quarter 2009 Results



    1Q Net Sales Decreased Approximately 7 Percent to $4.5 Billion; EPS Were
$0.98 Compared With GAAP-basis EPS of $1.04 and Adjusted EPS of $1.08 in 1Q
'08; Cash Provided By Operations Rose 56 Percent
    

    
    Currency Effects Reduced 2009 Sales by 10 Percent and Negatively Affected
Earnings Comparisons by About 30 Cents Per Share; Pension Expense Higher by 8
Cents Per Share, As Expected
    

    Company Reaffirms Previous Earnings Guidance for the Full Year of 2009

    
    DALLAS, April 22 /PRNewswire-FirstCall/ -- Kimberly-Clark Corporation
(NYSE:   KMB) today reported that net sales in the first quarter of 2009
decreased 6.6 percent to $4.5 billion, as the effect of weaker foreign
currency exchange rates more than offset organic sales growth of 3-plus
percent.  The growth in organic sales was driven by higher net selling prices,
which increased approximately 6 percent, partially offset by a decline in
overall sales volumes of nearly 3 percent.  The lower sales volumes reflect
challenging economic conditions in North America and Europe, particularly
affecting the company's K-C Professional and Consumer Tissue businesses, as
well as the child care category in Personal Care.  Meanwhile, sales volumes in
developing and emerging markets rose about 2 percent.
    

    
    Diluted net income per share for the quarter was $0.98 compared with
$1.04 and adjusted earnings of $1.08 in the prior year.  During the quarter,
the company delivered continued double-digit organic sales growth in
developing and emerging markets, realized improved net selling prices in North
America and Europe, and also benefited from lower costs stemming from
commodity cost deflation and cost savings initiatives. These positive factors
contributed to an increase in gross profit margin of approximately 200 basis
points versus the year-ago quarter, more than offsetting higher costs for
production curtailment and pension expense.  Operating profit and earnings per
share, however, were down compared with the prior year, mainly as a result of
unfavorable currency effects and the decline in overall sales volumes. 
Currency translation and transaction losses reduced earnings in the first
quarter by about 30 cents per share compared with the prior year.  The
increase in pension expense in the first quarter was equivalent to
approximately 8 cents per share.
    

    
    Adjusted earnings per share in the first quarter of 2008 exclude charges
for strategic cost reductions to streamline the company's operations. 
Additional detail on this item and further information about adjusted earnings
per share and why the company uses this non-GAAP financial measure are
provided later in this news release.
    

    
    Chairman and Chief Executive Officer Thomas J. Falk said, "Business
conditions in the first quarter proved to be somewhat more challenging than we
predicted earlier this year, with significant headwinds from weak global
economies and volatile currency fluctuations impacting our results.  Despite
the difficult environment, we made progress in several areas during the
quarter.  We continued to pursue our targeted growth initiatives and build our
brands.  We improved profitability in our Personal Care, Consumer Tissue and
Health Care businesses, indicating that our focus on increasing margins is
starting to pay off.  We delivered continued double-digit organic top-line
growth in developing and emerging markets.  We also generated strong cash
flow, including early benefits from our efforts to improve working capital. 
While this progress is encouraging, we are not yet where we need to be.  We
are committed to overcome the challenges facing us and deliver improved
bottom-line results."
    

    Review of first quarter sales by business segment

    
    Sales of personal care products declined 3.4 percent compared with the
first quarter of 2008.  Net selling prices increased 6 percent, and sales
volumes and product mix both improved 1 percent, while weaker currencies
reduced sales by more than 11 percent.
    

    
    Personal care sales in North America increased about 2 percent versus the
year-ago quarter, as improvements in net selling prices and product mix of 5
percent and 1 percent, respectively, were partially offset by decreases in
sales volumes and unfavorable currency effects of 2 percent each.  The higher
selling prices resulted from increases implemented during 2008 across all
categories, net of increased competitive promotional activity, mainly for
Huggies diapers.  Although product innovations contributed to solid volume
gains for Depend and Poise adult care products, sales volumes for the
company's child care and baby wipes brands were down high single digits, due
in part to a slowdown in category sales.  Meanwhile, first quarter sales
volumes of Huggies diapers and Kotex feminine care products declined slightly.
    

    
    In Europe, personal care sales fell approximately 22 percent in the
quarter.  Currency exchange rates, down 19 percent, accounted for most of the
decrease.  Sales volumes were down about 3 percent compared with the prior
year primarily as a result of lower sales of child care products, and net
selling prices were down less than 1 percent.  Although sales volumes for
Huggies diapers were little changed across the region, they were up in the
growing Central European markets, but down in the company's four core markets
of the U.K., France, Italy and Spain.
    

    
    In developing and emerging markets, personal care sales decreased about 5
percent, as continued robust growth in organic sales was more than offset by
negative currency effects of 20 percent.  Sales volumes increased
approximately 5 percent, while net selling prices improved nearly 9 percent
and product mix was better by approximately 1 percent.  The growth in organic
sales was broad-based, with particular strength in China, South Korea, Russia,
Turkey, South Africa, Vietnam, Brazil and the Andean region in Latin America.
    

    
    Sales of consumer tissue products declined 7.8 percent in the first
quarter.  Although net selling prices increased approximately 6 percent and
product mix was favorable by 1 percent, overall sales volumes were down 5
percent compared with the prior year and unfavorable currency exchange rates
reduced sales by more than 10 percent.
    

    
    In North America, sales of consumer tissue products increased about 1
percent in the first quarter, as an increase in net selling prices of more
than 5 percent and improved product mix of about 2 percent were mostly offset
by a 5 percent decline in sales volumes and currency effects of 1 percent. 
The improvement in net selling prices reflects list price increases
implemented across the bathroom tissue, paper towel and facial tissue
categories during 2008, partially offset by an increase in competitive
promotional activity.  The lower sales volumes reflect the company's focus on
improving revenue realization, as well as slower category growth and consumer
trade-down.  For the quarter, volume levels were down high-single digits
across the Viva and Scott paper towel brands and mid-single digits for Kleenex
facial tissue.  Overall bathroom tissue sales volumes were down low-single
digits, as higher Scott Tissue volumes were more than offset by lower
Cottonelle volumes.
    

    
    In Europe, consumer tissue sales dropped nearly 21 percent compared with
the first quarter of 2008, on weaker foreign currency exchange rates of
approximately 18 percent.  Sales volumes were down more than 6 percent, due
mainly to lower sales of Andrex and Scottex bathroom tissue in response to
higher prices and continued softness in category sales, particularly in the
U.K. Net selling prices improved 3 percent, primarily for bathroom tissue in
most markets across the region, and product mix also was better by 1 percent.
    

    
    Consumer tissue sales in developing and emerging markets were lower by
more than 11 percent, driven by unfavorable currency effects of approximately
19 percent and a 4 percent decline in sales volumes.  These factors more than
offset a double-digit increase in net selling prices, as the company raised
prices in most markets over the past year to recover higher raw materials
costs.
    

    
    Sales of K-C Professional (KCP) & other products decreased 14.5 percent
compared with the first quarter of 2008.  Overall sales volumes fell more than
9 percent, changes in foreign currency rates also reduced sales by 9 percent
and product mix was unfavorable by about 1 percent, partially offset by a 5
percent improvement in net selling prices.  Economic weakness and rising
unemployment levels in North America and Europe had a significant effect on
KCP's categories in the first quarter.  In North America, sales declined
approximately 10 percent.  While net selling prices rose by 5 percent, sales
volumes declined nearly 13 percent, and product mix and currency effects both
were negative by about 1 percent.  In Europe, KCP's sales went down 24 percent
in the first quarter, as sales volumes were almost 10 percent lower, product
mix was off 1 percent and weaker currencies depressed sales by about 17
percent.  These factors were partially offset by a 4 percent benefit from
price increases implemented during 2008.  Across developing and emerging
markets, sales were down about 12 percent, primarily reflecting adverse
currency effects of almost 19 percent, while sales volumes and net selling
prices were higher by approximately 2 percent and 6 percent, respectively.
    

    
    Sales of health care products were unchanged in the first quarter, as
growth in sales volumes of 4 percent was offset by unfavorable currency
exchange rates.  The improvement in sales volumes was driven by mid-single
digit growth in North America, with particular strength in sales of exam
gloves, and double-digit growth in developing and emerging markets.  Sales
volumes in Europe, however, were down mid-single digits.
    

    Other first quarter operating results

    
    Operating profit was $628 million in the first quarter of 2009, down
about 5 percent from $664 million in 2008, but down nearly 9 percent compared
with prior year adjusted operating profit of $688 million.  The latter amount
excludes net charges incurred in 2008 for the company's strategic cost
reduction plan.
    

    
    In addition to the effects of higher net selling prices and lower sales
volumes, there were several other significant factors affecting year-over-year
operating profit comparisons.  As previously mentioned, lower commodity costs
and successful cost savings efforts benefited first quarter results. 
Deflation in key cost inputs amounted to approximately $75 million overall
versus 2008, including about $65 million in lower fiber costs, $20 million for
raw materials other than fiber, primarily polymer resins and other oil-based
materials and $10 million in distribution costs, partially offset by about $20
million of higher energy costs.  Cost savings in the quarter from the
company's FORCE (Focused On Reducing Costs Everywhere) program and strategic
cost reduction plan totaled $24 million and $21 million, respectively.  At the
same time, production curtailments to control inventory levels reduced
operating profit by approximately $90 million compared with the year-ago
quarter.  The downtime helped the company decrease inventories, which went
down by more than $300 million during the quarter.  Pension expense rose by
$46 million in the first quarter, as expected, with a majority of the increase
reflected in cost of sales.
    

    
    Meanwhile, currency losses reduced first quarter operating profit by
approximately $150 million in 2009 versus 2008.  Translation losses arising
from changes in currency exchange rates totaled more than $65 million, with a
number of key currencies weakening by more than 20 percent versus the U.S.
dollar.  In addition, other (income) and expense, net in the first quarter was
a net expense of $77 million in 2009 compared with income of $7 million in
2008.  The increase was driven by currency transaction losses totaling $76
million in the current year, whereas currency gains were mainly responsible
for the net benefit in the prior year.  Approximately two-thirds of the
transaction losses incurred in 2009 related to conversion of local currency
cash balances to U.S. dollars at certain operations in Latin America where
currency exchange restrictions are in place.  Actions are underway to deliver
further improvement in business results at these operations in order to
mitigate the effects of the restrictions.
    

    
    The company's effective tax rate for the first quarter of 2009 was 29.1
percent, consistent with the anticipated full year range of 28 to 30 percent. 
In the year-ago quarter, the effective tax rate was 27.6 percent and the
adjusted effective tax rate, excluding the effects of charges for the
company's strategic cost reduction plan, was 27.8 percent.  A reconciliation
of the 2008 effective tax rate calculation is provided in a separate section
of this news release.
    

    
    Kimberly-Clark's share of net income of equity companies in the first
quarter decreased to $32 million from $43 million in 2008, mainly as a result
of lower net income at Kimberly-Clark de Mexico, S.A.B. de C.V. (KCM). 
Although KCM delivered high single-digit organic sales growth and improved its
gross profit margin, operating profit and net income comparisons were
adversely affected by currency translation and transaction losses, including
losses on U.S. dollar-denominated liabilities.  Compared with the first
quarter of 2008, the Mexican peso depreciated by an average of approximately
25 percent versus the U.S. dollar.  Kimberly-Clark's share of currency effects
at KCM totaled about $18 million for the quarter, equivalent to approximately
4 cents per share.  KCM has recently taken steps to hedge a significant
portion of its U.S. dollar liability exposure.
    

    
    Net income attributable to noncontrolling interests (formerly minority
owners' share of subsidiaries' net income) was $24 million in the first
quarter of 2009 compared with $35 million in the prior year.  The decrease was
primarily due to noncontrolling interests' share of the above-mentioned
currency losses in Latin America, along with the acquisition of the remaining
interest in the company's Andean affiliate in late January 2009.
    

    Cash flow and balance sheet

    
    Cash provided by operations in the first quarter totaled $692 million, an
increase of approximately 56 percent from $444 million in the prior year.  The
improvement was driven by a significant reduction in the company's investment
in working capital, particularly inventories, compared with the year-ago
quarter, partially offset by lower cash earnings.  First quarter contributions
to the company's defined benefit pension plans totaled $90 million in 2009
versus $36 million in 2008.  Capital spending for the quarter was $211 million
compared with $221 million in the prior year and in line with the company's
target for spending of $800 to $850 million for the full year of 2009. 
Consistent with its previously announced plans for 2009, the company did not
repurchase any shares of its common stock during the first quarter.
    

    
    Total debt and redeemable securities was $7.2 billion at March 31, 2009
compared with $7.0 billion at the end of 2008.
    

    Outlook

    
    The company updated several key planning and guidance assumptions for
2009, as follows:
    
    --  Organic sales growth of 1 to 2 percent, somewhat below previous
        expectations as overall sales volumes are now anticipated to be flat
to
        down slightly for the year instead of flat to up slightly. 
        Year-over-year net selling prices are still expected to be up
        approximately 2 to 3 percent and product mix should be flat to up
        modestly.
    --  Net sales decline of 6 to 8 percent.  Currency is expected to reduce
        sales for the full year by approximately 8 to 9 percent, assuming
        exchange rates remain in line with first quarter levels.
    --  Deflation in key cost inputs of approximately $600 to $700 million. 
        This compares to the company's previous expectation for $300 million
of
        cost deflation and reflects estimated average market pricing for
        benchmark northern softwood pulp of approximately $660 per metric ton
        and oil prices averaging $45 to $55 per barrel for the balance of the
        year.  As previously noted, weaker currency exchange rates versus 2008
        reduce the potential benefit of forecasted declines in dollar-based
        input costs for operations outside the U.S.
    --  Pension expense of approximately $255 million across all company
        defined benefit plans, down approximately $40 million from the
original
        plan for the year, with virtually all of the reduction in expense
        coming in the second half of the year.  The decrease is a result of
the
        company's decision to freeze plan benefits for all U.S. non-union
        employees effective December 31, 2009.  Cash contributions to the
plans
        in 2009 are not affected by this change and therefore are still
        expected to total about $530 million versus $130 million in 2008.

    --  Year-over-year currency translation and transaction losses for
        consolidated operations of $425 to $500 million versus the previous
        assumption for losses in a range of $250 to $325 million.  Most of the
        increase is due to an expectation for higher transaction losses based
        on the company's experience in the first quarter.


    
    Commenting on the outlook, Falk said, "We expect the external environment
will remain challenging throughout the balance of the year.  While we are
encouraged that commodity costs have declined and have begun to positively
impact our gross margins, economic weakness is impacting demand for our
products.  Moreover, currency effects have become a more significant drag than
we anticipated heading into the year.  Overall, we remain mindful of the
potential for unexpected changes in consumer demand or net selling prices for
our products and further volatility in currency exchange rates and our input
costs.
    

    
    "That said, we are confident in our strategic direction.  We plan to
continue to do the right things for the long-term health of our businesses and
effectively manage those factors which we can control.  We will continue to
invest in our brands and build our capabilities in marketing, innovation and
customer development to improve our competitive position and drive sustainable
growth, while at the same time staying focused on increasing margins and
maximizing cash flow in the short term.  In addition, we intend to further
improve inventory levels; as a result, production curtailment will be higher
than previously anticipated.  Moreover, in this environment, we must also be
flexible enough to adjust our plans to deliver the best possible results.  In
fact, we have already begun to generate incremental savings, particularly in
product sourcing and supply chain costs, with additional plans underway to
drive even greater efficiencies throughout our organization.
    

    
    "All things considered, we are on track with our plan for the year and
continue to expect earnings per share in 2009 will be in a range of $4.00 to
$4.20, even though some of our planning assumptions have changed considerably.
 We also continue to believe that earnings per share in the first half of the
year are likely to be down versus 2008, with improvement expected in the
second half of the year."
    

    Non-GAAP financial measures

    
    This press release and the accompanying tables include the following
financial measures in 2008 that have not been calculated in accordance with
accounting principles generally accepted in the U.S., or GAAP, and are
therefore referred to as nonGAAP 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 SEC 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
adjusted 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.  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, 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 nonGAAP
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 calculated adjusted earnings, adjusted earnings per share, adjusted
operating profit and adjusted effective tax rate in 2008 by excluding from the
comparable GAAP measure charges related to our strategic cost reduction plan
for streamlining the company's operations.  The nature of and basis for the
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 was completed as of 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.

    --  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.  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 measure.  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. (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
137-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 economic conditions, anticipated currency rates and
exchange risk, cost savings, changes in finished product selling prices,
anticipated raw material and energy costs, anticipated benefits related to the
strategic cost reduction plan, 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."
    

    

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

    
                                             Three Months
                                            Ended March 31
                                          2009          2008       Change
    Net Sales                           $4,493        $4,813       -6.6%
      Cost of products sold              3,039         3,357       -9.5%
    

    
    Gross Profit                         1,454         1,456       -0.1%
      Marketing, research and general
       expenses                            749           799       -6.3%
      Other (income) and expense, net       77            (7)       N.M.
    

    
    Operating Profit                       628           664       -5.4%
    Interest income                          8             8           -
    Interest expense                       (73)          (74)      -1.4%
    

    
    Income Before Income Taxes and
     Equity Interests                      563           598       -5.9%
      Provision for income taxes          (164)         (165)      -0.6%
    Income Before Equity Interests         399           433       -7.9%
      Share of net income of equity
       companies                            32            43      -25.6%
    

    
    Net Income                             431           476       -9.5%
      Net income attributable to
       noncontrolling interests(a)         (24)          (35)     -31.4%
    

    
    Net Income Attributable to Kimberly-
     Clark Corporation(a)                 $407          $441       -7.7%
    

    
    Per Share Basis - Diluted Net Income
     Attributable to Kimberly-Clark
     Corporation(a)                       $.98         $1.04       -5.8%
    


    
    (a)   Effective January 1, 2009, the Corporation adopted
          Statement of Financial Accounting Standard No. 160,
          Noncontrolling Interests in Consolidated Financial
          Statements, an amendment of ARB No. 51 ("SFAS 160"),
          as required.  Prior year amounts have been recast to
          conform to the requirements of SFAS 160.
    

    
    N.M. - Not meaningful
    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
                                                       2008
    Cost of products sold                              $12
    

    
    Marketing, research and general expenses            11
    

    
    Other (income) and expense, net                      1
    

    
    Provision for income taxes                          (8)
    

    
    Net Charges                                        $16
    



    
    2. Other Information:
    

    
                                                   Three Months
                                                  Ended March 31
                                                  2009      2008
    Cash Dividends Declared Per Share             $.60      $.58
    



    
                                                     March 31
    Common Shares (Millions)                      2009       2008
    Outstanding, as of                           413.9      419.1
    

    
    Average Diluted for:
    Three Months Ended                           415.9      423.6
    

    
    Unaudited
    

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

    
    Supplemental Financial Information:
    

    
    Preliminary Balance Sheet Data:
                                               March 31   December 31
                                                 2009        2008
    

    
    Cash and cash equivalents                    $592        $364
    

    
    Accounts receivable, net                    2,385       2,492
    

    
    Inventories                                 2,187       2,493
    

    
    Total current assets                        5,505       5,813
    

    
    Total assets                               17,573      18,089
    

    
    Accounts payable                            1,427       1,603
    

    
    Debt payable within one year                1,314       1,083
    

    
    Total current liabilities                   4,780       4,752
    

    
    Long-term debt                              4,875       4,882
    

    
    Redeemable securities of subsidiaries       1,046       1,043
    

    
    Stockholders' equity                        3,813       4,250
    



    
                                                   Three Months
                                                  Ended March 31
    Preliminary Cash Flow Data:                  2009        2008
    

    
    Cash provided by operations                  $692        $444
    

    
    Cash used for investing                     $(447)      $(170)
    

    
    Cash used for financing                      $(17)      $(219)
    

    
      Depreciation and amortization              $177        $200
    

    
      Capital spending                           $211        $221
    

    
      Cash dividends paid                        $240        $224
    

    
    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 related to 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 disposable health care
products such as surgical gowns, drapes, infection control products,
sterilization wrap, face masks, 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
                          SELECTED BUSINESS SEGMENT DATA
                              PERIODS ENDED MARCH 31
                               (Millions of dollars)
    

    
                                     Three Months
                                    Ended March 31
                                  2009           2008          Change
    NET SALES:
    

    
    Personal Care               $1,977         $2,046           -3.4%
    Consumer Tissue              1,574          1,707           -7.8%
    K-C Professional & Other       651            761          -14.5%
    Health Care                    298            298               -
    

    
    Corporate & Other               13             22            N.M.
    

    
    Intersegment Sales             (20)           (21)           N.M.
    

    
    Consolidated                $4,493         $4,813           -6.6%
    

    
    OPERATING PROFIT:
    

    
    Personal Care                 $442           $428           +3.3%
    Consumer Tissue                194            156          +24.4%
    K-C Professional & Other        80             97          -17.5%
    Health Care                     48             46           +4.3%
    

    
    Corporate & Other(a)           (59)           (70)         -15.7%
    

    
    Other income and
     (expense), net(a)(b)          (77)             7            N.M.
    

    
    Consolidated                  $628           $664           -5.4%
    

    
    (a)   For the period ended March 31, 2008, Corporate & Other
          includes $(23) million and Other income and (expense),
          net includes $(1) million of pretax amounts for
          the strategic cost reductions.
    (b)   For the period ended March 31, 2009, Other income
          and (expense), net includes $(76) million of
          currency transaction losses versus gains of
          $12 million in 2008.
    

    
    N.M. - Not meaningful
    Unaudited
    

    
                            KIMBERLY-CLARK CORPORATION
                           SELECTED BUSINESS SEGMENT DATA
                              PERIODS ENDED MARCH 31
    

    
    PERCENTAGE CHANGE IN NET SALES VERSUS PRIOR YEAR
    

    
                                   Three Months Ended March 31, 2009
    

    
                                                 Net       Mix/
                          Total      Volume     Price    Other(1)  Currency
    

    
    Consolidated          (6.6)        (3)        6         -       (10)
    

    
      Personal Care       (3.4)         1         6         1       (11)
    

    
      Consumer Tissue     (7.8)        (5)        6         1       (10)
    

    
      K-C Professional &
       Other             (14.5)        (9)        5        (1)       (9)
    

    
      Health Care            -          4         -         -        (4)
    

    
    (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, 2008
    

    
                                                              Diluted
                                                              Earnings
                                                 Income       Per
                                                (Expense)     Share
    Adjusted Earnings                             $457        $1.08
    

    
    Adjustments for:
    

    
      Strategic Cost Reduction charges             (16)        (.04)
    

    
    Net Income Attributable to Kimberly-Clark
     Corporation                                  $441        $1.04
    



    
    OPERATING PROFIT SUMMARY:
    

    
    Three Months Ended March 31, 2008
    

    
    Adjusted Operating Profit                         $688
    

    
    Adjustments for:
    

    
      Strategic Cost Reduction charges                 (24)
    

    
    Operating Profit                                  $664
    



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

    
    Effective Income Tax Rate Reconciliation:
    


    
                                         Three Months Ended
                                           March 31, 2008
    

    
                                         As           Excluding
                                      Reported      Adjustments(1)
    

    
    Income Before Income Taxes          $598            $622
    

    
    Provision for Income Taxes           165             173
    

    
    Effective Income Tax Rate           27.6%
    

    
    Adjusted Effective Income Tax Rate                  27.8%
    

    
    (1) Charges for Strategic Cost Reductions.



    




For further information:

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

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