Kimberly-Clark Reviews Global Business Plan Progress at Investor Meeting



    
    Management Highlights Targeted Initiatives for Creating Sustainable
Growth;
    Reiterates Plan to Significantly Increase Marketing Spending Over Next
    Several Years; Unveils New 3-Year Target for Ongoing Cost Savings

    Company Expects First Quarter 2007 Adjusted EPS to Meet or Beat the High
    End of Previous Guidance Range of $0.99 to $1.01 and Reaffirms Adjusted
EPS
    Guidance of $4.10 to $4.20 for the Full Year
    

    NEW YORK, March 26 /CNW/ -- Kimberly-Clark Corporation (NYSE:   KMB) today
said that it expects adjusted earnings in the first quarter of 2007 will be at
or slightly above the high end of its previous guidance range, which called
for earnings of $0.99 to $1.01 per share.  The company also reaffirmed its
plan to deliver top- and bottom-line growth in 2007 in line with the long-term
objectives set forth under the company's Global Business Plan.
    Adjusted earnings exclude anticipated charges for strategic cost
reductions to streamline the company's operations and anticipated incremental
implementation costs related to the transfer of certain administrative
processes to third party providers.  Further information about adjusted
earnings is provided on pages 3-5.
    The above announcements were made in connection with the company's
Investor Day meeting, held here this morning.  Thomas J. Falk, Chairman and
CEO, and other members of Kimberly-Clark's senior leadership team met with
investors and analysts to review progress on the company's Global Business
Plan, introduced in 2003, and its strategies for creating sustainable growth.
The executives detailed targeted initiatives for building market share and
brand equity, bolstering innovation, improving speed to market and delivering
ongoing cost savings across the company's global business portfolio.
    "We're off to a very good start in 2007, building on the momentum we
created throughout 2006," Mr. Falk said.  "Our teams are continuing to execute
well, bringing new and improved products to market and driving costs out of
the system.  We have plans in place to deliver solid top- and bottom-line
improvement for the year as a whole."
    The anticipated strong financial performance for the first quarter
reflects broad-based revenue growth, highlighted by continued double-digit
gains in developing and emerging markets and excellent sales volumes for the
company's baby and child care brands in North America.  Innovations such as
Huggies Supreme Gentle Care and Natural Fit diapers, Pull-Ups training pants
with Cool Alert and improved Huggies baby wipes helped boost the growth in
North America.
    "We are making significant progress under our Global Business Plan,
having successfully delivered on our financial commitments each year since the
plan was introduced.  Moreover, we have become a leaner, stronger, more
focused company and implemented substantial changes within each of our
businesses to ensure Kimberly-Clark's long term success," Falk said.  "Our
category-defining brands, world-class capabilities and financial discipline
will help us continue to drive sustainable growth, and we are confident that
we have the right plan and team in place to deliver enhanced value for
shareholders for many years to come."
    Additional highlights from the meeting follow.

    
    Accelerating Innovation
    
    Regarding innovation, Falk outlined how the company is acting on
customer, shopper and user insights to drive its innovation process.  He also
detailed Kimberly-Clark's continued efforts to increase its speed to market,
reporting that product development cycle time has been cut in half since the
launch of the Global Business Plan.  Progress made in reducing cycle time has
created efficiencies, enabling the company to devote a larger amount of
spending to longer-term ideas without a commensurate increase in overall
spending.  Falk cited numerous examples of how the company's innovation
pipeline is contributing to growth across all business segments and said R&D
spending is forecast to increase in line with sales to fuel future growth.

    
    Enhanced Commitment To Strategic Marketing
    
    During his presentation, Chief Marketing Officer Tony Palmer reiterated
the company's plan to boost future spending for strategic marketing, noting
that advertising and promotion expense in 2007 is expected to increase at a
faster rate than sales.  This year's increase will put the company on track to
reach its Global Business Plan target to raise spending levels as a percent of
sales by more than 100 basis points from 2004 to 2009.  The increased
investment in strategic marketing will support the company's targeted growth
initiatives and will help drive improvements in market share and brand equity.
Palmer also outlined the company's plan to focus on improving marketing
execution and capabilities by sharing best practices across the enterprise and
better leveraging the advantages of Kimberly-Clark's global scale.

    
    Continued Financial Discipline & Cost Savings Focus
    
    Chief Financial Officer Mark Buthman reaffirmed Kimberly-Clark's
commitment to delivering ongoing cost savings through its FORCE (Focused On
Reducing Costs Everywhere) program.  Buthman noted that savings from the
program are expected to total $485 -- $510 million for the three-year period
from 2005 through 2007 compared with a target of $400 -- $500 million
established in December 2004.  With this initial goal successfully met,
Buthman outlined a new three-year target to deliver an additional $350 -- $450
million of savings from 2008 through 2010.  Buthman also reviewed the
company's excellent progress in implementing its separate Strategic Cost
Reduction Plan, noting that Kimberly-Clark is on track to deliver more savings
than originally estimated while Plan charges are anticipated to be within the
lower half of the initial range.
    Buthman also reported that the financial discipline underpinning the
company's Global Business Plan is delivering strong results, contributing to
an increase in adjusted ROIC of 150 basis points since 2003.  Over that same
period, cash outlays for dividends and share repurchases totaled $6.3 billion,
up nearly 60 percent versus the previous three years.  Buthman indicated that
Kimberly-Clark will continue to allocate capital in a disciplined manner, with
a focus on increasing cash flow and deploying cash in shareholder-friendly
ways, through healthy dividend increases and meaningful share repurchases.

    
    Non-GAAP Financial Measure
    
    This press release mentions forecasted adjusted earnings per share which
has not been calculated in accordance with accounting principles generally
accepted in the U.S., or GAAP, and is therefore referred to as a non-GAAP
financial measure.  This non-GAAP financial measure excludes certain items
that are included in the company's earnings per share calculated in accordance
with GAAP.  A detailed explanation of each of the adjustments is given below.
In accordance with the requirements of Regulation G, a reconciliation of this
non-GAAP financial measure to the comparable GAAP financial measure is
attached.
    Kimberly-Clark provides non-GAAP financial measures as supplemental
information to our GAAP financial measures.  Management and the company's
Board of Directors use adjusted earnings per share, among other measures, 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 this non-GAAP financial
measure, among other measures, when setting and assessing achievement of
incentive compensation goals.  These goals are based, in part, on the
company's adjusted earnings per share determined by excluding the charges that
are used in calculating this non-GAAP financial measure.
    In addition, Kimberly-Clark management believes that investors'
understanding of the company's performance is enhanced by including non-GAAP
financial measures as a reasonable basis for comparing the company's ongoing
results of operations.  We believe that 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 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 per share by excluding from the comparable
GAAP measure the following: (i) charges related to our strategic cost
reduction plan for streamlining the company's operations; and (ii) certain
incremental implementation costs relating to our strategic cost reduction
plan. 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 per share and operating profit and margin
        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.
    

    This non-GAAP financial measure is not meant to be considered in
isolation or as a substitute for the comparable GAAP measures.  There are
limitations to 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 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.

    
    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
the No. 1 or No. 2 share position 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 http://www.kimberly-clark.com .
    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."



    KIMBERLY-CLARK CORPORATION

    NON-GAAP RECONCILIATION SCHEDULE

    The information below presents the reconciliation of non-GAAP financial
measures to GAAP financial measures.

    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


    Previous Guidance -- Estimated
     First Quarter 2007 Diluted
     Earnings Per Share:

    Adjusted Earnings Per Share                    $.99 -- $1.01

    Strategic Cost Reductions                     (.12) -- (.09)

    Earnings Per Share - Diluted                   $.87 -- $.92

    




For further information:

For further information: media, Dave Dickson, +1-972-281-1481, or 
ddickson@kcc.com , or Joey Mooring, +1-972-281-1443, or  joey.mooring@kcc.com
, or investors, Mike Masseth, +1-972-271-1478, or  mmasseth@kcc.com , all of
Kimberly-Clark Corporation Web Site: http://www.kimberly-clark.com

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