KIMBERLY-CLARK DECLARES 2-FOR-1 STOCK SPLIT; INCREASES DIVIDEND 10.8 PERCENT; ANNOUNCES RETIREMENT OF CEO AND FORECASTS EARNINGS
KIMBERLY-CLARK DECLARES 2-FOR-1 STOCK SPLIT; INCREASES DIVIDEND
10.8 PERCENT; ANNOUNCES RETIREMENT OF CEO AND FORECASTS EARNINGS
PARIS, Texas, Nov. 12 /PRNewswire/ -- The board of directors of Kimberly-Clark Corporation (NYSE: KMB) today announced a 2-for-1 split of the common stock and increased the quarterly dividend on a pre-split basis by 10.8 percent to 82 cents from 74 cents per share.
Separately, Darwin E. Smith, chairman of the board and chief executive officer, said at a meeting with securities analysts here that he will retire as chief executive officer on Dec. 19, his 20th anniversary in that position. Wayne R. Sanders, 44, currently president and chief operating officer, will then become chief executive officer. Smith, 65, will remain as a director and chairman until the end of the first quarter.
Regarding the stock split, an additional share of stock for each share held will be issued on Jan. 3, 1992, to stockholders of record on Dec. 6, 1991. The increased dividend also is payable according to those dates. This marks the 20th consecutive year Kimberly-Clark has raised its quarterly dividend.
Smith also told analysts that their forecasts of 1991 earnings of $6.00 to $6.20 a share are "in the ballpark." As to analysts' earnings estimates of $6.40 to $7.20 a share next year, he said "unless market conditions change very rapidly, it's possible but highly doubtful that 1992 will be in that range." Smith said he instead preferred a range with a low about equal to earnings per share in 1991 and with a high of its market objectives and will be expanded nationally after additional capacity is authorized. He said the U.S. market for Huggies Pull-Ups training pants, a one-of-a-kind product, has reached $300 million and is still growing. It has been available nationally since mid-1991.
As to the future, he said the company intends to generate growth internally by leveraging its three core technologies -- fiber, nonwovens and absorbency -- its well-known trademarks and its strong consumer product franchises. Sanders added that the company expects significant international growth, especially in Mexico, Korea and Europe.
Capital spending this year will be about $525 million and likely will be higher in 1992 and 1993, he said.
Smith's and Sanders' remarks were made at the company's manufacturing facility in Paris, Texas, which analysts toured for the first time. Smith said the company decided to hold a meeting here and in Jenks, Okla., tomorrow to show the group two of Kimberly-Clark's most technologically advanced consumer products operations. The Paris plant produces Huggies disposable diapers and Huggies Pull-Ups training pants. The Jenks facility manufactures Kleenex premium bathroom tissue.
Most of the 65 analysts at the meeting flew to Paris from Newark, N.J., on a Midwest Express Airlines charter. Midwest Express, a wholly owned affiliate of Kimberly-Clark, serves cities nationwide from its hub in Milwaukee.
Kimberly-Clark is a manufacturer of household, personal care and health care products, as well as newsprint and premium business, correspondence and specialty papers. The company's consumer products include Huggies disposable diapers, Huggies Pull-Ups training pants, Huggies baby wipes, Kleenex facial tissue, Kleenex premium bathroom tissue, Kotex and New Freedom feminine products, Hi-Dri household towels and Depend incontinence products.
/CONTACT: Tina Barry of Kimberly-Clark, 214-830-1484/
(KMB) CO: Kimberly-Clark Corporation ST: Texas IN: HOU PAP SU: DIV ERP PER JT -- NY095 -- 3679 11/12/91 17:53 EST