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Kimberly-Clark

September 8, 2006

Kimberly-Clark Corp.’s second quarter profit fell due to restructuring charges that cost cuts, but higher prices and growth in Mexico should offset rising costs for materials used in products such as its Kleenex tissues and Huggies diapers. The company reported earnings of $378 million in the quarter ended June 30. Revenue was 4.16 billion.
Kimberly-Clark now expects such costs to rise $300 million to $350 million this year, up from its prior assumption of $250 million.
The company, which also makes Scott paper towels and Kotex feminine care items, has raised prices to help counter the impact of higher costs for materials and distribution. It now expects pricing to be up about 1% to 2% this year, up from an original assumption of a 1% rise.

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