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Kimberly-Clark announces Q2 2007 sales results
25 Jul '07
3 min read
The company also announced that it entered into an accelerated share repurchase (ASR) agreement with Bank of America for the purchase of approximately 29.6 million shares of Kimberly-Clark common stock at a cost of $2.0 billion. Initial settlement of the ASR is expected to occur on or about July 27, 2007, and Kimberly-Clark will fund the share repurchase with incremental debt financing.
Including the $2.0 billion ASR, the company's new full year 2007 share repurchase target is $2.8 billion, up from its original target of $600 to $800 million. The company's board of directors has also approved the repurchase of an additional 50 million shares of Kimberly-Clark common stock during the next several years, augmenting the 50 million share authorization from September 2005 that will be fully completed upon execution of the ASR.
The actual number of shares purchased under the new share authorization and the timing of the transactions will depend upon prevailing market conditions.
Chairman and Chief Executive Officer Thomas J. Falk said, “In the second quarter, our teams continued to execute our Global Business Plan well, highlighted by particularly strong top- and bottom-line performances in Personal Care and across developing and emerging markets."
"As a result, we again delivered on our commitments for growth in sales, adjusted operating profit and adjusted earnings per share even though inflation has continued to put pressure onour margins. I'm also encouraged by the positive trends in cash provided by operations and return on invested capital, as both of these key financial measures improved during the quarter.”
Commenting on the increase in share repurchases, Falk said, “Today's announcements are a direct reflection of our confidence in our ability to continue to deliver on the objectives of our Global Business Plan. With our targeted growth initiatives and strong financial discipline, we have the right strategies in place to drive sustainable growth.
The additional leverage aligns our capital structure with our Global Business Plan strategies and, given our strong balance sheet and excellent cash flow, leaves ample financial flexibility and access to capital for future business needs. Moreover, we continue to believe our future earnings and cash generation prospects make KMB shares an attractive investment.”
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Including the $2.0 billion ASR, the company's new full year 2007 share repurchase target is $2.8 billion, up from its original target of $600 to $800 million. The company's board of directors has also approved the repurchase of an additional 50 million shares of Kimberly-Clark common stock during the next several years, augmenting the 50 million share authorization from September 2005 that will be fully completed upon execution of the ASR.
The actual number of shares purchased under the new share authorization and the timing of the transactions will depend upon prevailing market conditions.
Chairman and Chief Executive Officer Thomas J. Falk said, “In the second quarter, our teams continued to execute our Global Business Plan well, highlighted by particularly strong top- and bottom-line performances in Personal Care and across developing and emerging markets."
"As a result, we again delivered on our commitments for growth in sales, adjusted operating profit and adjusted earnings per share even though inflation has continued to put pressure onour margins. I'm also encouraged by the positive trends in cash provided by operations and return on invested capital, as both of these key financial measures improved during the quarter.”
Commenting on the increase in share repurchases, Falk said, “Today's announcements are a direct reflection of our confidence in our ability to continue to deliver on the objectives of our Global Business Plan. With our targeted growth initiatives and strong financial discipline, we have the right strategies in place to drive sustainable growth.
The additional leverage aligns our capital structure with our Global Business Plan strategies and, given our strong balance sheet and excellent cash flow, leaves ample financial flexibility and access to capital for future business needs. Moreover, we continue to believe our future earnings and cash generation prospects make KMB shares an attractive investment.”
Click here to view more:
Kimberly-Clark Corporation
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