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Kimberly-Clark Sheds Jobs in Australia, US

February 07, 2011
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The Dallas Morning News reports, consumer products giant Kimberly-Clark Corp. announced plans to exit its remaining integrated pulp manufacturing operations, saying the move would boost long-term profits. The company’s pulp and tissue restructuring is expected to cost between $280 million and $420 million after tax. It will involve the streamlining, sale or closure of five or six manufacturing plants around the world, including one in Everett, Wash., one in Australia. The company will also drop certain nonstrategic products and transfer some production to lower-cost facilities. The restructuring, which is to be completed by the end of 2012, is expected to result in a $250 million to $300 million decline in sales by 2013 – but at least a $75 million boost to operating profit. Kimberly-Clark also announced a fourth-quarter profit of $492 million, unchanged from the same period a year earlier. Total revenue rose 2 percent to nearly $5.1 billion. The company said it benefited from sales growth, cost savings, a decline in the effective tax rate and a lower share count, while it was hurt by higher prices for raw materials.

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