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K-C To Raise Diaper Prices

October 10, 2007

Beginning Feb. 3, the company will boost prices 4-7%.

Kimberly-Clark plans to raise prices next year to offset higher costs for raw materials and energy. Beginning Feb. 3, the company will boost prices 4-7% on Huggies diapers and swim pants, Pull-Ups training pants and Goodnites youth pants.

The consumer products company said in July it had seen costs for pulp and other raw materials and energy rise by $165 million in the first six months of the year—more than the $150 million it had budgeted for the entire year. K-C has tried to offset the higher costs by boosting sales and cutting other costs. It has also been helped by the weak U.S. dollar, which makes K-C products cheaper overseas.

In recent years, the company has been locked in price wars with rival Procter & Gamble Co. for dominance in the diaper market.

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