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K-C Announces Results

February 28, 2011

Kimberly-Clark reported $5.1 billion in net sales for fourth quarter of 2010, an increase of 2%.

Organic sales rose 3%, driven by higher net selling prices of 2% and improved product mix of 1%, while overall sales volumes were even with year-ago levels.

In the personal care segment, sales increased 2%. Sales volumes were up 2% and net selling prices rose 1%, while changes in currency rates reduced sales by 1%.

Personal care sales in North America increased 3% versus the 2009 period. Sales volumes were up 2% and net selling prices increased 1%. Feminine care volumes grew at a double-digit rate for the fourth consecutive quarter as a result of the U by Kotex line extension. Adult care volumes also increased double-digits, with benefits from innovation on the Poise and Depend brands and supporting marketing campaigns. Baby wipes volumes rose at a double-digit rate, including shipments to support customer promotion activity.

Sales of health care products decreased 1% in the fourth quarter.The acquisition of I-Flow Corporation benefited sales by 5%, while organic sales volumes declined 5% and net selling prices fell 2%. The organic volume comparison was adversely affected by about 5 points due to increased demand in 2009 for facemasks as a result of the H1N1 flu virus. In addition, overall North American supply volumes in 2010 were impacted by a modest slowdown in market demand. Meanwhile, organic sales volumes for medical devices rose at a high-single digit rate.

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