Founded in 1872, in Neenah, Wisconsin, Kimberly-Clark is a leading global manufacturer of personal care, consumer tissue and health care products. The company has manufacturing operations in 38 countries and sells its products in more than 150 countries. It is the leading tissue manufacturer in the world and employs 55,000 people worldwide. Some of the their products by business segments are as follow:
- Tissue- facial and bathroom tissue, paper towels and wipes for household and away-from-home use, wet wipes and printing.
- Personal Care- disposable diapers, training and youth pants, feminine and incontinence care products.
- Health Care- products such as surgical ...view middle of the document...
41 | 0.80 | 0.55 | 0.65 |
|Current Ratio | 0.85 | 1.61 | 1.15 | 1.32 |
|LT Debt to Equity | 0.56 | 0.74 | 1.05 | 0.79 |
Management: It’s management team is rated #1 in industry across the board by Fortune 500 with an average rate of 7.26, which is 1.28 points higher than it’s competitor International Paper. Its return on assets for 1998 was 10.10, return on investment 14.83, and return on equity was 31.85. These figures again prove their standing as the number 1 management team in their industry.
| |Kimberly Clark |International Paper |Georgia-Pacific | Industry |
|Return on Assets | 10.10 | 1.10 | 1.66 | 4.62 |
|Return on Investment | 14.83 | 1.30 | 2.10 | 6.40 |
|Return on Equity | 31.85 | 2.32 | 5.83 | 14.00 |
Its management team has streamlined and consolidated global processes enabling corporate reduction of 5000 personnel globally. In recent years management has taken on aggressive strategies maximizing profits and streamline procedures increasing competitiveness worldwide. Recent profits were down somewhat but long term advantages significantly out way short term loses. Of these strategies the following are worth noting:
Facility Consolidation cost K-C over one hundred million dollars a quarter throughout 1998. Including in this facility consolidation was the further alignment of tissue manufacturing capacity throughout Europe, the closure of diaper manufacturing facilities in Canada, the disposal of tissue machines in Thailand, and the write down of certain feminine care production equipment in North America. These consolidations are expected to increase annual pretax profits an estimated 50 million dollars a year well into the 21st century.
K-C completed a periodic review in 1998 of its intangible assets in hopes of writing down assets that were impaired. Impairment is deemed to exist whenever the undiscounted estimated future cash flows are less than the carrying amount of such intangible assets. These write-downs reduced K-C operating profit 70 million and net income 57 million in the third quarter 1998 alone. During that same quarter K-C performed a technology review of all the corporations personal computers that have reduced economic lives as technological advances took over. This review resulted in the determination that K-C’s 5-year depreciating program was not working resulting in a write down of 8.8 million dollars reducing operating profit an...