This summary is based on the fourth quarter fiscal 2007 earnings call conducted by Kimberly Clark Corp. (KMB: chart) on January 24, 2008.

Management:

- VP of IR: Michael D. Masseth
- Chairman of the Board and CEO: Thomas J. Falk
- Sr. VP and CFO: Mark A. Buthman
- VP and Controller: Randy J. Vest

Key Investors Issues

- Sales were up 10.5% to $4.76 billion.
- Earnings dropped 6% to $456 million from $482.6 million in the prior year, though earnings per share were up 2% to $1.07 due to an 8% reduction in share count.
- The firm bought 3.9 million shares of KMB stock at a cost of about $269 million.

Full Year Highlights:

- Sales of $18.3 billion, were up 9%from $16.7 billion in the prior year, as a result of a 4% increase in sales volumes.
- Net income was up 21% to $1.8 billion or $4.09 a share.
- The firm bought back 41.2 million shares of stock at a cost of $2.8 billion.

Fourth Quarter Highlights

Sales were up 10.5% to $4.76 billion from $4.31 billion in the prior year, including about 6% organic growth above the sales objective led by very strong performance in Personal Care.

- Earnings dropped 6% to $456 million from $482.6 million in the prior year, though earnings per share were up 2% to $1.07 due to an 8% reduction in share count.
- Profitability was impacted by significant cost inflation, which totaled about $115 million.
- Due to the run up in oil prices, the inflationary impact on the bottom line was several cents per share worse than plan.
- Notwithstanding the inflation, the firm is continuing to invest in strategic marketing, with spending up $10 million, supporting growth in areas such as Personal Care in the developing and emerging markets and Viva Towels in North America.

The firm delivered total savings of about $60 million and the ongoing FORCE program generated savings of $30 million, despite higher spending levels at some of the facilities.

- The company also realized $30 million of year-on-year benefit from the strategic cost reduction plan.
- Cash provided by operations was $685 million compared to $813 million in the prior year though the year on year comparison was impacted by the $123 million special dividend received in 2006 from K-C de Mexico following the sale of their pulp and paper business.
- Capital spending amounted to $213 million dollars, bringing the full year total to $989 million, in line with the long-term target of 5% to 6% of sales.
- The firm bought 3.9 million shares of KMB stock at a cost of about $269 million bringing the year to date total to 41.2 million shares of stock at a cost of $2.8 billion.
- Dividends paid out totaled $900 million.

Segment Highlights:

- In Personal Care sales climbed 16%, driven by strong volume growth of 10% and currency benefits of 5%.
- In North America, the firm delivered broad based volume growth of 10%-plus as the brands continue to benefit from innovation.

Huggies posted double-digit volume growth in both diapers and baby wipes fueled by premium tier innovations.

- Volumes also rose at a double-digit rate in child care with good early benefits from the new GoodNites Sleep Boxers and Sleep Shorts and in adult care, volumes advanced 7% behind improvements to both Poise and Depend.
- In Europe, sales volumes for Personal Care rose 3%. with growth led by Huggies diapers and baby wipes and the Pull-Ups and DriNites child care brands.
- Highlights included high teens volume growth in the fast-growing BRICET countries, double-digit volume growth in Latin America overall and also in South Korea.

- In Consumer Tissues sales rose 7%, including five points of benefit from currency while improved product mix and higher net selling prices each contributed one point of growth.
- In North America, sales volumes fell 1% though the firm had solid growth in bathroom tissue and paper towels, spurred by Scott Bath and Viva Towels.

That growth was offset by lower Kleenex facial tissue volumes in conjunction with a very slow start to the cold and flu season this year.

- Net selling prices in North American Consumer Tissue were off 2%, reflecting heightened levels of competitive promotion activity in premium bathroom tissue and support for Kleenex in anticipation of a seasonal pickup in volumes that has not yet occurred.
- Margins continue to be impacted by pulp cost inflation and profitability was also impacted by the higher trade promotion and weak cold and flu season in North America.