<B>K-C, Caraustar Post Quarterly Figures</B>

>Kimberly-Clark Corp. said second-quarter profit beat analysts' forecasts on higher sales of facial tissues and bathroom tissues and lower costs.

Sales rose by about 10 percent to an estimated $3.46 billion from $3.15 billion. K-C also lowered costs by reducing the number of package sizes and products in Europe.

Sales were boosted by acquisitions in the health-care field, including its purchase of Safeskin Corp.

In the 1999 period, Kimberly-Clark earned $38.7 million. The year-earlier period included a gain of $5.4 million on the sale of a pulp mill in Spain, resulting in net income of $391.1 million.

Caraustar Industries reported revenues for the second quarter ended June 30 were $255.1 million, an increase of 20.1 percent over revenues of $212.5 million for the same quarter of 1999. Net income was $9.5 million, down 8.2 percent compared to second quarter 1999 net income of $10.3 million.

For the six-month period, revenues were $503.6 million, a 25.9 percent improvement over revenues of $400 million for the first half of 1999. Net income decreased to $11.6 million in the first six months, compared with $21.7 million in the first half of 1999.

Total unit volume in the mills and converting businesses increased to 294,000 tons in the second quarter of 2000, compared to the second quarter of 1999, primarily as a result of acquisitions. Mill volume decreased 2.3 percent to 265,000 tons.

Thomas Brown, president and CEO, noted, "Earnings in the second quarter improved significantly over the first quarter of 2000, but the improvement was less than anticipated primarily due to a sharp run-up in fiber costs. Fiber costs, which were expected to stabilize in the quarter, actually grew substantially, while price increases were slow to materialize in some business segments. As we enter the third quarter, fiber costs have dropped back to first quarter levels mainly due to reduced export demand. Mill volumes for the second quarter were essentially unchanged while converting volumes were improved compared to the first quarter of this year." Brown added, "Our general expectations are for continued improvement over the second quarter through lower fiber costs, steady volume and higher selling prices."

Brown continued, "The rebuilt Newport mill joint venture is on schedule for early August start-up following a three-week shutdown for final modifications. We anticipate a reasonable start-up on containerboard grades with a gradual introduction of gypsum facing paper into the mill's product mix over the course of the current quarter."