Kimberly-Clark Corp. reported that sales for the fourth quarter of 2001 were about $3.7 billion, an increase of 2.0 percent compared with 2000. Excluding currency effects, sales rose about 3 percent.
The figures for the quarter were affected by a number of unusual charges. The changes relate primarily to the streamlining of manufacturing operations in Latin America, including the shutdown of four small, older plants, as well as the closure of a Technical Paper mill in the U.S. and the write off of excess manufacturing equipment and a one-time payment under a contract settlement agreement in North America.
In addition, the company recorded a pretax charge of approximately $17 million pursuant to an arbitration ruling released on January 21, 2002. The ruling resolves the first of two disputes related to the closure of the company's Mobile, Ala., pulp mill in 1999 and the supply of energy to the company's Mobile tissue mill.
A second arbitration ruling is expected at the end of the month. In total, the company recorded pretax charges of approximately $118 million, equivalent to 14 cents per share, in the fourth quarter of 2001. The unusual items in 2000 consisted of charges for business integration, improvement and other programs.