Kimberly-Clark 2007 Annual Report Download - page 41

PART II
(Continued)
volumes in North America led by advances for Kleenex, Scott and Cottonelle washroom brands and
Kimtech and WypAll wiper brands. Higher net selling prices added about 1 percent to the increase in
net sales and favorable currency effects contributed over 3 percent.
• Worldwide net sales of health care products declined about 2.5 percent. Improved product mix of about
1 percent and favorable currency effects of the same magnitude partially offset a decline in sales
volumes of about 5 percent. The decrease in sales volumes was mainly attributable to a higher level of
sales of face masks last year primarily due to avian flu preparedness and the impact of the Corporation’s
decision in the second half of 2006 to exit the latex exam glove business. During 2007, the Corporation
made progress in transitioning customers and users from latex to its higher-margin, clinically-preferred
nitrile gloves. Sales of exam gloves improved sequentially in the fourth quarter of 2007 versus the third
quarter 2007 levels. Nevertheless, the growth in sales of nitrile gloves did not compensate for the
drop-off in sales of latex gloves, due in part to supply constraints earlier in 2007 and competitive market
conditions. In other areas of the business, sales of medical devices, particularly Ballard respiratory
catheters, generated high single-digit improvement.
2006 versus 2005
Percent Change in Net Sales Versus Prior Year
Total
Change
Changes Due To
Volume
Net
Price Currency
Mix/
Other
Consolidated ............................................. 5.3 2 1 1 1
Personal Care ............................................. 7.2 6 (1) 1 1
Consumer Tissue .......................................... 3.5 (1) 3 1 1
K-C Professional & Other ................................... 5.3 1 2 1 1
Health Care .............................................. 7.6 6 1 — 1
Consolidated net sales increased 5.3 percent from 2005. Sales volumes rose more than 2 percent, driven by
growth in the personal care and health care segments. Net selling prices increased more than 1 percent, as higher
net selling prices for consumer tissue were partially offset by lower net selling prices for personal care. Favorable
currency effects, primarily in Korea and Brazil, and improved product mix each added about 1 percent.
• Worldwide net sales of personal care products increased 7.2 percent due to higher sales volumes, with
each of the regions contributing to the increase, favorable currency effects and improved product mix,
partially offset by lower net selling prices.
In North America, net sales increased about 4 percent principally resulting from higher sales volumes
for disposable diapers, continued growth in child care products—GoodNites youth pants and Pull-Ups
training pants—Huggies baby wipes and incontinence care products, partially offset by continued lower
feminine care sales volumes. Lower net selling prices of about 1 percent due to competitive pressures
were partially offset by a favorable Canadian dollar currency effect.
Net sales in Europe were even with the prior year as higher sales volumes were offset by lower net
selling prices. Increased sales volumes, primarily for disposable diapers, were tempered by lower sales
volumes for feminine care products.
In the developing and emerging markets, net sales grew 14 percent with each of the regions contributing
to the increase. The overall increase was driven by more than 9 percent higher sales volumes reflecting
double-digit growth in Latin America and the Middle East, Africa and Eastern Europe. Favorable
product mix, led by results in Korea, and favorable currency effects, primarily in Korea and Brazil, each
added about 2 percent to the net sales gain.
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