Kimberly-Clark 2008 Annual Report Download - page 9

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The strength of our financial position continued to serve
us well.
We were encouraged that cash provided by operations rose about 4 percent
to $2.5 billion. Our cash flow allowed us to repurchase $625 million worth
of our shares during the year and to provide a top-tier dividend payout and
a strong yield. In fact, the 3.4 percent increase we have announced for 2009
marks the 37th consecutive year Kimberly-Clark has raised its dividend.
The health of our cash flow and balance sheet gave us ready access to
credit, and demand for our commercial paper remained steady, even amid
the financial market turbulence in the fourth quarter.
Cash flow funded our buy-out of the remaining interest from our minority
partner in the Andean region in early 2009 and also will be used to fulfill
our commitment to improve funding levels of our pension plans in 2009.
The road ahead
As we enter a new year, our success will require a shift in priorities. The effects
of the global economic weakness we experienced in 2008 will likely persist
throughout 2009. Consequently, we will be solidly focused on managing and
generating cash flow, and on margin improvement.
Meanwhile, we remain committed to doing the right things for the long-term
health of our business. Despite volatility in markets around the world, our
financial position remains solid. I’m confident we will emerge from this
challenging period strengthened—and in a position to generate growth for
the benefit of our shareholders.
For 137 years, Kimberly-Clark and its brands have been a vital part of
healthy, active lives the world over. We intend to remain “simply essential”
to consumers for many years to come.
Thomas J. Falk
Chairman and Chief Executive Officer
February 27, 2009
7
STRONG VOLUME GROWTH
IN BRICIT* COUNTRIES
2004 2005 2006 2007 2008
180
160
140
120
100
D&E Overall
BRICIT
2004 Volume Indexed to100.
*Brazil, Russia, India, China,
Indonesia, Turkey