Net of related nonoperating expense, the tax benefits contributed $4 million to net income in 2006 versus $13 million in 2005. Excluding unusual items in the current year and the effects of the synthetic fuel activities in both years, the effective tax rate was 29.6 percent in the first quarter of 2006 compared with 29.5 percent last year.
Kimberly-Clark's share of net income of equity companies in the first quarter rose 14 percent to $39 million, driven by higher net income at Kimberly-Clark de Mexico, S.A. de C.V. Continued strong performance by its consumer business helped K-C de Mexico achieve double-digit growth in sales and operating profit before currency transaction expenses for the fifth straight quarter.
Savings of approximately $15 million were realized in the first quarter of 2006. Based upon successful efforts to date and plans for the balance of the year, the company now expects to deliver at least $100 million of savings in 2006, up from its previous objective for savings of $80 to $100 million. Pretax charges for the full year are expected to total approximately $550 million.
A conference call to discuss this news release and other matters of interest to investors and analysts will be held at 9 a.m. (CDT) today. The conference call will be simultaneously broadcast over the World Wide Web.
Kimberly-Clark and its well-known global brands are an indispensable part of life for people in more than 150 countries. Every day, 1.3 billion people nearly a quarter of the world's population trust K-C brands and the solutions they provide to enhance their health, hygiene and well-being. With brands such as Kleenex, Scott, Huggies, Pull-Ups, Kotex and Depend, Kimberly- Clark holds the No. 1 or No. 2 share position in more than 80 countries.
Kimberly-Clark Corporation
marketing@alchempro.com
