Oct 9, 2007 12:28 pm US/Central
Huggies & Some Paper Towels Will Soon Cost More
Makers Of Kleenex, Huggies Cites Rising Material Costs
(AP)
Kimberly-Clark Corp., the maker of Kleenex tissues and Huggies diapers, said Tuesday it would raise prices next year to offset higher costs for raw materials and energy.
The company said that beginning Feb. 3 it will boost prices by 4 to 7 percent on Huggies diapers and swim pants, Pull-Ups training pants, Goodnites youth pants, Cottonelle and Scott bathroom tissue, and Scott and Viva paper towels.
Kimberly-Clark sells more than $4 billion of those items annually in the United States, about one-fourth of the company's total revenue.
The Irving-based consumer-products company said in July it had seen costs for pulp and other raw materials and energy rise by $165 million in the first six months of the year -- more than the $150 million it had budgeted for the entire year.
The company has tried to offset the higher costs by boosting sales and cutting other costs. It has also been helped by the weak U.S. dollar, which makes Kimberly-Clark products cheaper overseas.
In recent years, Kimberly-Clark has been locked in price wars with rival Procter & Gamble Co. for dominance in the diaper market.
Shares of Kimberly-Clark rose 12 cents to $70 in midday trading. They have ranged from $63.79 to $72.79 in the past 12 months.
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