KMB - Kimberly-Clark: Verdict Is Still Out On Restructuring Plans
2024-04-09 12:53:30 ET
Summary
- Kimberly-Clark is a leading consumer paper products company with leading market shares in several product categories.
- Stagnant sales growth and shrinking profits have led to poor stock performance for KMB, prompting a restructuring plan.
- The company hopes to deliver $3 billion in 'productivity gains' by incurring $1.5 billion in restructuring costs over 3 years.
- I am skeptical of the restructuring plans, as they appear overly aggressive, especially with respect to the 'productivity gains'.
The great investor Peter Lynch once said that investors should "buy what they know". What this means is that investors should buy companies they are familiar with so they can develop reasonable expectations about the companies' growth prospects....
Kimberly-Clark: Verdict Is Still Out On Restructuring Plans