Gold prices steady ahead of Fed decision; weekly weakness noted
CHICAGO - Kimberly-Clark Corporation (NYSE: KMB), known for its consumer brands like Huggies and Kleenex, announced today that it will invest over $2 billion in its North America operations over the next five years. The company, currently valued at $43.2 billion and generating nearly $20 billion in annual revenue, appears undervalued according to InvestingPro analysis. For investors seeking deeper insights, InvestingPro offers comprehensive research reports covering this and 1,400+ other US stocks, transforming complex data into actionable intelligence. This investment, the largest domestic expansion in over three decades, aims to enhance U.S. manufacturing capacity and accelerate innovation to meet rising demand for its products.
The investment will fund two major projects: the construction of a new manufacturing facility in Warren, Ohio, and the expansion of the Beech Island, South Carolina site with a state-of-the-art automated distribution center. The Ohio facility is expected to serve as a key hub for the Northeast and Midwest regions, while the South Carolina center will support future scale and streamline distribution. This expansion comes as the company maintains a moderate debt level and has demonstrated strong dividend reliability, having maintained payments for 55 consecutive years with a current yield of 3.8%.
These initiatives are set to create more than 900 jobs in areas such as industrial automation and advanced manufacturing. Russ Torres, Group President of Kimberly-Clark North America, emphasized the investment as a strategic commitment to the American consumer and the company’s growth plans.
Governor Mike DeWine of Ohio and Governor Henry McMaster of South Carolina both expressed their states’ enthusiasm for Kimberly-Clark’s investment, citing the positive impact on local economies and workforce development.
The new facilities will incorporate advanced robotics, AI logistics systems, and high-density automated storage to improve operational efficiency and market responsiveness. Tamera Fenske, Kimberly-Clark’s Chief Supply Chain Officer, highlighted that these investments are part of the company’s broader supply chain transformation, aiming to optimize its network.
Construction for both facilities is scheduled to begin in May 2025, with completion expected within 2-3 years. This move follows a year after Kimberly-Clark launched its most comprehensive company-wide transformation initiative in its 150-year history.
The announcement is based on a press release statement and contains forward-looking statements that are subject to various risks and uncertainties, including but not limited to the ability to achieve cost savings, volume increases, and the successful implementation of the investment plans. InvestingPro data reveals the company maintains a GOOD overall financial health score, though 14 analysts have recently revised their earnings expectations downward. Discover more exclusive insights and 8 additional ProTips about Kimberly-Clark’s financial outlook with an InvestingPro subscription.
In other recent news, Kimberly-Clark Corporation reported its first-quarter earnings for 2025, revealing a slight beat on earnings per share (EPS) with $1.93 against a forecast of $1.90. However, the company’s revenue fell short of expectations, recording $4.84 billion compared to the anticipated $4.88 billion. This revenue shortfall has led to a revision in Kimberly-Clark’s guidance, with EPS growth now expected to be flat for the year, down from a previously anticipated 6.5%. The company is facing a $300 million cost of goods sold headwind, primarily due to U.S. tariffs and retaliatory measures impacting its cost structure.
RBC Capital Markets has responded to these developments by adjusting their outlook on Kimberly-Clark shares, reducing the price target from $165.00 to $162.00, but maintaining an Outperform rating. Despite the revenue challenges, Kimberly-Clark managed to meet margin expectations, which RBC Capital attributes to the company’s effective new operating model. The firm believes that Kimberly-Clark’s ability to surpass EPS expectations signals operational strength.
Kimberly-Clark has announced a mitigation strategy to address the tariff impacts, focusing on network optimization to alleviate these economic pressures, although this process is expected to take a few quarters. The company remains committed to its long-term margin targets, aiming for a 40% gross margin by decade-end and an 18-20% operating profit margin. Despite these challenges, Kimberly-Clark continues to focus on product differentiation and innovation to maintain its competitive position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.