Highlights:

• Growth in net sales of 6 percent.
• Increase in operating profit of 13 percent.
• Increase in EBITDA of 12 percent.
• Growth in net income of 6 percent.

Third quarter results were good. Net sales grew 6 percent as a consequence of 3 percent volume growth and 3 percent better price and mix. Operating profit grew 13 percent, continuing with the positive trend that started 6 quarters ago. Net income grew 6 percent because last year we recorded a one-time positive adjustment in the income tax.
Consumer products, our main business, grew 8 percent derived from 5 percent volume growth and 3 percent better price and mix. We posted volume growth in almost all of our categories and had very strong growth in bath tissue, wet wipes and incontinence products. Professional products also posted significant growth. On the other hand, we had lower sales in the export business, as well as in master tissue rolls for the domestic market.
The slowdown in the world economy and particularly in the United States has caused a drop in raw material dollar prices. Although some of the decrease has been offset by the peso depreciation, the overall cost of some raw materials has decreased. This situation, in addition to our internal efforts to contain and reduce costs; the start-up of new investments focused on reducing costs; and the higher production volume with which we operated, derived in an operating profit gain of 13 percent.   
Net income before income tax grew 30 percent derived from the growth in operating profit and lower integral financing cost. Net income growth was 6 percent because last year we recorded a one-time income tax benefit.
During the quarter we generated an EBITDA of $1,908 million pesos, which is 12 percent higher versus prior year. In the last twelve months we made investments of $2,096 million pesos ($1,032 in capital expenditures (CAPEX), $1,064 in the re-purchase of stock), and paid out a dividend to our shareholders of $3,126 million pesos.

As of September 30th, 2009 we ended with $3,859 million pesos in cash.

Under US GAAP, quarterly results were as follows: net sales were 18 percent below last year; operating profit was down 12 percent and net income was down 27 percent versus last year.

As of September 30th, 2009, and as reported in the financial statements, the company has derivative financial instruments as a hedge to reduce the risk of the effects of its exposure to interest rates and the price of natural gas. Regardless of the market price of these instruments, their effect on the financial statements is not expected to be material.

On October 6th, the company issued marketable notes (Certificados Bursatiles) in an amount of $2,700 million pesos in two tranches as follows: $2,300 million pesos in a 5 year bullet maturity at TIIE plus 95 basis points and $400 million pesos at a 10 year bullet maturity at a fixed rate of 9.65%. This issuance will be used to pay a maturity of $2,700 million pesos due in April 2010.

Kimberly Clark de Mexico is engaged in the manufacture and commercialization of disposable products for daily use by consumers within and away-from-home, such as: diapers and child care products, feminine pads, incontinence care products, bath tissue, napkins, facial tissue, hand and kitchen towels, wet wipes and health care products. Some of the main brands include: Huggies®, Kleen-Bebé®, Kleenex®, Kimlark®, Pétalo®, Cottonelle®, Depend® and Kotex®.

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