10-KPeriod: FY2001

CHURCH & DWIGHT CO INC /DE/ Annual Report, Year Ended Dec 31, 2001

Filed March 28, 2002For Securities:CHD

Summary

Church & Dwight Co., Inc. (CHD) reported its fiscal year 2001 results in this 10-K filing. The company is a leading producer of sodium bicarbonate (baking soda) and a diversified consumer products company. In 2001, CHD significantly expanded its consumer product offerings through strategic acquisitions, notably the consumer products business of Carter-Wallace and the laundry brands XTRA and Nice'N Fluffy. These acquisitions bolster its position in the laundry detergent market and add prominent brands like ARRID Anti-Perspirant. The company continues to leverage its core ARM & HAMMER brand across various product categories, including household cleaning, personal care, and pet care, alongside its specialty chemical and animal feed additive businesses. The filing highlights CHD's extensive property portfolio, including manufacturing facilities across the US and internationally, and outlines its raw material sourcing for its core sodium bicarbonate production. While the company faced potential litigation related to the Carter-Wallace acquisition, it asserted that any ultimate liability would not materially affect its financial position.

Key Highlights

  • 1Significant strategic acquisitions in 2001, including the Carter-Wallace consumer products business and the XTRA and Nice'N Fluffy laundry brands, substantially increased the company's scale and market presence in consumer goods.
  • 2The ARM & HAMMER brand remains central to the company's identity, extending across a broad range of consumer products from household cleaning and personal care to pet care.
  • 3The company operates in two primary segments: Consumer Products (84% of sales in 2001) and Specialty Products (16% of sales in 2001).
  • 4CHD produces its core ingredient, sodium bicarbonate, at two main facilities in Green River, Wyoming, and Old Fort, Ohio, with established raw material sourcing for soda ash and carbon dioxide.
  • 5The company reported $21.8 million in R&D spending for 2001, an increase from the prior two years, indicating continued investment in product development and process technology.
  • 6The filing notes ongoing litigation regarding the Carter-Wallace acquisition appraisal rights, though the company believes its consideration was fair and the outcome is uncertain.
  • 7Approximately 90% of the company's sales revenues are derived from the United States.

Frequently Asked Questions

In 2001, Church & Dwight made significant strategic acquisitions. This included the purchase of the consumer products business of Carter-Wallace for $739 million, which brought in brands like ARRID Anti-Perspirant and Lambert Kay Pet Care. Additionally, the company acquired the laundry brands XTRA and Nice'N Fluffy, which solidified its position as the third-largest player in the U.S. laundry detergent market.

Church & Dwight operates in two main segments: Consumer Products and Specialty Products. In 2001, Consumer Products accounted for approximately 84% of the company's net sales, while Specialty Products contributed the remaining 16%.

The company's core product is sodium bicarbonate, also known as baking soda, for which it is a leading global producer. It manufactures sodium bicarbonate at its plants in Green River, Wyoming, and Old Fort, Ohio, using soda ash and carbon dioxide as primary raw materials.

The company is involved in a petition for appraisal related to the Carter-Wallace merger, filed by former shareholders seeking a determination of fair share value. While the company believes its offered consideration was fair, it cannot predict the outcome. The company also stated that other legal actions in the ordinary course of business are not expected to have a material adverse effect on its financial position or results of operations.