8-KOther Events

CHURCH & DWIGHT CO INC /DE/ 8-K Report (May 7, 2004)

Filed May 7, 2004For Securities:CHD

Summary

Church & Dwight Co., Inc. (CHD) reported preliminary first quarter 2004 results showing significant year-over-year growth, with diluted net income per share increasing to $0.70 from $0.50 and revenues climbing 19% to $296 million. This strong performance was bolstered by the recent acquisition of Unilever's North American oral care business and a slightly longer fiscal quarter. In a separate, significant announcement, the company intends to acquire the remaining 50% interest in Armkel, LLC from its partner Kelso & Company for approximately $254 million. Armkel, which contributed $411 million in sales and $50.2 million in net income in 2003, is expected to be fully acquired by May 30, 2004. While this transaction will lead to non-cash accounting charges impacting second and third quarter earnings, management anticipates the acquisition to be earnings accretive by early 2005.

Key Highlights

  • 1Preliminary Q1 2004 diluted EPS increased to $0.70, up from $0.50 in Q1 2003.
  • 2Q1 2004 revenues grew 19% year-over-year to $296 million.
  • 3The company announced its intent to acquire the remaining 50% of Armkel, LLC for approximately $254 million.
  • 4Armkel's 2003 sales were $411 million with net income of $50.2 million.
  • 5The Armkel acquisition is expected to close around May 30, 2004, subject to customary conditions and financing.
  • 6Non-cash accounting charges are expected in Q2 and Q3 2004 due to the Armkel acquisition, with earnings accretion anticipated by early 2005.
  • 7Full Q1 results and further details will be released on May 11, 2004.

Frequently Asked Questions

Church & Dwight reported preliminary diluted net income per share of $0.70, an increase from $0.50 in the prior year. Revenues rose 19% to $296 million. The results benefited from the acquisition of Unilever's oral care business and a slightly longer fiscal quarter.

Church & Dwight intends to acquire the remaining 50% of Armkel, LLC for approximately $254 million, consolidating full ownership. Armkel was a significant contributor to sales and income in 2003, and this move will integrate it fully into Church & Dwight's operations.

The acquisition is expected to result in non-cash accounting charges in the second and third quarters of 2004, primarily related to inventory revaluation and deferred financing costs. However, the company anticipates the acquisition to become earnings accretive by early 2005.

Church & Dwight plans to release its full first quarter 2004 results and host an earnings conference call on Tuesday, May 11, 2004. Details on participation via dial-in or webcast will be provided on their Investor Relations website.