Summary
This 8-K filing from Church & Dwight Co., Inc. (CHD) on January 4, 2012, announces the exploration of strategic options for its Specialty Chemical business in Brazil. This segment, generating approximately $40 million in annual revenues, includes products like sodium bicarbonate and dairy items within the Brazilian market. Furthermore, the company has recognized a non-cash charge of approximately $0.10 per share in the fourth quarter of 2011. This charge stems from establishing a valuation allowance against deferred tax assets specifically related to the Brazilian Specialty Chemical business, indicating limited anticipated future profitability for this segment.
Key Highlights
- 1Church & Dwight is exploring strategic alternatives for its Brazilian Specialty Chemical business.
- 2The Brazilian Specialty Chemical business has annual revenues of approximately $40 million.
- 3Products within this segment include sodium bicarbonate, dairy products, and other chemicals.
- 4The company has established a valuation allowance against deferred tax assets for this business.
- 5This action is attributed to the limited anticipated future profitability of the Brazilian business.
- 6A non-cash charge of approximately $0.10 per share was recorded in Q4 2011 due to the valuation allowance.
Frequently Asked Questions
The primary reason for this filing is Church & Dwight's announcement that it is exploring strategic options for its Specialty Chemical business in Brazil.
The company incurred a non-cash charge of approximately $0.10 per share in the fourth quarter of 2011 due to establishing a valuation allowance against deferred tax assets related to this business, reflecting its limited anticipated future profitability.
The Specialty Chemical business in Brazil markets sodium bicarbonate, dairy products, and other chemicals within the Brazilian market. It generates approximately $40 million in annual revenues.
The filing indicates a $0.10 per share charge for the fourth quarter of 2011. While the strategic exploration of the Brazilian business aims to address limited future profitability, the ultimate impact on overall profitability will depend on the outcome of these strategic options.