Church & Dwight Reports 2Q Results

Church & Dwight Co. reported net income for the second quarter ended July 2 was $19.6 million,compared to $24.6 million in the year-ago period. These results include pretax accounting charges of$12.1 million resulting from the previously announced acquisition of the remaining 50% interest inArmkel LLC on May 28.

Last year’s results included a net $0.13 a share gain primarily related to the settlement of litigationand the release of prior-year tax reserves resulting from the settlement of a state tax dispute. Excludingthese items, this year’s adjusted second quarter net income would have been $0.62 a share, $0.16 ashare (35%) above last year’s adjusted $0.46 a share.

James R. Craigie, newly appointed president and chief executive officer, said, “We are pleased withthe strong first half, led by improved sales growth and gross margins, which was accomplished whilecompleting the Armkel acquisition. As a result of this performance, and in line with our plans, weexpect to increase investment spending in the second half. We are also raising our earnings objectivefor the year to $2.10-2.12 a share pre-split on a GAAP basis, from the previously announced $2.07-2.10a share.”

Second quarter sales increased $340.8 million from last year’s $256.3 million in the comparable period.Second quarter gross profit margin of 35.1% was 4% higher than last year, mostly due to the additionof the higher-margin Armkel and oral care businesses, according to company executives.