Consumer products company Church & Dwight Co., Inc. (CHD), Tuesday, reported an increase in profit for the fourth quarter driven by sales growth, lower commodity costs, price increases and cost reduction programs. Adjusted earnings per share came in above analysts' estimates, and the company also issued an earnings forecast for 2010, which is better than market view.
For the quarter, net income attributable to the company increased to $52.78 million or $0.74 per share from $44.23 million or $0.62 per share in the prior-year period.
Excluding plant restructuring charges of $10.7 million or $0.09 per share in the quarter and $4.4 million or $0.04 per share last year, earnings increased 26% to $0.83 per share. On average, 14 analysts polled by Thomson Reuters expected $0.80 earnings per share for the quarter. Analysts' estimates typically exclude special items.
The company has completed its new integrated laundry detergent manufacturing plant and distribution center in York County, Pennsylvania and closed its North Brunswick, New Jersey complex. The aforementioned restructuring charges pertain to these developments.
The Princeton, New Jersey-based company reported a 4% rise in net sales for the fourth quarter to $670.78 million from $644.9 million last year. On average, 10 analysts expected sales of $660.64 million for the period. Organic sales grew 2.8% for the group and 4.9% for total domestic and international consumer business.
Segment wise, consumer domestic sales were $493.8 million, 3.4% above $477.7 million generated last year, a result of higher sales of the company's brands. Consumer international sales improved 17.9% to $112.1 million from $95.1 million, primarily driven by increases in Canada, Australia and Brazil.
Specialty Products sales declined 10.1% to $64.8 million, hurt by continuing lower U.S. milk prices that have resulted in significantly lower volumes in the animal nutrition business.
Excluding the plant restructuring charge, gross margin was 44.1% in the fourth quarter, a 400 basis point improvement from 40.1% in the prior year fourth quarter, reflecting lower commodity costs, price increases and the benefits of cost reduction programs.
For the full year, net income attributable to the company grew to $243.53 million or $3.41 per share from $195.17 million or $2.78 per share in the previous year.
Earnings per share increased 22% to $3.48 per share, excluding the plant restructuring charges and a favorable legal settlement. On average, 14 analysts expected full-year earnings of $3.45 per share.
Net sales for the year increased 4.1% to $2.52 billion from $2.42 billion last year. Eleven analysts were looking for revenues of $2.51 billion.
Organic sales growth was 4.7% for the total company and 6.8% for total domestic and international consumer business, excluding the impact of foreign exchange rate changes, acquisitions and divestitures.
For 2010, the company currently forecasts earnings in a range of $3.93 to $4.00 per share, which is an increase of 13% to 15%, excluding plant restructuring charges and the favorable litigation settlement in 2009. Analysts currently have a consensus of $3.88 for the next year.
James Craigie, chairman and chief executive officer, commented, "On top of the extraordinary gross margin gains achieved in 2009, we expect continued margin expansion in 2010 which will be driven largely by the efficiencies from our new liquid laundry detergent facility in Pennsylvania."
CHD shares closed Monday's regular trading at $60.57 on the NYSE.
For comments and feedback contact: editorial@rttnews.com
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.