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Church & Dwight Tops Estimate

The company posted 11% growth in earnings in the first quarter.

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On May 5, 2009,

Church & Dwight

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(CHD) - Get Church & Dwight Co., Inc. Report

reported an 11.4% increase in its Q1 FY09 earnings, helped by higher revenue and stringent costs control. Net income stood at $62.57 million or $0.88 per share compared to $56.19 million or $0.81 per share in the year-ago quarter. Excluding plant restructuring charges, the company earned $0.92 per share, which topped the consensus estimate of $0.87 per share.

Net sales grew 5.1% to $580.87 million from $552.87 million a year ago, reflecting organic growth of 6.0%. Additionally, unfavorable foreign exchange rates reduced sales by 4.1%, while acquisitions, net of divestitures, added 3.0% to revenue. Consumer Domestic revenue grew 14.5% to $438.09 million, led by 17.0% growth in household products and 10.1% growth in personal care products. The Consumer International segment's revenue dropped 17.0% to $82.76 million, hurt by the unfavorable impact of foreign currency rates and the divestiture of a subsidiary in Spain. Subsequently, total consumer net sales grew 8.0% to $520.85 million from $482.44 million in the prior year's quarter. Specialty Products Division sales decreased 14.8% to $60.02 million from $70.43 million, adversely impacted by unfavorable foreign exchange rates, the divestiture of Brotherton Speciality Products Ltd. and lower sales volumes in the animal nutrition business.

The company plans to open its new integrated laundry detergent manufacturing plant and distribution center during the fourth quarter of FY09. Additionally, the company announced plans to introduce over 20 new products in 2009. The company recently declared a quarterly dividend of $0.09 per share payable on June 1, 2009.

Looking forward to FY09, Church & Dwight raised its adjusted earnings guidance range to $3.30 per share to $3.35 per share, representing a 15.0% to 17.0% increase over FY08. Moreover, CHD expects to attain organic revenue growth of at least 3.0%.