Church & Dwight to Record 4th Quarter Non-Cash Tax Charge for a Deferred Tax Valuation Allowance
Church & Dwight Co., Inc. is exploring strategic options for its Specialty Chemical business in Brazil. The business, which has annual revenues of approximately $40 million, markets sodium bicarbonate, dairy products and other chemicals in Brazil. Due to the limited anticipated future profitability of this business, the Company will incur a non-cash charge to earnings of approximately $0.10 per share in the fourth quarter of 2011, reflecting the establishment of a valuation allowance against deferred tax assets.
Aside from the $0.10 charge, the Company remains confident in its previously announced full year earnings per share estimate for 2011.
Church & Dwight Co., Inc. manufactures and markets a wide range of personal care, household and specialty products under the Arm & Hammer brand name and other well-known trademarks.
This release contains forward-looking statements including, among others, statements regarding a non-cash charge related to the Brazilian business and the Company's earnings per share estimate. These statements represent the intentions, plans, expectations and beliefs of the Company, and are subject to risks, uncertainties and other factors, many of which are outside the Company's control and could cause actual results to differ materially from such forward-looking statements. The uncertainties include assumptions as to market growth and consumer demand (including the effect of political and economic events on consumer demand), retailer actions in response to changes in consumer demand and the economy, raw material and energy prices, the financial condition of major customers and suppliers, interest rate and foreign currency exchange rate fluctuations, changes in marketing and promotional spending and unanticipated financial results of the Brazilian operations. Other factors that could materially affect actual results include the outcome of contingencies, including litigation, pending regulatory proceedings, environmental matters and the acquisition or divestiture of assets. For a description of additional factors that could cause actual results to differ materially from the forward looking statements, please see the Company's quarterly and annual reports filed with the SEC, including information in the Company's annual report on Form 10-K in Item 1A, “Risk Factors”.
Church & Dwight Co., Inc.
Maureen K. Usifer, 609-683-5900
Vice President Investor Relations