Design Reflects Company's Commitment to Environmentally-Responsible Manufacturing
PRINCETON, N.J.--(BUSINESS WIRE)--June 5, 2008--Church & Dwight
Co., Inc. (NYSE:CHD) today announced plans to construct a new
integrated laundry detergent manufacturing plant and distribution
center in York County, Pennsylvania. Construction will begin in
September 2008 and the site is scheduled to be operational by the end
of 2009. In conjunction with the opening of the new facility, the
Company will close its existing laundry detergent manufacturing plant
and distribution buildings in North Brunswick, New Jersey.
"Our strategically important fabric care business has grown
substantially over the past ten years, both organically and through
acquisitions such as the Orange Glo International, Inc. brands
acquired in 2006," said James R. Craigie, Chairman and Chief Executive
Officer. "This new site will allow us to continue to grow our fabric
care business in a facility that can handle the current and
anticipated additional base volume growth for our core businesses,
support future potential acquisitions and position our business to be
among the industry leaders in low-cost production and distribution in
the future. Since our fabric care business is our largest business,
this initiative will play a key role in helping to drive our long-term
goals for revenue growth and gross margin expansion. Specifically, the
new site is designed to significantly reduce production and
distribution center costs, and is expected to support the Company's
annual goal of expanding gross margin by approximately 100 basis
points."
The facility will be located in Jackson Township in York County,
Pennsylvania, 100 miles from Philadelphia and will occupy an area of
roughly 232 acres with 1.1 million sq. ft. of building space with the
ability to expand to meet future business needs. The Company has
received a great deal of cooperation from local and state officials in
the Commonwealth of Pennsylvania on site development, building
construction, permits, and incentives.
The site design reflects Church & Dwight's long-standing concern
for the environment. The sustainability goals for the facility include
a 30% reduction in energy consumption, a 50% reduction in solid waste
and industrial effluent from manufacturing operations, and the use of
renewable energy sources for on-site processing needs. After a
year-long search, the Company chose the York County site for its
strategic location and its proximity to major highways and railroads.
The Company's existing North Brunswick complex is comprised of
five separate buildings which has created significant inefficiencies
and does not allow for expansion to handle expected future growth. The
Company plans to provide severance and transition benefits to
approximately 300 affected employees at North Brunswick, as well as
consideration for employment opportunities at other operations of the
Company.
The Company expects to invest approximately $170 million in
capital expenditures and transition expenses relating to the opening
of the York County site and the closing of the North Brunswick
complex. The Company intends to finance the project with a combination
of cash, debt and an existing line of credit.
The overall project will require charges which are expected to
reduce second half 2008 earnings per share by approximately $0.08 per
share and 2009 earnings by approximately $0.24 per share. These
charges relate primarily to accelerated depreciation of the North
Brunswick complex, severance and other one-time costs associated with
the closing of those operations.
Mr. Craigie concluded, "We are excited to be constructing this new
manufacturing plant and distribution facility which represents the
largest capital expenditure in the 165-year history of our great
company. This strategic investment will support the continued strong
growth of our company. Despite the recent increase in commodity costs,
we remain comfortable with our previously announced objective of
achieving $2.77 in earnings per share for 2008, before these project
charges, and remain confident in our long-term operating model of 3-4%
annual organic growth and 100 basis points of annual gross margin
expansion."
The Company will hold a conference call primarily for the
investment community, today, Thursday, June 5, at 8:30 a.m. Eastern
Time, to discuss the new plant. To listen in, dial 800-573-4842,
access code 97574879. Also, you can listen via webcast by visiting the
Investor Relations section of the Company's website at
www.churchdwight.com. A replay will be available two hours after the
call. The replay number is 888-286-8010, access code 23841014. In
addition, the replay can be heard on the Company's website.
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 relating, among
others, to the timing and the cost of the proposed new manufacturing
plant and distribution facility in York County, Pennsylvania and the
closing of the Company's facilities in North Brunswick, New Jersey,
the effect of the project and North Brunswick closing on earnings per
share and gross margin, the financing of the project, the severance
and transition benefits to be offered to affected employees, earnings
per share estimates for the remainder of 2008 and full year 2009,
future growth of the Company's household products businesses, the
environmental impact of the new site, and anticipated lower production
and distribution center costs associated with the new site. These
statements represent the intentions, plans, expectations and beliefs
of Church & Dwight, 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, including but not limited to the risks associated with the
successful consummation of the project contemplated hereby. The
uncertainties include assumptions as to market growth and consumer
demand (including the effect of political and economic events on
consumer demand), and raw material and energy prices. Other factors,
which could materially affect the results, include the outcome of
contingencies, including litigation, regulatory matters and
environmental matters. For a description of additional cautionary
statements, see Church & Dwight's quarterly and annual reports filed
with the SEC.
CONTACT: Church & Dwight Co., Inc.
Matthew T. Farrell, 609-683-5900
Chief Financial Officer
SOURCE: Church & Dwight Co., Inc.
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