Church & Dwight: Fourth Quarter EPS Rose 11% to $0.30 and Full-Year EPS Rose 16.5% to $1.20 Before Previously Announced Plant Shutdown Costs.

Business Editors

PRINCETON, N.J.--(BUSINESS WIRE)--Feb. 2, 2001

Company Expects More Moderate Profit Growth for 2001

Declares 400th Regular Quarterly Dividend

Church & Dwight Co., Inc. (NYSE:CHD) today reported fourth quarter net income of $10.7 million or $0.27 per share, after previously announced plant shutdown costs, compared to $11.2 million or $0.27 per share in the same period last year. The plant shutdown costs, consisting of additional depreciation and other costs related to the planned shutdown of the Company's Syracuse, NY plant, amounted to $2.0 million or $0.03 per share. Adjusting for this unusual item, net income per share rose 11% to $0.30 for the quarter.

Sales increased 6.1% to $196.9 million from $185.5 million in the comparable fourth quarter last year. During the quarter, the Company adopted EITF 00-10, "Accounting for Shipping and Handling Fees and Costs". The impact to both periods was an increase in sales and cost of sales of approximately $2.5 million and did not affect net income. Consumer products rose 7.5% led by growth in laundry and cat litter, and the addition of the bathroom cleaners acquired in late 1999, partially offset by lower deodorant and gum sales. Specialty products, which include specialty chemicals and animal nutrition products, were essentially unchanged from the same quarter last year.

During the quarter, the Company continued the sell-in of several items introduced in the third quarter: ARM & HAMMER(R) Sensation(TM) toothpaste, ARM & HAMMER DENTAL CARE(R) Kids Gum, an "invisible solid" line extension to ARM & HAMMER Deodorant Anti-Perspirant, and an ARM & HAMMER Shaker baking soda package. These items should all reach broad national distribution in the first quarter of 2001. Early this year, the Company introduced ARM & HAMMER Advance White(TM) Gum, a companion product to the highly successful ARM & HAMMER Advance White(TM) toothpaste which, together with the Kids Gum, is part of a strategy of differentiating the gum line by end benefits to the consumer. The Company also introduced ARM & HAMMER Vacuum Free(TM) Foam Carpet Deodorizer, a companion product to ARM & HAMMER Carpet & Room Deodorizer. Other marketing initiatives in the laundry area are described in the ARMUS section below.

Commenting on these results, Mr. Robert A. Davies, III, President and Chief Executive Officer said, "The fourth quarter was our strongest quarter of the year in terms of retail performance with consumer sales of our toothpaste, laundry and cat litter products significantly out-pacing their categories. These results provide a solid foundation for growth in 2001."

For the full year, Church & Dwight reported net income of $33.6 million or $0.84 per share, compared to $45.4 million or $1.11 per share in the previous year. Both years included a few significant unusual items. The 2000 results included a $21.9 million plant shutdown charge in the third quarter and the previously mentioned $2.0 million plant shutdown costs in the fourth quarter. These costs were partially offset by a $1.2 million gain on deferred compensation in the first half of the year, for a net cost of unusual items of $22.7 million or $0.36 per share. The previous year included a net gain of $5.2 million or $0.08 per share from the sale of mineral reserves partially offset by an impairment charge related to a plant closing. Excluding these unusual items, net income increased $5.5 million or 13.1% to $47.7 million from $42.2 million, and diluted earnings increased 16.5% to $1.20 per share from $1.03 per share in the previous year.

Sales increased 7.5% to $795.7 million from $740.2 million, with consumer products up 8.0% and specialty products up 5.5%. The impact of the previously mentioned EITF was an increase in sales and cost of sales for 2000 and 1999 of approximately $9.9 million and $10.1 million respectively. Excluding brands and businesses acquired in 1999, the growth rate for existing products was 1.8%.

Cash flow was exceptionally strong due in part to a significant reduction in inventory levels. As a result, the Company reduced its net debt position for the year by $51.2 million to $9.4 million at year-end 2000. This improvement occurred even after spending $20 million for the repurchase of Company stock and investing $10 million in acquiring USA Detergents, Inc. (NASDAQ:USAD) stock in advance of the ARMUS venture.

ARMUS LLC, THE JOINT VENTURE WITH USAD

As previously announced, the ARMUS Joint Venture became operational on January 1, 2001, creating the third largest entity in the $6 billion U.S. laundry detergent business with sales of around $400 million. Under the terms of the agreement, Church & Dwight has management control of the venture and will therefore consolidate 100% of its sales and earnings, while reporting USAD's share as a minority interest. As a result, Church & Dwight's sales should reach $1 billion for the first time this year.

The partners consolidated their sales organizations in September 2000. On January 1, 2001, Church & Dwight assumed responsibility for the venture's order processing, billing and accounting functions. The Company has already begun to shift production of ARM & HAMMER Liquid Laundry Detergent from its Syracuse plant, which is expected to close at quarter-end, to the USAD plants in North Brunswick, NJ and Harrisonville, MO. Over the next few months, the Company will consolidate distribution activities at four major distribution centers located at the two USAD sites as well as the Church & Dwight plants in Green River, WY and Old Fort, OH. This process should be completed in the third quarter. ARMUS expects to realize additional synergies from changes in product formulation and packaging in the fourth quarter.

As previously announced, the Company expects the synergies from the venture potentially to reach an annual rate of $15 million a year once the venture is fully operational in late 2001, of which the Company's share is approximately 60%. In achieving the synergies, the Company expects to incur approximately $3 million, or $0.05 per share, in additional depreciation and ARMUS start-up costs before the full synergies are realized, which means that the venture will only be slightly accretive to earnings in 2001.

ARMUS has also taken two major marketing initiatives. Late in 2000, the venture launched "Mountain Scents", a high-fragrance addition to the Arm & Hammer Powder and Liquid Laundry Detergent line; and early in 2001, it introduced a "Classic" half cup Arm & Hammer Liquid Laundry Detergent, which will be sold in selected high-development liquid markets.

Mr. Davies continued, "Although we have a great deal of work ahead, particularly in the logistics area, I believe we are well over the halfway point in the integration process and look forward to a successful conclusion in the fourth quarter.

"In addition to the product launches already announced in late 2000 and early 2001, we have at least one more product initiative planned for ARMUS this year, as well as a series of new product initiatives in oral care and deodorization, including a potential entry into a new category. Bearing in mind this high level of investment, as well as the fact that the full benefit from ARMUS will not be realized until late in the year, I believe that profit growth for the year will be more moderate than in 2000, and that earnings per share before the additional plant depreciation and ARMUS start-up costs will be at the lower end of the current range of research analysts' estimates of $1.29 to $1.35 per share."

Mr. Davies noted that the current management team has now been together for five years, during which sales increased at an average rate of 9.5% a year, almost 70% of it from internal product development rather than acquisitions. This combination of sales growth, with a doubling of the Company's operating margin, increased EPS by an average of 30% a year, excluding unusual items.

Mr. Davies added, "With the formation of the ARMUS venture, the Company has defined new objectives for the three-year period beginning in 2001. These objectives center on continued development of three primary strategic thrusts: serious oral care, deodorization and odor absorption, and major laundry detergent force. The Company continues to see substantial opportunity in all three areas. Accordingly, the new three-year goals are for the Company to continue to produce organic sales growth well above the growth rate of our major markets, while continuing to improve operating margins which are still well below those achieved by most of our leading competitors."

Mr. Davies concluded, "Based on these new sales and margin goals, we believe that an average annual growth in earnings of at least 12-15% is a realistic objective for the three-year period 2001-03."

The Company also reported that, at its January 31st meeting, its Board of Directors has declared a regular quarterly dividend of $0.07 per share. This distribution marks the Company's 400th regular quarterly dividend.

Church & Dwight will host a conference call to discuss fourth quarter 2000 earnings with the investment community on February 2 at 8:15 a.m. (EST). To listen, please visit the Investor Relations section of the Company's web site at www.churchdwight.com or dial in at 888-745-2832. A replay will be available shortly after the call through February 4. The replay number is 800-642-1687, access code 662332. In addition, the replay can be heard at www.churchdwight.com.

                       Church & Dwight Co., Inc.
                        Product Line Net Sales
                         Dollars in Thousands


                                       Three Months Ended
                                  Dec. 31, 2000   Dec. 31, 1999
                                 -----------------------------

Laundry & HH Cleaning            $    76,177       $    66,101
Oral & Personal Care             $    36,143       $    37,023
Deodorizing                      $    44,036       $    42,274

Total Consumer                   $   156,356       $   145,398

Specialty Chemicals              $    27,688       $    27,243
Animal Nutrition                 $    16,907       $    16,675
Specialty Cleaners               $     1,893       $     2,367

Total Specialty Products         $    46,488       $    46,285

Total Internal
Sales                            $   202,844       $   191,683

Unconsolidated
Affiliates                       $    (5,924)      $    (6,168)

Total External
Sales                            $   196,920       $   185,515
                                   =============================


                                      Twelve Months Ended
                                  Dec. 31, 2000   Dec. 31, 1999
                                 -----------------------------

Laundry & HH Cleaning           $    308,934      $    270,112
Oral & Personal Care            $    155,782      $    159,782
Deodorizing                     $    169,403      $    157,050

Total Consumer                  $    634,119      $    586,944

Specialty Chemicals             $    110,671      $    105,499
Animal Nutrition                $     67,880      $     64,423
Specialty Cleaners              $      8,086      $      9,797

Total Specialty
Products                        $    186,637      $    179,719

Total Internal
Sales                           $    820,756      $    766,663

Unconsolidated
Affiliates                      $    (25,031)     $   (26,482)

Total External
Sales                           $    795,725      $    740,181
                                   =============================



      Restated for EITF No. 00-10 "Accounting for Shipping and Handling
Fees and Costs"


            CHURCH & DWIGHT CO., INC. AND SUBSIDIARIES
            Condensed Consolidated Statements of Income

                                             Three Months Ended
(In thousands, except
 per share data)                   Dec. 31, 2000        Dec. 31, 1999


Net Sales                         $  196,920        $     185,515
Cost of sales                        115,979              105,824

Gross profit                          80,941               79,691
Advertising, consumer
 and trade
 promotion expenses                   39,471               39,796
Selling, general and
 administrative expenses              25,620               22,301
Gain on sale of mineral
 rights                                    -                    -
Impairment and other items                 -                  427

Income from Operations                15,850               17,167
Equity in earnings of
 affiliates                              978                1,045
Other income (expense),
 net                                    (351)                (456)
Income before taxes                   16,477               17,756
Income taxes                           5,826                6,491
Minority Interest; net of
 taxes                                   (37)                 108

Net Income                       $    10,688        $      11,157
Net Income per share -
 Basic                                 $0.28                $0.29
Net Income per share -
 Diluted                               $0.27                $0.27

Dividend per share                     $0.07                $0.07
Weighted average shares
 outstanding - Basic                  38,216               38,829
Weighted average shares
 outstanding - Diluted                39,912               41,424



              Condensed Consolidated Statements of Income

                                         Twelve Months Ended
(In thousands, except
 per share data)                 Dec. 31,  2000      Dec. 31, 1999
                                ----------------     --------------
Net Sales                        $   795,725          $   740,181
Cost of sales                        450,321              414,486

Gross profit                         345,404              325,695
Advertising, consumer
 and trade
 promotion expenses                  178,614              176,123
Selling, general and
 administrative expenses              92,718               87,047
Gain on sale of mineral
 rights                                    -              (11,772)
Impairment and other items            21,911                6,617
Income from Operations                52,161               67,680
Equity in earnings of
 affiliates                            3,011                6,366
Other income (expense),
 net                                  (3,011)              (1,343)
Income before taxes                   52,161               72,703
Income taxes                          18,315               26,821
Minority Interest; net of
 taxes                                   287                  525

Net Income                       $    33,559          $    45,357
Net Income per share -
 Basic                                 $0.88                $1.17
Net Income per share -
 Diluted                               $0.84                $1.11

Dividend per share                     $0.28                $0.26
Weighted average shares
 outstanding - Basic                  38,321               38,792
Weighted average shares
 outstanding - Diluted                39,933               41,043



 [pilcrow (paragraph sign)]   Net Sales and Cost of sales have been restated to
reflect impact
 of EITF No. 00-10 "Accounting for Shipping and Handling Fees and
 Costs".



              CHURCH & DWIGHT CO., INC. AND SUBSIDIARIES
                 Condensed Consolidated Balance Sheets


(Dollars in thousands)           Dec. 31, 2000        Dec. 31, 1999

Assets
 Current Assets
Cash, equivalents and
  securities                     $    24,563          $    23,765
 Accounts receivable                  64,958               64,505
 Inventories                          55,165               72,670
 Other current assets                 16,473               14,843

 Total Current Assets            $   161,159          $   175,783

 Property, Plant and
 Equipment (Net)                     168,570              182,219
 Note Receivable                           -                3,000
 Equity Investment in
 Affiliates                           21,801               20,177
 Intangibles and other
 assets                              102,734               95,127

 Total Assets                    $   454,264          $   476,306

 Liabilities and
 Stockholders'
 Equity

 Current Liabilities             $   147,886          $   140,608
 Long-Term Debt                       20,136               58,107
 Other Long-Term
 Liabilities                          51,592               50,858
 Stockholders' Equity                234,650              226,733


Total Liabilities and
Stockholders' Equity             $   454,264          $   476,306

Church & Dwight Co., Inc. is the manufacturer of ARM & HAMMER consumer and specialty products.

This release contains forward-looking statements relating, among others, to financial objectives, sales growth and cost improvement programs. Many of these statements depend on factors outside the Company's control, such as economic conditions, market growth and consumer demand, competitive products and pricing, raw material costs and other matters. With regard to new product introductions, there is particular uncertainty related to trade, competitive and consumer reactions. If the Company's assumptions are incorrect, or there is a significant change in some of these key factors, the Company's performance could vary materially from the forward-looking statements in this Report.

Church & Dwight Co., Inc. Declares 400th

Regular Quarterly Dividend

Church & Dwight Co., Inc. (NYSE:CHD), manufacturer of ARM & HAMMER(R) consumer and specialty products, today reported that the Board of Directors declared a regular quarterly dividend of 7 cents per share. This dividend will be payable March 1, 2001 to stockholders of record at the close of business on February 8, 2001. This is the Company's 400th regular quarterly dividend.