(Victorville) — Church & Dwight Co., the company parent to Arm and Hammer products recently reported net income for the quarter ended April 1, 2011 of $83.6 million or $1.15 per share, compared to last year’s reported net income of $80.0 million or $1.11 per share. Earnings per share increased 4%.
The Company has decided to relocate a portion of its Green River Wyoming operations to Victorville, California in the first half of 2012 pending final local approvals. Specifically, the Company will be relocating the cat litter manufacturing operations and the distribution center to this southern California site to be closer to transportation hubs and West Coast customers. The site will also produce liquid laundry detergent products. The new leased site is expandable to meet future business needs. The sodium bicarbonate operations and other consumer product manufacturing will remain at our Green River facility.
With respect to the new facility, James R. Craigie, Chairman and Chief Executive Officer said, “This move is part of our long-term commitment to expand gross margin by reducing complexity in our supply chain network and lowering manufacturing and distribution costs. The new facility will provide us with access to major population centers on the West Coast. This new site also will enable us to further expand both our liquid laundry and cat litter businesses and position our business to be among the industry leaders in low-cost production and distribution.”
The Company expects to invest approximately $30 million in capital expenditures and $8 million in transition expenses in connection with the opening of the Victorville site and the reduction in work force at our Green River facility. Capital expenditures related to the new project in 2011 are expected to be $11 million. The overall project is expected to result in charges that will reduce 2011 earnings by approximately $0.04 per share and 2012 earnings by approximately $0.03 per share. These charges relate primarily to accelerated depreciation of equipment at the Company’s Green River facility and one-time project expenses. The Company is maintaining its 2011 earnings outlook notwithstanding these charges.