Church & Dwight Reports 2005 Earnings of $1.83 Per Share; Fourth Quarter GAAP Earnings Increased on Strong Sales Growth

Church & Dwight Co., Inc. (NYSE:CHD) today reported netincome for the year ended December 31, 2005 of $122.9 million or $1.83per share, an increase of $0.47 per share or 35% over last year's$88.8 million or $1.36 per share. Last year's results includedinventory step-up and debt refinancing charges of $0.30 per sharerelated to the acquisition of the 50% interest in Armkel which theCompany did not already own prior to May 28, 2004. Excluding thesecharges, this year's earnings of $1.83 per share would have been $0.17per share or 10% higher than last year's adjusted $1.66 per share.

James R. Craigie, President and Chief Executive Officer,commented, "We are satisfied with this year's earnings growth whichwas achieved in a tough cost environment. Although our gross margindeclined in 2005 after several years of steady growth, with theaggressive pricing and other actions recently taken, we expect to beable to achieve significant margin improvement in 2006."

Fourth quarter net income was $16.2 million or $0.25 per share, anincrease of $0.07 per share from last year's net income of $11.9million or $0.18 per share. As previously announced, this year'sfourth quarter results included charges of over $17 million related tothe shutdown of a small plant in Europe, restructuring activity atseveral other locations, and hurricane-related costs, more fullydescribed below; last year's results included a $14.9 million chargerelated to the early redemption of long-term debt.

Fourth quarter sales increased to $431.3 million, a $26.3 millionor 6.5% increase over last year's $405.0 million. Excluding the effectof foreign exchange fluctuations, promotion reserve adjustments, and aminor acquisition, organic sales growth for the quarter was also 6.5%.

At the product line level, fourth quarter household products salesincreased 7% due to strong growth for liquid laundry detergent and petproducts; and personal care sales increased 2% due to higher sales forcondoms and diagnostic kits, partially offset by lower sales fortoothpaste and antiperspirants. Consumer international sales were 9%higher, led by growth in Canada, Mexico and Brazil. Specialty productssales increased 8% due to growth in animal nutrition and specialtychemicals.

At the brand level, sales of Arm & Hammer(R) and Xtra(R) liquidlaundry detergent, Arm & Hammer Super Scoop(R) cat litter, Trojan(R)condoms and First Response(R) pregnancy kits were all substantiallyhigher than last year.

Full year reported sales of $1,736.5 million were 19% above lastyear's sales of $1,462.1 million which excluded Armkel sales prior toits acquisition in May, 2004. On a comparable basis, including salesfor the former Armkel business in the first five months of 2004 aswell as the previously noted adjustments, organic sales growth for theyear was over 4%.

As expected, fourth quarter gross profit margin declined to 32.5%compared to 38.7% in the previous year. As mentioned above, thisyear's results included manufacturing charges of $11.5 millionassociated with the plant shutdown in Europe and restructuringactivity at several other facilities. In addition, the Companyestimates that hurricane damage to Gulf Coast supply facilitiesincreased its commodity costs by around $6 million during the quarter.Excluding these items, fourth quarter gross profit margin would havebeen about 36.6% or 210 basis points below last year, primarily due tohigher commodity costs.

For the full year, reported gross profit margin was 36.7%,slightly above last year's margin of 36.5% which excluded Armkel forfive months. On a combined basis, including the full year benefit ofArmkel and other affiliates in both years, the Company's gross marginwould have been 37.6%, a 190 basis point reduction from the previousyear. The margin decline reflects substantially higher commoditycosts, particularly for oil-based raw and packaging materials used inthe household and specialty products businesses, combined with thefourth quarter manufacturing charges described above. These costincreases were partially offset by substantial cost improvements, aswell as price increases for about 20% of the Company's U.S. consumerproducts which were implemented during late 2004 and 2005.

Fourth quarter operating profit of $31.9 million was $6.6 millionbelow last year, due to the gross margin reduction described above,partially offset by the higher sales, and lower marketing and selling,general and administrative expenses.

For the full year, reported operating profit of $212.8 million was$41.0 million higher than the previous year's $171.8 million,primarily due to the addition of the Armkel business for the entireyear. On a combined basis, including the full year benefit of Armkeland other affiliates in both years, operating profit would have been$222.3 million, a $2.7 million or 1.2% increase over last year, as thecombination of higher sales and margin improvement programscompensated for higher commodity costs.

Below the operating profit line, this year's fourth quarter OtherExpense includes a debt refinancing charge of $1.2 million. Lastyear's results included acquisition-related debt refinancing chargesof $14.9 million in the quarter, and $22.9 million for the full year.

The fourth quarter tax charge reflected the reversal of prior yeartax reserves of $1.4 million in 2005, and $1.6 million in the previousyear. The full year tax benefit from reserve adjustments was $7.4million in 2005, and $4.6 million in 2004.

At year-end, the Company had total outstanding debt of $756million, and cash of $127 million, for a net debt position of $629million, an $84 million reduction from last year's net debt of $713million. During the year, the Company invested about $80 million inacquisitions, and received $15 million in proceeds from the sale oftwo former manufacturing facilities.

Adjusted earnings before interest, taxes, depreciation andamortization as defined in the Company's bank loan agreement whichexcludes certain non-cash items, are approximately $289 million forthe year, as compared to $287 million for the previous year.

PRICING AND NEW PRODUCT ACTIVITY

As previously announced, the Company has implemented priceincreases ranging from 4% to over 10% for products representing about35% of its U.S. consumer products portfolio, effective February 1,2006. The products affected include Arm & Hammer and Xtra liquidlaundry detergents, Arm & Hammer Super Scoop cat litter and Arm &Hammer baking soda. Due to the timing of previously agreed promotionalevents, the full benefit of the price increase will not be realizeduntil the second quarter.

On the new product front, Mr. Craigie commented, "We will continueto drive organic growth in 2006 through the introduction of new andimproved products in almost every category. In addition, we arepleased with the broadening of our portfolio through the introductionof the Elexa(R) feminine sexual health care line and the acquisitionof the SpinBrush(R) toothbrush line."

In family planning, the Company will continue to support the newElexa line, with the goal of convincing women to shop for condoms andrelated sexual health products in the feminine hygiene section of thestore. There also will be several new additions to the Trojan productline, including a new ultra-thin condom. A major enhancement to theFirst Response pregnancy kit product line will also be launched in thefirst half.

In oral and skin care, the entire Nair(R) depilatory product linewill be relaunched with a significantly improved product in newpackaging. Also in progress is the introduction of an improved versionof Arm & Hammer Enamel Care(TM) toothpaste with Liquid Calcium(R) tostrengthen tooth enamel. The Company will also continue to support the"back to blue" line of Arrid(R) antiperspirants.

In household products, the Company is currently introducing areformulated and improved version of its Perfume & Dye Free liquidlaundry detergent for sensitive skin, building on the reputation ofthe Arm & Hammer trademark for being strong but gentle. The Company isalso expanding distribution of a concentrated version of Arm & Hammerlaundry detergent powder previously only available in limiteddistribution. In addition, new product introductions for the pet anddeodorizing categories are planned for the second and third quarters.

As previously announced, the Company completed the acquisition ofthe SpinBrush battery-operated toothbrush business from Procter &Gamble during the fourth quarter. During the transition period, whilethe seller continues to provide significant services, the Company isnot consolidating sales, and accounts for the net cash received fromthe business as other revenue. The Company expects to complete thetransition process for major markets on April 1, 2006, and will beginto consolidate the income statement on a line-by-line basis from thatdate.

OUTLOOK FOR 2006

The Company adopted FAS 123R relating to stock option expense,effective January 1, 2006, on a prospective basis without adjustingprior year results. The incremental charge in 2006 is expected to beabout $0.08 per share.

Looking ahead, Mr. Craigie noted that the Company's objective isto generate average annual earnings per share growth of 10-12% a yearon an organic basis.

With regard to the current year, he said, "For this year, based onthe timing of the price increases and new product marketinginitiatives, we do not expect to show any significant earnings growthuntil the second half of 2006. But we still foresee a strong yearoverall, and feel comfortable with an earnings per share goal of $1.93per share, which is equivalent to $2.01 per share before the stockoption expense, or 10% above last year."

As previously reported, at its January 25 Board meeting, theCompany declared a quarterly dividend of 6 cents per share. Thedividend will be payable March 1, 2006 to stockholders of record atthe close of business on February 6, 2006. This is the Company's 420thregular quarterly dividend.

Church & Dwight will host a conference call to discuss fourthquarter and full year 2005 results on February 7 at 12:30 p.m. (ET).To participate, dial in at 800-435-1261, access code: 90462232. Areplay will be available two hours after the call at 888-286-8010,access code: 69620170, as well as on the Company's website. Also, youcan participate via webcast by visiting the Investor Relations sectionof the Company's website at www.churchdwight.com.

Church & Dwight Co., Inc. manufactures and markets a wide range ofpersonal care, household and specialty products, under the Arm &Hammer brand name and other well-known trademarks.

This release contains forward-looking statements relating, amongothers, to short- and long-term financial objectives, sales andearnings growth, margin improvement, marketing spending, pricingchanges in certain of its products and the timing of benefits fromsuch pricing changes, new product introductions, the effect of theSpinBrush acquisition and the timing of the operational transition toChurch & Dwight, earnings per share, and the adoption of certainaccounting principles and the anticipated effect of such principles onearnings per share. 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 theCompany's control and could cause actual results to differ materiallyfrom such forward-looking statements. The uncertainties includeassumptions as to market growth and consumer demand (including theeffect of political and economic events on consumer demand), rawmaterial and energy prices, the financial condition of majorcustomers, unanticipated delays in the transition of the SpinBrushbusiness, and increased marketing spending. With regard to the newproduct introductions referred to in this release, there is particularuncertainty relating to trade, competitive and consumer reactions.Other factors, which could materially affect the results, include theoutcome of contingencies, including litigation, pending regulatoryproceedings, environmental remediation and the divestiture of assets.For a description of additional cautionary statements, see Church &Dwight's quarterly and annual reports filed with the SEC.
CHURCH & DWIGHT CO., INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Income (Preliminary)

Three Months Ended Twelve Months Ended
---------------------- -------------------------
(In thousands, except Dec. 31, Dec. 31, Dec. 31, Dec. 31,
per share data) 2005 2004 2005 2004
----------- ---------- ------------ ------------
Net Sales $ 431,274 $ 404,976 $ 1,736,506 $ 1,462,062
Cost of sales 290,942 248,415 1,099,506 928,674
--------------------- ----------- ---------- ------------ ------------
Gross profit 140,332 156,561 637,000 533,388
Marketing expenses 42,723 49,858 183,422 161,183
Selling, general and
administrative
expenses 65,704 68,239 240,802 200,452
--------------------- ----------- ---------- ------------ ------------
Income from Operations 31,905 38,464 212,776 171,753
Equity in earnings of
affiliates 911 1,356 4,790 15,115
Other income
(expense), net (11,984 ) (24,653 ) (42,683 ) (59,425 )
--------------------- ----------- ---------- ------------ ------------
Income before minority
interest and taxes 20,832 15,167 174,883 127,443
Income taxes 4,671 3,252 52,068 38,631
Minority Interest (66 ) (13 ) (91 ) 4
--------------------- ----------- ---------- ------------ ------------
Net Income $ 16,227 $ 11,928 $ 122,906 $ 88,808
--------------------- ----------- ---------- ------------ ------------
Net Income per share -
Basic $ 0.25 $ 0.19 $ 1.92 $ 1.44
Net Income per share -
Diluted $ 0.25 $ 0.18 $ 1.83 $ 1.36
--------------------- ----------- ---------- ------------ ------------
Dividend per share $ 0.06 $ 0.06 $ 0.24 $ 0.23
Weighted average shares
outstanding - Basic 64,333 62,546 63,857 61,868
Weighted average shares
outstanding - Diluted 66,185 65,074 69,289 68,066
--------------------- ----------- ---------- ------------ ------------
CHURCH & DWIGHT CO., INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets (Preliminary)

(Dollars in thousands) Dec. 31, Dec. 31,
2005 2004
---------------------------------------------- ------------ ----------
Assets
---------------------------------------------- ------------ ----------
Current Assets
Cash, equivalents and securities $ 127,107 $ 145,540
Accounts receivable 187,863 166,203
Inventories 156,224 148,898
Other current assets 24,165 33,155
---------------------------------------------- ------------ ----------
Total Current Assets 495,359 493,796
---------------------------------------------- ------------ ----------
Property, Plant and Equipment (Net) 326,903 332,204
Equity Investment in Affiliates 10,855 13,255
Intangibles and other assets 1,124,577 1,038,743
---------------------------------------------- ------------ ----------
Total Assets $1,957,694 $1,877,998
---------------------------------------------- ------------ ----------
Liabilities and Stockholders' Equity
---------------------------------------------- ------------ ----------
Short-Term Debt $ 121,282 $ 104,036
Other Current Liabilities 288,763 253,503
---------------------------------------------- ------------ ----------
Total Current Liabilities 410,045 357,539
---------------------------------------------- ------------ ----------
Long-Term Debt 635,261 754,706
Other Long-Term Liabilities 220,760 205,723
Stockholders' Equity 691,628 560,030
---------------------------------------------- ------------ ----------
Total Liabilities and Stockholders'
Equity $1,957,694 $1,877,998
---------------------------------------------- -----------------------

SUPPLEMENTARY INFORMATION

The following discussion addresses the reconciliations below andin this press release that reconcile non-GAAP and other measures usedin this press release to the most directly comparable GAAP measures:

Reported and Combined Adjusted Organic Net Sales

The press release provides information regarding reported andcombined organic sales adjusted to exclude the effect of foreignexchange adjustments, the impact of changes in estimates of promotionreserves, and a minor acquisition. Management believes that thepresentation of adjusted reported and combined organic net sales isuseful to investors because it enables them to assess, on a consistentbasis, sales of Church & Dwight and unconsolidated equity investeesproducts that were marketed by Church & Dwight or its unconsolidatedequity investees during the entirety of relevant periods. In addition,the exclusion of the above-mentioned items is useful to investorssince they are not necessarily reflective of day-to-day operationswithin a discrete period.
(Dollars in Millions)
Three Months Ended Percent
12/31/2005 12/31/2004 Change
----------- ---------- -------

Net Sales As Reported $ 431.3 $ 405.0 6.5%
Adjustments:
Foreign Exchange 0.5 -
Acquisition (3.0) -
Reversal of Promotion
Reserves (3.7) (5.9)
----------- ---------- -------

Adjusted Net Sales $ 425.1 $ 399.1 6.5%
=========== ========== =======



Twelve Months Ended Percent
12/31/2005 12/31/2004 Change
----------- ---------- -------

Net Sales As Reported $ 1,736.5 $ 1,462.1 19%
Plus: Armkel - 192.7
Other Equity
Investees 60.6 55.8
Less: Inter Company
Eliminations (9.8) (8.5)
----------- ---------- -------
Combined Net Sales Including
Investees 1,787.3 1,702.1 5%

Adjustments:
Foreign Exchange (9.8) -
Acquisition (4.0) -
Reversal of Promotion
Reserves (8.6) (10.8)
----------- ---------- -------

Adjusted Net Sales $ 1,764.9 $ 1,691.3 4.4%
=========== ========== =======

Adjusted EBITDA

Management believes that Adjusted EBITDA is an important measureto investors because it indicates the Company's ability to generateliquidity in a fashion that will enable it to satisfy an importantfinancial covenant in the Company's principal credit agreement. Setforth below is a reconciliation of the Company's Adjusted EBITDA tonet cash flow provided by operating activities, the most directlycomparable GAAP measure.

Adjusted EBITDA

Reconciliation of Net Cash Provided By
Operating Activities to Adjusted EBITDA
(Dollars in Millions)

Net Cash Provided by Operating Activities $ 191.3
Interest Expense 45.3
Current Income Tax Provision 50.7
Change in Working Capital & Other Liabilities 2.4
Investment Income (4.0 )
Other 3.0
-------------
Church & Dwight Adjusted EBITDA $ 288.7
=============

Combined Product Line Information

The following tables reconcile the Company's reported product linenet sales, gross profit, marketing expenses, SG&A expenses andoperating profit to the combined amounts for the Company and itsunconsolidated equity investees for the quarters and year endedDecember 31, 2005, and December 31, 2004. The reconciliation reflectsthe elimination of intercompany sales and the reclassification of theadministrative costs of production planning and logistics functions.Management believes this information is useful to investors becausethe businesses of the Company and its unconsolidated equity investeesare managed on a combined basis, and management uses combinedperformance measures to analyze performance and develop financialobjectives. Moreover, since the results of operations of the formerArmkel business have been included in Church & Dwight's consolidatedstatements of income beginning on May 29, 2004, the informationenhances comparability over the relevant periods.
Church & Dwight Co., Inc
Product Line Net Sales, Gross Profit and Operating Profit
Including Unconsolidated Affiliates
4th Quarter and Twelve Months 2005 vs. 2004
Dollars in Millions

Three Months Ended December 31, 2005
----------------------------------------------
CHD Other CHD &
As Equity
Reported Armkel Affiliates Adj's** Affiliates
--------- ------ ---------- ------- ----------
Household Products $ 183.5 $ - $ - $ - $ 183.5
Personal Care Products $ 115.0 $ - $ - $ - $ 115.0
-------- ----- --------- ------ ---------
Consumer Domestic $ 298.5 $ - $ - $ - $ 298.5
Consumer International $ 75.4 $ - $ - $ - $ 75.5
-------- ----- --------- ------ ---------
Total Consumer Net Sales$ 373.9 $ - $ - $ - $ 373.9
Specialty Products
Division $ 57.4 $ - $ 14.6 $ (2.6) $ 69.4
-------- ----- --------- ------ ---------
Total Net Sales $ 431.3 $ - $ 14.6 $ (2.6) $ 443.3

Gross Profit $ 140.3 $ - $ 3.2 $ 7.4 $ 150.9
% of Net Sales 32.5% 21.9% 34.0%

Marketing $ 42.7 $ - $ 0.1 $ 42.8
% of Net Sales 9.9% 0.7% 9.6%

SG&A $ 65.7 $ - $ 1.4 $ 7.4 $ 74.5
% of Net Sales 15.2% 9.3% 16.8%

Operating Profit $ 31.9 $ - $ 1.7 $ - $ 33.6
% of Net Sales 7.4% 11.9% 7.6%


Three Months Ended December 31, 2004
----------------------------------------------
CHD Other CHD &
As Equity
Reported Armkel Affiliates Adj's** Affiliates
--------- ------ ---------- ------- ----------
Household Products $ 170.7 $ - $ - $ - $ 170.7
Personal Care Products $ 112.2 $ - $ - $ - $ 112.2
-------- ----- --------- ------ ---------
Consumer Domestic $ 282.9 $ - $ - $ - $ 282.9
Consumer International $ 69.0 $ - $ - $ - $ 69.0
-------- ----- --------- ------ ---------
Total Consumer Net Sales$ 351.9 $ - $ - $ - $ 351.9
Specialty Products
Division $ 53.1 $ 14.4 $ (1.9) $ 65.6
-------- ------ --------- ------ ---------
Total Net Sales $ 405.0 $ - $ 14.4 $ (1.9) $ 417.5

Gross Profit $ 156.6 $ - $ 4.0 $ 3.6 $ 164.2
% of Net Sales 38.7% 27.8% 39.3%

Marketing $ 49.9 $ - $ - $ 49.9
% of Net Sales 12.3% 0.0% 12.0%

SG&A $ 68.2 $ - $ 1.2 $ 3.6 $ 73.0
% of Net Sales 16.8% 8.3% 17.5%

Operating Profit $ 38.5 $ - $ 2.8 $ 41.3
% of Net Sales 9.5% 19.4% 9.9%
Twelve Months Ended December 31, 2005
-----------------------------------------------
CHD Other CHD &
As Equity
Reported Armkel Affiliates Adj's** Affiliates
--------- ------- ---------- ------- ----------
Household Products $ 713.5 $ - $ - $ - $ 713.5
Personal Care Products $ 504.7 $ - $ - $ - $ 504.7
-------- ------ --------- ------ ---------
Consumer Domestic $1,218.2 $ - $ - $ - $ 1,218.2
Consumer International $ 297.3 $ - $ - $ - $ 297.3
-------- ------ --------- ------ ---------
Total Consumer Net
Sales $1,515.5 $ - $ - $ - $ 1,515.5
Specialty Products
Division $ 221.0 $ - $ 60.6 $ (9.8) $ 271.8
-------- ------ --------- ------ ---------
Total Net Sales $1,736.5 $ - $ 60.6 $ (9.8) $ 1,787.3

Gross Profit $ 637.0 $ - $ 14.8 $ 20.7 $ 672.5
% of Net Sales 36.7% 24.4% 37.6%

Marketing $ 183.4 $ - $ 0.4 $ 183.8
% of Net Sales 10.5% 0.7% 10.3%

SG&A $ 240.8 $ - $ 4.9 $ 20.7 $ 266.4
% of Net Sales 13.9% 8.1% 14.9%

Operating Profit $ 212.8 $ - $ 9.5 $ - $ 222.3
% of Net Sales 12.3% 15.6% 12.4%


Twelve Months Ended December 31, 2004
-----------------------------------------------
CHD Other CHD &
As Equity
Reported Armkel Affiliates Adj's** Affiliates
--------- ------- ---------- ------- ----------
Household Products $ 680.3 $ - $ - $ - $ 680.3
Personal Care Products $ 396.8 $ 92.1 $ - $ - $ 488.9
-------- ------ --------- ------ ---------
Consumer Domestic $1,077.1 $ 92.1 $ - $ - $ 1,169.2
Consumer International $ 176.7 $100.6 $ - $ (0.7) $ 276.6
-------- ------ --------- ------ ---------
Total Consumer Net
Sales $1,253.8 $192.7 $ - $ (0.7) $ 1,445.8
Specialty Products
Division $ 208.3 $ - $ 55.8 $ (7.8) $ 256.3
-------- ------ --------- ------ ---------
Total Net Sales $1,462.1 $192.7 $ 55.8 $ (8.5) $ 1,702.1

Gross Profit $ 533.4 $109.9 $ 13.7 $ 15.4 $ 672.4
% of Net Sales 36.5% 57.0% 24.6% 39.5%

Marketing $ 161.2 $ 25.7 $ 0.4 $ - $ 187.3
% of Net Sales 11.0% 13.3% 0.7% 11.0%

SG&A $ 200.4 $ 45.0 $ 4.7 $ 15.4 $ 265.5
% of Net Sales 13.8% 23.4% 8.4% 15.6%

Operating Profit $ 171.8 $ 39.2 $ 8.6 $ - $ 219.6
% of Net Sales 11.8% 20.3% 15.4% 12.9%

** Adjustments include: elimination of intercompany sales with
unconsolidated affiliates, reclassification of the administrative
costs of production planning and logistics functions that are not
directly attributable to the manufacturing process, from cost of sales
to SG&A.