Company photo: Arm & Hammer / Church & Dwight.
EWING, N.J. – Church & Dwight, the maker of Arm & Hammer, TheraBreath and Waterpik products, said Friday that its board authorized a new share-buyback program of up to $1 billion after third-quarter sales and earnings beat the company’s own forecasts.
The authorization has no expiration date and replaces the company’s existing repurchase program. It permits future purchases of common stock; it does not mean Church & Dwight has already bought $1 billion of shares.
In its October 30 earnings release, the household and personal-care products company reported quarterly net sales of $1.602 billion, up 1.0% from a year earlier, compared with its forecast for a 1% decline.
Organic sales, a non-GAAP measure, rose 5.1% against the company’s 3% forecast. Volume increased 4.6%, with pricing and product mix adding 0.5%.
Reported earnings per share rose to 89 cents from 75 cents. Adjusted earnings were 92 cents a share, up 13.6% and above the company’s 89-cent outlook.
Church & Dwight now expects full-year organic sales growth of about 5%, the top end of its previous 4% to 5% range. It expects adjusted earnings growth of about 7%, narrowing its earlier 6% to 8% forecast.
The company said higher volumes, productivity gains, tariff refunds and portfolio changes helped lift gross margin to 46.8%. It maintained its forecast for approximately $1.175 billion in full-year operating cash flow.
JBizNews Business Desk | Ewing, N.J.
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