New Jersey		13-0511250
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

180 East Broad Street, Columbus, Ohio 43215

(Address of principal executive offices)

(614) 225-4000

(Registrant’s telephone number, including area code)

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

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PART I – FINANCIAL INFORMATION
Item 1. Borden Chemical, Inc. Consolidated Financial Statements
Consolidated Statements of Operations and Comprehensive Income, three months ended March 31, 2004......................................................................................	3
Consolidated Balance Sheets, March 31, 2004 and December 31, 2003......................................................................................................................................................	4
Consolidated Statements of Cash Flows, three months ended March 31, 2004 and 2003.......................................................................................................................	6
Consolidated Statement of Shareholders’ Deficit, three months ended March 31, 2004.........................................................................................................................	7
Notes to Consolidated Financial Statements..................................................................................................................................................................................................	8
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	20
Item 3. Quantitative and Qualitative Disclosures about Market Risk ……..…...…………………………	26
Item 4. Controls and Procedures ………...……..…………………………………………………………	26
PART II – OTHER INFORMATION
Item 1. Legal Proceedings……………………………………………………………………………………….	27
Item 2. Change in Securities and Use of Proceeds………………………………………………………………	27
Item 3. Defaults upon Senior Securities…………………………………………………………………………	27
Item 4. Submission of Matters to a Vote of Security Holders…………………………………………………..	27
Item 6. Exhibits and Reports on Form 8-K …………………………….………………………………………	27

PART 1
Item 1. Borden Chemical, Inc. Consolidated Financial Statements
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (UNAUDITED) BORDEN CHEMICAL, INC.
	Three Months ended March 31,
(In thousands, except per share data)	2004		2003
Net sales	$385,434		$349,288
Cost of goods sold	309,537		283,454
Gross margin	75,897		65,834
Distribution expense	17,505		16,734
Marketing expense	11,403		10,273
General & administrative expense	23,409		29,691
Business realignment expense and impairments	1,494		1,296
Other operating expense	1,284		635
Operating income	20,802		7,205
Interest expense	11,841		11,340
Affiliated interest expense	49		194
Other non-operating expense	61		467
Income (loss) before income tax	8,851		(4,796)
Income tax expense (benefit)	3,937		(1,391)
Net income (loss)	$ 4,914		$ (3,405)
Comprehensive income	$ 5,638		$ 4,669
Basic and Diluted Per Share Data
Net income (loss) - basic and diluted	$ 0.02		$ (0.02)
Average number of common shares outstanding during the period – basic	200,896		200,903
Average number of commn shares outstanding during the period – diluted	200,949		200,903
See Notes to Consolidated Financial Statements

CONSOLIDATED BALANCE SHEETS
BORDEN CHEMICAL, INC.
(In thousands)
	(Unaudited) March 31,		December 31,
ASSETS	2004		2003
Current Assets
Cash and equivalents	$ 29,632		$ 28,162
Accounts receivable (less allowance for doubtful accounts of $13,395 in 2004 and $14,459 in 2003)	200,633		196,093
Accounts receivable from affiliates	181		354
Inventories:
Finished and in-process goods	36,758		42,292
Raw materials and supplies	42,285		38,819
Deferred income taxes	23,717		27,085
Other current assets	12,848		13,551
	346,054		346,356
Investments and Other Assets
Deferred income taxes	118,278		113,434
Other assets	22,640		21,725
	140,918		135,159
Property and Equipment
Land	32,824		32,585
Buildings	104,461		103,774
Machinery and equipment	698,673		691,249
	835,958		827,608
Less accumulated depreciation	(389,909)		(378,724)
	446,049		448,884
Goodwill	57,753		57,516
Other Intangible Assets	5,525		5,951
Total Assets	$996,299		$993,866
See Notes to Consolidated Financial Statements

CONSOLIDATED BALANCE SHEETS
BORDEN CHEMICAL, INC.
(In thousands except share data)
	(Unaudited) March 31,		December 31,
LIABILITIES AND SHAREHOLDERS’ DEFICIT	2004		2003
Current Liabilities
Accounts and drafts payable	$ 143,376		$ 127,174
Accounts payable to affiliates	2		16
Debt payable within one year	5,484		8,167
Loans payable to affiliates	13,300		18,260
Other current liabilities	82,219		103,231
	244,381		256,848
Other Liabilities
Long-term debt	532,651		529,966
Non-pension post-employment benefit obligations	125,334		128,723
Other long-term liabilities	184,190		174,522
	842,175		833,211
Commitments and Contingencies (See Note 8)
Shareholders’ Deficit
Common stock - $0.01 par value: authorized 300,000,000 shares,
Issued 201,754,598, treasury 858,970, outstanding 200,895,628 shares in 2004 and 2003	2,009		2,009
Paid-in capital	1,236,155		1,224,011
Receivable from parent	(524,238)		(512,094)
Deferred compensation	(1,190)		(1,488)
Accumulated other comprehensive income	(127,469)		(128,193)
Accumulated deficit	(675,524)		(680,438)
	(90,257)		(96,193)
Total Liabilities and Shareholders’ Deficit	$996,299		$993,866
See Notes to Consolidated Financial Statements

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
BORDEN CHEMICAL, INC.
	Three months ended March 31,
(In thousands)	2004		2003
Cash Flows from (used in) Operating Activities
Net income (loss)	$ 4,914		$ (3,405)
Adjustments to reconcile net income (loss) to net cash from (used in) operating activities: