UNITED
STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the quarter ended March 31, 2004
OR
o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission file number 1-6450
GREAT LAKES CHEMICAL CORPORATION
(Exact name of registrant as specified in its charter)
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DELAWARE |
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95-1765035 |
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(State or other jurisdiction of |
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(IRS Employer |
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9025 North River Road, |
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46240 |
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(Address of principal executive offices) |
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(Zip Code) |
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Registrant’s telephone number, including area code (317) 715-3000 |
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Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes ý
No o
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act)
Yes ý
No o
As of April 30, 2004, the Registrant had only one class of common stock, $1.00 par value, of which 50,744,479 shares were outstanding.
GREAT LAKES CHEMICAL CORPORATION AND SUBSIDIARIES
INDEX TO MARCH 31, 2004 FORM 10-Q
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Management’s Discussion and Analysis of Financial Condition and Results of Operations |
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2
GREAT LAKES CHEMICAL CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(millions, except per share data)
(Unaudited)
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Three Months Ended March 31, |
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2004 |
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2003 |
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Net sales |
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$ |
368.1 |
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$ |
334.0 |
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Operating Expenses |
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Cost of products sold |
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298.0 |
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265.5 |
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Selling, general and administrative expenses |
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64.6 |
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57.2 |
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Asset impairments |
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0.3 |
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— |
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362.9 |
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322.7 |
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Operating income |
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5.2 |
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11.3 |
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Interest income (expense) - net |
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(6.3 |
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(6.6 |
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Other income (expense) - net |
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(4.9 |
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(3.4 |
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Income from continuing operations before income taxes and cumulative effect of accounting change |
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(6.0 |
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1.3 |
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Income taxes |
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(1.9 |
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0.4 |
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Income (loss) from continuing operations before cumulative effect of accounting change |
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$ |
(4.1 |
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$ |
0.9 |
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Income (loss) from discontinued operations |
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(0.9 |
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1.6 |
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Income (loss) before cumulative effect of accounting change |
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$ |
(5.0 |
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$ |
2.5 |
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Cumulative effect of accounting change, net of income taxes |
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— |
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(3.3 |
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Net loss |
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$ |
(5.0 |
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$ |
(0.8 |
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Earnings (loss) per share - Basic and Diluted: |
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Income (loss) before cumulative effect of accounting change |
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Continuing operations |
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$ |
(0.08 |
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$ |
0.02 |
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Discontinued operations |
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(0.02 |
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0.03 |
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(0.10 |
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0.05 |
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Cumulative effect of accounting change |
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— |
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(0.07 |
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Net loss |
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$ |
(0.10 |
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$ |
(0.02 |
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Cash dividends declared per share |
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$ |
0.095 |
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$ |
0.09 |
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See Notes to Consolidated Financial Statements
3
PART I. – Financial Information
GREAT LAKES CHEMICAL CORPORATION
CONSOLIDATED BALANCE SHEETS
(millions, except per share data)
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March 31, |
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December 31, |
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(Unaudited) |
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ASSETS |
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Current Assets |
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Cash and cash equivalents |
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$ |
52.9 |
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$ |
171.2 |
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Accounts and notes receivable, less allowances of $3.7 and $4.0, respectively |
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362.4 |
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268.9 |
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Inventories |
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Finished products |
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203.9 |
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191.5 |
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Raw materials |
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40.6 |
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37.3 |
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Supplies |
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30.7 |
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31.4 |
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Total inventories |
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275.2 |
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260.2 |
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Prepaid expenses |
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29.3 |
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26.4 |
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Deferred income taxes |
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0.4 |
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4.1 |
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Current assets held for sale from discontinued operations |
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11.9 |
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29.6 |
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Total Current Assets |
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732.1 |
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760.4 |
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Plant and equipment |
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1,295.3 |
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1,294.0 |
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Less allowances for depreciation, depletion and amortization |
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(743.0 |
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(723.9 |
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Net plant and equipment |
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552.3 |
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570.1 |
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Goodwill |
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203.8 |
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205.7 |
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Intangible assets |
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61.8 |
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63.4 |
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Investments in and advances to unconsolidated affiliates |
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21.3 |
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22.5 |
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Other assets |
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24.3 |
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