SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of Earliest Event Reported):
September 30, 1999
CK Witco Corporation
(Exact Name of Registrant as Specified in its Charter)
Delaware 0-30270 52-2183153
(State or other (Commission File Number) (IRS Employer
jurisdiction of Identification
incorporation) Number)
199 Benson Road, Middlebury, CT 06749
(Address of principal executive offices) (zip code)
(203) 573-2000
(Registrant's telephone number, including area code)
Item 5. Other Events
CK Witco Corporation, a Delaware corporation, distributed a
presentation for security analysts on September 30, 1999. The
presentation contains financial information including an initial
reporting of business segment data for CK Witco Corporation, a
corporation formed from the merger of Crompton & Knowles
Corporation and Witco Corporation on September 1, 1999. A copy
of the presentation is attached as an exhibit hereto and is
incorporated by reference herein.
Item 7. Financial Statements and Exhibits
(a) Financial statements of businesses acquired.
Not Applicable
(b) Pro forma financial information
Not Applicable
(c) Exhibits.
99.1 Security Analyst Presentation dated
September 30, 1999.
SIGNATURES
Pursuant to the requirements of the Securities Exchange
Act of 1934, the registrant has duly caused this report to be
signed on its behalf by the undersigned hereunto duly authorized.
CK WITCO CORPORATION
By: /s/J T. Ferguson II
Name: J T. Ferguson II
Title: Senior Vice President,
General Counsel and
Secretary
Date: September 30, 1999
EXHIBIT INDEX
99.1 Security Analyst Presentation dated
September 30, 1999.
CK Witco TM
[logo]
Good Chemistry
CK WITCO
[logo]
TABLE OF CONTENTS
PAGES
OVERVIEW 3-11
POLYMER PRODUCTS 12-19
SPECIALTY PRODUCTS 20-27
FINANCIAL OBJECTIVES 28
FINANCIAL DATA/SUMMARY 29-32
2
FOUNDED 1840 FOUNDED 1921
CK [logo] MERGER OF Witco
CROMPTON & KNOWLES EQUALS worldwide [logo]
CK WITCO [logo]
FORMED SEPT 1, 1999
A NEW SPECIALTY CHEMICAL COMPANY WITH OVER 230 YEARS OF HISTORY
3
INTRODUCING CK WITCO [logo]
A GLOBAL SPECIALTY CHEMICAL COMPANY WITH MARKET AND TECHNOLOGY
LEADERSHIP, AND PROFITABLE BUSINESSES WITH STRONG CASH FLOWS.
A CUSTOMER FOCUSED CULTURE.
A MANAGEMENT TEAM WITH DEPTH AND EXPERIENCE.
. $3.3 BILLION IN ADJUSTED 1998 SALES
. 48% OF SALES FROM OUTSIDE US
. 10,000 EMPLOYEES
. 58 MANUFACTURING FACILITIES IN 20 COUNTRIES
NYSE TICKER: CNW
120 MILLION COMMON
SHARES OUTSTANDING
4
CK WITCO WILL BUILD SHAREHOLDER VALUE
CK WITCO WILL PROVIDE GREATER SHAREHOLDER VALUE THROUGH INCREASED
CASH FLOW, SALES AND EARNINGS GROWTH.
. TOP-LINE GROWTH
. BOTTOM-LINE GROWTH
. LOWER COST OF DEBT
. IMMEDIATELY CASH FLOW ACCRETIVE
. EPS ACCRETIVE IN 2001
. BENEFITS OF SCALE
- STRATEGIC & FINANCIAL FLEXIBILITY
- GREATER STOCK LIQUIDITY
5
TOP-LINE GROWTH
PRODUCT LINES ARE COMPLEMENTARY, NOT COMPETITIVE. THIS CREATES
SIGNIFICANT CROSS-SELLING OPPORTUNITIES.
. VALUE-ADDED PRODUCTS IN LEADING MARKET POSITIONS
. SIGNIFICANT MARKET & CUSTOMER OVERLAP
. BROAD CUSTOMER OFFERINGS
. LEVERAGE REGIONAL AND INTERNATIONAL PRESENCE
. MARKET ORIENTED SALES FORCE
. WORLD-CLASS TECHNOLOGY
6
BOTTOM-LINE GROWTH
VARIOUS FACTORS WILL ENHANCE BOTTOM LINE GROWTH AS A CONSEQUENCE
OF THE MERGER.
. MERGER SYNERGIES
- $60 MILLION ANNUAL PRE-TAX SAVINGS GOAL
- $30 MILLION IN 2000
- $60 MILLION IN 2001 & BEYOND
. LOWER COST OF DEBT
- $9-11 MILLION ANTICIPATED INTEREST EXPENSE SAVINGS;
CALLING HIGH YIELD UNIROYAL BONDS
. CONTRIBUTION FROM TOP-LINE GROWTH
7
1998 GLOBAL AND END MARKETS
GLOBAL MARKETS
[pie chart]
USA 52%
ASIA / PACIFIC 10%
AMERICAS
(EXCL. USA) 11%
EUROPE / AFRICA 27%
END MARKETS
AUTO. & TRANSPORT 18%
CONSTRUCTION 16
AGRICULTURE 12
NON-TIRE RUBBER 9
HOME FURN./APPLIANCES 8
PACKAGING/PAPER 7
APPAREL 7
TIRES 7
PERSONAL CARE 3
OTHER 13
100%
8
LEADING MARKET POSITIONS
A GLOBAL SPECIALTY CHEMICALS COMPANY WITH A HIGHLY DIVERSIFIED
PORTFOLIO OF PRODUCTS THAT HAVE LEADING MARKET POSITIONS.
SALES FROM LEADING MARKET POSITIONS ACCOUNT FOR APPROXIMATELY 60%
OF ALL CK WITCO REVENUE
. EPDM #1 IN N. AMERICA
. CASTABLE URETHANES #1 WORLDWIDE
. RUBBER CHEMICALS #3 WORLDWIDE
. SEED FUNGICIDES #1 WORLDWIDE
. SEED TREATMENT #1 IN N. AMERICA
. MITICIDES #1 WORLDWIDE
. LUBRICANT ADDITIVES #1 IN KEY PRODUCTS
. POLYMERIZATION INHIBITORS #1 IN KEY PRODUCTS
. POLYMER EXTRUSION SYSTEMS #1 WORLDWIDE
. POLYMER HEAT STABILIZERS #1 IN N. AMERICA
. ALUMINUM ALKYL CATALYSTS #2 WORLDWIDE
. SILANES #1 WORLDWIDE
. SURFACTANTS & CATALYSTS #1 WORLDWIDE
FOR URETHANE FOAM
. REFINED PRODUCTS #2 WORLDWIDE
. AGRICULTURAL SURFACTANTS #1 IN N. AMERICA
. OILFIELD SURFACTANTS #1 IN N. AMERICA
. METAL WORKING SULFONATES #1 WORLDWIDE
9
1998 ADJUSTED SALES
$3.3 BILLION
ORGANOSILICONES [italics]
CROP PROTECTION
INDUSTRIAL SURFACTANTS [italics]
REFINED PRODUCTS [italics]
PETROLEUM ADDITIVES [italics]
LUBRICANT ADDITIVES
COLORS
FATTY ACID / GLYCERINE [italics]
[pie chart]
CROP PROTECTION
13%
ORGANOSILICONES
13%
POLYMER ADDITIVES
32%
POLYMERS
9%
POLYMER PROCESSING
EQUIPMENT
11%
OTHER
22%
POLYMER CHEMICALS [italics]
RUBBER CHEMICALS
SPECIALTY ADDITIVES
& INTERMEDIATES
URETHANE CHEMICALS [italics]
BAXENDEN [italics]
EPDM
CASTABLE URETHANES
NITRILE
DAVIS STANDARD
POLYMER PRODUCTS 52%
SPECIALTY PRODUCTS 48%
FORMER WITCO BUSINESSES ARE IN ITALICS
10
1998 SEGMENT SALES & OPERATING PROFIT
SHARE OF COMPANY
OPERATING PROFIT
[pie chart]
ORGANOSILICONES
13%
CROP PROTECTION
21%
OTHER
11%
POLYMER
PROCESSING
EQUIPMENT
11%
POLYMERS
18%
POLYMER ADDITIVES
26%
$ Millions
1998
OPERATING OPERATING
1998 SALES PROFIT MARGIN
POLYMER ADDITIVES 1061 114.8 10.8%
POLYMERS 301 79.2 26.3%
POLY. PROC. EQUIP. 344 46.7 13.6%
TOTAL POLYMER 1706 240.7 14.1%
ORGANOSILICONES 443 57.4 13.0%
CROP PROTECTION 437 93.3 21.4%
OTHER 725 47.5 6.6%
TOTAL SPECIALTY 1605 198.2 12.3%
POLYMER PRODUCTS 55%
SPECIALTY PRODUCTS 45%
NOTE SEE PAGES 29-30 FOR FURTHER INFORMATION ON SEGMENT
SALES & OPERATING PROFIT.
11
POLYMER PRODUCTS
POLYMER ADDITIVES
1998 NET SALES = $1061 MM
[pie chart]
USA
48%
ASIA / PACIFIC
11%
AMERICAS
(EXCL. USA)
7%
EUROPE / AFRICA
34%
. WORLDWIDE LEADER IN PVC
ADDITIVES
- HEAT STABILIZERS
- LUBRICANTS
. #3 WORLDWIDE IN RUBBER CHEMICALS
. ATTRACTIVE GROWTH & MARGIN
OPPORTUNITIES
. STRONG PRODUCT, INDUSTRY
AND GEOGRAPHIC DIVERSITY
12
POLYMER PRODUCTS
POLYMER ADDITIVES
MARKETS PRODUCTS CUSTOMERS COMPETITORS
POLYMER
ADDITIVES
HEAT TIN STABILIZERS PVC PRODUCERS, R&H, ELF ATOCHEM,
STABILIZERS MIXED METAL COMPOUNDERS, AKCROS, BARLOCHER,
STABILIZERS & EXTRUDERS FERRO
LUBRICANTS KEMAMIDE AMIDES PVC AND OLEFIN AKZO, FERRO,
STEARATES EXTRUDERS & HENKEL
FILM
PRODUCERS
INITIATORS ALUMINUM ALKYLS POLYOLEFIN ALBEMARLE, AKZO
& CATALYSTS ESPERCARB PRODUCERS ELF ATOCHEM, AKZO,
PEROXIDES PVC PRODUCERS LAPORTE
TIN TIN BIOCIDES MARINE COATINGS ELF ATOCHEM, R&H,
SPECIALTIES TIN INTERMEDIATES FORMULATORS, CARDINAL
OTHER STABILIZER
PRODUCERS
PLASTICIZERS DRAPEX EPOXIES PVC COMPOUNDERS ELF ATOCHEM,
AKCROS, UNION
CARBIDE
OLEFIN NAUGARD PP, PE PRODUCERS CIBA
ADDITIVES ANTIOXIDANTS
POLYMER ROYALTUF, PU, PEST. ARISTECH, EXXON
MODIFIERS POLYBOND PRODUCERS
13
POLYMER PRODUCTS
POLYMER ADDITIVES (CONT.)
MARKETS PRODUCTS CUSTOMERS COMPETITORS
POLYMER
ADDITIVES
(CONT.)
CHEM. FOAMING CELLOGEN VINYL FLOOR, PE BAYER, DONG
AGENTS PRODUCERS JIN, EIWA
POLYOL NAUGARD POLYOL PRODUCERS CIBA
STABILIZERS ANTIOXIDANTS
INTERMEDIATES ANILINE, DPA POLYMER PRODUCERS ARISTECH
INHIBITORS NAUGARD SFR, POLYMER EMULSION CIBA, HERCULES
1-3 PRODUCERS
CURATIVES/ TONOX, POLYMER FIBER AIR PRODUCTS,
DISPERSANTS POLYWET PRODUCERS R&H
RUBBER ADDITIVES
TIRE, AUTOMOTIVE NAUGARD TIRE PRODUCERS, FLEXSYS, BAYER
ANTIOXIDANTS HOSE AND UNDER
FLEXZONE HOOD COMPONENT
ANTIOZONANTS PRODUCERS
DELAC
ACCELERATORS
CELOGEN
FOAMING AGENTS
14
POLYMER PRODUCTS
POLYMER ADDITIVES (CONT.)
MARKETS PRODUCTS CUSTOMERS COMPETITORS
URETHANE
ADDITIVES
POLYESTER FOAMREZ BASE PRODUCERS OF CAST SYBRON, INOLEX,
POLYOLS POLYOLS ELASTOMERS, REICHHOLD
FLEXIBLE FOAM
SYSTEMS MICROCELLULAR SHOE SOLE MOLDERS BAYER, CAPTIVE
SYSTEMS
BREATHABLE TEXTILE LAMINATORS GORETEX
COATINGS
POLYURETHANE WITCOBOND FIBERGLASS ZENECA,
DISPERSIONS PUD'S PRODUCERS, REICHHOLD,
COATINGS & SYBRON, BAYER
ADHESIVE ALBERDINK +
FORMULATORS, BOLEY
GLOVE
MANUFACTURERS
CROSSLINKERS UV ACTIVATED FORMULATORS OF BAYER,
TRIXENE SOLVENT & AQUEOUS TDI PRODUCERS
BLOCKED ISO URETHANE COATINGS,
ESPEROX ADHESIVES, SEALANTS,
CAST ELASTOMERS
15
POLYMER PRODUCTS
POLYMERS
1998 NET SALES = $301 MM
[pie chart]
EPDM
57%
URETHANE
PREPOLYMERS
43%
. #1 EPDM SUPPLIER IN NORTH AMERICA, #3 WORLDWIDE
. #1 WORLDWIDE SUPPLIER OF HIGH-PERFORMANCE CASTABLE URETHANE
POLYMERS
. ATTRACTIVE GROWTH & MARGINS
. STRONG PRODUCT, INDUSTRY AND GEOGRAPHIC DIVERSITY
16
POLYMER PRODUCTS
POLYMERS
MARKETS PRODUCTS CUSTOMERS COMPETITORS
EPDM
CONSTRUCTION ROYALENE PRODUCERS OF
ROOFING
COMPOUNDS, WIRE &
CABLE EXXON, DSM, BAYER
DOW/DUPONT, UNION
AUTOMOTIVE ROYALENE PRODUCERS OF CARBIDE
AUTOMOTIVE
PLASTICS, BELTS
& HOSES
URETHANE PREPOLYMERS
RECREATION ADIPRENE, PRODUCERS OF ICI, BASF
VIBRATHANE WHEELS FOR IN-
LINE SKATES, GOLF
BALLS, ETC.
INDUSTRIAL ADIPRENE, PAPER & COATING AIR PRODUCTS
VIBRATHANE ROLLS, ABRASIVE CAPTIVE
BINDERS, PRODUCTION
INDUSTRIAL TIRES ANDERSON, BAYER
17
POLYMER PRODUCTS
POLYMER PROCESSING EQUIPMENT
1998 NET SALES = $344 MM
[pie chart]
MEDICAL,
HOME
APPLIANCES,
ETC.
23%
CONSTRUCTION
21%
PACKAGING
34%
AUTOMOTIVE
22%
. #1 WORLDWIDE PRODUCER OF POLYMER EXTRUSION SYSTEMS
. 10 ACQUISITIONS SINCE 1990
. EUROPEAN PLATFORM FOR GROWTH
18
POLYMER PRODUCTS
POLYMER PROCESSING EQUIPMENT
MARKETS PRODUCTS CUSTOMERS COMPETITORS
AUTOMOTIVE EXTRUDERS, BLOW PRODUCERS OF TROESTER,
MOLDING EQUIPMENT WEATHER CINCINNATI
STRIPPING, HOSE MILACRON,
SEALS, SHEETED REIFENHAUSER,
MATERIALS, NOKIA
PROFILING, MAILLEFER, WELEX,
INSULATED WERNER &
WIRE, BLOW PFLEIDERER HMP,
MOLDED MAPLAN
COMPONENTS
PACKAGING EXTRUDERS, BLOW EXTRUDERS OF BLACK CLAWSON,
MOLDING EQUIPMENT FILMS, PRODUCERS GLOUCESTER
OF SHEETED, BATTENFELD,
COATED, REIFENHAUSER,
COMPOUNDED & BRAMPTON,
RECYCLED SUMITOMO
MATERIALS & BLOW
MOLDED COMPOUNDS
GENERAL EXTRUDERS, BLOW MAKERS OF CINCINNATI
CONSTRUCTION MOLDING EQUIPMENT PLASTIC PIPE, MILACRON, WELEX,
HOSE, PLASTIC REIFENHAUSER,
SHAPE EXTRUSIONS,NOKIA MAILLEFER,
SHEETED MATERIAL,MAPLAN
FILMS, INSULATED
WIRE & FIBER
MEDICAL, HOME EXTRUDERS, BLOW MAKERS OF CINCINNATI
APPLIANCES, MOLDING EQUIPMENT CATHETERS, BLOW MILACRON, MAPLAN,
ETC. MOLDED FURNITURE,WELEX,
TOYS, SHEDS, BATTENFELD
SHEETED MATERIAL,
FILMS, FIBER
19
SPECIALTY PRODUCTS
ORGANOSILICONES
1998 NET SALES = $443 MM
[pie chart]
USA
46%
ASIA / PACIFIC
16%
AMERICAS
(EXCL. USA)
9%
EUROPE / AFRICA
29%
. #1 WORLDWIDE IN SILANES
. #1 WORLDWIDE IN SURFACTANTS FOR URETHANE FOAM
. BROAD GEOGRAPHIC DIVERSITY
. STRONG SPECIALTY SILICONE PORTFOLIO
- FOAM CONTROL AGENTS
- COATINGS ADDITIVES
- AG SURFACTANTS
- TEXTILE SOFTENERS
20
SPECIALTY PRODUCTS
ORGANOSILICONES
MARKETS PRODUCTS CUSTOMERS COMPETITORS
SILANES
ADHESION SILQUEST SILANES FIBERGLASS
PROMOTORS COATOSIL SILANES PRODUCERS,
COATING,
ADHESIVE & DEGUSSA-HULS,
SEALANT SHIN ETSU, DOW
FORMULATORS CORNING, WACKER,
COUPLING WETLINK SEALANT CHISSO
AGENTS CROSSLINKER FORMULATORS,
XL PEARL THERMOPLASTIC
COMPOUNDERS,
TIRE AND OTHER
RUBBER
COMPOUNDERS
SPECIALTY FLUIDS
SURFACTANTS SILWET AG ADJUVANT DOW CORNING,
SURFACTANTS PRODUCERS, GOLDSCHMIDT
PERSONAL CARE AND
HI&I FORMULATORS
COATOSIL COATING & INK BYK, TEGO
ADDITIVES FORMULATORS CHEMIE, DOW
CORNING, WACKER
FOAM CONTROL SAG ANTIFOAMS FOOD PROCESSORS, DOW CORNING, GE
INDUSTRIAL & REGIONAL PLAYERS
WASTE WATER,
DIESEL PRODUCERS,
PULP & PAPER
SENTRY PHARMACEUTICAL DOW CORNING
SIMETHICONE
21
SPECIALTY PRODUCTS
ORGANOSILICONES (CONT.)
MARKETS PRODUCTS CUSTOMERS COMPETITORS
SPECIALTY FLUIDS
(CONT.)
SPECIALTIES & MAGNASOFT TEXTILE TEXTILE DOW CORNING, GE,
REACTIVES FINISHES FORMULATORS WACKER, SHIN ETSU
& PRODUCERS,
NON-WOVEN
MANUFACTURERS
SILSOFT ADDITIVES PERSONAL CARE
FORMULATORS
URETHANE ADDITIVES
RIGID FOAM NIAX SILICONES RIGID STOCK
NIAX AMINE PRODUCERS
CATALYSTS FOR AUTOMOTIVE,
CONSTRUCTION,
APPLIANCES
FLEXIBLE FOAM NIAX SILICONES SLABSTOCK & GOLDSCHMIDT,
(SLABSTOCK & NIAX AMINE MOLDED FOAM AIR PRODUCTS
MOLDED) CATALYSTS PRODUCERS FOR
GEOLITE MODIFIERS FURNITURE,
BEDDING,
INSULATION
MICROCELLULAR, NIAX SILICONES PRODUCERS OF
FROTH FOAM NIAX AMINE CARPET BACKING,
CATALYSTS SKIN FOAM, SHOE
SOLES, RIM
SYSTEMS
22
SPECIALTY PRODUCTS
CROP PROTECTION
1998 NET SALES = $437 MM
[pie chart]
USA
52%
ASIA /
PACIFIC
9%
AMERICAS
(EXCL. USA)
15%
EUROPE /
AFRICA
24%
. LEADING MARKET SHARE IN SELECTED MARKET NICHES FOR ACTIVES
- FUNGICIDES
- MITICIDES
- GROWTH REGULANTS
. US LEADER FOR AG & OIL FIELD SURFACTANTS
. NOT IN COMMODITY CROP PROTECTION MARKETS
. SALES IN OVER 120 COUNTRIES
. HIGH ENTRY BARRIERS FOR ACTIVES
23
SPECIALTY PRODUCTS
CROP PROTECTION
MARKETS PRODUCTS CUSTOMERS COMPETITORS
ACTIVES
FUNGICIDES VITAVAX, PROCURE, SEED COMPANIES, BAYER, NOVARTIS
TERRACLOR, GROWERS, MERCK, ROHM &
PLANTVAX, COOPERATIVES HAAS, DOW ELANCO,
TERRAZOLE R-P
MITICIDES & OMITE, COMITE SMALL FARMS VIA RHONE POULENC
INSECTICIDES DIMILIN, TEDION, AG DISTRIBUTORS NOVARTIS, NIPPON
ANDALIN & CO-OPS, LARGE SODA, ROHM & HAAS
CITRUS GROWERS
GROWTH ROYAL MH, BONZI, FARMERS, GREEN AMCY, VALENT,
REGULANTS HARVADE, B-9, HOUSE GROWERS AGREVO, NOVARTIS
BUTRALIN VIA DISTRIBUTORS BASF, DOW ELANCO
& CO-OPS
HERBICIDES PANTERA, CASORON AG DISTRIBUTORS NISSAN, ZENECA,
& COOPERATIVES R-P, DOW ELANCO,
SELL TO FARM & DUPONT, NOVARTIS,
NURSERY MONSANTO
SURFACTANTS
NON-IONIC, MORWET NAPHALENE HERBICIDE RHODIA, ICI,
CATIONIC SULFONATES, PRODUCERS, STEPAN, HUNTSMAN,
ANIONIC SULFATES, AG COOPERATIVES BASF, PILOT
SURFACTANTS PHOSPHATE ESTERS,
ETHOXYLATES
24
SPECIALTY PRODUCTS
OTHER
1998 NET SALES = $725 MM
[pie chart]
GLYCERINE & FATTY ACIDS
15%
PETROLEUM & LUBRICANT ADDITIVES
23%
COLORS
32%
REFINED PRODUCTS
30%
. #2 WORLDWIDE POSITION IN REFINED PRODUCTS
. ENHANCED CRITICAL MASS IN LUBRICANT & PETROLEUM ADDITIVES
. NEW REFINED GLYCERINE AND STEARATE CAPACITY IN MEMPHIS
. LARGEST PRODUCER OF DYES IN THE U.S.
25
SPECIALTY PRODUCTS
OTHER
MARKETS PRODUCTS CUSTOMERS COMPETITORS
COLORS
TEXTILE & ACID, DIRECT TEXTILE
CARPET DYES REACTIVE, BASIC FABRICATORS
DISPERSE DYES AND FINISHERS,
TEXTILE
FORMULATORS,
CARPET MILLS
CIBA, CLARIANT
INDUSTRIAL ACID, DIRECT LEATHER DYSTAR, BASF
DYES REACTIVE, BASIC, FINISHERS,
DISPERSE DYES INK & COATING
FORMULATORS,
SPECIALTY PAPER
MANUFACTURERS
PETROLEUM & LUBE
ADDITIVES
LUBRICANT NAUGALUBE A.O.'S FORMULATORS OF CIBA, B.F.
ADDITIVES SYNTON PAO, ADDITIVE GOODRICH
TRILENE PACKAGES, LUBE
PRODUCERS
PETROLEUM Ca SULFONATES, FORMULATORS OF
ADDITIVES Mg SULFONATES, ADDITIVE
Na SULFONATES PACKAGES FOR
MARINE LUBES, ORONITE,
HEAVY FUELS LUBRIZOL,
INFINEUM
PETROMIX PACKAGES FORMULATORS OF
METALWORKING
FLUIDS
26
SPECIALTY PRODUCTS
OTHER (CONT.)
MARKETS PRODUCTS CUSTOMERS COMPETITORS
REFINED WHITE OILS PERSONAL CARE, PENRECO,
PRODUCTS HOUSEHOLD & LYONDELL, MOBIL,
INSTITUTIONAL ESSO
FORMULATORS
PETROLATUMS PERSONAL CARE PENRECO
CABLE FILLING CABLE PRODUCERS PENRECO, SAVITA
COMPOUNDS CRYSTAL SOAP
REFRIGERATION COMPRESSOR TEXACO, PENRECO
OILS PRODUCERS
PARAFFIN WAX
FATTY ACIDS & C22 FATTY ACIDS REACTED INTO HENKEL, UNICHEMA,
GLYCERINES AMINES, ESTERS, P&G
THEN USED BY
FORMULATORS OF
HAIR CARE
PRODUCTS, AND
POLYMER EXTRUDERS
GLYCERINE PERSONAL CARE, P&G, DIAL, DOW,
PAINT RESIN AKZO
PRODUCERS,
INTERMEDIATE FOR
TNT
FATTY AMINES HAIR CARE, GOLDSCHMIDT, AKZO
PERSONAL,
CARE FORMULATORS
FATTY ESTERS AG FORMULATORS, HENKEL, LONZA,
PRODUCERS OF REGIONAL PLAYERS
LUBES FOR
PLASTICS
27
FINANCIAL OBJECTIVES
. EPS GROWTH
- TARGET - 10% PER YEAR
. GENERATE A HIGH & STABLE FREE CASH FLOW
- TARGET - $150-200 MILLION PER YEAR
. MAINTAIN A STRONG DEBT REDUCTION PROGRAM
- TARGET - $125 MILLION PER YEAR
. ACHIEVE LOWER FINANCIAL LEVERAGE
- TARGET - 35% TO 45%
28
CK WITCO NET SALES & OPERATING PROFIT BY SEGMENT AS ADJUSTED FOR
DECONSOLIDATIONS, SALE OF BUSINESSES AND NON-RECURRING ITEMS
Three Three Six
Months Months Months Fiscal
Ended Ended Ended Year Ended
March 1999 June 1999 June 1999 Dec 1998
Net Sales
Polymer Products
Polymer
Additives 258,322 263,078 521,400 1,061,219
Polymers 78,735 79,410 158,145 301,006
Polymer Processing
Equipment 88,147 82,092 170,239 344,480
425,204 424,580 849,784 1,706,705
Specialty Products
Organosilicones 114,989 115,248 230,237 443,044
Crop Protection 108,253 129,877 238,130 436,788
Other 174,560 180,130 354,690 724,937
397,802 425,255 823,057 1,604,769
Total Net Sales as
adjusted 823,006 849,835 1,672,841 3,311,474
Operating profit
Polymer Products
Polymer Additives 22,762 28,358 51,120 114,828
Polymers 22,306 23,583 45,889 79,183
Polymer Processing
Equipment 11,170 5,731 16,901 46,653
56,238 57,672 113,910 240,664
Specialty Products
Organosilicones 15,963 17,387 33,350 57,396
Crop Protection 28,080 38,993 67,073 93,274
Other 11,675 13,243 24,918 47,507
55,718 69,623 125,341 198,177
Corporate including
Amortization (26,560) (22,697) (49,257) (88,928)
Total Operating
profit as adjusted 85,396 104,598 189,994 349,913
NOTE SEE PAGE 30 FOR A RECONCILIATION OF NET SALES AND OPERATING
PROFIT AS ADJUSTED TO NET SALES AND OPERATING PROFIT AS REPORTED.
29
CK WITCO NET SALES & OPERATING PROFIT BY SEGMENT AS ADJUSTED FOR
DECONSOLIDATIONS, SALE OF BUSINESSES AND NON-RECURRING ITEMS
Six
Months Fiscal
Ended Year Ended
June 1999 Dec 1998
(1) Reconciliation of total net sales
as adjusted
Total sales as adjusted 1,672,841 3,311,474
Sale of the specialty ingredients
business - 89,589
Deconsolidation of the seed treatment
joint venture - 84,966
Deconsolidation of the nitrile rubber
joint venture - 41,521
Sale of a significant portion of
Oleochemicals and Derivatives
business 135,573 270,192
Total net sales as reported 1,808,414 3,797,742
(2) Reconciliation of operating profit
as adjusted
Operating profit as adjusted 189,994 349,913
Sale of the specialty ingredients
business - 7,863
Deconsolidation of the seed treatment
joint venture - 10,840
Deconsolidation of the nitrile rubber
joint venture - 895
Facility closure costs - (33,600)
Restructuring charges (credits) (3,204) 34,764
Special environmental charge - (22,025)
Accounting change from LIFO to FIFO
(Colors Business) - (7,960)
Sale of a significant portion of
Oleochemicals and Derivatives
business 9,635 10,847
Total Operating profit as reported 196,425 351,537
(3) Total net sales as reported in (1) and total operating profit
as reported in (2) are as filed in Form 8K/A by CK Witco
Corporation on September 28, 1999.
30
CK [logo] Witco CK Witco
CROMPTON & KNOWLES worldwide [logo] [logo]
A WINNING COMBINATION
A Leading global specialty chemical company with strong market
positions in key segments led by a seasoned management team
creating value for shareholders & customers
31
Information in this presentation contains "forward-looking
statements" which are not historical facts. These statements
involve risks and uncertainties that could cause actual results to
differ materially including, without limitation, the Company's
ability to generate targeted cash flow, revenue and earnings
growth, the timing and quantity of merger cost savings, certain
global and regional economic conditions and other factors detailed
in the Company's Securities and Exchange Commission filings.
30 SEPTEMBER 1999
32
