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2005 Annual Report
Chemtura Corporation
Financial highlights
Chemtura Corporation is the fourth-largest publicly traded specialty chemicals
company in the United States and one of the largest producers and marketers of
plastic additives in the world.
We have more than 6,500 employees in research, manufacturing, sales and
administrative facilities in every major market of the world. Our 240 million shares of
common stock are traded on the New York Stock Exchange under the symbol CEM.
Chemtura is a leading supplier of plastic additives and pool and spa products, a top
marketer of niche agricultural products, a leader in the petroleum additives market,
and a top marketer and producer of urethane polymers. We manufacture and market
products that make other products better in automotive, construction, packaging,
agricultural, industrial and consumer applications.
Pro Forma Pro Forma Adjusted Adjusted
GAAP Non-GAAP* GAAP Non-GAAP*
Net sales $ 2,986,608 $3,898,442 $ 2,285,231 $ 3,888,930
Operating profit (loss) $ 54,904 $ 354,119 $ (73,780) $ 189,070
Earnings (loss) from continuing operations $ (184,850) $ 143,574 $ (41,959) $ 50,071
Diluted weighted average shares outstanding 178,404 239,646 114,736 228,979
EPS – continuing operations $ (1.04) $ 0.60 $ (0.37) $ 0.22
Total assets $ 4,986,003 $ 2,678,709
Long-term debt (including short-term borrowings) $ 1,369,771 $ 866,545
Total stockholders’ equity $ 1,775,397 $ 328,980
* This information should be read in conjunction with the Company’s consolidated financial statements and other financial information contained in
the Company’s 2005 Annual Report on Form 10-K, which is included in this document. A reconciliation of these non-GAAP measurements to the most
comparable GAAP measurements is provided in this document immediately following the Company’s 2005 Annual Report on Form 10-K.
2005(In thousands, except per share data) 2004
The required Annual CEO Certification was submitted to the New York Stock Exchange on May 17, 2005, without qualification.
The Company has filed with the Securities and Exchange Commission, as an exhibit to its most recently filed Annual Report on Form 10-K, the Sarbanes-Oxley
Act Section 302 certifications from the Company’s chief executive officer and chief financial officer regarding the quality of the Company’s public disclosure.
1The year 2005 was the beginning of an exciting journey for
a new company: Chemtura Corporation, a $3.9 billion
global organization driven by possibilities and with a focus
on the future.
When we began the transformation of Crompton Corporation
in 2004, we embarked on a difficult but necessary series of
actions to improve our performance. As we concluded 2005,
we could look back at a series of successes of which we are
very proud: We refinanced and paid down debt, put many
legacy legal issues behind us, dramatically improved
earnings, and completed a game-changing merger.
Chemtura was created from the merger of Crompton
Corporation and Great Lakes Chemical Corporation,
companies with long histories of growth, adaptability
and innovation.
As we continue on the road that leads to achieving our vision
of becoming the world’s best specialty chemicals company, we
do so with great enthusiasm, conviction and confidence that
the road we have chosen is the right one. While a road often
has many turns and, sometimes, bumps, we are prepared to
continue passing mileposts and adding to our successes.
Seizing Opportunity
While implementing improvements at Crompton, our
examination of the Great Lakes businesses and synergy
possibilities convinced us that we needed to seize the
opportunity to build a new company that would be more
prosperous in the future than either company alone.
Success would require the same focus, discipline and
execution that we applied at Crompton.
With Chemtura’s greater scale, enhanced portfolio, stronger
balance sheet, expanded geographic presence, and merger
synergy savings, we formed what we believe is a very special
organization — one that is driving hard toward our vision of
becoming a great place for employees to work and have
successful careers, our customers’ best supplier and our
shareowners’ best investment. The merger led us to an
exciting place, full of opportunities and possibilities.
Dear fellow shareowners:
Robert L. Wood, Chairman, President and Chief Executive Officer
2 Before July 1, 2005, there was no Chemtura. Since then, more
than 6,500 employees around the world have been focused
on making Chemtura the best that we can be. Through various
initiatives, we are concentrating on commercial, functional
and process excellence to enable us to reach our destination:
becoming the world’s best specialty chemicals company.
To us, commercial excellence means creating high-value
solutions for customers with consistent product quality,
reliable delivery and service, continuous price/volume
optimization, and distinctive technology. Functional
excellence means operating at top efficiency to become
the low-cost provider of products within our markets served.
Process excellence will enable us to leverage our scale and
build strategic sourcing relationships that optimize spending.
We have programs in place, including Six Sigma and Lean
Manufacturing, to drive excellence. We know that we also
must seamlessly execute our processes and attract and
retain top employee talent in order to continuously
improve our performance.
Achieving Milestones
During 2005, we were successful in achieving a number of
key accomplishments that have brought us closer to our
destination of being the best:
� We made major strides in adopting a value-pricing mentality.
Like many companies in our industry, we had been focused on
volume, not margin, and some of our businesses were not
maximizing profitability. Our $417 million in year-over-year
price increases, on a pro-forma basis, were instrumental in
improving our margins, helping us cover raw material and energy
costs, and enabling us to nearly triple pro-forma profitability.
To improve our pricing process, we implemented an online,
corporate-wide pricing system that has given us much more
visibility into profitability on a customer and product level.
The Chemtura Brand Promise
Through rigor, discipline and the drive to challenge convention, we make
performance improvement our mission: for our customers who seek business
solutions, not just answers to product needs; for employees who want a chance
to grow and learn; and for investors who look for innovative thinking, solid planning
and better returns. At Chemtura, improving performance is our profession.
3
� We continued to define how to best service different
groups of customers to both our and their benefit. We are
using different channels of distribution for customers who
do not require extensive service, enabling us to focus on
those customers who require more intensive specialization
and assistance and are able to pay for it.
� We put into place commercial, functional and process
excellence teams, led by employees trained in Six Sigma and
Lean Manufacturing. Using these methodologies in our
global locations, we improved work processes and significantly
increased efficiency, realizing $28 million in pre-tax cost
savings in 2005.
� We centralized our customer care operations, streamlined
our manufacturing operations, improved our procurement
savings, reorganized our businesses for more effective selling,
upgraded our information systems, and instituted new
leadership in some of our businesses in order to improve
performance.
� We revamped Crompton’s pre-merger portfolio by divesting
the Refined Products business and joint venturing the Polymer
Processing Equipment business, both non-core areas. We have
been evaluating our current business and product portfolios
and expect to be making further adjustments in 2006.
� We achieved merger-related pre-tax cost savings of
approximately $19.3 million in 2005 on a pro-forma basis,
which was nearly twice our original target. These savings were
achieved by combining several facilities throughout the world,
aggressively reducing costs, and eliminating 700 redundant
positions. We are on track to achieve another $80 million to
$90 million in merger-related synergies by the end of 2006
and to reach our goal of a cumulative $150 million by the
end of 2007.
� We reduced our net debt by $66 million since the July 1
merger and traded out about half of our expensive high-yield
bonds for an interest-rate-expense reduction of $12 million
in 2006.
� We resolved a number of legacy antitrust-related issues
and are working diligently to put these issues behind us.
We settled a European Union investigation for approximately
$16 million, which was on the very low end of what it could
have been.
The year 2005 was intense, and we made definite progress on
the road toward our destination. However, our objective is
much more ambitious than anything we accomplished in 2005.
Our journey is a longer one with high aspirations. In our vision,
we aspire to be the world’s best specialty chemicals company.
While this might seem to be an arrogant statement, we would
rather aspire to be the best and the greatest, rather than to be
second-best and simply good. We want our people to believe it
is possible and take the actions to make it a reality.
We see a bright future as we travel along our road.
“...we would rather aspire
to be the best and the greatest,
rather than to be second-best
and simply good. We want our
people to believe it is possible
and take the actions to make
it a reality.”
4 Turns and Hills
No road is perfectly smooth, however. It is not a short-term
project to build a great company, and you seldom reach your
destination without some unexpected turns, hills and bumps.
While we believe our value-pricing strategy is correct, we
are facing some challenges because of it. We lost volume as
a result of price increases. We now are implementing a more
balanced approach, making sure that both price and volume
are considered when quoting business.
We are taking a number of steps to restore volume and
improve non-flame-retardants Plastic Additives, including:
reinforcing our sales, customer care and technical support
functions; working with customers to help them cut costs;
and clarifying the added value of our products.
Our experience in our non-flame-retardants Plastic Additives
business has left us with a much deeper understanding of our
customers, our competitors and the value of our offerings.
We are using our customer and product profitability data to
strategically recover and/or replace lost profitable volume.
Continuous improvement
We expect our journey to be one of continuous improvement.
Some of the actions we are taking along those lines include:
� Flattening our Performance Chemicals organization. Having
the leaders of these key businesses reporting directly to me will
improve customer focus, create better communication and
speed decision making.
� Upgrading our talent base and continuing to develop a
culture of employee ownership, accountability and commitment
to delivering results.
Note: The information provided in this chart represents 2005 operating results presented on a pro forma basis, as if the merger with Great Lakeswas consummated on January 1, 2005. This information should be read in conjunction with the Company’s consolidated financial statementsand other financial information contained in the Company’s 2005 Annual Report on Form 10-K, which is included in this document.
5� Executing portfolio adjustments to optimize our corporate
focus and profitability.
� Continuing to build our commercial excellence skills,
including further effort to prune unprofitable products and
more fully utilize our distribution partners.
� Developing an institutional command of our economics …
and using those insights to more effectively position ourselves
in the marketplace with individual customers.
� Improving the depth, coordination and training of our
business teams so that both their planning and execution can
be more effective.
� Expanding the impact of our operational excellence
initiatives on sourcing and supply chain through continued,
rigorous use of Six Sigma and Lean Manufacturing.
Driving Forward
We know that our success will be a collective effort made
by all the members of the Chemtura team. Every Chemtura
employee is important to our success — whether he or
she makes, sells or ships products; pays or issues invoices;
maintains our information systems; buys raw materials;
answers customers’ questions; develops or improves a
product; or answers the telephone at a reception desk.
I have every confidence in the Chemtura team. The fact that
so much was completed within months after the merger
speaks for the tremendous dedication, talent, innovation,
leadership, and focus of Chemtura employees. It also speaks
for their ability to adapt to changing situations, seize
opportunities and imagine possibilities.
In 2006, we expect to drive significant improvement in our
businesses and processes while continuing to deliver synergy
savings. The actions we are taking and improvements we are
making create the opportunity for tremendous upside for our
company. We have a focused and action-oriented agenda that
will enable us to deliver on our goals. My team and I are personally
more excited than ever about our company’s potential.
Chemtura is an organization that is driven … driven by a
vision of the future and all the possibilities it presents.
We will keep you informed.
Sincerely,
Robert L. Wood
Chairman, President & Chief Executive Officer
March 28, 2005
“I have every confidence in
the Chemtura team. The fact
that so much was completed
within months after the merger
speaks for the tremendous
dedication, talent, innovation,
leadership, and focus of
Chemtura employees.”
Driven by the possibilities of
excellence
6
Mel Nicely, left, and Dexter Porter, both full-time Lean Manufacturing champions at Chemtura’s Conyers, Georgia, facility, use Kaizen
techniques to improve safety, productivity and quality on a production line. Five Lean champions at Conyers are dedicated to
process improvement at the plant.
More than 400 Chemtura employees worldwide are trained in Lean Manufacturing techniques, which focus on reducing waste in
processes ranging from manufacturing to invoicing. In addition, more than 600 Chemtura employees have been trained in Six Sigma,
a methodology to improve performance in operation and business processes.
Chemtura employees completed 223 Six Sigma projects and 233 Kaizen events in 2005, resulting in more than $28 million in direct
financial benefits. These projects have included improvements from reducing energy and raw materials usage to rearranging work
areas so that jobs can be done more efficiently to improving profitability through better product management.
At Chemtura, no project is too big or too small for improvement.
Because we take the pursuit of excellence very seriously, Chemtura has put in place a dedicated team of process excellence leaders
to lead projects and teach other employees to make process improvements on their own. This team is deployed throughout the
company to work directly with business and functional leaders on a daily basis, and is led by our VP of process excellence who
reports directly to Chemtura’s chairman and chief executive officer. We have quick and easy online registration for Six Sigma
instruction and certification; an online program through which our more than 6,500 employees can suggest improvement projects;
and an Intranet site where we share success stories.
We are building improvement and high performance into our corporate culture.
We believe there is no limit to what we can do. The possibilities for excellence are endless.
Jing Min, left, assistant general manager, and Patty Peng, production supervisor, carry out quality control testing at Chemtura’s facility
in Nanjing, China. Only a few years old, the facility produces Adiprene® and Vibrathane® prepolymers to service the China market and
provides initial testing on raw materials for the urethanes business. The site soon will do similar raw-material evaluations for Chemtura’s
Crop Protection business.
The merger of Crompton Corporation and Great Lakes Chemical Corporation created a company with an expanded geographic
presence. Chemtura’s manufacturing, research and development, sales, warehouse and administrative facilities are located in every
region of the world, facilitating supply chain management and enabling us to be closer to our customers.
We plan to grow our geographic footprint by increasing our presence in growing markets, such as Asia, Eastern Europe and the
former Soviet republics, which seek a higher standard of living with better nutrition, assisted by our crop protection products, and
better homes, cars and other products — made stronger, safer and longer-lasting with our additives.
7
Driven by
geographic possibilities
Our global locations include:
Asia-Pacific
AustraliaIndiaJapanPeople’s Republic of ChinaSingaporeSouth KoreaTaiwanThailand
Europe, Africa & the Middle East
BelarusBelgiumBulgariaCzech RepublicFranceGermanyGreeceHungaryItalyKazakhstanKenyaMoldovaPolandRomaniaRussiaSaudi ArabiaSlovakiaSouth AfricaSpainSwitzerlandThe NetherlandsTurkeyUnited KingdomUkraineUnited Arab EmiratesUzbekistanYugoslavia
Latin America
ArgentinaBrazilColombiaEcuador
North America
CanadaMexico United States
8
Tanja Weigel, left, Customer Care specialist (CCS) for Chemtura’s Flame Retardants business, shares information with coworker Carline
Collignon, CCS for Chemtura’s Plastic Additives business, at Chemtura’s Customer Care Center in Antwerp, Belgium. In the back are
Sandra Ellis, left, CCS for Flame Retardants, and Mercedes Estevez, CCS for Plastic Additives. Tanja, Carline, Sandra and Mercedes represent
four nationalities — German, Belgian, English and Spanish — and all spend their days helping customers achieve success.
One aspect of the Chemtura vision to be the world’s best specialty chemicals company is to be our customers’ best supplier.
We want customers to think “Chemtura” whenever they think about success and who can help them achieve it. Tanja, Carline,
Sandra and Mercedes, and the other Customer Care team members, representing 14 nationalities, understand that Chemtura isn’t
just about products. Chemtura is about value, which, we believe, is our greatest additive.
Value comes from the people of Chemtura: the scientists who develop new and improved solutions to help customers improve their
businesses; the technicians who help customers determine the optimal use of a product; the Customer Care representatives like Tanja
and Carline who ensure customers get what they need; the procurement agent who works hard to get the best price on raw materials so
that we can give our customers the best price on our own products; the plant manager, who helps ensure our operations run efficiently;
and the plant operator, who produces our additives and crop protection products with pride. The list is more than 6,500 employees long.
Not only do we add value to our products, but our products add value to our customers’ products, making them stronger, safer, cleaner
and longer-lasting. Because of our plastic additives, car bumpers are stronger and cars are safer. Because of our pool additives, swimming
pools are cleaner and healthier. Because of our flame retardants, you and your family are better protected from fire.
We sell much more than additives and crop protection products.
We sell value — to our customer and our customer’s customer.
And the possibilities of adding value are endless.
Driven by the possibilities of
value
9
Chemtura Crop Protection salesman Fernando Zambello, right, shows Brazilian farmer Domingo Turqueti how to properly use the
product Omite® on his citrus crops in Limeira City, São Paulo State, Brazil. Product stewardship is an important part of our commitment
to Responsible Care®, the chemical industry’s initiative to protect the environment, ensure the safety and security of our operations
and safeguard the health and safety of our employees and neighboring communities.
Every Chemtura employee is expected to understand how our Responsible Care management system relates to his or her job.
At Chemtura, we follow our products from their production through their disposal — from cradle to grave. We are dedicated to
safely producing, packaging, storing and shipping our products and to helping ensure that our customers use the products safely.
Responsible Care also includes open communications with our neighbors. We hold community meetings, open houses and
demonstrations on how chemistry works in our lives. Our emergency responders participate in drills with local emergency
personnel. Our employees contribute to and participate in various charities and local events and serve their communities as
coaches, scout leaders and civic group volunteers.
Our goal is to make continuous progress toward our vision of no accidents, injuries or harm to the environment.
We are citizens of the world, and we care about the future and its possibilities — for everyone.
Driven by the possibilities of
stewardship
Our businesses
10
Plastic AdditivesNon-Flame-Retardant Plastic AdditivesChemtura is the largest producer and marketer of plastic additives in the world.
Our plastic additives are used to manufacture everything from woodcomposite decking and vinyl siding, molding, fencing, flooring, pipingand patio furniture for homes; to dashboards, glove boxes and seating for automobiles; to safety helmets and athletic wear for recreation; tocomputer components, plastic bottles, credit cards, CD cases and personal-care products for everyday use.
Our plastic additives portfolio covers the entire supply chain, frommonomers and polymerization to finishing and compounding. We are a world leader in PVC additives, offer one of the most extensive ranges of polyolefin and engineering polymer additives in the world, and are aleading producer of ABS-based impact modifiers. We also are a leadingprovider of a wide range of organometallic specialties for various applications, including esterification, transesterification, curing and cross-linking in coatings and in the organic syntheses of pharmaceuticalintermediates. In addition, we are Europe’s largest producer of aluminumalkyls with the research capabilities, online experience, capacity and quick delivery systems necessary to be a valuable business partner.
Our products linclude Lowilite® UV / light stabilizers; Weston®, Untranox®,Alkanox®, Anox®, Naugard® and Lowinox® antioxidants; Mark® heat stabilizers; Kemamide® slip agents; Royaltuf® and Polybond® couplingagents; Blendex® impact modifiers; Celogen® foaming agents; Drapex®plasticizers; and Anox® NDB® additive blends. Our organometallic specialties products include Eurecen® AL aluminum alkyls and Eurecat®tin specialties; our oleochemcials include Kemstrene® refined glycerine,Hystrene® and Industrene® fatty acids and Neustrene® hydrogenated triglycerides.
Flame RetardantsChemtura is a leading global producer and supplier of flame retardants.Flame retardants reduce the chances of a fire starting by providingincreased ignition resistance and delaying the spread of flame, providing extra time to extinguish or escape from a fire.
From computer monitors' plastic casings, to the circuit boards found in electronic appliances, to foams and fabrics used in furniture and automobiles, to the wiring behind walls and inside components, Chemtura flame retardant additives are silently protecting the productsyou rely on every day.
Our flame retardant additives include Firemaster® bromine-based flameretardants; Kronitex®, Reofos® and Reogard® phosphorus-based flameretardants; Fyrebloc® flame retardants; Fireshield®, LSFR, Ongard®, Oncor®,Pyrobloc®, Smokebloc®, Thermoguard®, Timonox®, Trutint® and UltraFine®antimony-based flame retardants/synergists; and PetCat® and UltraFine®antimony-based catalysts.
Our brominated performance products business is composed of bromineand bromine-based intermediates that meet specific performance, environmental and quality requirements and have a wide range of applications and utility for daily life. Brominated intermediate productsare used each and every day to produce electronic devices, rubber, soapsand detergents, pharmaceuticals and medicines, flavors and fragrances,agricultural intermediates, and photographic chemicals.
Natural gas and oil companies use clear brine fluids in both deep waterand land-based drilling to control wellbore pressure and minimize reservoirdamage. They have the flexibility to match the unique characteristics ofeach well to acquire new and previously unavailable energy resources.
11
Specialty AdditivesPetroleum Additives Our Petroleum Additives business is a high-growth business with products
used to improve performance in motor oils, transmission fluids, industrial
and hydraulic oils, metalworking fluids, and fuels. This business is the
largest component supplier to the lubricants industry. These products
include additives for fuels, as well as synthetic and mineral oil-based
lubricants and fluids used in aviation, mining, electricity generation and
gas pumping where machinery operates under high temperatures or
operates continuously. Our lubricant products extend engine life and
protect braking systems from wear and tear. Our products also are used
in waxes, solvents and industrial cleaners.
Products include Naugalube® and Naugard® antioxidants; Calcinate™,
Hystrene® and Industrene® anti-wear agents; Lobase®, Hybase®,
Calcinate™ and Petronate® sulfonate detergents; Synton® high-viscosity
polyalphaolefins (PAO); G-2000™ high-performance grease; Barinate®
barium sulfonate; Durad® lubricant additives; Reolube® fire-resistant
fluids and lubricants; and Reomo® and KP-140® specialty additives.
This business benefits from increasingly demanding government-
mandated emissions and fuel-economy standards that necessitate
the inclusion of our additives.
Rubber AdditivesChemtura’s rubber additives business is among the top three in the
world and offers more than 100 products for rubber processing.
Our rubber additives are used to make most rubber products, including
tires, belts and hoses, seals, elastic bands in clothing, and shoe soles.
Our products include Naugard® antioxidants that protect rubber
compounds from damage from oxygen, light and heat; Delac® accelerators
used for curing natural and synthetic rubber; Flexzone® antiozonants,
which protect rubber compounds from cracking and deteriorating from
exposure to ozone, oxygen and heat; and Celogen® foaming agents,
which are mixed with rubber to produce sponge rubber products such
as automotive weather seals and seat cushions.
Our businesses
PolymersUrethanesOur Adiprene®/Vibrathane® hot-cast prepolymers, curatives and systemsare sold to manufacturers of industrial and printing rolls, mining machineryand equipment, mechanical goods, solid industrial tires and wheels, andsporting and recreational goods, including golf ball covers and inline skateand roller-coaster wheels. Elastomers made from Adiprene/ Vibrathaneproducts provide exceptional abrasion resistance, strength against tearing,and various dynamic properties.
A top global supplier, we offer more than 300 urethane polymer products.
In North America, we supply Fomrez® polyester polyols, which have broad application in flexible foam, thermoplastic urethanes, coatings, adhesivesand elastomers. We also supply Witcobond® aqueous polyurethane dispersions, which are used in coatings for hardwood floors and in paintsand textiles. We sold our Witcothane® microcellular systems business Jan. 1, 2006 to concentrate on our other urethanes businesses.
EPDMWe are one of the top producers of EPDM elastomers in the world.
Our EPDM products, including Royalene® EPDM rubber, RoyalEdge® EPDMrubber and Trilene® Liquid EPDM, are used in automotive, construction,wire and cable, and mechanical goods applications.
We produce more than 30 types of EPDM, which withstands heat, sunlightand ozone without deteriorating. A typical car includes about 20 poundsof EPDM in weather stripping, brake parts, hoses and body cladding.Additional EPDM applications include commercial roofing, white sidewallsfor tires, seals and gaskets, and garden and industrial hoses.
Crop ProtectionChemtura’s Crop Protection business focuses on niche markets where the
opportunity for higher margins exists. Our Crop business is a global leader in
seed treatment and miticides. Throughout the world, our products enhance
crop quality and increase yield, especially of high-value, niche crops such
as nuts, citrus, grapes and cotton. Our products are especially formulated for
specific crops and the growing conditions of particular geographic regions.
Chemtura products are used to protect seeds from pests and disease
and to aid germination; to protect growing crops from insects, mites and
diseases and to eliminate unwanted weeds; and to assist with pest control
in soil preparation, commodity storage and post-harvest food processing.
We are constantly expanding our presence in worldwide niche markets by
developing new products and obtaining registrations for new uses and
geographies. Our research and development programs respond to — and
even anticipate — new threats to crops around the world and search for
ways to reduce the environmental impact of crop protection products.
Our products include Acramite®, Omite®, Comite®, and Floramite® miticides;
Vitavax® seed treatment; Procure®, Terrazole® and Terraclor® fungicides;
Pantera®, Casoron® and Alanap® herbicides; Diamond TM insecticide;
Dimilin® insect growth regulant; Harvade®, Royal MH-30® Paczol® and
B-Nine® plant-growth regulants; and Terr-O-Gas® soil fumigants.
12
Consumer ProductsWe are one of the world’s leading manufacturers of water-treatment
biocides and related specialty chemicals for pool and spa care. Our
pool and spa products include water-treatment systems that include
sanitizers, algicides, biocides, oxidizers, pH balancers, mineral balancers,
shock chemicals and specialty chemicals with familiar trade names:
AquaBrome®, Aqua Chem®, BAYROL®, BioGuard®, Guardex®, Hydrotech®,
Miami®, Omni®, Pool Time®, ProGuard®, Spa Essentials®, Spa Guard®,
Spa Time® and Sun®.
Our pool and spa business has a comprehensive product offering, multiple
channels of distribution and a reputation for quality, convenience and
customer service.
Our specialty and multipurpose cleaners are useful for both indoor and
outdoor applications. Our proprietary formulas can be used in the kitchen,
bath, laundry, patio and garage and on automotive surfaces. Our products
include The Works® brand of cleaners and Greased Lightning® brand of
multipurpose cleaners for tough cleaning tasks and everyday use.
Other BusinessesFluorines – FM200® waterless fire suppressionOur waterless fire suppression products are used for mission-critical
and high-value assets to prevent extensive fire damage and eliminate
collateral damage and downtime. Such assets include computer rooms,
telecommunications operations, medical equipment and laboratories,
document vaults and art museums.
Our fluorine specialties go into wide-ranging, high-technology applications
such as optical fibers and computer chips, in refrigerants that are used in
residential air conditioners as an environmentally friendly alternative to
Freon®, in fluoro-silicone materials and as chemical intermediates for
agricultural chemicals. They also are used as propellants in metered-dose
inhalers that help asthma sufferers breathe easier.
Optical MonomersOur RAV-7® and Nouryset® ADC monomers are used in lenses for eyewear
such as prescription glasses and sunglasses, as well as in applications
such as protection sheets for welding masks and screens, safety shields,
photographic filters, lenses for welder's goggles, and lab equipment.
Industrial Water Treatment We are a major producer of organic, polymer-based antiscalants and
corrosion inhibitors and bromine-based biocides.
Our Belclene® , Belcor®, Belgard®, Belite®, Bellacide®, Bellasol®, Belsperse®,
BromiCide®, Flocon® and LiquiBrom™ products help to control scale,
corrosion, foam and problem organisms in industrial cooling, industrial
and municipal wastewater treatment, pulp and paper processing, food
processing, and desalination processes.
13
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,63
9
61
,24
21,
603,
699
29,2
30
21,9
15
114,
243
No
n-G
AA
P ad
just
men
ts:
Faci
lity
clo
sure
s, s
ever
ance
an
d r
elat
ed c
ost
s2
3,9
41
2
3,9
41
79,0
95
79,0
95
An
titr
ust
co
sts
49
,10
9
49
,10
911
3,73
6 11
3,73
6
Mer
ger
co
sts
45
,23
0
45
,23
0
Hu
rric
ane
cost
s
4,5
63
4
,56
3
Co
nyer
s fi
re c
ost
s, n
et o
fin
sura
nce
rec
over
ies
(7
,16
3)
(7,1
63
)17
,000
17
,000
Ch
ang
e in
th
e u
sefu
l life
o
f as
sets
1,9
23
1
,92
3
15,7
00
15,7
00
Exec
uti
ve t
erm
inat
ion
s 14
,904
14
,904
Gai
n o
n d
isp
osi
tio
n
of
bu
sin
ess
(3,1
99
)(6
,815
)(9
9,75
3)
Loss
on
ear
ly e
xtin
qu
ish
men
t o
f d
ebt
55
,09
1
20,0
63
Ad
just
men
t to
ap
ply
a
no
n-G
AA
P ef
fect
ive
inco
me
tax
rate
2
1,2
90
(90,
630)
Pro
Fo
rma
Ad
just
ed N
on
-GA
AP*
$3
,89
8,4
42
$
35
4,1
19
$
14
3,5
74
2
39
,64
6$
0.6
0$
3,88
8,93
0
$18
9,07
0
$50
,071
228,
979
$0.
22
20
05
(In
th
ou
san
ds,
ex
ce
pt
pe
r sh
are
da
ta)
2004
The
info
rmat
ion
pre
sen
ted
in t
he
finan
cial
hig
hlig
hts
an
d in
clu
des
fin
anci
al m
easu
res
that
are
not
cal
cula
ted
or
pre
sen
ted
in a
ccor
dan
ce w
ith
Gen
eral
ly A
ccep
ted
Acc
ount
ing
Prin
cip
les
in t
he U
nite
d
Stat
es (G
AA
P). T
hese
non
-GA
AP
finan
cial
mea
sure
s co
nsis
t of
ad
just
ed re
sult
s of
op
erat
ions
of t
he C
omp
any
(aft
er t
akin
g in
to a
ccou
nt t
he m
erge
r w
ith
Gre
at L
akes
) tha
t ex
clud
e ce
rtai
n ex
pen
ses,
gai
ns
and
loss
es th
at m
ay n
ot b
e in
dica
tive
of th
e co
re o
per
atio
ns o
f the
Com
pan
y. E
xclu
ded
item
s in
clud
e fa
cilit
y cl
osur
e, s
ever
ance
and
rela
ted
cost
s, a
ntitr
ust c
osts
, mer
ger c
osts
, ass
et im
pai
rmen
ts, i
ncre
ased
dep
reci
atio
n d
ue t
o th
e ch
ang
e in
the
use
ful l
ife o
f ass
ets,
unu
sual
and
non
-rec
urri
ng c
atas
trop
hic
even
ts o
r se
ttle
men
ts, l
oss
on e
arly
ext
ing
uish
men
t of
deb
t, ex
pen
ses
rela
ting
to
the
term
inat
ion
of
emp
loym
ent
of c
erta
in e
xecu
tives
, and
gai
ns a
nd lo
sses
on
disp
ositi
on o
f bus
ines
s un
its. I
n ad
ditio
n to
the
non-
GA
AP
finan
cial
mea
sure
s di
scus
sed
abov
e, t
he C
omp
any
has
app
lied
a n
on-G
AA
P ef
fect
ive
inco
me
tax
rate
to
our
non-
GA
AP
inco
me
bef
ore
taxe
s. T
his
rate
inco
rpor
ates
an
assu
med
mix
of f
orei
gn e
arni
ngs
and
tax
es, p
erm
anen
t b
ook-
tax
diff
eren
ces,
var
ious
tax
pla
nnin
g st
rate
gies
and
oth
er
assu
mp
tions
. Rec
onci
liatio
ns o
f the
se n
on-G
AA
P fin
anci
al m
easu
res
to th
eir m
ost d
irect
ly c
omp
arab
le G
AA
P fin
anci
al m
easu
res
are
pro
vide
d in
the
atta
ched
tab
les
bel
ow. T
he C
omp
any
bel
ieve
s th
at s
uch
non-
GA
AP
finan
cial
mea
sure
s pr
ovid
e us
eful
info
rmat
ion
to in
vest
ors
and
may
ass
ist t
hem
in e
valu
atin
g th
e Co
mpa
ny’s
unde
rlyin
gp
erfo
rman
ce a
nd id
entif
ying
op
erat
ing
tren
ds. I
n ad
ditio
n, m
anag
emen
t
uses
thes
e no
n-G
AA
P fin
anci
al m
easu
res
inte
rnal
ly to
allo
cate
reso
urce
s an
d ev
alua
te th
e pe
rfor
man
ce o
f the
Com
pany
’s op
erat
ions
. W
hile
the
Com
pany
bel
ieve
s th
at s
uch
mea
sure
s ar
e us
eful
in e
valu
atin
g
the
Com
pan
y’s
per
form
ance
, inv
esto
rs s
houl
d n
ot c
onsi
der
the
m t
o b
e a
sub
stit
ute
for
finan
cial
mea
sure
s p
rep
ared
in a
ccor
dan
ce w
ith
GA
AP.
In a
dd
itio
n, t
hese
non
-GA
AP
finan
cial
mea
sure
s m
ay d
iffer
from
sim
ilarl
y ti
tled
non
-GA
AP
finan
cial
mea
sure
s us
ed b
y ot
her
com
pan
ies
and
do
not
pro
vid
e a
com
par
able
view
of t
he C
omp
any'
s p
erfo
rman
ce r
elat
ive
to o
ther
com
pan
ies
in s
imila
r in
dus
trie
s.
No
n-G
AA
PF
ina
nc
ial
Me
asu
res
© 2006 Chemtura Corporation. All rights reserved.
is a registered trademark of Chemtura Corporation.
® and ™ indicate registered andunregistered trade and service marks.
For an online version of this report, visitwww.chemtura.com
Robert L. Wood
Chairman of the Board
Nigel D. T. Andrews (2,3)Former Managing DirectorInternet Capital Group
James W. Crownover (3,4)Former DirectorMcKinsey & Company
Robert A. Fox (1,4)Managing General Partner Fox Investments L.P.ChairmanAgriCapital Advisors
Martin M. Hale (1,2)Former Partner and Executive Vice PresidentHellman Jordan Management Co., Inc.
Roger L. Headrick (2,3)Co-lead DirectorManaging General PartnerHMCH Ventures
Leo I. Higdon, Jr. (2,3)PresidentCollege of Charleston
Mack G. Nichols (4)Former President and Chief Operating OfficerMallinckrodt, Inc.
C.A. Piccolo (1,3)Co-lead DirectorPresident and Chief Executive OfficerHealthPic Consultants, Inc.
Jay D. Proops (1,2)Cofounder and Former Vice ChairmanThe Vigoro Corporation
Bruce F. Wesson (1,4)PresidentGalen AssociatesGeneral PartnerGalen Partners, L.P.
1 Member of Audit Committee
2 Member of Finance and Pension Committee
3 Member of Organization, Compensation and Governance Committee
4 Member of Safety, Health and Environment Committee
Chemtura is a member of theAmerican Chemistry Counciland a signatory of the Council’sResponsible Care® Program.
The company is committed to a continuouseffort to improve performance in safety,health and environmental quality.Design: DiCostanzo Design Associates Inc./ NYC
Corporate Management
Robert L. Wood
Chairman, President and Chief Executive Officer
Kenneth L. Donahue
Vice President andChief Information Officer
John A. Lacadie
Senior Vice President andChief Technology Officer
Janet E. Mann
Vice PresidentPerformance Specialties
Marcus Meadows-Smith
Executive Vice PresidentCrop Protection and Consumer Products
Gregory E. McDaniel
Executive Vice PresidentStrategy, New Business Development & Technology
Marshall Moore
Vice PresidentEnterprise Process Excellence
Anne P. Noonan
Vice PresidentFlame Retardants & Brominated Performance Products
Sean P. O’Connor
Vice PresidentPlastic Additives
Karen R. Osar
Executive Vice President andChief Financial Officer
Lynn A. Schefsky
Senior Vice President andGeneral Counsel
Barry J. Shainman
Vice President and Secretary
Michael F. Vagnini
Senior Vice President and Controller
Eric C. Wisnefsky
Vice PresidentCorporate Finance & Treasurer
Gary P. Yeaw
Executive Vice PresidentHuman Resources & Communications
Board of Directors Corporate Data
Corporate Headquarters
199 Benson RoadMiddlebury, CT 06749 USA(203) 573-2000
Web site
www.chemtura.com
NYSE symbol
CEM
Auditors
KPMG LLP Stamford Square3001 Summer StreetStamford, CT 06905
Transfer Agent and Registrar
Mellon Investor Services LLC480 Washington BoulevardJersey City, NJ 07310866-233-4822https://vault.melloninvestor.com/isd/
Form 10-K
A copy of the Company’s report onForm 10-K for 2005, as filed with theSecurities and Exchange Commission,may be obtained free of charge bywriting to the Corporate Secretary at theCorporate Headquarters address above.
Annual Meeting
The annual meeting of stockholderswill be held at 11:15 a.m. on Thursday, April 27, 2006, atSheraton Stamford Hotel2701 Summer StreetStamford, CT 06905(203) 359-1300
Investor Relations
William A. Kuser(203) [email protected]
Media Relations
Debra K. Durbin(203) [email protected]
Chemtura Corporation 199 Benson Road, Middlebury, CT 06749 USA (203) 573-2000 www.chemtura.com
Safety is everyone’s responsibility.
We are committed to creating a
safe workplace and to ensuring
product and environmental
stewardship.
Our word is our bond. We are candid. We are ethical. We are fair. We fight for what
we believe is in ourstakeholders’ best
interest.
Learning keeps us vital. We use our imagination as
well as our experience to lookforward and anticipate
potential outcomes.
We define our destiny. We are driven by the power of possibility.
We have a passion to succeed. We are determined
be the best.
Safety
Integrity
Creativity Winning
Trust in and respect for one anotherare our foundations. Through
openness and teamwork, we worktogether across divisions, functions,
and geographies to find the bestsolution possible for our
stakeholders.
We bring rigor, focus, and discipline to how we think,
work, and communicate. We deliver on our
commitments.
Collaboration Accountability
Have fun!
