|UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549


FORM 10-Q


(Mark One)


|X|  QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THESECURITIES EXCHANGE ACT OF 1934


For the quarterly
period ended March 31, 2004


OR


|_|  TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THESECURITIES EXCHANGE ACT OF 1934


For the transition
period from ________ to _________


Commission file
number 1-8142
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|ENGELHARD CORPORATION                                 
|------------------------------------------------------
|                                                      
|(Exact name of Registrant as specified in its charter)

| | DELAWARE                                                       |  | 22-1586002                           | 
| | -------------------------------------------------------------- |  | ------------------------------------ | 
| |                                                                |  |                                      | 
| | (State or other jurisdiction of
incorporation or organization) |  | (I.R.S. Employer Identification No.) | 

|101 WOOD AVENUE, ISELIN, NEW JERSEY, 08830
|------------------------------------------
|                                          
|(Address of principal executive offices)  

|(732) 205-5000                                      
|----------------------------------------------------
|                                                    
|(Registrants telephone number, including area code)

|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  |X| No |_|


Indicate by check mark whether the
registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).  Yes  |X| No |_|


Indicate the number of shares
outstanding of each of the issuers classes of common stock, as of the latest
practicable  date.
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Class of Common Stock |  | Outstanding at April 30, 2004 | 
| | --------------------- |  | ----------------------------- | 
| |                       |  |                               | 
| | $1 par value          |  | 124,268,423                   | 

|
|

|PART I
 FINANCIAL INFORMATION


Item 1. Financial
Statements


ENGELHARD
CORPORATIONCONDENSED CONSOLIDATED
STATEMENTS OF EARNINGS(Thousands,
except per-share data)(Unaudited)
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|                                               | Three Months
EndedMarch 31, | 
|---------------------------------------------- | --------------------------- | 
|
|Net
sales                                      |                             | 
|Cost of sales                                  |                             | 
|                                               |                             | 
|Gross
profit                                   |                             | 
|Selling, administrative
and other expenses     |                             | 
|Special credit,
net                            |                             | 
|                                               |                             | 
|Operating
earnings                             |                             | 
|Equity in earnings
of affiliates               |                             | 
|Interest income                                |                             | 
|Interest expense                               |                             | 
|                                               |                             | 
|Earnings
before income taxes                   |                             | 
|Income tax
expense                             |                             | 
|                                               |                             | 
|Net
earnings before cumulative effect of       |                             | 
|a
change in accounting principle, net          |                             | 
|of
tax                                         |                             | 
|Cumulative
effect of a change in accounting    |                             | 
|principle,
net of tax of $1,390                |                             | 
|                                               |                             | 
|Net
earnings                                   |                             | 
|                                               |                             | 
|Earnings per
share - basic:                    |                             | 
|Earnings
before cumulative effect of a         |                             | 
|change
in accounting principle                 |                             | 
|Cumulative
effect of a change in               |                             | 
|accounting
principle, net of tax               |                             | 
|                                               |                             | 
|Earnings
per share - basic                     |                             | 
|                                               |                             | 
|Earnings per
share - diluted:                  |                             | 
|Earnings
before cumulative effect of a         |                             | 
|change
in accounting principle                 |                             | 
|Cumulative
effect of a change in               |                             | 
|accounting
principle, net of tax               |                             | 
|                                               |                             | 
|Earnings
per share - diluted                   |                             | 
|                                               |                             | 
|Cash dividends
paid per share                  |                             | 
|                                               |                             | 
|Average number
of shares outstanding - basic   |                             | 
|                                               |                             | 
|Average number
of shares outstanding - diluted |                             | 
|                                               |                             | 

|See the
Accompanying Notes to the Unaudited Condensed Consolidated Financial Statements


2
|-------------------------------------------------------------------------------------------

|ENGELHARD
CORPORATIONCONDENSED CONSOLIDATED
BALANCE SHEETS(Thousands)(Unaudited)
|--------------------------------------------------------------------------------

|                                           | March 31,2004 |  | December 31,2003 |          
|------------------------------------------ | ------------- |  | ---------------- | ---------
|Cash                                       |               |  | $                | 50,838   
|Receivables, net                           |               |  |                  | 430,746  
|Committed metal positions                  |               |  |                  | 379,654  
|Inventories                                |               |  |                  | 439,877  
|Other current assets                       |               |  |                  | 114,188  
|                                           |               |  |                  |          
|Total current assets                       |               |  |                  | 1,415,303
|Investments                                |               |  |                  | 165,647  
|Property, plant and equipment, net         |               |  |                  | 872,734  
|Goodwill                                   |               |  |                  | 274,958  
|Other intangible and noncurrent assets     |               |  |                  | 221,632  
|                                           |               |  |                  |          
|Total assets                               |               |  | $                | 2,950,274
|                                           |               |  |                  |          
|                                           |               |  |                  |          
|Short-term borrowings                      |               |  | $                | 45,696   
|Accounts payable                           |               |  |                  | 278,848  
|Hedged metal obligations                   |               |  |                  | 348,893  
|Other current liabilities                  |               |  |                  | 276,717  
|                                           |               |  |                  |          
|Total current liabilities                  |               |  |                  | 950,154  
|Long-term debt                             |               |  |                  | 398,286  
|Other noncurrent liabilities               |               |  |                  | 304,805  
|Shareholders equity                       |               |  |                  | 1,297,029
|                                           |               |  |                  |          
|Total liabilities and shareholders equity |               |  | $                | 2,950,274
|                                           |               |  |                  |          

|See the
Accompanying Notes to the Unaudited Condensed Consolidated Financial Statements


3
|-------------------------------------------------------------------------------------------

|ENGELHARD
CORPORATIONCONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS(Thousands)(Unaudited)
|------------------------------------------------------------------------------------------

|                                                    | Three Months EndedMarch 31, | 
|--------------------------------------------------- | --------------------------- | 
|
|Cash flows from operating activities                |                             | 
|Net earnings                                        |                             | 
|Adjustments to reconcile net earnings to net cash   |                             | 
|provided by operating activities:                   |                             | 
|Depreciation and depletion                          |                             | 
|Amortization of intangible assets                   |                             | 
|Equity results, net of dividends                    |                             | 
|Net change in assets and liabilities:               |                             | 
|Materials Services related                          |                             | 
|All other                                           |                             | 
|                                                    |                             | 
|Net cash provided by operating activities           |                             | 
|                                                    |                             | 
|Cash flows from investing activities                |                             | 
|Capital expenditures                                |                             | 
|Proceeds from investments                           |                             | 
|                                                    |                             | 
|Net cash used in investing activities               |                             | 
|                                                    |                             | 
|Cash flows from financing activities                |                             | 
|Proceeds from short-term borrowings                 |                             | 
|Repayment of short-term borrowings                  |                             | 
|Increase in hedged metal obligations                |                             | 
|Proceeds/(repayment) of long-term debt              |                             | 
|Purchase of treasury stock                          |                             | 
|Cash from exercise of stock options                 |                             | 
|Dividends paid                                      |                             | 
|                                                    |                             | 
|Net cash (used in)/provided by financing activities |                             | 
|Effect of exchange rate changes on cash             |                             | 
|                                                    |                             | 
|Net (decrease)/increase in cash                     |                             | 
|Cash at beginning of year                           |                             | 
|                                                    |                             | 
|Cash at end of period                               |                             | 
|                                                    |                             | 

|See the
Accompanying Notes to the Unaudited Condensed Consolidated Financial Statements


4
|-------------------------------------------------------------------------------------------

|ENGELHARD
CORPORATIONBUSINESS
SEGMENT INFORMATION(Thousands)(Unaudited)
|-----------------------------------------------------------------------

|                                            | Three Months EndedMarch 31, | 
|------------------------------------------- | --------------------------- | 
|
|Net Sales                                   |                             | 
|Environmental Technologies                  |                             | 
|Process Technologies                        |                             | 
|Appearance and Performance Technologies     |                             | 
|                                            |                             | 
|Technology segments                         |                             | 
|Materials Services                          |                             | 
|All other                                   |                             | 
|                                            |                             | 
|Total net sales                             |                             | 
|                                            |                             | 
|Operating Earnings                          |                             | 
|Environmental Technologies                  |                             | 
|Process Technologies                        |                             | 
|Appearance and Performance Technologies     |                             | 
|                                            |                             | 
|Technology segments                         |                             | 
|Materials Services                          |                             | 
|All other                                   |                             | 
|                                            |                             | 
|Total operating earnings                    |                             | 
|Equity in earnings of affiliates            |                             | 
|Interest
      income                       |                             | 
|Interest expense                            |                             | 
|                                            |                             | 
|Earnings
      before income taxes          |                             | 
|Income tax expense                          |                             | 
|                                            |                             | 
|Net earnings before cumulative effect of    |                             | 
|a change in accounting principle, net       |                             | 
|of tax                                      |                             | 
|Cumulative effect of a change in accounting |                             | 
|principle, net of tax of $1,390             |                             | 
|                                            |                             | 
|Net earnings                                |                             | 
|                                            |                             | 

|See the
Accompanying Notes to the Unaudited Condensed Consolidated Financial Statements


5
|-------------------------------------------------------------------------------------------

|Notes to  the
Unaudited Condensed Consolidated Financial Statements


Note 1
 Basis of Presentation


The
unaudited condensed consolidated financial statements of Engelhard Corporation
and subsidiaries (the Company) contain all adjustments, which, in the
opinion of management, are necessary for a fair presentation of the results for
the interim periods presented. The financial statement results for interim
periods are not necessarily indicative of financial results for the full year.
These financial statements should be read in conjunction with the consolidated
financial statements and notes thereto included in the Companys 2003 Form
10-K. The unaudited condensed consolidated financial statements include the
accounts of the Company and its subsidiaries. All significant intercompany
transactions and balances have been eliminated in consolidation.


Note 2
 Special Charges and Credits


In
the first quarter of 2003, the Company entered into a settlement agreement,
releasing a claim the Company had brought against Research Corporation and
Research Corporation Technologies in exchange for payment of $38.0 million.
Accordingly, the Company recorded a gain of $28.4 million ($17.6 million after
tax) in the first quarter of 2003, net of legal fees and the portion of the
settlement related to future royalties. This gain was included in the
Companys All Other category and in the Special credit,
net line in the Condensed Consolidated Statements of Earnings.
By way of background, on October 29, 2002, a jury in the New York County Supreme
Court had awarded the Company $29.8 million in damages, plus interest, in a
breach of contract action the Company had brought against Research Corporation
and Research Corporation Technologies in 1998. The jury found that the
defendants did not share with the Company all of the royalties to which the
Company was entitled under a royalty-sharing agreement it entered into with
Research Corporation in 1979.


Also
in the first quarter of 2003, the Company recorded charges totaling $8.7 million
($5.6 million after tax) primarily related to a management consolidation and
productivity initiative in the Environmental and Process Technologies segments
and within the All Other category. The amounts of $5.3 million ($3.5
million after tax), $2.6 million ($1.6 million after tax) and $0.8 million ($0.5
million after tax) were reported in the Environmental Technologies segment, the
Process Technologies segment and the All Other category,
respectively. These charges are included in the Special credit, net
line in the Condensed Consolidated Statements of Earnings.


In
the Environmental Technologies segment, the charge of $5.3 million primarily
relates to the closure of the segments Coleford, United Kingdom plant
($2.8 million) and employee severance costs related to productivity initiatives
($2.5 million). The employee severance charges included an actual reduction of
96 salaried and 8 hourly employees. As a result of closing this plant, the
segment will outsource the canning operations associated with this business. The
closure resulted in an impairment charge of $1.5 million to write down fixed
assets and other exit-related costs of $1.3 million.


In
the Process Technologies segment, the charge of $2.6 million primarily relates
to employee severance and the termination of an agency agreement associated with
sales to the chemical-process market. The employee severance charges relate to
the reduction of 13 salaried employees. Selling activities associated with the
termination of this agency agreement will be covered by the segments
internal sales force.


In
the All Other category, the charge of $0.8 million was for employee
severance costs related to the actual reduction of six salaried employees.


The
actions undertaken by the Company in relation to these special charges are
substantially complete.


6
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Note 3
 Accounting for Asset Retirement Obligations


The
Companys asset retirement obligations primarily relate to kaolin mining
operations of its Appearance and Performance Technologies segment. In order to
provide kaolin-based products to the Companys customers and the Process
Technologies segment, the Company engages in kaolin mining operations. The
kaolin mining process includes exploration, topsoil and overburden removal,
extraction of kaolin and the subsequent reclamation of mined areas. The Company
has a legal obligation to reclaim mined areas under state regulations. Prior to
adoption of Statement of Financial Accounting Standards (SFAS) No. 143, the
Company expensed reclamation costs as the mined areas were reclaimed.


At
January 1, 2003, the Company recognized transition amounts for existing asset
retirement obligation liabilities, associated capitalizable costs and
accumulated depreciation. A transition charge of $3.7 million ($2.3 million
after tax or $0.02 per share on a diluted basis) was recorded on January 1, 2003
as the cumulative effect of an accounting change.


The
following table represents the change in the Companys asset retirement
obligation liability (in millions):
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|                                                   |  | March
      31, 2004 |   | March
      31, 2003
|-------------------------------------------------- |  | -------------------- | - | --------------------
|Balance
      at beginning of year                 |  |                      | $ | 10.5                
|Liability
      recognized in transition           |  |                      |   |                    
|Accretion
      expense                            |  |                      |   | 0.2                 
|Payments                                           |  |                      |   | (0.2                
|
|Asset
      retirement obligation at end of period |  |                      | $ | 10.5                
|

|Note 4
 Inventories


Inventories
consist of the following (in millions):
|--------------------------------------------------------------------------

|                        |  | March
      31, 2004 |   | December
      31, 2003
|----------------------- |  | -------------------- | - | -----------------------
|Raw
      materials     |  |                      | $ | 125.8                  
|Work
      in process   |  |                      |   | 48.7                   
|Finished
      goods    |  |                      |   | 248.5                  
|Precious
      metals   |  |                      |   | 16.9                   
|
|Total
      inventories |  |                      | $ | 439.9                  
|

|The
majority of the Companys physical metal is carried in the committed metal
positions line on the balance sheet at fair value with the remainder carried in
the inventory line at historical cost. The inventory portion of precious metals
is stated at LIFO cost. The market value of the precious metals recorded at LIFO
exceeded cost by $76.7 million and $52.8 million at March 31, 2004 and December
31, 2003, respectively.


In
the normal course of business, certain customers and suppliers deposit
significant quantities of precious metals with the Company under a variety of
arrangements. Equivalent quantities of precious metals are returnable as product
or in other forms. Metals held for the accounts of customers and suppliers are
not reflected in the Companys financial statements.


7
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Note 5
 Comprehensive Income


Comprehensive
income is summarized as follows (in millions):
|--------------------------------------------------------------------------------------------

|                                            | Three Months EndedMarch 31, | 
|------------------------------------------- | --------------------------- | 
|
|Net earnings                                |                             | 
|Other comprehensive income/(loss):          |                             | 
|Foreign currency translation adjustment     |                             | 
|Cash flow derivative adjustment, net of tax |                             | 
|Investment adjustment, net of tax           |                             | 
|                                            |                             | 
|Comprehensive income                        |                             | 
|                                            |                             | 

|The
foreign currency translation adjustments are not currently adjusted for income
taxes as they relate to permanent investments in non-U.S. entities.


Note 6
 Earnings Per Share


SFAS
No. 128 Earnings Per Share specifies the computation, presentation and
disclosure requirements for basic and diluted earnings per share (EPS). The following
table represents the computation of basic and diluted EPS as required by SFAS No. 128:
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|                                                      | Three Months EndedMarch 31, | 
|----------------------------------------------------- | --------------------------- | 
|(in millions, except per-share data):                
|Basic EPS Computation                                 |                             | 
|Net earnings applicable to common shares              |                             | 
|                                                      |                             | 
|Average number of shares outstanding - basic          |                             | 
|                                                      |                             | 
|Basic earnings per share                              |                             | 
|                                                      |                             | 
|Diluted EPS Computation                               |                             | 
|Net earnings applicable to common shares              |                             | 
|                                                      |                             | 
|Average number of shares outstanding - basic          |                             | 
|Effect of dilutive stock options and other incentives |                             | 
|                                                      |                             | 
|Average number of shares outstanding - diluted        |                             | 
|                                                      |                             | 
|Diluted earnings per share                            |                             | 
|                                                      |                             | 

|Note 7
 Derivatives and Hedging


The
Company reports all derivative instruments on the balance sheet at their fair
value. Changes in the fair value of derivatives designated as cash flow hedges
are initially recorded in comprehensive income and are reclassified to earnings
in the period the hedged item is reflected in earnings. Changes in the fair
value of derivatives that are not designated as cash flow hedges are reported
immediately in earnings.


In
order to manage in a manner consistent with historical processes, procedures and
systems and to achieve operating economies, certain economic hedge transactions
are not designated as hedges for accounting purposes. In those cases, which
primarily relate to precious and base metals, the Company will


8
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|continue to mark-to-market both the
hedge instrument and the related position constituting the risk hedged, recognizing the
net effect in current earnings.


The
Company documents all relationships between derivative hedging instruments and
items impacted by cash flow hedges at the time the hedges are initiated, as well
as its risk-management strategies for entering into various hedge transactions.
For the three-month periods ended March 31, 2004 and 2003, there was no gain or
loss recognized in earnings resulting from hedge ineffectiveness.


Foreign  Exchange
Contracts


The
Company designates as cash flow hedges certain foreign currency derivative
contracts entered into as hedges against anticipated receivables or payables
which will arise from forecasted transactions that are denominated in currencies
other than the functional currency of the entity which holds those assets or
liabilities. The ultimate maturities of the contracts are timed to coincide with
the expected occurrence of the underlying sale or purchase transaction.


A
second group of forward contracts entered into to hedge the exposure to foreign
currency fluctuations associated with certain monetary assets and liabilities is
not designated as hedging instruments for accounting purposes. Changes in the
fair value of these items are recorded in earnings to offset the foreign
exchange gains and losses arising from the effect of changes in exchange rates
used to measure related monetary assets and liabilities.


Commodity
Contracts


The
Company enters into contracts that are designated as cash flow hedges to protect
a portion of its exposure to movements in certain commodity prices. These
contracts primarily relate to derivatives designated as natural gas and nickel cash flow
hedges. The ultimate maturities of the contracts are timed to coincide with the
expected usage of these commodities.


Interest  Rate
Derivatives


The
Company uses interest rate derivatives that are designated as fair value hedges
to help achieve its fixed and floating rate debt objectives. The Company
currently has two interest rate swap agreements with a total notional value of
$100 million maturing in August 2006 and three interest rate swap agreements
with a total notional value of $150 million maturing in May 2013. These
agreements effectively change fixed rate debt obligations into floating rate
debt obligations. The total notional values and maturity dates of these
agreements are equal to the face values and the maturity dates of the related
debt instruments. For these fair value hedges, there was no gain or loss
recognized from hedged firm commitments no longer qualifying as fair value
hedges for the three-month periods ended March 31, 2004 and 2003.


In
March 2004, the Company entered into an additional interest rate derivative
contract. This derivative, referred to as a Forward-Rate Agreement (FRA),
economically hedged our interest rate exposure for the May 15, 2004 LIBOR rate
reset under a pre-existing interest rate swap agreement. This FRA is
marked-to-market with the gain/loss being reflected in earnings.


Note 8
 Guarantees and Warranties


In
the normal course of business, the Company incurs obligations with regard to
contract completion and product performance. Under certain circumstances, these
obligations are supported through the issuance of letters of credit. At March
31, 2004, the aggregate outstanding amount of letters of credit supporting such
obligations amounted to $124.5 million, of which $116.5 million will expire in
less than one year, $7.8 million will expire in two to three years, $0.1 million
will expire in four to five years and $0.1 million will expire after five years.
In the opinion of management, such obligations will not significantly affect the
Companys financial position or results of operations as the Company
anticipates fulfilling its performance obligations.


9
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|The
Company accrues for anticipated product warranty expenses on certain products.
Accruals for anticipated warranty liabilities are recorded based upon a review
of historical warranty claims experience. Adjustments are made to accruals as
claim data and historical experience warrant. The Companys accrual is
primarily comprised of warranty liabilities within the non-automotive business
of the Environmental Technologies segment.


The
change in the Companys product warranty reserves is as follows (in
millions):
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|                                   |  | March
      31, 2004 |   | March
      31, 2003
|---------------------------------- |  | -------------------- | - | --------------------
|Balance
      at beginning of year |  |                      | $ | 10.0                
|Payments                           |  |                      |   | (1.4                
|Provision                          |  |                      |   | 2.8                 
|
|Balance
      at end of period     |  |                      | $ | 11.4                
|

|Note 9
 Goodwill and Other Intangible Assets


Identifiable
intangible assets, such as patents and trademarks, are amortized using the
straight-line method over their estimated useful lives. Goodwill and other
intangible assets that have indefinite useful lives are not amortized, but are
tested for impairment based on the specific guidance of SFAS No. 142,
Goodwill and Other Intangible Assets.


The
following information relates to acquired amortizable intangible assets (in
millions):
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|                                             | As
      of March 31, 2004 |  | As
      of December 31, 2003
|-------------------------------------------- | -------------------------- |  | -----------------------------
|
|Acquired
      Amortizable Intangible Assets |                            |  |                              
|Usage
      rights                           |                            |  |                              
|Supply
      agreements                      |                            |  |                              
|Technology
      licenses                    |                            |  |                              
|Other                                        |                            |  |                              
|                                             |                            |  |                              
|Total                                        |                            |  |                              
|                                             |                            |  |                              

|Total
accumulated amortization for goodwill and other intangible assets amounted to
$81.1 million and $80.2 million at March 31, 2004 and December 31, 2003,
respectively. As of March 31, 2004, the estimated aggregate amortization expense
for each of the five succeeding years is as follows (in millions):
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Estimated Annual Amortization Expense: |      
|-------------------------------------- | -----
|2004                                   | $ 3.7
|2005                                   | 3.7  
|2006                                   | 3.6  
|2007                                   | 3.5  
|2008                                   | 3.5  

|10
|--

|The
following table represents the changes in the carrying amount of goodwill for
the three-month period ended March 31, 2004 (in millions):
|--------------------------------------------------------------------------------------------------------------------------------------------

|                                              | Environmental
      Technologies |         | Process
      Technologies |  | Appearance
      &
      Performance
      Technologies |         | All
      Other |  | Total
|--------------------------------------------- | -------------------------------- | ------- | -------------------------- |  | ------------------------------------------------------- | ------- | --------------- |  | -----
|Balance
      as of January 1, 2004           |                                  | $  13.7 |                            |  |                                                         | $ 107.5 |                 |  |      
|Foreign
      currency translation adjustment |                                  |        |                            |  |                                                         | 0.1     |                 |  |      
|Other                                         |                                  |        |                            |  |                                                         |        |                 |  |      
|                                              |                                  |         |                            |  |                                                         |         |                 |  |      
|Balance
      as of March 31, 2004            |                                  | $  13.7 |                            |  |                                                         | $ 107.6 |                 |  |      
|                                              |                                  |         |                            |  |                                                         |         |                 |  |      

|Note 10
 Committed Metal Positions and Hedged Metal Obligations


Both
spot metal positions and derivative instruments are stated at fair value. Fair
value is based on relevant published market prices. The following table sets
forth the Companys unhedged metal positions included in committed metal
positions on the Companys Condensed Consolidated Balance
Sheets:


Metal Positions Information (in
millions):
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|                                     | March
      31, 2004 |       | December
      31, 2003
|------------------------------------ | -------------------- | ----- | -----------------------
|
|Platinum
      group metals          |                      | Long  |                        
|Gold                                 |                      | Long  |                        
|Silver                               |                      | Short |                        
|Base
      metals                    |                      | Long  |                        
|                                     |                      |       |                        
|Total
      unhedged metal positions |                      |       |                        
|                                     |                      |       |                        

|Committed
metal positions may include significant advances made for the purchase of
precious metals that have been delivered to the Company but for which the final
purchase price has not yet been determined. As of March 31, 2004, all such
contracts have been final priced and substantially settled.


Derivative
metal and foreign currency instruments are used to hedge metal positions and
obligations. As of March 31, 2004, approximately 98% of these instruments have
settlement terms of less than one year, with the remaining instruments expected
to settle within 36 months. These derivative metal and foreign currency
instruments consist of the following:


Metal Hedging Instruments (in
millions):
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|                                                 | March 31, 2004 |  | December 31, 2003 |      
|------------------------------------------------ | -------------- |  | ----------------- | -----
|
|Metal forwards/futures                           |                |  | $                 | 764.0
|Eurodollar futures                               |                |  |                   | 30.8 
|Swaps                                            |                |  |                   | 17.6 
|Options                                          |                |  |                   | 43.3 
|Foreign exchange forwards/futures - Japanese yen |                |  |                   |     
|Foreign exchange forwards/futures - Euro         |                |  |                   |     
|Foreign exchange forwards/futures - Other        |                |  |                   | 3.7  

|11
|--

|Note 11
 New Accounting Pronouncements


      In
        December 2003, the FASB issued SFAS No. 132 (revised 2003), Employers
        Disclosures about Pensions and Other Postretirement Benefits, an
        amendment of FASB statements No. 87, 88 and 106. This Statement revises
        employers disclosures about pension plans and other postretirement
        benefit plans. It does not change the measurement and recognition of those
        plans required by FASB Statements No. 87, 88 and 106. This Statement retains
        the disclosure requirements contained in the original Statement No. 132.
        It requires additional disclosures about the assets, obligations, cash
        flows, and net periodic benefit cost of defined benefit plans and other
        defined benefit postretirement plans. This Statement is effective for
        financial statements with fiscal years ending after December 15, 2003,
        except for the disclosure of estimated future benefit payments and information
        about foreign plans which is effective for fiscal years ending after June
        15, 2004. The interim-period disclosures required by this statement are
        effective for interim periods beginning after December 15, 2003. The Company
        adopted this statement in December 2003 and has incorporated the required
        quarterly disclosure provisions that are effective as of March 31, 2004
        into these consolidated financial statements (see Note 13, Benefits).


On
December 8, 2003, the President of the United States signed into law the
Medicare Prescription Drug, Improvement and Modernization Act of 2003 (the Act).
This Act introduces a prescription drug benefit under Medicare (Medicare Part
D), as well as a federal subsidy to sponsors of retiree health care benefit
plans that provide a benefit that is at least actuarially equivalent to Medicare
Part D. In December 2003, the FASB issued FASB Staff Position (FSP) No. 106-1,
Accounting and Disclosure Requirements Related to the Medicare
Prescription Drug, Improvement and Modernization Act of 2003. In
accordance with FSP No. 106-1, the Company has decided to make a one-time
election to defer accounting for the effects of the Act until specific
authoritative guidance is issued on how to account for the federal subsidy.
Accordingly, the Companys benefit obligation and net periodic benefit cost
do not reflect the effects of this Act.


Note 12
 Stock Option and Bonus Plans


      The
        Company has several long-term incentive compensation plans that allow
        for the granting of stock options to employees. Had compensation cost
        for the Companys stock option plans been determined based on the
        fair value at grant date consistent with the provisions of SFAS No. 123,
        Accounting for Stock-Based Compensation, as amended by SFAS
        No. 148, Accounting for Stock-Based Compensation  Transition
        and Disclosure, the Companys net earnings and earnings per
        share would have been as follows:
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Three Months Ended March 31,                                       | 
|------------------------------------------------------------------ | 
|(in
      millions, except per-share data):                       
|Net earnings - as reported                                         | 
|Deduct: Total stock-based employee compensation expense determined | 
|under fair value based method for all awards, net of tax           | 
|                                                                   | 
|Net earnings - pro forma                                           | 
|                                                                   | 
|Earnings Per Share:                                                | 
|Basic earnings per share - as reported                             | 
|Basic earnings per share - pro forma                               | 
|Diluted earnings per share - as reported                           | 
|Diluted earnings per share - pro forma                             | 

|12
|--

|Note 13
 Benefits


The
Company has domestic and foreign pension plans covering substantially all
employees. The Company also provides post-employment and post-retirement
benefits to certain eligible employees. The components of net periodic benefit
cost for the three-month periods ended March 31, 2004 and 2003 are shown in the
following table:


Net Periodic Benefit Cost (in
millions):
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|                                   | Pension Benefits |  | Other Benefits |      
|---------------------------------- | ---------------- |  | -------------- | -----
|
|Service cost                       |                  |  | $              | 5.5  
|Interest cost                      |                  |  |                | 9.5  
|Expected return on plan assets     |                  |  |                | (12.1
|Amortization of prior service cost |                  |  |                | 0.8  
|Recognized actuarial loss          |                  |  |                | 2.7  
|                                   |                  |  |                |      
|Net periodic benefit cost          |                  |  | $              | 6.4  
|                                   |                  |  |                |      

|The
Company does not anticipate any changes to the pension contribution amounts that
were previously disclosed in the Companys 2003 Form 10-K.


Note 14
 Supplemental Information


The
following table presents certain supplementary information to the Companys
Condensed Consolidated Statements of Cash Flows:


Supplementary Cash Flow
Information (in millions):
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|                                                      | Three Months Ended March 31, | 
|----------------------------------------------------- | ---------------------------- | 
|
|Materials Services related:                           |                              | 
|Change in assets and liabilities - source/(use):      |                              | 
|Receivables                                           |                              | 
|Committed metal positions                             |                              | 
|Inventories                                           |                              | 
|Other current assets                                  |                              | 
|Other noncurrent assets                               |                              | 
|Accounts payable                                      |                              | 
|Other current liabilities                             |                              | 
|                                                      |                              | 
|Net cash flows from changes in assets and liabilities |                              | 
|                                                      |                              | 
|                                                      |                              | 
|All Other:                                            |                              | 
|Change in assets and liabilities - source/(use):      |                              | 
|Receivables                                           |                              | 
|Inventories                                           |                              | 
|Other current assets                                  |                              | 
|Other noncurrent assets                               |                              | 
|Accounts payable                                      |                              | 
|Other current liabilities                             |                              | 
|Noncurrent liabilities                                |                              | 
|                                                      |                              | 
|Net cash flows from changes in assets and liabilities |                              | 
|                                                      |                              | 

|13
|--

|Note 15
 Other Matters


The
Company is involved in a value-added tax dispute in Peru. Management believes
the Company was targeted by corrupt officials within a former Peruvian
government. On December 2, 1999, Engelhard Peru, S.A., a wholly-owned
subsidiary, was denied refund claims of approximately $28 million. The Peruvian
tax authority also determined that Engelhard Peru, S.A. is liable for
approximately $63 million in refunds previously paid, fines and interest as of
December 31, 1999. Interest and fines continue to accrue at rates established by
Peruvian law. The Peruvian Tax Court ruled on February 11, 2003 that Engelhard
Peru, S.A. was liable for these amounts, overruling precedent to apply a
form over substance theory without any determination of fraudulent
participation by Engelhard Peru, S.A. As part of its efforts to vigorously
contest this determination, Engelhard Peru, S.A. filed a constitutional action
against the Peruvian Tax agency and Tax Court. On May 3, 2004, the Judge in this
action ruled that none of the findings of the Peruvian tax authorities were
properly applicable to Engelhard Peru, S.A. based on several grounds, including
improper use of a presumption of guilt with no actual proof of irregularity in
the transactions of Engelhard Peru, S.A. The government of Peru has appealed this
decision. Management believes, based on consultation with counsel, that
Engelhard Peru, S.A. is entitled to all refunds claimed and is not liable for
any additional taxes, fines or interest. In late October 2000, a criminal
proceeding alleging tax fraud and forgery related to this value-added tax
dispute was initiated against two Lima-based officials of Engelhard Peru, S.A.
Although Engelhard Peru, S.A. is not a defendant, it may be civilly liable in
Peru if its representatives are found responsible for criminal conduct. In its
own investigation, and in detailed review of the materials presented in Peru,
management has not seen any evidence of tax fraud by these officials.
Accordingly, Engelhard Peru, S.A. is assisting in the vigorous defense of this
proceeding. Management believes the maximum economic exposure is limited to the
aggregate value of all assets of Engelhard Peru, S.A. That amount, which is
approximately $30 million including unpaid refunds, has been fully provided for
in the accounts of the Company.


14
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Item 2.
Managements Discussion and Analysis of Financial Condition and Results of Operations


Results
of Operations


Overview


The
Company develops, manufactures and markets value-adding technologies based on
surface and materials science for a wide spectrum of served markets. The Company
also provides its technology segments, their customers and others with precious
and base metals and related services. The Companys businesses are
organized into four reportable segments that are discussed individually below.
Additional detailed descriptive material is included in ITEM 1.
BUSINESS and NOTE 19. BUSINESS SEGMENT AND GEOGRAPHIC AREA DATA in the
Companys 2003 Form 10-K. Comparative financial data is
also given in Note 19 of the Companys 2003 Form 10-K and on page 5 of this Form 10-Q.


One
of the strengths of the Company is that its segments serve diverse markets,
which is important for assessing the variability of future cash flows. The
following economic comments also provide a useful context for evaluating the
Companys performance: (1) worldwide auto builds continue to be relatively
flat, albeit at fairly high levels  industry growth for auto-emission
catalysts will benefit from tougher environmental regulation throughout the
world over the next 5-10 years as well as developing economies, especially new
Asian production; (2) more stringent diesel-emission regulations are being
phased in, affording the Company additional opportunities for catalyst
solutions; (3) worldwide petroleum refineries are operating close to capacity
generating demand for the extra yields provided by Engelhards advanced
fluid cracking catalysts and performance additives; (4) markets for effect
pigments and colors in cosmetics, personal care, auto finishes and coatings have
remained positive during the recent economic downturns and tend to be less
cyclical; (5) although there are signs of recovery, the chemical industry
continues to suffer from excess capacity related to recession lag and there has
been no change in customers continued ability to delay large replacement
catalyst orders and the related demand for platinum group metal refining
services; (6) the coated, free-sheet paper market also has lagged the general
economy and continues to suffer from overcapacity; and (7) margins related to
the supply of metal to industrial customers are low because of changes in
pricing and supply arrangements.


Comparison
of the First Quarter of 2004with the First Quarter of 2003


Net
earnings decreased to $50.3 million in the first quarter of 2004 compared with
$56.7 million in the same period of 2003. Operating earnings for the first
quarter of 2004 decreased 16% to $64.5 million from $77.2 million in the same
period of 2003. Total Company operating results were mixed as higher operating
earnings from the Environmental Technologies segment, principally due to
increased diesel catalyst sales, and the Process Technologies segment,
principally due to increased petroleum refining catalyst sales, were more than
offset by lower operating earnings from the Appearance and Performance
Technologies segment, principally due to lower sales to the paper market, the
Materials Services segment and the All Other segment. In the first quarter of
2003, the Company recorded an after-tax transition charge of $2.3 million as a
cumulative effect of an accounting change associated with the adoption of SFAS
No. 143, Accounting for Asset Retirement Obligations. Also,
operating earnings for the first quarter of 2003 include restructuring charges
totaling $8.7 million ($5.6 million after-tax) and a royalty settlement gain of
$28.4 million ($17.6 million after-tax).


The
effective tax rate was 22.0% in the first quarter of 2004 compared with 23.0% in
the same period of 2003. The lower rate was primarily the result of higher
percentage depletion deductions, partially offset by a shift in the geographical
mix of earnings. The World Trade Organization has ruled that the
extraterritorial income (ETI) exclusion, which provides the Company
with a tax benefit based on export sales, is a prohibited export subsidy. As a
result, ETI rules are presently under reconsideration by Congress and the repeal
of this benefit is likely. In fiscal year 2003, export benefits reduced the
Companys effective tax rate by approximately three percentage points. It
is not possible to predict at this time the eventual


15
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|outcome of this matter and the
impact to the Company. However, if ETI is repealed and legislation that would result in
comparable benefits is not enacted, the loss of the tax benefit to the Company could
adversely impact the Companys effective tax rate. The Company is regularly audited
by the Internal Revenue Service (IRS) and the foreign and state tax authorities in the
jurisdictions in which the Company does business. The IRS is currently examining the
Companys tax returns for 1998, 1999, and 2000. The Company expects to conclude the
IRS audit sometime in the second or third quarter of 2004 and, at such time, it is
possible that the Company will have an adjustment to its tax accruals.


The
Companys share of equity earnings from affiliates was $4.9 million for the
first quarter of 2004 compared with $5.6 million for the same period in 2003.
The lower results were driven by higher operating costs incurred by Heesung 
Engelhard. The strong 2003 earnings from the Companys Engelhard-CLAL joint
venture, subsequent to the first quarter, are not expected to recur, as the
investment was substantially liquidated during 2003.


Interest
expense decreased to $5.9 million for the first quarter of 2004 compared with
$6.1 million for the same period in 2003. The decrease in interest expense is
due to overall lower borrowing levels, as lower interest expense from short-term
debt was partially offset by higher interest expense from long-term debt.
Interest income increased to $1.0 million for the first quarter of 2004 compared
with $0.6 million for the same period in 2003.


Net
sales increased 25% to $1,040.0 million in the first quarter of 2004 from $830.4
million for the same period in 2003. Sales increases were reported in all
segments. Higher prices and volumes of platinum-group-metal sales from the Material Services
segment were the largest contributors to the increase. Sales from the Material Services segment include significant precious-metals values,
which are included in cost of goods sold. As a result, gross margins on these sales tend to be low in
relation to the gross margins generated by the Companys technology segments sales. Approximately 50% of the
increase in sales of the combined technology segments is due to higher pass
through substrate costs and the impact of foreign currency exchange rate
differences.


Environmental
Technologies


Operating
earnings increased 51% to $37.0 million in the first quarter of 2004 from $24.6
million in the same period of 2003. The year-ago quarter included restructuring
charges totaling $5.3 million. Net sales for the first quarter of 2004 increased
12% to $238.4 million from $213.5 million in the same period of 2003.


The
majority of this segments sales are derived from technologies to control
pollution from mobile sources, including gasoline- and diesel-powered passenger
cars, sport-utility vehicles, trucks, buses and off-road vehicles. The
segments customers are generally driven by increasingly stringent
environmental regulations.


Sales
to mobile environmental markets increased 18% in the first quarter of 2004 compared
with the same quarter a year ago. Two-thirds of this increase is the result of
higher pass through substrate costs and the impact of foreign currency exchange
rate differences. Revenues from light-duty markets, excluding the impact of
substrates and foreign exchange mentioned above, were higher on relatively flat
volumes due to improved product mix. Revenues from medium-duty diesel markets were up
significantly, due to increased sales of catalyst to original equipment
manufacturers (OEM) for new model trucks. The diesel markets are this
segments primary growth markets, and continued market acceptance of
catalytic solutions is key to the Company achieving its growth objectives.


Operating
earnings from mobile environmental markets were higher in the first quarter of
2004 versus the same quarter in 2003, as improved earnings from
light-duty markets were bolstered by profitable operations serving the medium-
and heavy-duty diesel OEM markets. The improved operating earnings in the
operations serving the light-duty markets is due primarily to the absence of a
$1.8 million restructuring charge, favorable foreign exchange impact, and
realization of productivity improvements. In the first quarter of 2003, ramp-up
costs in the operations serving the medium- and heavy-duty diesel OEM markets,



16
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|combined with low volumes to these
markets, produced losses. Increased revenues, productivity improvements, and the absence
of a $2.8 million restructuring charge associated with the exit of a diesel
canning operation produced profitable results in the operations serving the medium- and
heavy-duty diesel markets in the first quarter of 2004.


Sales
in the first quarter of 2004 to the stationary-source, environmental market were
down sharply compared with the first quarter of 2003, as demand for simple-cycle
gas turbine engines to the power generation market remained weak. The Company
anticipated this decline in demand and reduced costs accordingly. As a result,
operating earnings from this market improved in the first quarter of 2004
compared with the same period in 2003, despite the lower revenues. The Company
does not expect improved demand from this market in the near term.



Operating
earnings from operations providing high-value material products and thermal
spray coatings technologies improved in the first quarter of 2004 compared with
the first quarter of 2003, due primarily to cost reduction measures. Continued
improvement in earnings of these operations is necessary to maintain their
long-term viability.


Process
Technologies


Operating
earnings increased 21% to $16.3 million in the first quarter of 2004 from $13.5
million in the same period of 2003. The year-ago quarter included restructuring
charges totaling $2.6 million. Net sales for the first quarter of 2004 increased
12% to $132.2 million from $118.5 million in the same period of 2003.


      Sales
        of catalyst and additives to the petroleum-refining markets were higher
        versus the first quarter of 2003 as the Companys Distributed Matrix
        Structure (DMS) technology platform continues to displace older product
        offerings, providing refiners with significant value through yield improvement
        at a premium price. Sales of refining additives to this market significantly
        increased over the year ago quarter, but represent a small portion of
        the segments revenues. Operating earnings from operations serving
        the petroleum-refining market were higher versus the year-ago quarter,
        commensurate with the higher revenues. Productivity initiatives in this
        area are focused on debottlenecking and increasing capacity.


Sales
of catalyst to the chemical-process markets were modestly higher in the first
quarter of 2004 compared with the same period in 2003, due primarily to
favorable foreign exchange rates. Shipments to these markets tend to be large
and infrequent relative to the overall operations, and therefore the timing of
shipments can cause fluctuations from period to period in revenues and operating
earnings. Operating earnings in the quarter were higher versus the same period
last year due to a favorable foreign exchange impact, lower plant costs related
primarily to previous productivity initiatives, the absence of a $2.4 million
restructuring charge and modestly higher revenues of higher margin products sold
to the petrochemical market. Despite indications that the chemical process
markets are improving, the Company has not experienced increased orders for replacement
catalyst.


Sales
of catalyst to the polyolefins market were lower in the first quarter of 2004
versus the same quarter in 2003, due to decreased sales and prices of older
product offerings. Although customer demand for the Companys newer Lynxproducts remains strong, operating earnings were down significantly versus the
year-ago quarter, reflecting the decreased revenues mentioned above, and
increased costs of $2.3 million related to temporarily lower production levels
and start-up costs associated with the recent Lynxcapacity expansion at the Companys
Tarragona, Spain facility.


Appearance and Performance
Technologies


Operating
earnings decreased 19% to $15.1 million in the first quarter of 2004 from $18.6
million in the same period of 2003. Net sales increased 4% to $166.3 million for
the first quarter of 2004 from $159.2 million in the same period of 2003.


17
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Sales
of kaolin-based products to the paper market decreased 6% in the first quarter of
2004 compared with the first quarter of 2003. The decrease in sales is due to
lower volumes as a result of competitive pricing pressure. These lower sales
were partially offset by higher sales volumes of mineral-based products to
non-paper markets. Operating earnings were down sharply from markets served by
the Companys minerals producing operations, due primarily to the volume
issues mentioned above. The Company has commenced certain
productivity actions targeting the kaolin-based operations.


Sales
to the cosmetics, coating and automotive markets were higher in the first
quarter of 2004 versus the same period in 2003. However, operating earnings were
relatively flat, as higher costs associated with product development and
commercialization offset the positive impact of higher revenues.



Materials
Services


Operating
earnings decreased 24% to $3.4 million in the first quarter of 2004 from $4.5
million in the same period of 2003. Net sales increased 49% to $491.1 million in
the first quarter of 2004 from $329.0 million in the same period of 2003.


The
increase in sales is due primarily to increased volumes and market prices of
platinum group metals. However, operating earnings were down, due primarily to
declines in metal sourcing margins. The segment is continuing to experience the
change that has been going on in materials-sourcing markets, which involves
different pricing formulas that have reduced current margins compared with
historical margins. Volumes of recycled materials remain at recessionary levels.


Liquidity
and Capital Resources


Working
capital was $465.1 million at March 31, 2004 compared with $445.5 million at
December 31, 2003. The current ratio was 1.5 at March 31, 2004 and December 31,
2003. The percentage of total debt to total capitalization was 25.5% at March
31, 2004 compared with 26.3% at December 31, 2003.


Operating
activities provided net cash of $14.0 million in the first quarter of 2004
compared with $33.5 million in the first quarter of 2003. The decrease in cash
flows from operating activities for the three months ended March 31, 2004
compared with the same period in 2003 is due primarily to higher accounts
receivable balances within the Environmental Technologies (ET) segment and the
absence of the royalty settlement proceeds received in the first quarter of
2003. The increase in ET receivables is primarily due to increased sales at the
end of the first quarter and increased precious metal costs related to certain
European customers accounts where the precious metal is included in the
price of the catalyst. The net change in assets and liabilities in the Materials
Services segment primarily reflects changes in metal positions used to
facilitate requirements of the Company, its metals customers and suppliers.
Materials Services routinely enters into a variety of arrangements for the
sourcing of metals. Generally, transactions are hedged on a daily basis. Hedging
is accomplished primarily through forward, future and option contracts. However,
in closely monitored situations for which exposure levels have been set by
senior management, the Company from time to time holds large unhedged industrial
commodity positions that are subject to future market price fluctuations. These
positions are included in committed metal positions along with hedged metal
holdings. The bulk of hedged metal obligations represent spot short positions.
As these positions generate cash, their cash effect is included in the financing
activities section of the Companys Condensed Consolidated Statements
of Cash Flows. Other than in closely monitored situations, these positions
are hedged with forward purchases. In addition, the aggregate fair value of
derivatives in a loss position is reported in hedged metal obligations
(derivatives in a gain position are included in committed metal positions).
Materials Services works to ensure that the Company and its customers have an
uninterrupted source of metals, primarily platinum group metals, utilizing
supply contracts and commodities markets around the world. Committed metal
positions may include significant advances made for the purchase of precious
metals that have been delivered to the Company but for which the final purchase
price has not yet been determined. As of March 31, 2004, all such contracts have
been final priced and substantially settled.



18
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Net
cash used in investing activities increased to $19.9 million in the first
quarter of 2004 compared with $8.8 million in the first quarter of 2003. The
increase in cash flows used in investing activities is primarily related to
liquidating distributions received in 2003 related to unwinding the
Companys Engelhard-CLAL joint venture, and higher capital spending in the
first quarter of 2004 compared with the same quarter in the prior year.


Net
cash used in financing activities in the first quarter of 2004 is $30.9 million
compared with $55.3 million of net cash provided by financing activities in
2003. The variance in cash flows from financing activities was impacted by less
cash provided from changes in hedged metal obligations, a net decrease in
borrowings in 2004 compared with a net increase in borrowings in 2003, and
increased net stock repurchase activity in 2004 compared with 2003. Dividends
paid in the quarter were higher in 2004 compared with 2003, due to an increase
in the quarterly per share dividend of one cent.


In
the first quarter of 2004, the Company effectively increased its existing $150
million shelf registration to $450 million. The purpose of the increase was to
restore and increase the Companys ability to raise cash for general
corporate purposes.


In
the second quarter of 2004, the Company issued five-year term, 5.5 billion
Japanese yen notes (approximately $50 million) with a coupon rate of 1.1%. These
notes will serve as an effective net investment hedge of a portion of the
Companys yen-denominated investments.


Also
in the second quarter of 2004, the Company renewed its 364-day committed credit
facility, extending the maturity to May 5, 2005 and increasing the amount
available to $450 million.


The
Company has consistently derived considerable cash flow from operations, which
has been used, along with both short- and long-term debt, to pay for capital
expenditures, acquisitions, treasury stock purchases, dividends and other
corporate requirements. The continuation of these levels of cash flow is
expected, but is subject to risk factors disclosed in the Companys 2003
Form 10-K and in the Forward-Looking Statements section of this Form 10-Q. In
addition, the Company has always maintained investment-grade credit ratings that
it considers important for cost-effective and ready access to the credit
markets. Management fully expects to be able to obtain future funding from both
short- and long-term debt for cash requirements in excess of those from
operations. In the event that any of these sources prove to be below
expectations, the Company has access to committed lines of credit aggregating
$850 million, including the $450 million credit facility mentioned above. The
remaining $400 million credit facility expires in May 2006.


Forward-Looking
Statements


This
document contains forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. These statements relate to analyses
and other information that are based on forecasts of future results and
estimates of amounts not yet determinable. These statements also relate to the
future prospects, developments and business strategies. These forward-looking
statements are identified by their use of terms and phrases such as
anticipate, believe, could,
estimate, expect, intend, may,
plan, predict, project, will and
similar terms and phrases, including references to assumptions. These
forward-looking statements involve risks and uncertainties that may cause the
Companys actual future activities and results of operations to be
materially different from those suggested or described in this document.


Among
the risks and uncertainties that could cause actual results to differ materially
are the following:
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | competitive pricing or product
development activities that could affect the demand for our products, particularly competing
catalyst and kaolin producers
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | the Companys ability to
achieve and execute internal business plans
| | - | --------------------------------------------------------------------

|19
|--

| |  | worldwide
political instability as the Company operates primarily in the United States, the European
community, Asia, the Russian Federation, South Africa and South America
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | alliances and geographic
expansions developing differently than anticipated
| | - | ---------------------------------------------------------------------------

| |  | fluctuations
in the supply and prices of precious and base metals and fluctuations in the relationships
between forward prices to spot prices
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------

| |  | government legislation and/or
regulation (particularly on environmental issues), including tax obligations
| | - | ----------------------------------------------------------------------------------------------------------

| |  | the impact of the anticipated
repeal of the current U.S. export sales tax incentive
| | - | -----------------------------------------------------------------------------------

| |  | technology, manufacturing and
legal issues
| | - | ------------------------------------------

| |  | the impact of any economic downturns and inflation
| | - | --------------------------------------------------

| |  | interest
rate risk, foreign currency exchange rate risk, commodity price risk and credit risk
| | - | ---------------------------------------------------------------------------------------------

| |  | the impact of higher energy and raw material costs, and the availability of natural gas
and rare earth elements
| | - | ---------------------------------------------------------------------------------------------------------------

| |  | the success of research and development activities and the speed with which regulatory
authorizations and product launches may be achieved
| | - | ------------------------------------------------------------------------------------------------------------------------------------------

| |  | the impact of increased employee benefit costs and/or the resultant impact on employee
relations
| | - | ------------------------------------------------------------------------------------------------

| |  | contingencies related to actual or alleged environmental contamination to which the
Company may be a party
| | - | ----------------------------------------------------------------------------------------------------------

| |  | the impact of acquisitions, divestitures and restructurings
| | - | -----------------------------------------------------------

| |  | overall
demand for the Companys products, including demand from the worldwide automotive and
chemical-process markets
| | - | ----------------------------------------------------------------------------------------------------------------------

| |  | product quality/performance issues
| | - | ----------------------------------

| |  | exposure
to product liability and other types of lawsuits
| | - | ---------------------------------------------------------

| |  | the impact of physical inventory losses, particularly with regard to precious and base
metals
| | - | ---------------------------------------------------------------------------------------------

| |  | the loss of business from property and casualty exposure
| | - | --------------------------------------------------------

|Investors
are cautioned not to place undue reliance upon these forward-looking statements,
which speak only as of their dates. The Company disclaims any obligation to
update or revise any forward-looking statements, whether as a result of new
information, future events or otherwise.



20
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Item3. Quantitative
and Qualitative Disclosures about Market Risk


Market
Risk Sensitive Transactions


The
Company is exposed to market risks arising from adverse changes in interest
rates, foreign currency exchange rates and commodity prices. In the normal
course of business, the Company uses a variety of techniques and instruments,
including derivatives, as part of its overall risk-management strategy. The
Company enters into derivative agreements with a diverse group of major
financial and other institutions with individually determined credit limits to
reduce exposure to the risk of nonperformance by counterparties.


A
discussion and analysis of the Companys market risk is included in the
Companys 2003 Form 10-K. There have been no significant changes to these
market risks as of March 31, 2004.


Item4. Controls and
Procedures


The
Company carried out an evaluation, under the supervision and with the
participation of the Companys management, including the Companys
Chief Executive Officer and Chief Financial Officer, as of March 31, 2004, of
the effectiveness of the design and operation of the Companys disclosure
controls and procedures pursuant to Exchange Act Rule 13a-15. Based upon that
evaluation, the Chief Executive Officer and Chief Financial Officer concluded
that the Companys disclosure controls and procedures as of March 31, 2004
were effective to provide reasonable assurance that material information related
to the Company (including its consolidated subsidiaries) required to be included
in the Companys periodic SEC filings would be communicated to them on a
timely basis. There was no change in the Companys internal control over
financial reporting during the Companys first fiscal quarter of 2004 that
has materially affected, or is reasonably likely to materially affect, the
Companys internal control over financial reporting.


The
Companys management, including the Chief Executive Officer and Chief
Financial Officer , do not expect that our disclosure controls or our internal
control over financial reporting will prevent all errors and all fraud. A
control system, no matter how well conceived and operated, can provide only
reasonable, not absolute, assurance that the objectives of the control system
are met. Further, the design of a control system must reflect the fact that
there are resource constraints, and the benefits of controls must be considered
relative to their costs. Because of the inherent limitations in all control
systems, no evaluation of controls can provide absolute assurance that all
control issues and instances of fraud, if any, within the Company have been
detected. These inherent limitations include the reality that judgments and
estimates can be faulty, and that breakdowns can occur because of simple error
or mistake. Additionally, controls can be circumvented by the individual acts of
some persons or by collusion of two or more people. The design of any system of
controls also is based, in part, upon certain assumptions about the likelihood
of future events, and there can be no assurance that any design will succeed in
achieving its stated goals under all potential future conditions. Because of the
inherent limitations in a cost-effective control system, misstatements due to
error or fraud may occur and not be detected. Accordingly, the Companys
disclosure controls and procedures are designed to provide reasonable, not
absolute, assurance that the objectives of our disclosure control system are met
and, as set forth above, the Companys Chief Executive Officer and Chief
Financial Officer have concluded, based on their evaluation as of March 31,
2004, that our disclosure controls and procedures were effective to provide
reasonable assurance that the objectives of our disclosure control system were
met.


21
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|PART II
 OTHER INFORMATION


Item 2. Changes in
Securities, Use of Proceeds and Issuer Purchases of Equity  Securities
|-----------------------------------------------------------------------------------------------------------------------

|(e) | The
Company has Board authorized programs for the repurchase of the  Companys stock.
The following table represents repurchases under these  programs for each of the three
months of the quarter ended March 31, 2004:
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | ISSUER PURCHASES OF EQUITY SECURITIES:
| | --------------------------------------

| |  | Period                 |  | Total
      Number
      of Shares
      Purchased |           | Average
      Price Paid
      per Share |  | Total
      Number of Shares
      Purchased as Part of
      Publicly Announced
      Plans or Programs |           | Maximum
      Number of
      Shares that May Yet Be
      Purchased Under the
      Plans or Programs
| |  | ---------------------- |  | -------------------------------------------------- | --------- | ---------------------------------------- |  | -------------------------------------------------------------------------------------------------------- | --------- | ------------------------------------------------------------------------------------------------------
| |  | 1/1/04
      - 1/31/04 |  |                                                    | 56,700    |                                          |  |                                                                                                          | $   29.32 |                                                                                                       
| |  | 2/1/04
      - 2/29/04 |  |                                                    | 543,300   |                                          |  |                                                                                                          | 28.23     |                                                                                                       
| |  | 3/1/04
      - 3/31/04 |  |                                                    | 791,100   |                                          |  |                                                                                                          | 28.66     |                                                                                                       
| |  |                        |  |                                                    |           |                                          |  |                                                                                                          |           |                                                                                                       
| |  | Total                  |  |                                                    | 1,391,100 |                                          |  |                                                                                                          | $   28.52 |                                                                                                       
| |  |                        |  |                                                    |           |                                          |  |                                                                                                          |           |                                                                                                       

| | (a) | Share
repurchase program of 5 million shares authorized in August 2002, and 6  million shares
authorized in October 2003. The balance reflects 828,532 shares  remaining after the
January period and 285,232 shares remaining after the  February period of shares yet to
be purchased from the August 2002 program, and  6,000,000 shares from the October 2003
program.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | Share
repurchase program of 6 million shares authorized in October 2003.
| | --- | ------------------------------------------------------------------------

|Item 4. Submission of
Matters to a Vote of Security Holders
|-----------------------------------------------------------

|(a) | The
Companys Annual Meeting of the Shareholders was held on Thursday, May  6, 2004.
|--- | ------------------------------------------------------------------------------------

|(b) | Results
of votes of security holders.
|--- | -------------------------------------

| |                      
| | ---------------------
| | David
      L. Burner
| | James V.
      Napier

| | Norma
T. Pace, Barry W. Perry, Douglas G. Watson, Marion H. Antonini, and Henry R. Slack
continued  as Directors after the annual meeting.
| | ------------------------------------------------------------------------------------------------------------------------------------------

|Item 6. Exhibits and
Reports on Form 8-K


Pages
|------------------------------------------------

|(a) | (3) | Articles of Incorporation and By-Laws
|--- | --- | -------------------------------------

| | (a) | Composite By-Laws of the Company as amended through October 2002. | 25
| | --- | ----------------------------------------------------------------- | --

|22
|--

|
|

|(10) |  | Material Contracts
|---- |  | ------------------

| | (a) | Amendment
and Restatement of the 364-Day Credit Agreement, effective May 6, 2004. | 41
| | --- | --------------------------------------------------------------------------------- | --

|(31)(a) | Rule
      13a-14(a)/15d-14(a) Certification of Chief Executive Officer. | 47
|------- | ------------------------------------------------------------------------ | --

|(31)(b) | Rule
      13a-14(a)/15d-14(a) Certification of Chief Financial Officer. | 48
|------- | ------------------------------------------------------------------------ | --

|(32) |  | Section
1350 Certifications of Chief Executive Officer and Chief Financial Officer. * | 49
|---- |  | ------------------------------------------------------------------------------------- | --

|(b) | In
a report on Form 8-K furnished to the Securities and Exchange Commission  (SEC) on
February 3, 2004, the Company reported that it furnished its earnings  release with the
SEC for the fourth quarter and fiscal year ended December 31,  2003. | 
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | 

|* This certification
accompanies this Report pursuant to Section 906 of the Sarbanes-Oxley Act of
2002 and shall not be deemed filed by the Company for purposes of Section 18 or
any other provision of the Securities Exchange Act of 1934, as amended.


23
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|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 thereunto
duly authorized.
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | ENGELHARD CORPORATION
| |  | ---------------------
| |  |                      
| |  | (Registrant)         

|Date: | May 7, 2004 |  | /s/ Barry W. Perry                                           
|----- | ----------- |  | -------------------------------------------------------------
|      |             |  |                                                              
|      |             |  | Barry W. Perry
     Chairman and Chief
     Executive Officer

|Date: | May 7, 2004 |  | /s/ Michael A. Sperduto                                                 
|----- | ----------- |  | ------------------------------------------------------------------------
|      |             |  |                                                                         
|      |             |  | Michael A. Sperduto
     Vice President and Chief
     Financial Officer

|Date: | May 7, 2004 |  | /s/ Alan J. Shaw            
|----- | ----------- |  | ----------------------------
|      |             |  |                             
|      |             |  | Alan J. Shaw
     Controller

|24
|--

|EXHIBIT
    (3)(a)
  
  
  
  
  
  ENGELHARD
    CORPORATION
  _____________________________
  BY-LAWS
  As
    amended through October 3, 2002




25
|-------------------------------------------------------------------------------------------------------------------------------------------------------

|OFFICES
  The registered
    office of the Corporation in the State of Delaware shall be at No. 100 West
    10th Street, Wilmington, Delaware.
  The Corporation
    shall also have offices at such other places, both within and without the
    State of Delaware, as the Board of Directors may from time to time designate.



26
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|ARTICLE
    ISTOCKHOLDERS
  Section
    1.Annual
    Meetings. The Annual Meeting of the Stockholders
    of the Corporation for the election of Directors and the transaction of such
    other business, notice of which was given in the Notice of the Meeting, together
    with such other business as may properly come before said Meeting, shall be
    held in such suitable place as may be from time to time designated by the
    Board of Directors, on the first Thursday of the month of May in each year
    commencing 1982, if not a legal holiday under the laws of the state where
    the Meeting is to be held, and, if a legal holiday under the laws of such
    state, then on the next business day following at 10:00 o'clock in the forenoon.
  Section
    2.Special
    Meetings. A Special Meeting of the Stockholders
    of the Corporation for any lawful purpose or purposes may be called by resolution
    of the Board of Directors or by the Chairman of the Board of Directors or
    the President and shall be called by the Chairman of the Board of Directors,
    the President or the Secretary at the request in writing of the majority of
    the Board of Directors or of Stockholders owning the majority of the shares
    of the stock of the Corporation issued and outstanding and entitled to vote
    at said meeting. Any such Special Meeting shall be held in such suitable place
    as may be designated by the Board of Directors.
  Section
    3.Notice
    of Meetings. Written notice of every Meeting of
    the Stockholders shall be given which shall state the place, date and hour
    of the Meeting and the purpose(s) for which the Meeting was called. Unless
    otherwise provided by statute, such written notice shall be given not less
    than ten nor more than sixty days before the date of any Meeting to each stockholder
    entitled to vote at such Meeting. If mailed, notice shall be given when deposited
    in the United States mail, postage prepaid, directed to the stockholder at
    his address as it appears on the records of the Corporation. When a Meeting
    is adjourned to another time or place, notice need not be given of the adjourned
    Meeting if the time and place thereof are announced at the Meeting at which
    the adjournment is taken. If the adjournment is for more than thirty days,
    or if after the adjournment a new record date is fixed for the adjourned Meeting,
    a notice of the adjourned Meeting shall be given to each stockholder of record
    entitled to vote at the Meeting.

  Section
    4.List
    of Stockholders. The officer who has charge of
    the stock ledger of the Corporation shall prepare and make, at least ten days
    before every Meeting of the Stockholders, a complete list of the stockholders
    entitled to vote at the Meeting, arranged in alphabetical order, and showing
    the address of each stockholder and the number of shares registered in the
    name of each stockholder. Such list shall be open to the examination of any
    stockholder, for any purpose germane to the Meeting, during ordinary business
    hours, for a period of at least ten days prior to the Meeting, either at a
    place within the city where the Meeting is to be held, which place shall be
    specified in the notice of the Meeting, or, if not so specified, at the place
    where the Meeting is to be held. The list shall also be produced and kept
    at the time and place of the Meeting during the whole time thereof, and may
    be inspected by any stockholder who is present.


Section 5.QuorumAt any Meeting of the Stockholders of the Corporation, except as otherwise
    provided by statute, the Certificate of Incorporation or these By-Laws, there
    must be present, either in person or by proxy, in order to constitute a quorum,
    the holders of a majority of the outstanding shares of the stock of the Corporation
    entitled to vote at said Meeting. If at any such Meeting a quorum
    shall fail to be present, the holders of, or proxies for, a majority of the
    stock which is represented at such Meeting, may adjourn the Meeting from time
    to time without notice other than the announcement at the Meeting (subject
    to the provisions of Section 3 of this Article II) until a quorum shall attend,
    and thereupon, any business may be transacted at the adjourned Meeting which
    might have been transacted at the Meeting as originally called.



Notwithstanding     the foregoing,
at all Meetings of the Stockholders whenever the holders of     the Corporation's
Preferred Stock shall have the special right, voting separately     as a class, to elect
directors or to vote with respect to other corporate     action, the presence in person
or by proxy of the holders of a majority of     the Corporation's outstanding Common
Stock shall be required to constitute     a quorum of such class, and the presence in
person or by proxy of the holders     of a majority of the outstanding Preferred Stock
shall be required to constitute     a quorum of such


27
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|class; provided, however, that the absence of a quorum of
    the holders of stock of either class shall not prevent the election at any
    such Meeting or adjournment thereof of directors or the taking of a vote with
    respect to such other corporate action by the other such class if the necessary
    quorum of the holders of stock of such other class is present in person or
    by proxy at such Meeting or any adjournment thereof; and provided, further,
    however, that in the absence of a quorum of the holders of stock of either
    class, a majority of the holders of the stock of the class who are present
    in person or by proxy shall have power to adjourn the election of the directors
    to be elected by such class or the taking of a vote with respect to such other
    corporate action from time to time without notice other than announcement
    at the Meeting (subject to the provisions of Section 3 of this Article II)
    until the requisite number of holders of such class shall be present in person
    or by proxy.
  Section
    6.Organization.
    The Chairman of the Board of Directors and in his absence the President and
    in the absence of the Chairman and the President such other officer as the
    Board of Directors may, from time to time, designate shall act as chairman
    of any Meeting of the Stockholders of the Corporation. The Secretary or, in
    his absence, any person appointed by the Chairman of the Meeting, shall act
    as secretary of the Meeting.
  Notice of
    Nominations and Business. Nominations of persons
    for election to the Board of Directors (hereinafter sometimes referred to
    as the Board) and the proposal of business to be transacted by
    the Stockholders may be made at an Annual Meeting of the Stockholders (a) pursuant
    to the Corporations notice with respect to such Meeting, (b) by
    or at the direction of the Board or (c) by any Stockholder of record
    of the Corporation who was a Stockholder of record at the time of the giving
    of the notice provided for in the following paragraph, who is entitled to
    vote at the Meeting and who has complied with the notice procedures set forth
    in this Section.
  For nominations
    or other business to be properly brought before an Annual Meeting by a Stockholder
    pursuant to clause (c) of the foregoing paragraph, (1) the Stockholder
    must have given timely notice thereof in writing to the Secretary the Corporation,
    (2) such business must be a proper matter for Stockholder action under
    the General Corporation Law of the State of Delaware, (3) if the Stockholder,
    or the beneficial owner on whose behalf any such proposal or nomination is
    made, has provided the Corporation with a Solicitation Notice, as that term
    is defined in subclause (c)(iii) of this paragraph, such Stockholder
    or beneficial owner must, in the case of a proposal, have delivered a proxy
    statement and form of proxy to holders of at least the percentage of the Corporations
    voting shares required under applicable law to carry any such proposal, or,
    in the case of a nomination or nominations, have delivered a proxy statement
    and form of proxy to holders of a percentage of the Corporations voting
    shares reasonably believed by such Stockholder or beneficial holder to be
    sufficient to elect the nominee or nominees proposed to be nominated by such
    Stockholder, and must, in either case, have included in such materials the
    Solicitation Notice and (4) if no Solicitation Notice relating thereto
    has been timely provided pursuant to this Section, the Stockholder or beneficial
    owner proposing such business or nomination must not have solicited a number
    of proxies sufficient to have required the delivery of such a Solicitation
    Notice under this Section. To be timely, a Stockholders notice shall
    be delivered to the Secretary at the principal executive offices of the Corporation
    not less than 60 or more than 90 days prior to the first anniversary
    (the Anniversary) of the date on which the Corporation first mailed
    its proxy materials for the preceding years Annual Meeting of the Stockholders;
    provided, however, that if the date of the Annual Meeting is advanced more
    than 30 days prior to or delayed by more than 30 days after the Anniversary
    of the preceding years Annual Meeting, notice
    by the Stockholder to be timely must be so delivered not later than the close
    of business on the later of (i) the 90th day prior to such Annual Meeting
    or (ii) the 10th day following the day on which public announcement of
    the date of such Meeting is first made. Such Stockholders notice shall
    set forth (a) as to each person whom the Stockholder proposes to nominate
    for election or reelection as a director all information relating to such
    person as would be required to be disclosed in solicitations of proxies for
    the election of such nominees as directors pursuant to Regulation 14A
    under the Securities Exchange Act of 1934, as amended (the Exchange
    Act), and such persons written consent to serve as a director
    if elected; (b) as to any other business that the Stockholder proposes
    to bring before the Meeting, a brief description of such business, the reasons
    for conducting such business at the Meeting and any material interest in such
    business of such Stockholder and the beneficial owner, if any, on whose behalf
    the proposal is made; (c) as



28
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|to the Stockholder giving the notice
and     the beneficial owner, if any, on whose behalf the nomination or proposal is
    made (i) the name and address of such Stockholder, as they appear on     the
Corporations books, and of such beneficial owner, (ii) the     class and
number of shares of the Corporation that are owned beneficially     and of record by such
Stockholder and such beneficial owner, and (iii) whether     either such Stockholder or
beneficial owner intends to deliver a proxy statement     and form of proxy to holders
of, in the case of a proposal, at least the percentage     of the Corporations
voting shares required under applicable law to carry     the proposal or, in the case of
a nomination or nominations, a sufficient     number of holders of the Corporations
voting shares to elect such nominee     or nominees (an affirmative statement of such
intent, a Solicitation     Notice).


  Notwithstanding
    anything in the second sentence of the second paragraph of this Section 7
    to the contrary, in the event that the number of directors to be elected to
    the Board is increased and there is no public announcement naming all of the
    nominees for director or specifying the size of the increased Board made by
    the Corporation at least 70 days prior to the Anniversary, a Stockholders
    notice required by these By-Laws shall also be considered timely, but only
    with respect to nominees for any new positions created by such increase, if
    it shall be delivered to the Secretary at the principal executive offices
    of the Corporation not later than the close of business on the 10th day following
    the day on which such public announcement is first made by the Corporation.
  Only persons nominated
    in accordance with the procedures set forth in this Section 7 shall be
    eligible to serve as directors and only such business shall be conducted at
    an Annual Meeting of the Stockholders as shall have been brought before the
    Meeting in accordance with the procedures set forth in this Section. The chairman
    of the Meeting shall have the power and the duty to determine whether a nomination
    or any business proposed to be brought before the Meeting has been made in
    accordance with the procedures set forth in these By-Laws and, if any proposed
    nomination or business is not in compliance with these By-Laws, to declare
    that such defective proposed business or nomination shall not be presented
    for Stockholder action at the Meeting and shall be disregarded.
  Only such business
    shall be conducted at a Special Meeting of the Stockholders as shall have
    been brought before the Meeting pursuant to the Corporations notice
    of meeting. Nominations of persons for election to the Board may be made at
    a Special Meeting of the Stockholders at which directors are to be elected
    pursuant to the Corporations notice of meeting (a) by or at the
    direction of the Board or (b) by any Stockholder of record of the Corporation
    who is a Stockholder of record at the time of giving of notice provided for
    in this paragraph, who shall be entitled to vote at the Meeting and who complies
    with the notice procedures set forth in this Section 7. Nominations by
    Stockholders of persons for election to the Board may be made at such a Special
    Meeting of the Stockholders if the Stockholders notice required by the
    second paragraph of this Section 7 shall be delivered to the Secretary
    at the principal executive offices of the Corporation not later than the close
    of business on the later of the 90th day prior to such Special Meeting or
    the 10th day following the day on which public announcement is first made
    of the date of the Special Meeting and of the nominees proposed by the Board
    to be elected at such Meeting.
  For purposes of
    this Section, public announcement shall mean disclosure in a press
    release reported by the Dow Jones News Service, Associated Press or a comparable
    national news service or in a document publicly filed by the Corporation with
    the Securities and Exchange Commission pursuant to Section 13, 14 or
    15(d) of the Exchange Act.
  Notwithstanding
    the foregoing provisions of this Section 7, a Stockholder shall also comply
    with all applicable requirements of the Exchange Act and the rules and regulations
    thereunder with respect to matters set forth in this Section 7. Nothing
    in this Section shall be deemed to affect any rights of Stockholders to request
    inclusion of proposals in the Corporations proxy statement pursuant
    to Rule 14a-8 under the Exchange Act.



29
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Section
    7.Voting.
    Each stockholder of record of the Corporation shall, at every Meeting of the
    Stockholders of the Corporation, be entitled to one vote for each share of
    stock standing in his name on the books of the Corporation on any matter on
    which he is entitled to vote, and such votes may be cast either in person
    or by proxy, but no proxy shall be voted on after one year from its date.
  A stockholder may
    authorize another person or persons to act for him as proxy by (i) executing
    a writing authorizing another person or persons to act for him as proxy (such
    execution may be accomplished by the stockholder or his authorized officer,
    director, employee or agent signing such writing or causing his or her signature
    to be affixed to such writing by any reasonable means including, but not limited
    to, by facsimile signature), or (ii) transmitting or authorizing the
    transmission of a telegram, cablegram, Internet, interactive voice response
    system or other means of electronic transmission (including by telephone)
    to the person who will be the holder of the proxy or to a proxy solicitation
    firm, proxy support service organization or like agent duly authorized by
    the person who will be the holder of the proxy to receive such transmission,
    provided that any such telegram, cablegram, Internet, interactive voice response
    system or other means of electronic transmission must either set forth or
    be submitted with information from which it can be determined that the telegram,
    cablegram, Internet transmission, interactive voice response system or other
    electronic transmission was authorized by the stockholder. If no date is stated
    in a proxy, such proxy shall be presumed to have been executed on the date
    of the Meeting at which it is to be voted. Each proxy shall be revocable unless
    expressly provided therein to be irrevocable and coupled with an interest
    sufficient in law to support an irrevocable power or unless otherwise made
    irrevocable by law.
  The vote on all
    elections of directors shall be by ballot and, upon demand of any stockholder,
    the vote on any other question before the Meeting shall be by ballot or otherwise
    as determined by the Chairman of the Meeting.
  Except as otherwise
    provided by statute, the Certificate of Incorporation or these By-Laws, all
    elections shall be had and all questions decided by a majority of the votes
    cast.
  Section
    8.Judges.
    At every meeting of the Stockholders of the Corporation at which a vote by
    ballot is taken, the polls shall be opened and closed, the proxies and ballots
    shall be received and taken in charge, and all questions touching the qualification
    of voters, the validity of proxies and the acceptance or rejection of votes
    shall be decided by two Judges with appeal to the Chairman of the Meeting.
    Said Judges shall be appointed by the presiding officer of the Meeting.
  ARTICLE
    IIDIRECTORS
  Section
    1.Number,
    Election and Term of Office. The business of the
    Corporation shall be managed by a Board of Directors (hereinafter sometimes
    referred to as the "Board"). The number of directors which shall constitute
    the Board and term of such directors shall be as set forth in the Certificate
    of Incorporation. Each director shall hold office until his successor is elected
    and qualified or until he shall resign or shall have been removed.
  In addition to
    the powers by these By-Laws expressly conferred upon them, the Board may exercise
    all powers and do all lawful acts and things other than those required by
    law, the Certificate of Incorporation or these By-Laws to be exercised or
    done by the stockholders.



30
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Section
    2.Vacancies
    and Newly Created Directorships. Any vacancy or
    vacancies which may occur among the directors through death, resignation,
    or disqualification or for any other cause, and newly created directorships
    resulting from any increase in the authorized number of directors, may be
    filled by a majority of the directors then in office, though less than a quorum,
    subject to the provisions hereinafter contained in this Section 2. A director
    elected to fill a vacancy or a newly created directorship shall be elected
    to hold office until the next Annual Meeting of the Stockholders at which
    the term of the class of directors to which he was elected expires and until
    his successor has been elected and qualified.
  In case of any
    vacancy in the office of a director occurring among the directors elected
    by the holders of the Corporation's Preferred Stock, voting separately as
    a class, the remaining director elected by the holders of the Preferred Stock
    may designate a successor to hold office for the unexpired term of the director
    whose place is vacant. Likewise, in case of any vacancy in the office of a
    director occurring among the directors elected by the holders of the Corporation's
    Common Stock, the remaining director(s) elected by the holders of the Common
    Stock, by affirmative vote of a majority thereof, may elect a successor or
    successors to hold office for the unexpired term of the director or directors
    whose place or places shall be vacant.


31
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Section
    3.Regular
    Meetings. Regular Meetings of the Board of Directors
    may be held without notice at such time and place as shall from time to time
    be determined by resolution of the Board.
  Section
    4.Special
    Meetings. Special Meetings of the Board may be
    called by the Chairman of the Board, the Vice Chairman of the Board, the President
    or any two directors, and such Meetings shall be held at the registered office
    of the Corporation in the State of Delaware or at such other place or places,
    either within or without the State of Delaware, as shall be specified in the
    notices thereof.
  Section
    5.Notice.
    Notice of any Meeting of the Board requiring notice shall be given to each
    Director by mailing the same at least forty-eight (48) hours, or by telegraphing
    or telephoning the same at least twelve (12) hours before the time fixed for
    the meeting. At any meeting at which every director shall be present any and
    all business may be transacted even though no notice shall have been given.
  Section
    6.Quorum.
    At all Meetings of the Board the presence of one-third of the directors shall
    be necessary to constitute a quorum and be sufficient for the transaction
    of business and any act of a majority present at a meeting, at which there
    is a quorum, shall be the act of the Board, except as may be otherwise specifically
    provided by statute, the Certificate of Incorporation or these By-Laws.
  Section
    7.Organization.
    The Chairman of the Board of Directors, or in his absence the President, shall
    act as Chairman of any meeting of the Board, and the Secretary, or in his
    absence any Assistant Secretary, shall act as Secretary of any such meeting.
  Section
    8.Adjournment.
    Any Regular or Special Meeting of the Board of Directors may be adjourned
    from time to time by the members present whether or not a quorum shall be
    present, and no notice shall be required of any adjourned meeting beyond the
    announcement of such adjournment of the meeting.
  Section
    9.Action
    Without Meeting. Unless otherwise restricted by
    the Certificate of Incorporation or these By-Laws, any action required or
    permitted to be taken at any Meeting of the Board of Directors or any committee
    referred to in these By-Laws may be taken without a meeting if all members
    of the Board or of such committee, as the case may be, consent thereto in
    writing and the writing or writings are filed with the minutes of the proceedings
    of the Board or committee.
Section 10.CompensationEach director, in consideration of his serving as such, shall be entitled
    to receive from the Corporation such compensation as the Board shall from
    time to time determine, together with reimbursement for reasonable expenses
    incurred by him in attending meetings
    of the Board. Each director who shall serve as a member of the Executive Committee
    or any other committee of the Board provided for in these By-Laws, in consideration
    of his serving as such, shall be entitled to such additional compensation
    as the Board shall from time to time determine. Nothing herein contained shall
    be construed to preclude any director from serving the Corporation in any
    other capacity and receiving compensation therefor.

  Section
    11.Directors
    Emeritus. The Board of Directors may, at any time
    and from time to time, designate one or more persons as Directors Emeritus.
    Directors Emeritus shall be entitled to attend, in an advisory capacity, all
    meetings of the Board, may serve on such committees of the Board and perform
    such other services for the Corporation as may be determined by the Board
    from time to time, but shall have no power to vote at meetings of the Board
    or otherwise to manage the business and affairs of the Corporation. Whenever
    in this Article III and elsewhere in these By-Laws the term "Board", "Director"
    or "Directors" are used, such terms shall not include Directors Emeritus within
    their meanings. Each Director Emeritus, in consideration of his serving as
    such, shall be entitled to receive from the Corporation such compensation
    as the Board shall from time to time determine, together with reasonable expenses
    incurred by him in attending meetings of the Board.



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|ARTICLE
    IIICOMMITTEES
  Section
    1.Executive
    Committee. The Board of Directors, by resolution
    passed by a majority of the whole Board, may designate an Executive Committee
    to consist of such number of the Directors as shall be determined from time
    to time by the Board. The President shall be an "ex officio" member of such
    Committee. The Board may designate one or more directors as alternate members
    of such Committee, who may replace any absent or disqualified member(s) at
    any meeting thereof. The Executive Committee shall serve at the pleasure of
    the Board of Directors and shall have and shall exercise all powers of the
    Board in the general and active management of the business and the affairs
    of the Corporation even if not referred to in these By-Laws in the description
    of such power(s), except that the Executive Committee shall not have and may
    not exercise the following powers:
  (i)To
    submit or recommend to the stockholders any action which any applicable statute
    requires to be approved by a vote of the stockholders;
  (ii)To
    amend or repeal the By-Laws or to adopt any By-Laws;
  (iii)To
    amend, alter or repeal any resolution of the Board of Directors which by its
    terms provides that it will not be amended, altered or repealed by the Executive
    Committee;
  (iv)To
    fix compensation for service as a member of the Executive Committee;
  (v)To
    call any securities of the Corporation for redemption, conversion or purchase
    by the Corporation, or to authorize the issuance or sale of any authorized
    but non-issued stock, or any Treasury stock of the Corporation; and
  (vi)To
    declare dividends upon any class of capital stock of the Corporation.

  Section
    2.Chairman
    of the Executive Committee. The Chairman of the
    Board of Directors shall serve as Chairman of the Executive Committee.


  Section 3.Other   Committees. The Board of Directors may appoint such
    other committees, which may include as members directors only or directors
    and non-directors, as the Board may from time to time consider desirable,
    and such committees shall have such powers and duties as the Board may properly
    determine; provided, however, that the powers and duties of any such committee
whose
    members shall include non-directors shall be limited to making recommendations
    to the Board of Directors.

  Section
    4.
Committee Vacancies, etc. Any committee appointed pursuant
    to this Article shall serve at the pleasure of the Board, which shall have
    power at any time to change the membership of such committee, to fill vacancies
    in it or to dissolve it; but, subject to such change or dissolution, members
    of a committee shall hold office until the first meeting of the Board of Directors
    following the Annual Meeting of the Stockholders next succeeding their appointment
    and until their successors are appointed.



33
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|Section
    5.Committee
    Meetings. Meetings of a committee shall be held
    at such place within or without the State of Delaware as may from time to
    time be determined by the Board of Directors or the Committee, and no notice
    of such regular meetings shall be required. Special Meetings of the Executive
    Committee may be called by the Chairman of the Executive Committee or the
    President or any member of the Committee and in the case of any other committee
    may be called by the chairman of such committee or by the Chairman of the
    Executive Committee, the President, and any one of the Executive Vice Presidents
    or the Secretary, and shall be called by the Secretary on the written request
    of any member of such committee. Notice of a Special Meeting of any committee
    shall be given to each member thereof by mailing the same at least 48 hours,
    or by telegraphing or telephoning the same at least 12 hours, before the time
    of a Meeting. The majority of the members of a committee shall constitute
    a quorum for the transaction of committee business, and the act of a majority
    of the members present at any Meeting at which there is a quorum shall be
    the act of the committee; however, in the case of the Executive Committee,
    in the event of a tie vote, the Chairman of the Executive Committee shall
    have the casting vote. A committee shall keep regular minutes of its Meetings
    which shall be reported to the Board of Directors when required.
  ARTICLE
    IVOFFICERS
  Section
    1.Number,
    Election and Term of Office. The officers of the
    Corporation shall be a Chairman of the Board of Directors, a President, one
    or more Executive Vice Presidents, Senior Vice Presidents and Vice Presidents,
    a Secretary, a Treasurer, a General Counsel and a Controller who shall be
    elected by the Board of Directors at any Regular or Special Meeting of the
    Board, and such other officers as may be appointed by the Board. Any officer
    elected by the Board of Directors shall hold office until his successor shall
    be elected and shall have qualified, but such officer may be removed at any
    time by the affirmative vote of a majority of the Board. The Board may from
    time to time elect or appoint such other officers and agents as the interests
    of the corporation may require and may fix their duties and terms of office.
    More than one office may be held by the same person.
  Section
    2.Chairman
    of the Board of Directors. The Chairman of the
    Board of Directors shall be a Director. He shall preside at all meetings of
    stockholders and of the Board of Directors at which he shall be present, and
    he shall perform such other duties and enjoy such other powers as shall be
    delegated to him by the Board of Directors or which are or may at any time
    be required by law.
  Section
    3.President.
    The President shall perform all the duties and enjoy all the powers commonly
    incident to his office or delegated to him or which are, or may be authorized
    or required by law. He shall be a director and shall be the Chief Executive
    Officer of the Corporation. In the absence of the Chairman of the Board of
    Directors, he shall have and perform the duties of that office.
  Section
    4.Executive
    Vice Presidents, Senior Vice Presidents, Vice Presidents and Other Officers.
    In the event of non-availability or disability of the Chairman of the Board
    of Directors and the President, then the Executive Vice Presidents, Senior
    Vice Presidents and Vice Presidents in the order of designation by the Board
    or the Executive Committee shall perform the duties of the President. Additionally,
    the Executive Vice Presidents, Senior Vice Presidents and Vice Presidents
    shall perform such duties as the Board of Directors and the President shall
    require.



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|Section
    5.Secretary.
    The Secretary shall record all the proceedings of the Meetings of the Board
    of Directors and the Executive Committee, and of the stockholders of the Corporation
    in a book or books to be kept for that purpose. He shall have custody of the
    records and of the seal of the Corporation and may affix the seal to any instrument
    requiring the seal when authorized by the Board of Directors or the Executive
    Committee. He shall have charge of the stock certificate and stock transfer
    books of the Corporation. He shall notify the directors and stockholders of
    the respective meetings as required by law or the By-Laws of the Corporation,
    and shall perform such other duties as may be required of him. The Assistant
    Secretaries shall, during the absence or incapacity of the Secretary, assume
    and perform all functions and duties which the Secretary might lawfully do
    if present and not under any incapacity.
  Section
    6.Treasurer.
    The Treasurer shall have charge of the funds of the Corporation. He shall
    keep full and accurate accounts of all receipts and disbursements of the Corporation
    in books belonging to the Corporation, and shall deposit all money and other
    valuable effects in the name and to the credit of the Corporation in such
    depositaries as may be designated by the Board of Directors or the Executive
    Committee. He shall disburse the funds of the Corporation as may be ordered
    by the Board, and shall render an account of all his transactions as Treasurer.
    The Assistant Treasurers shall during the absence or incapacity of the Treasurer
    assume and perform all functions and duties which the Treasurer might lawfully
    do if present and not under any incapacity.
  Section
    7.Controller.
    The Controller shall be the Chief Accounting Officer of the Corporation. He
    shall maintain the records of the Corporation pertaining to its fiscal affairs
    and see that adequate audits thereof are currently and regularly made. He
    shall render an account of the financial condition of the Corporation and
    shall perform such other duties incident to his office as shall be delegated
    to him by the Board of Directors.
  Section
    8.General
    Counsel. The General Counsel shall be the chief
    officer of the Corporation for legal proceedings and matters of a legal nature
    and shall have the responsibility of supervising such matters and proceedings.
  Section
    9.Bonds.
    The Treasurer and Assistant Treasurers, if required so to do by the Board
    of Directors, shall give a bond for the faithful performance of their duties,
    in such sum and with such surety or sureties as the Board of Directors may
    require.
  Section
    10.Vacancies.
    If for any reason any vacancy occurs in any office or agency of the Corporation,
    the Board of Directors or the Executive Committee may choose a successor to
    hold office for the unexpired term of the office in question.


  ARTICLE
    VDIVISION OFFICERS
  Section
    1.Appointment.
    In case of any business carried on by the Corporation as a division of the
    Corporation, the Board of Directors or the Executive Committee may appoint
    one or more officers of the division.
  Section
    2.Authority.
    The officers of the division shall have such powers, authorities, functions
    and responsibilities with respect to the business, operations and affairs
    of the division as may be prescribed from time to time by the Board, the Chief
    Executive Officer of the Corporation or the President of the division pursuant
    to authorization given by the Board or by said Chief Executive Officer. All
    acts, contracts, engagements and undertakings by such division officers within
    the scope of their powers, authorities, functions or responsibilities shall
    be binding upon the Corporation and the division for which such officers shall
    have acted.



35
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|ARTICLE VIREMOVAL OF DIRECTORS
  Any director may
    be removed only with cause at any time by the vote of the holders of a majority
    of all the shares of stock of the Corporation entitled to vote for his election,
    given at a Meeting called for that purpose, and the vacancy in the Board caused
    by such removal may be filled by such stockholders at such meeting or, if
    the stockholders shall fail to fill such vacancy, by the Board by a majority
    vote of the remaining directors (except as provided in Section 2, Article
    III of these By-Laws) though less than a quorum.
  ARTICLE
    VIICONTRACTS, CHECKS, DRAFTS, ETC.
  Section
    1.Contracts,
    etc., How Executed. The Board, except as in these
    By-Laws otherwise provided, may authorize any officer or officers, agent or
    agents, or employee, to enter into any contract or execute and deliver any
    instrument in the name of and on behalf of the Corporation and such authority
    may be general or confined to specific instances, and may be granted by the
    Board pursuant to authorization given by the Board, and, unless so authorized,
    no agent or employee shall have power or authority to bind the Corporation
    by any contract or engagement or to pledge its credit or to render it liable
    pecuniarily for any purpose or to any amount.
  Section
    2.Loans.
    No loan shall be contracted on behalf of the Corporation and no negotiable
    paper shall be issued in its name, unless authorized by, or given pursuant
    to authorization of, the Board. When so authorized by the Board of Directors
    or the Executive Committee, any officer or agent of the Corporation may effect
    loans and advances at any time for the Corporation from any bank, trust company
    or other institution, or from any firm, corporation or individual, and for
    such loans and advances may make, execute and deliver promissory notes or
    other evidences of indebtedness of the Corporation. Such authority may be
    general or confined to specific instances.
  Section
    3.Checks,
    Drafts, etc.. All checks, drafts, bills of exchange
    and promissory notes and other negotiable instruments of the Corporation shall
    be signed by such officers or agents of the Corporation as may be designated
    by the Board.
  ARTICLE
    VIIISTOCK
  Section
    1.Certificates
    of Stock. The certificates for shares of stock
    of the Corporation shall be in such form, not inconsistent with the Certificate
    of Incorporation, as shall be prepared or approved by the Board of Directors.
    Every certificate shall be signed by the Chairman, the President or any Executive
    Vice President, Senior Vice President or Vice President, and by the Treasurer
    or an Assistant Treasurer, or the Secretary or an Assistant Secretary, and
    no certificate shall be valid unless so signed, provided, however, that where
    such certificate is countersigned by a registrar designated by the Corporation
    for such purpose, all other signatures thereon (including those of a transfer
    agent or an assistant transfer agent or a transfer clerk acting on behalf
    of the Corporation) may be facsimiles.
  All certificates
    shall be consecutively numbered and shall be entered in the books of the Corporation
    as they are issued. Every certificate shall certify the name of the person
    owning the shares represented thereby, with the number of said shares and
    the date of issue.
  All certificates
    surrendered to the Corporation shall be cancelled and, except in the case
    of lost, stolen or destroyed certificates, no new certificates shall be issued
    until the former certificate for the same number of shares of the same class
    of stock has been surrendered and cancelled.


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|Section
    2.Transfer
    of Stock. Upon surrender to the Corporation or
    the transfer agent of the Corporation of a certificate for shares duly endorsed
    or accompanied by proper evidence of succession, assignment or authority to
    transfer, it shall be the duty of the Corporation to issue a new certificate
    to the person entitled thereto, cancel the old certificate and record the
    transaction upon its books.
  ARTICLE
    IXREGISTERED STOCKHOLDERS
  The Corporation
    shall be entitled to treat the holder of record of any share or shares of
    stock as the holder in fact thereof and, accordingly, shall not be bound to
    recognize any equitable or other claim to, or interest in, such share or shares
    on the part of any other person, whether or not it shall have express or other
    notice thereof, save as expressly provided by the laws of Delaware.
  ARTICLE
    XLOST, STOLEN OR DESTROYED CERTIFICATES
  Any person claiming
    a certificate of stock to be lost, stolen or destroyed, shall make an affidavit
    or affirmation of that fact and, if required by the Board of Directors, advertise
    the same in such manner as the Board may require, and the Board of Directors
    may, in their discretion, require the owner of the lost, stolen or destroyed
    certificate, or his legal representative, to give the Corporation a bond in
    a sum sufficient, in the opinion of the Board of Directors, to indemnify the
    Corporation against any claim that may be made against it on account of the
    alleged loss, theft or destruction of any such certificate.
  ARTICLE
    XIFIXING OF RECORD DATE
  In order that the
    Corporation may determine the stockholders entitled to notice of or to vote
    at any Meeting of Stockholders or any adjournment thereof, or to express consent
    to corporate action in writing without a Meeting, or entitled to receive payment
    of any dividend or other distribution or allotment of any rights, or entitled
    to exercise any rights in respect of any change, conversion or exchange of
    stock or for the purpose of any other lawful action, the Board of Directors
    may fix, in advance, a record date, which shall not be more than sixty nor
    less than ten days before the date of such Meeting, nor more than sixty days
    prior to any other such action.
  ARTICLE
    XIIDIVIDENDS
  Dividends upon
    the capital stock of the Corporation, subject to the provisions of the Certificate
    of Incorporation, if any, may be declared by the Board of Directors at any
    Regular or Special Meeting, pursuant to law. Dividends may be paid in cash,
    in property, or in shares of the capital stock, subject to the provisions
    of the Certificate of Incorporation.
  ARTICLE
    XIIIWAIVER OF NOTICE
  Whenever any notice
    whatever is required to be given by statute or under the provisions of the
    Certificate of Incorporation or by these By-Laws, a waiver thereof in writing
    signed by the person or persons entitled to said notice, whether before or
    after the time stated therein, shall be equivalent thereto.



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|ARTICLE
    XIVSEAL
  The corporate seal
    of the Corporation shall be circular and shall bear the name of the Corporation
    and the year and state of its incorporation.
  ARTICLE
    XVFISCAL YEAR
  The fiscal year
    of the Corporation shall begin on the first day of January of each year and
    shall end on the thirty-first day of December following.



38
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|INDEMNIFICATION
  Right to
    Indemnification. Each person who was or is made
    a party or is threatened to be made a party to or is involved (including,
    without limitation, as a witness) in any actual or threatened action, suit
    or proceeding, whether civil, criminal, administrative or investigative (hereinafter
    a proceeding), by reason of the fact that he or she is or was
    a director or officer, of the Corporation or is or was serving at the request
    of the Corporation as a director, officer, employee or agent of another corporation
    or of a partnership, joint venture, trust or other enterprise, including service
    with respect to an employee benefit plan (hereinafter an indemnitee),
    whether the basis of such proceeding is alleged action in an official capacity
    as a director, officer, employee or agent or in any other capacity while serving
    as a director, officer, employee or agent, shall be indemnified and held harmless
    by the Corporation to the full extent authorized by the Delaware General Corporation
    law, as the same exists or may hereinafter be amended (but, in the case of
    any such amendment, only to the extent that such amendment permits the Corporation
    to provide broader indemnification rights than said law permitted the Corporation
    to provide prior to such amendment), or by other applicable law as then in
    effect, against all expense, liability and loss (including attorneys
    fees, judgments, fines, ERISA excise taxes or penalties and amounts to be
    paid in settlement) actually and reasonably incurred or suffered by such indemnitee
    in connection therewith and such indemnification shall continue as to an indemnitee
    who has ceased to be a director, officer, employee or agent and shall inure
    to the benefit of the indemnitees heirs, executors and administrators,
    provided, however, that except as provided in Section 2 of this Article XVII
    with respect to proceedings seeking to enforce rights to indemnification,
    the Corporation shall indemnify any such indemnitee seeking indemnification
    in connection with a proceeding (or part thereof) initiated by such indemnitee
    only if such proceeding (or part thereof) was authorized by the Board of Directors
    of the Corporation. The right to indemnification conferred in this Section
    shall be a contract right and shall include the right to be paid by the Corporation
    the expenses incurred in defending any such proceeding in advance of its final
    disposition (hereinafter an advancement of expenses); provided,
    however, that, if the Delaware General Corporation Law requires, an advancement
    of expenses incurred by an indemnitee in his or her capacity as a director
    or officer (and not in any other capacity in which service was or is rendered
    by such indemnitee while a director or officer, including, without limitation,
    service to an employee benefit plan) shall be made only upon provision to
    the Corporation of an undertaking, by or on behalf of such indemnitee, to
    repay all amounts so advanced if it shall ultimately be determined that such
    indemnitee is not entitled to be indemnified under this Section 1, or
    otherwise.
  Right of Indemnitee
    to Bring Suit. If a claim under Section 1
    of this Article XVII is
    not paid in full by the Corporation within sixty days after a written claim
    has been received by the Corporation, except in the case of a claim for an
    advancement of expenses, in which case the applicable period shall be twenty
    days, the indemnitee may at any time thereafter bring suit against the Corporation
    to recover the unpaid amount of the claim and, to the extent successful in
    whole or in part, the indemnitee shall be entitled to be paid also the expense
    of prosecuting such suit. The indemnitee shall be presumed to be entitled
    to indemnification under this Article an advancement
    of expenses where the required undertaking, if any is required, has been tendered
    to the Corporation), and thereafter the Corporation shall have the burden
    of proof to overcome the presumption that the indemnitee is not so entitled.
    Neither the failure of the Corporation (including its Board of Directors,
    independent legal counsel or its stockholders) to have made a determination
    prior to the commencement of such suit that indemnification of the indemnitee
    is proper in the circumstances nor an actual determination by the Corporation
    (including its Board of Directors, independent legal counsel or its stockholders)
    that the indemnitee is not entitled to indemnification shall be a defense
    to the suit or create a presumption that the indemnitee is not so entitled.
Nonexclusivity
    of Rights. The rights to indemnification and to
    the advancement of expenses conferred in this Article XVII shall not
    be exclusive of any other right which any person may have or hereafter acquire
    under any statute, provision of the Certificate of Incorporation, By-Laws,
    agreement, vote of stockholders or disinterested directors or otherwise.



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|Insurance,
    Contracts and Funding. The Corporation may maintain
    insurance, at its expense, to protect itself and any director, officer, employee
    or agent of the Corporation or another corporation, partnership, joint venture,
    trust or other enterprise against any expense, liability or loss, whether
    or not the Corporation would have the power to indemnify such person against
    such expense, liability or loss under the Delaware General Corporation law.
    The Corporation may enter into contracts with any indemnitee in furtherance
    of the provisions of this Article and may create trust fund, grant a security
    interest or use other means (including, without limitation, a letter of credit)
    to ensure the payment of such amounts as may be necessary to effect indemnification
    as provided in this Article.
  Definition
    of Director and Officer. Any person who is or
    was serving as a director of a wholly owned subsidiary of the Corporation
    shall be deemed, for purposes of this Article only, to be a director or officer
    of the Corporation entitled to indemnification under this Article.
  Indemnification
    of Employees and Agents of the Corporation. The
    Corporation may, by action of its Board of Directors from time to time grant
    rights to indemnification and advancement of expenses to employees and agents
    of the Corporation with the same scope and effects as the provisions of this
    Article with respect to the indemnification and advancement of expenses of
    directors and officers of the Corporation.
  ARTICLE
    XVIAMENDMENTS
  Section 1. These
    By-Laws may be altered or repealed at any Regular Meeting of the stockholders
    or at any Special Meeting of the stockholders at which a quorum is present
    or represented, provided notice of the proposed alteration or repeal be contained
    in the notice of such Special Meeting, by the affirmative vote of a majority
    of the stock entitled to vote at such Meeting and present or represented thereat,
    or except as provided in Section 2 hereof, by the affirmative vote of
    a majority of the Board of Directors at any Regular Meeting of the Board or
    at any Special Meeting of the Board if notice of the proposed alteration or
    repeal be contained in the notice of such Special Meeting; provided, however,
    that the provisions of Section 5 of Article II, Section 2 of
    Article III, Article VII and this Article XVIII, insofar as
    they relate to the rights of the holders of the Corporations Preferred
    Stock, may not be amended without the affirmative vote of the holders of majority
    of such Preferred Stock voting separately as a class.
  Section 2. The
    Corporation, by action of the Board of Directors, has expressly elected not
    to be governed by Section 203 of the Delaware General Corporation Law.
    This Section 2 of Article XVIII shall not be amended by the Board
    of Directors.



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|EXHIBIT (10)(a)
        ENGELHARD
            CORPORATION
          $450,000,000
          AMENDED
            AND RESTATED CREDIT AGREEMENT
          Dated
            as of May 6, 2004
          Amending
            and Restating the
          364-Day
            Credit Agreement
          dated
            as of May 11, 2001,
          as
            amended and restated as of
          May
            10, 2002
          and
            May 8, 2003
          JPMORGAN
            CHASE BANK,
          as
            Administrative Agent,
          BANK
            OF TOKYO-MITSUBISHI TRUST COMPANY,
          as
            Documentation Agent,
          and
          ABN-AMRO
            BANK N.V.,
          as
            Syndication Agent
          ____________________________________
          
          J.P.
            MORGAN SECURITIES INC.,
          as
            Lead Arranger and Book Manager
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|41
|--

|AMENDED
    AND RESTATED CREDIT AGREEMENT dated as of May 6, 2004 (this Amendment
    and Restatement) amending and restating the
    364-DAY CREDIT AGREEMENT dated as of May 11, 2001, as amended and restated
    as of May 10, 2002 and May 8, 2003 (the Credit
    Agreement), among ENGELHARD CORPORATION, a Delaware
    corporation (hereinafter called theCompany),
    the Banks party thereto, JPMORGAN CHASE BANK, as Administrative Agent (hereinafter,
    in such capacity, together with any successor thereto in such capacity, theAdministrative Agent),
    BANK OF TOKYO-MITSUBISHI TRUST COMPANY, as Documentation Agent (hereinafter,
    in such capacity, together with any successor thereto in such capacity, theDocumentation Agent),
    and ABN-AMRO BANK N.V., as Syndication Agent (hereinafter, in such capacity,
    together with any successor thereto in such capacity, the Syndication
    Agent).
  The
    Company has requested that the Credit Agreement be amended and restated as
    set forth in Section 1 below and the parties hereto are willing so to amend
    the Credit Agreement. Each capitalized term used but not defined herein has
    the meaning assigned thereto in the Credit Agreement.
  In
    consideration of the premises and the agreements, provisions and covenants
    herein contained, the parties hereto hereby agree, on the terms and subject
    to the conditions set forth herein, as follows:
  SECTION
    1.Amendment and Restatement.Upon the effectiveness of this Amendment and Restatement as provided in Section
    3 below, the Credit Agreement shall be amended and restated in the form in
    which it shall exist immediately prior to such effectiveness, but with the
    caption set forth above and the following revisions:
  (a)
    The first paragraph following the caption to the Credit Agreement is hereby
    amended by (i) inserting and May 8, 2003 after the clause
    which was amended and restated as of May 10, 2002.
  (b)
    The reference to $400,000,000 in the preamble to the Credit Agreement, and
    each other reference thereto throughout the Credit Agreement, shall be deleted
    and replaced with a reference to $450,000,000.
  (c)
    Section 1.02 of the Credit Agreement is hereby amended by deleting each reference
    therein to December 31, 2002 and replacing it with a reference
    to December 31, 2003.
  (d)
    Section 7 of the Credit Agreement is hereby amended as follows:
  (i)
    Section 7.04 of the Credit Agreement is hereby amended by deleting the reference
    therein to December 31, 2002 and replacing it with a reference
    to December 31, 2003.
  
  (ii)
    Section 7.05 of the Credit Agreement is hereby amended by deleting the reference
    therein to December 31, 2002 and replacing it with a reference
    to December 31, 2003.


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|(e)
    Section 11 of the Credit Agreement is hereby amended by inserting new Section
    11.14, which shall read as follows:
  11.14USA Patriot Act.Each Bank
    hereby notifies the Borrower that pursuant to the requirements of the USA
    Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001))
    (the Act), it is
    required to obtain, verify and record information that identifies the Borrower,
    which information includes the name and address of the Borrower and other
    information that will allow such Bank to identify the Borrower in accordance
    with the Act.
  (f)Effective Date.From and after
    the Effective Date (as defined below), all references in the Credit Agreement
    to the date hereof or other words or phrases of similar import,
    shall be deemed references to the date of this Amendment and Restatement.
  (g)Exhibits.Each reference to
    May 8, 2003 in the Exhibits to the Credit Agreement is hereby
    deleted and replaced with a reference to May 6, 2004.
  (h)Schedule I.Schedule I to the
    Credit Agreement is hereby deleted and Schedule I hereto is inserted in its
    place.
  SECTION
    2.Representations and Warranties.The Company represents and warrants as of the Effective Date to the Lenders
    that:
  (a)
    After giving effect to this Amendment and Restatement, the representations
    and warranties on the part of the Company contained in the Credit Agreement
    are true and correct in all material respects at and as of the Effective Date
    as though made on and as of the Effective Date (except to the extent such
    representations and warranties expressly relate solely to an earlier date).
  (b)
    After giving effect to this Amendment and Restatement, the Company is in compliance
    with the covenants set forth in Section 8 of the Credit Agreement.
  (c)
    After giving effect to this Amendment and Restatement, no Event of Default
    or Default has occurred and is continuing.
  SECTION
    3.Conditions to Effectiveness.This Amendment and Restatement shall become effective on the date hereof (the
    Effective Date)
    subject to the following conditions precedent:
  (a)
    The Administrative Agent (or its counsel) shall have received from each party
    hereto either (i) a counterpart of this Amendment and Restatement signed
    on behalf of such party or (ii) written evidence satisfactory to the
    Administrative Agent (which may include telecopy transmission of a signed
    signature page of this Amendment and Restatement) that such party has signed
    a counterpart of this Amendment and Restatement.
  (b) The Administrative
    Agent shall have received a written opinion (addressed to the Administrative
    Agent and the Banks and dated the Effective Date) of Cahill Gordon



43
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|&
    Reindel, counsel to the Company, substantially in the form of Exhibit A to
    the Credit Agreement. The Company hereby requests such counsel to deliver
    such opinion.
  (c)
    The Administrative Agent shall have received certified copies of the charter
    and by-laws (or equivalent documents) of the Company, a long-form certificate
    of good standing for the Company from the office of the Secretary of State
    of the State of Delaware and certified copies of all corporate authority for
    the Company (including, without limitation, board of director resolutions
    and evidence of the incumbency, including specimen signatures, of officers)
    with respect to the execution, delivery and performance of this Amendment
    and Restatement and each other document to be delivered by the Company from
    time to time in connection herewith and the Loans hereunder.
  (d)
    The Administrative Agent, on behalf of itself and the Banks, shall have received
    all fees which they are entitled to be paid on or prior to the Closing Date
    in connection with the Credit Agreement and this Amendment and Restatement,
    as separately agreed upon in writing.
  (e)
    On the Effective Date, no Loans shall be outstanding under the Credit Agreement.
  SECTION
    4.Agreement.Except as specifically
    stated herein, the provisions of the Credit Agreement are and shall remain
    in full force and effect. As used therein, the terms Credit Agreement,
    this Agreement, herein, hereunder, hereinafter,
    hereto, hereof
  and words of similar
    import shall, unless the context otherwise requires, refer to the Credit Agreement
    as amended hereby.
  SECTION
    5.Governing Law.THIS
    AMENDMENT AND RESTATEMENT SHALL BE DEEMED TO BE A CONTRACT MADE UNDER THE
    LAWS OF THE STATE OF NEW YORK, AND FOR ALL PURPOSES SHALL BE CONSTRUED IN
    ACCORDANCE WITH THE LAWS OF SAID STATE WITHOUT REGARD TO PRINCIPLES OF CONFLICTS
    OF LAW.
  SECTION
    6.Counterparts.This Amendment
    and Restatement may be executed in any number of counterparts, each of which
    shall constitute an original but all of which when taken together shall constitute
    but one contract. Delivery of an executed counterpart of a signature page
    of this Amendment and Restatement by telecopy shall be effective as delivery
    of a manually executed counterpart of this Amendment and Restatement.
  SECTION
    7.Expenses.The Company agrees
    to reimburse the Administrative Agent for all expenses incurred in connection
    with this Amendment and Restatement, including the fees, charges and disbursements
    of Cravath, Swaine & Moore LLP, counsel for the Administrative Agent,
    as separately agreed upon in writing.
  
  SECTION
    8.Headings.The headings of
    this Amendment and Restatement are for purposes of reference only and shall
    not limit or otherwise affect the meaning hereof.



44
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|IN
    WITNESS WHEREOF, the parties hereto have caused this Amendment and Restatement
    to be duly executed by their respective authorized officers as of the day
    and year first above written.



ENGELHARD CORPORATION,
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | by: | /s/ Mac C.P. Mak                        
| | --- | ----------------------------------------
| |     |                                         
| |     | Name: Mac C.P. Mak
     Title: Treasurer

|45
|--

|SCHEDULEIALLOCATIONS AND LENDERS
|--------------------------------

|Institution                                              | Title | Allocations                | 
|-------------------------------------------------------- | ----- | -------------------------- | 
|                                                         |       |                            | 
|JPMorgan
      Chase Bank                                |       | Administrative
      Agent | 
|                                                         |       |                            | 
|ABN-AMRO
      Bank N.V                                  |       | Syndication
      Agent    | 
|                                                         |       |                            | 
|Bank
      of Tokyo-Mitsubishi Trust Company             |       | Documentation
      Agent  | 
|                                                         |       |                            | 
|Bank
      of America, N.A                               |       | Managing
      Agent       | 
|                                                         |       |                            | 
|Commerzbank
      AG, New York and Grand Cayman Branches |       | Managing
      Agent       | 
|                                                         |       |                            | 
|Mellon
      Bank, N.A                                   |       | Managing
      Agent       | 
|                                                         |       |                            | 
|The
      Bank of Novia Scotia                           |       | Bank                       | 
|                                                         |       |                            | 
|Citibank,
      N.A                                      |       | Bank                       | 
|                                                         |       |                            | 
|Mizuho
      Corporate Bank, Ltd.                        |       | Bank                       | 
|                                                         |       |                            | 
|Sumitomo
      Mitsui Banking Corporation                |       | Bank                       | 
|                                                         |       |                            | 
|SunTrust
      Bank                                      |       | Bank                       | 
|                                                         |       |                            | 
|Wachovia
      Bank, N.A                                 |       | Bank                       | 
|                                                         |       |                            | 
|                                                         |       |                            | 
|Banca
      Popolare di Milano, NY Branch                |       | Bank                       | 
|                                                         |       |                            | 
|The
      Bank of New York                               |       | Bank                       | 
|                                                         |       |                            | 
|Bank
      One, NA                                       |       | Bank                       | 
|                                                         |       |                            | 
|ING
      Bank N.V., Dublin Branch                       |       | Bank                       | 
|                                                         |       |                            | 
|Banca
      Intesa S.p.A., New York Branch               |       | Bank                       | 
|                                                         |       |                            | 
|Keybank
      National Association                       |       | Bank                       | 
|                                                         |       |                            | 
|National
      City Bank                                 |       | Bank                       | 
|                                                         |       |                            | 
|Norddeutsche
      Landesbank Girozentrale New York      |       | Bank                       | 
|and/or
      Cayman Islands Branch                       |       |                            | 
|                                                         |       |                            | 
|WestLB
      AG                                          |       | Bank                       | 
|                                                         |       |                            | 
|                                                         |       |                            | 
|TOTAL                                                    |       |                            | 
|                                                         |       |                            | 

|46
|--

|EXHIBIT (31)(a)


Rule
13a-14(a)/15d-14(a)Certification of Chief Executive Officer


I, Barry W. Perry, Chairman and
Chief Executive Officer of Engelhard Corporation (the Company), certify that:
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|1. | I have reviewed this quarterly report on Form 10-Q of the Company;
|-- | ------------------------------------------------------------------

|2. | Based
on my knowledge, this report does not contain any untrue statement of a material fact or
omit to state a material fact necessary to make the statements made, in light of the
circumstances under which such statements were made, not misleading with respect to the
period covered by this report;
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|3. | Based on my knowledge, the financial statements, and other financial information included
in this report, fairly present in all material respects the financial condition, results
of operations and cash flows of the registrant as of, and for, the periods presented in
this report;
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4. | The registrants other certifying officer(s) and I are responsible for establishing
and maintaining disclosure controls and procedures (as defined in Exchange Act Rules
13a-15(e) and 15d-15(e)) for the registrant and we have:
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (a) | Designed such disclosure controls and procedures, or caused such disclosure controls and
procedures to be designed under our supervision, to ensure that material information
relating to the registrant, including its consolidated subsidiaries, is made known to us
by others within those entities, particularly during the period in which this report is
being prepared;
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | Evaluated the effectiveness of the registrants disclosure controls and procedures
and presented in this report our conclusions about the effectiveness of the disclosure
controls and procedures, as of the end of the period covered by this report based on such
evaluation; and
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c) | Disclosed in this report any change in the registrants internal control over
financial reporting that occurred during the registrants most recent fiscal quarter
that has materially affected, or is reasonably likely to materially affect, the
registrants internal control over financial reporting; and
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|5. | The registrants other certifying officer(s) and I have disclosed, based on our most
recent evaluation of internal control over financial reporting, to the registrants
auditors and to the audit committee of registrants board of directors (or persons
performing the equivalent function):
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (a) | All significant deficiencies and material weaknesses in the design or operation of
internal control over financial reporting which are reasonably likely to adversely affect
the registrants ability to record, process, summarize and report financial
information; and
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | Any fraud, whether or not material, that involves management or other employees who have a
significant role in the registrants internal control over financial reporting.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Date: | May 7, 2004 |  | /s/ Barry W. Perry                                           
|----- | ----------- |  | -------------------------------------------------------------
|      |             |  |                                                              
|      |             |  | Barry W. Perry
     Chairman and Chief
     Executive Officer

|47
|--

|EXHIBIT (31)(b)


Rule
13a-14(a)/15d-14(a)Certification
of Chief Financial Officer


I, Michael A. Sperduto, Vice
President and Chief Financial Officer of Engelhard Corporation (the "Company"),
certify that:
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|1. | I have reviewed this quarterly
report on Form 10-Q of the Company;
|-- | ------------------------------------------------------------------

|2. | Based
on my knowledge, this report does not contain any untrue statement of a material fact or
omit to state a material fact necessary to make the statements made, in light of the
circumstances under which such statements were made, not misleading with respect to the
period covered by this report;
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|3. | Based on my knowledge, the
financial statements, and other financial information included in this report, fairly present in all
material respects the financial condition, results of operations and cash flows of the registrant as
of, and for, the periods presented in this report;
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4. | The registrants other
certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and
procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and we
have:
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (a) | Designed such disclosure
controls and procedures, or caused such disclosure controls and procedures to be designed under our
supervision, to ensure that material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those entities, particularly during
the period in which this report is being prepared;
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | Evaluated the effectiveness of the registrants disclosure controls and procedures
and presented in this report our conclusions about the effectiveness of the disclosure
controls and procedures, as of the end of the period covered by this report based on such
evaluation; and
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c) | Disclosed in this report any change in the registrants internal control over
financial reporting that occurred during the registrants most recent fiscal quarter
that has materially affected, or is reasonably likely to materially affect, the
registrants internal control over financial reporting; and
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|5. | The registrants other certifying officer(s) and I have disclosed, based on our most
recent evaluation of internal control over financial reporting, to the registrants
auditors and to the audit committee of registrants board of directors (or persons
performing the equivalent function):
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (a) | All significant deficiencies and material weaknesses in the design or operation of
internal control over financial reporting which are reasonably likely to adversely affect
the registrants ability to record, process, summarize and report financial
information; and
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | Any fraud, whether or not material, that involves management or other employees who have a
significant role in the registrants internal control over financial reporting.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Date: | May 7, 2004 |  | /s/ Michael A. Sperduto                                                 
|----- | ----------- |  | ------------------------------------------------------------------------
|      |             |  |                                                                         
|      |             |  | Michael A. Sperduto
     Vice President and Chief
     Financial Officer

|48
|--

|EXHIBIT (32)


Section 1350
Certifications ofChief Executive Officer and Chief Financial Officer


The
undersigned, Barry W. Perry, Chairman and Chief Executive Officer of Engelhard
Corporation (the Company), and Michael A. Sperduto, Vice President
and Chief Financial Officer of the Company, each hereby certifies that the
Quarterly Report of the Company on Form 10-Q for the period ended March 31, 2004
(the Report) (1) fully complies with the requirements of Section
13(a) of the Securities Exchange Act of 1934 and (2) the information contained
in the Report fairly presents, in all material respects, the financial condition
and the results of operations of the Company.
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Date: | May 7, 2004 |  | /s/ Barry W. Perry                                           
|----- | ----------- |  | -------------------------------------------------------------
|      |             |  |                                                              
|      |             |  | Barry W. Perry
     Chairman and Chief
     Executive Officer

|Date: | May 7, 2004 |  | /s/ Michael A. Sperduto                                                 
|----- | ----------- |  | ------------------------------------------------------------------------
|      |             |  |                                                                         
|      |             |  | Michael A. Sperduto
     Vice President and Chief
     Financial Officer

|This certification
accompanies this Report pursuant to Section 906 of the Sarbanes-Oxley Act of
2002 and shall not be deemed filed by the Company for purposes of Section 18 or
any other provision of the Securities Exchange Act of 1934, as amended.


A signed original of this
written statement required by Section 906 or other document authenticating,
acknowledging or otherwise adopting the signature that appears in typed form
within the electronic version of this written statement required by Section 906,
has been provided to the Company and will be retained by the Company and
furnished to the Securities and Exchange Commission or its staff upon request.



49
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------