<PAGE>

                                     FORM 10-Q

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

(MARK ONE)

[X] Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange
Act of 1934

For the Quarter Ended September 30, 2001

                                       or

[ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange
Act of 1934

For the transition period from                         to
                               ----------------------
Commission File Number: 333-15789
                        ---------

ChemFirst Inc.
--------------
(Exact name of registrant as specified in its charter.)


         Mississippi                                        64-0679456
         -----------                                        ----------
(State or other jurisdiction of                          (I.R.S. Employer
 incorporation or organization)                         Identification No.)

 700 North Street, Jackson, MS                               39202-3095
 -----------------------------                               ----------
     (Address of principal                                   (Zip Code)
     executive offices)

Registrant's Telephone Number, including Area Code:  601/948-7550
                                                   --------------

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
             ---            ---

              Class                             Outstanding at October 31, 2001
   --------------------------                   -------------------------------
   Common Stock, $1 Par Value                             14,020,269





<PAGE>

                                 ChemFirst Inc.
                     Consolidated Balance Sheets (Unaudited)
                            (In Thousands of Dollars)


<Table>
<Caption>
                                                            September 30       December 31
                                                               2001               2000
                                                           -------------     -------------
<S>                                                        <C>               <C>
Assets:
Current assets
  Cash and cash equivalents                                $      37,111             5,594
  Accounts receivable                                             36,966            53,420
  Inventories:
   Finished products                                              41,836            60,890
   Work in process                                                   467             1,663
   Raw materials and supplies                                     13,093            16,624
                                                           -------------     -------------
      Total inventories                                           55,396            79,177
                                                           -------------     -------------
  Prepaid expenses and other current assets                        9,817            11,112
                                                           -------------     -------------
      Total current assets                                       139,290           149,303
                                                           -------------     -------------

Investments and other assets                                      14,132            18,146
Property, plant and equipment                                    300,399           407,230
  Less: accumulated depreciation and amortization                149,797           190,936
                                                           -------------     -------------
Property, plant and equipment, net                               150,602           216,294
                                                           -------------     -------------
                                                           $     304,024           383,743
                                                           =============     =============

Liabilities and Stockholders' Equity:
Current liabilities
  Notes payable                                            $       8,689             7,689
  Accounts payable                                                15,647            29,750
  Deferred revenue                                                   125             1,396
  Accrued expenses and other current liabilities                  17,013            15,515
  Net current liabilities of discontinued operations                 763               170
                                                           -------------     -------------
    Total current liabilities                                     42,237            54,520
                                                           -------------     -------------
Long-term debt                                                     4,689            41,640
Other long-term liabilities                                       27,054            27,201
Deferred income taxes                                             13,791            24,919
Minority interest                                                    649               649
Stockholders' equity:
  Common stock                                                    14,007            14,146
  Additional paid-in capital                                      28,561            27,672
  Accumulated other comprehensive income                             707               627
  Retained earnings                                              172,329           192,369
                                                           -------------     -------------
    Total stockholders' equity                                   215,604           234,814
                                                           -------------     -------------
                                                           $     304,024           383,743
                                                           =============     =============
</Table>

The accompanying notes are an integral part of these financial statements.



<PAGE>


                                 ChemFirst Inc.
                Consolidated Statements of Operations (Unaudited)
         (In Thousands of Dollars and Shares, Except Per Share Amounts)


<Table>
<Caption>
                                                                                  3 Months Ended                9 Months Ended
                                                                                   September 30                  September 30
                                                                             ------------------------      ------------------------
                                                                               2001            2000          2001           2000
                                                                             ---------      ---------      ---------      ---------
<S>                                                                          <C>            <C>            <C>            <C>
  Sales                                                                      $  61,529         92,951        242,211        292,676
  Cost of sales                                                                 48,150         71,752        189,928        220,139
                                                                             ---------      ---------      ---------      ---------
         Gross margin                                                           13,379         21,199         52,283         72,537

  General, selling and administrative expenses                                  13,560         13,908         43,822         42,601
  Research and development expenses                                              2,133          1,891          6,185          5,801
  Loss on disposal and costs to exit fine chemicals business                        --             --         27,502             --
  Other operating income, net                                                      626          3,559          6,155          5,092
                                                                             ---------      ---------      ---------      ---------
         Operating earnings (loss)                                              (1,688)         8,959        (19,071)        29,227

  Interest income                                                                  499             91            625            279
  Interest expense                                                                 413            755          2,055          2,156
  Other income (expense),  net                                                     (22)           (51)         1,045           (111)
                                                                             ---------      ---------      ---------      ---------
        Earnings (loss) from continuing operations before income taxes          (1,624)         8,244        (19,456)        27,239
  Income tax expense (benefit)                                                    (609)         3,092         (7,296)        10,215
                                                                             ---------      ---------      ---------      ---------
        Earnings (loss) from continuing operations                              (1,015)         5,152        (12,160)        17,024
        Gain on disposal of business, net of taxes                                  --             --             --          9,656
                                                                             ---------      ---------      ---------      ---------
        Net earnings (loss)                                                  $  (1,015)         5,152        (12,160)        26,680
                                                                             =========      =========      =========      =========

Earnings (loss) per common share:
       Continuing operations                                                 $   (0.07)          0.34          (0.86)          1.06
       Gain on disposal of business, net of taxes                                   --             --             --           0.60
                                                                             ---------      ---------      ---------      ---------
       Net earnings (loss)                                                   $   (0.07)          0.34          (0.86)          1.66
                                                                             =========      =========      =========      =========

Average shares outstanding                                                      14,168         15,253         14,165         15,990

Earnings (loss) per common share, assuming dilution:
       Continuing operations                                                 $   (0.07)          0.33          (0.86)          1.06
       Gain on disposal of business, net of taxes                                   --             --             --           0.59
                                                                             ---------      ---------      ---------      ---------
       Net earnings (loss)                                                   $   (0.07)          0.33          (0.86)          1.65
                                                                             =========      =========      =========      =========

Average shares outstanding, assuming dilution                                   14,168         15,470         14,165         16,135

Cash dividend declared
  per share                                                                  $    0.10           0.10           0.30           0.30
</Table>



The accompanying notes are an integral part of these financial statements.



<PAGE>


                                 ChemFirst Inc.
                Consolidated Statements of Cash Flows (Unaudited)
                            (In Thousands of Dollars)


<Table>
<Caption>
                                                                                             9 Months Ended
                                                                                              September 30
                                                                                     ------------------------------
                                                                                         2001              2000
                                                                                     ------------      ------------
<S>                                                                                  <C>               <C>
Cash flows from operations:
  Net earnings (loss)                                                                $    (12,160)           26,680
  Adjustments to reconcile net earnings (loss) to
   net cash provided by operations:
    Depreciation and amortization                                                          19,895            21,829
    Provision for losses on receivables                                                        --                61
    Gain on disposal of business, net of taxes                                                 --            (9,656)
    Loss on disposal and costs to exit fine chemicals business                             27,502                --
    Deferred taxes and other items                                                        (12,674)            4,778
    Change in current assets and liabilities, net
     of effects of dispositions                                                           (12,993)            4,305
                                                                                     ------------      ------------
              Net cash provided by operating activities                                     9,570            47,997
                                                                                     ------------      ------------
Cash flows from investing activities:
  Capital expenditures                                                                    (13,555)          (11,215)
  Proceeds from disposal of business                                                       78,850            12,583
  Other investing activities                                                                1,638               538
                                                                                     ------------      ------------
              Net cash provided by investing activities                                    66,933             1,906
                                                                                     ------------      ------------
Cash flows from financing activities:
  Net borrowings (repayments) on notes payable                                            (36,936)           13,696
  Dividends                                                                                (4,245)           (4,680)
  Purchase of common stock                                                                 (3,808)          (66,732)
  Proceeds from issuance of common stock                                                      410             1,608
                                                                                     ------------      ------------
             Net cash used in financing activities                                        (44,579)          (56,108)
                                                                                     ------------      ------------
Effect of exchange rate changes on cash                                                      (407)             (118)
                                                                                     ------------      ------------
Net increase (decrease) in cash and cash equivalents                                       31,517            (6,323)
Cash and cash equivalents at beginning of period                                            5,594            14,551
                                                                                     ------------      ------------
Cash and cash equivalents at end of period                                           $     37,111             8,228
                                                                                     ============      ============

Supplemental disclosures of cash flow information
  Cash paid during the period for:
    Interest, net of amounts capitalized                                             $      2,307             1,822
                                                                                     ============      ============
    Income tax payments (refunds), net                                               $      3,978            (3,816)
                                                                                     ============      ============
</Table>


The accompanying notes are an integral part of these financial statements.





<PAGE>

ChemFirst Inc. and Subsidiaries
Notes to Consolidated Financial Statements
(Unaudited.  In Thousands of Dollars)

Note 1 - General

         The financial statements included herein are unaudited and have been
prepared in accordance with accounting principles generally accepted in the
United States of America for interim financial reporting and Securities and
Exchange Commission regulations. Certain information and footnote disclosures
normally included in financial statements prepared in accordance with accounting
principles generally accepted in the United States of America have been
condensed or omitted pursuant to such rules and regulations. Certain prior year
amounts have been reclassified to conform to the 2001 presentation. In the
opinion of management, the financial statements reflect all adjustments (all are
of a normal and recurring nature) which are necessary to present fairly the
financial position, results of operations and cash flows for the interim
periods. These financial statements should be read in conjunction with the
Annual Report of the Company and Form 10-K for the year ended December 31, 2000.

Note 2 - Loss on Disposal and Costs to Exit Custom and Fine Chemicals Business

         In May 2001, the Board of Directors approved a plan to exit the custom
and fine chemicals business and on June 13, 2001, the Company executed an
agreement to sell the business to Albemarle Corporation in an all cash
transaction. The transaction was completed on July 6, 2001, with an effective
date of June 30, 2001, with proceeds received of $78.9 million. The agreement
also provides for potential additional payments, not expected to exceed $10.0
million, contingent upon the profit contribution from a specific
toll-manufactured product from 2002 through 2004. Assets sold in the transaction
included the Company's cGMP pilot plant located at the Company's Dayton, OH
facility and its plant site at Tyrone, PA. The Company's pharmaceutical contract
research and development business and fine chemicals product lines, including
FirstCure(R) performance polymer products, were also included in the sale.
Contract research and development business and fine chemicals manufacturing at
Pascagoula, MS were discontinued and these assets were written-off. As a result
of these actions, the Company recorded a pretax loss of $27.5 million in the
second quarter of 2001 in its Electronic and Other Specialty Chemicals segment.
The components of the loss associated with exiting the custom and fine chemicals
business include a $19.9 million net asset impairment loss, $5.2 million for
severance and other accrued exit costs and a $2.4 million write-off of inventory
and other assets.

         The asset impairment loss of $19.9 million was due to the decision to
exit the custom and fine chemicals business. The fair value of the assets sold
was based on the agreement with Albemarle. Other manufacturing assets associated
with the custom and fine chemicals business were written down to zero because
the Company is prohibited for a period of ten years from manufacturing the
product lines sold to Albemarle and has no current use or plans for future use
for these assets. Also included in the impairment loss was the write-off of $3.5
million of capitalized software costs directly associated with fine chemical
operations. Accrued exit costs included $3.2 million in severance, $1.1 million
for site clean up, $0.8 million in required payments to lenders stemming from
the sale and $0.1 million in other costs. Severance costs covered 71 employees,
most of whom were at the Pascagoula site. Expenditures during the third quarter
against the severance accruals were $2.3 million, while payments to lenders
exceeded accruals by $0.2 million and was expensed. Inventory and other assets
written-off included $1.9 million of inventory of product lines not purchased by
Albemarle, the value of which was adversely affected by the decision to exit the
fine chemical business.




                                       5
<PAGE>

         Revenues and operating losses of custom and fine chemicals operations,
excluding the $27.5 million loss on disposal and exit costs, for the nine months
of the current year were $31.3 million and $2.6 million, respectively, versus
$55.0 million and $1.9 million, respectively, for the prior year. Operating
expenses for the third quarter of the current year were $0.6 million, primarily
related to overhead expenses. Revenues and operating losses for the third
quarter of the prior year were $14.5 million and $1.0 million, respectively.

Note 3 - Discontinued Operations

         A gain of $9.7 million on disposal of discontinued operations was
recorded during the quarter ending March 31, 2000. The gain included $10.1
million from a reduction in estimated tax liabilities related to the
distribution of Getchell Gold Corporation in 1995. The reduction in estimated
tax liabilities resulted from the Company's reevaluation of tax exposure items
associated with the Getchell Gold Corporation distribution. The Company
reevaluated its tax exposure during the quarter ended March 31, 2000, when
various statutes governing the handling of the disposition for tax purposes
expired. Also during the first quarter of 2000, the Company recorded an
additional $0.4 million (net of $0.3 million in tax benefit) after tax loss on
disposal of discontinued operations related to final settlement of postclosure
issues associated with the dispositions of Callidus Technology, Inc. and
FirstMiss Steel, Inc.

Note 4 - Effect Of Adopting Accounting Changes

         In August 2001, the Financial Accounting Standards Board ("FASB")
issued Statement of Financial Accounting Standards ("SFAS") No. 144, "Accounting
for the Impairment or Disposal of Long-Lived Assets", which supersedes both SFAS
No. 121, "Accounting for the Impairment of Long-Lived Assets and for Long-Lived
Assets to Be Disposed Of" and the accounting and reporting provisions of
Accounting Principals Board Opinion No. 30, "Reporting the Results of
Operations--Reporting the Effects of Disposal of a Segment of a Business, and
Extraordinary, Unusual and Infrequently Occurring Events and Transactions"
(Opinion 30), for the disposal of a segment of a business (as previously defined
in that Opinion). SFAS 144 retains the fundamental provisions in SFAS 121 for
recognizing and measuring impairment losses on long-lived assets held for use
and long-lived assets to be disposed of by sale, while also resolving
significant implementation issues associated with SFAS 121. For example, SFAS
144 provides guidance on how a long-lived asset that is used as part of a group
should be evaluated for impairment, establishes criteria for when a long-lived
asset is held for sale, and prescribes the accounting for a long-lived asset
that will be disposed of other than by sale. SFAS 144 retains the basic
provisions of Opinion 30 on how to present discontinued operations in the income
statement but broadens that presentation to include a component of an entity
(rather than a segment of a business). Unlike SFAS 121, an impairment assessment
under SFAS 144 will never result in a write-down of goodwill. Rather, goodwill
is evaluated for impairment under SFAS No. 142, "Goodwill and Other Intangible
Assets."

         The Company is required to adopt SFAS 144 no later than the year
beginning after December 15, 2001, and plans to adopt its provisions for the
quarter ending March 31, 2002. Management does not expect the adoption of SFAS
144 for long-lived assets held for use to have a material impact on the
Company's financial statements because the impairment assessment under SFAS 144
is largely unchanged from SFAS 121. The provisions of the SFAS for assets held
for sale or other disposal generally are required to be applied prospectively
after the adoption date to newly initiated disposal activities. Therefore,



                                       6
<PAGE>

management cannot determine the potential effects that adoption of Statement 144
will have on the Company's financial statements.

         At the end of June 2001, the FASB issued SFAS No. 143, "Accounting for
Asset Retirement Obligations." Initiated in 1994 as a project to account for the
costs of nuclear decommissioning, the Board expanded the scope to include
similar closure or removal-type costs in other industries that are incurred at
any time during the life of an asset.

         That standard requires entities to record the fair value of a liability
for an asset retirement obligation in the period in which it is incurred. When
the liability is initially recorded, the entity capitalizes a cost by increasing
the carrying amount of the related long-lived asset. Over time, the liability is
accreted each period to its present value, and the capitalized cost is
depreciated over the useful life of the related asset. Upon settlement of the
liability, an entity either settles the obligation for its recorded amount or
incurs a gain or loss upon settlement.

         The statement will be effective for fiscal years beginning after June
15, 2002. The Company is currently evaluating the impact that SFAS No.143 will
have on its consolidated financial statements.

         In July 2001, the FASB issued SFAS No. 141, "Business Combinations,"
and SFAS No. 142, "Goodwill and Other Intangible Assets." SFAS No. 141 requires
that the purchase method of accounting be used for all business combinations
initiated after June 30, 2001, as well as all purchase method business
combinations completed after June 30, 2001. SFAS No. 141 also specifies criteria
intangible assets acquired in a purchase method business combination must meet
to be recognized and reported apart from goodwill, noting that any purchase
price allocable to an assembled workforce may not be accounted for separately.
SFAS 142 will require that goodwill and intangible assets with indefinite useful
lives no longer be amortized, but instead tested for impairment at least
annually in accordance with the provisions of SFAS No. 142. SFAS No. 142 will
also require that intangible assets with definite useful lives be amortized over
their respective estimated useful lives to their estimated residual values, and
reviewed for impairment in accordance with SFAS No. 121, "Accounting for the
Impairment of Long-Lived Assets and for Long-Lived Assets to Be Disposed Of."

         The Company is required to adopt the provisions of SFAS No. 141
immediately and SFAS No. 142 effective January 1, 2002. Furthermore, any
goodwill and any intangible assets determined to have an indefinite useful life
that are acquired in a purchase business combination completed after June 30,
2001 will not be amortized, but will continue to be evaluated for impairment in
accordance with the appropriate pre-SFAS 142 accounting literature. Goodwill and
intangible assets acquired in business combinations completed before July 1,
2001 will continue to be amortized prior to the adoption of SFAS 142.

             SFAS No. 141 will require, upon adoption of SFAS No.142, that the
Company evaluate its existing intangible assets and goodwill that were acquired
in a prior purchase business combination, and to make any necessary
reclassifications in order to conform with the new criteria in SFAS No. 141 for
recognition apart from goodwill. Upon adoption of SFAS No. 142, the Company will
be required to reassess the useful lives and residual values of all intangible
assets acquired in purchase business combinations, and make any necessary
amortization period adjustments by the end of the first interim period after
adoption. In addition, to the extent an intangible asset is identified as having
an indefinite useful life, the Company will be required to test the intangible
asset for impairment in accordance with the provisions of SFAS No. 142 within
the first interim period. Any impairment loss will be measured as of the date of
adoption





                                       7
<PAGE>

and recognized as the cumulative effect of a change in accounting principle in
the first interim period.

         In connection with the transitional goodwill impairment evaluation,
SFAS No. 142 will require the Company to perform an assessment of whether there
is an indication that goodwill is impaired as of the date of adoption. To
accomplish this the Company must identify its reporting units and determine the
carrying value of each reporting unit by assigning the assets and liabilities,
including the existing goodwill and intangible assets, to those reporting units
as of the date of adoption. The Company will then have up to six months from the
date of adoption to determine the fair value of each reporting unit and compare
it to the reporting unit's carrying amount. To the extent a reporting unit's
carrying amount exceeds its fair value, an indication exists that the reporting
unit's goodwill may be impaired and the Company must perform the second step of
the transitional impairment test. In the second step, the Company must compare
the implied fair value of the reporting unit's goodwill, determined by
allocating the reporting unit's fair value to all of it assets (recognized and
unrecognized) and liabilities in a manner similar to a purchase price allocation
in accordance with SFAS No. 141, to its carrying amount, both of which would be
measured as of the date of adoption. This second step is required to be
completed as soon as possible, but no later than the end of the year of
adoption. Any transitional impairment loss will be recognized as the cumulative
effect of a change in accounting principle in the Company's statement of
earnings.

         As of the date of adoption, the Company expects to have unamortized
goodwill in the amount of $12.7 million and unamortized identifiable intangible
assets in the amount of $0.2 million, which will both be subject to the
transition provisions of SFAS No. 141 and 142. Amortization expense related to
goodwill was $1.9 million and $1.0 million for the year ended December 31, 2000
and the nine months ended September 30, 2001, respectively. Because of the
extensive effort needed to comply with adopting SFAS No. 141 and 142, it is not
practicable to reasonably estimate the impact of adopting these Statements on
the Company's financial statements at the date of this report, including whether
any transitional impairment losses will be required to be recognized as the
cumulative effect of a change in accounting principle.

         SFAS No. 133, "Accounting for Derivative Instruments and Hedging
Activities," was issued in June 1998 and, as amended, is effective for fiscal
years beginning after June 15, 2000. The statement establishes accounting and
reporting standards for derivative instruments and for hedging activities. All
derivatives are required to be recognized as either assets or liabilities in the
statement of financial position and measured at fair value. Changes in fair
value are reported either in earnings or other comprehensive income depending on
the intended use of the derivative and the resulting designation. Entities
applying hedge accounting are required to establish at the inception of the
hedge the method used to assess the effectiveness of the hedging derivative and
the measurement approach for determining any ineffective aspect of the hedge.

         The Company previously had three open forward exchange contracts to
sell Japanese yen at March 31, 2001 and had elected not to designate those
instruments as hedges at their inception. Accordingly, changes in the fair value
of the contracts during interim periods and at their close were reflected in the
income statement. These contracts all matured during the second quarter of 2001
and their impact was immaterial.




                                       8
<PAGE>


Note 5 -  Comprehensive Income (Loss)

       Total comprehensive income (loss) for the three months ended September
30, 2001 and 2000, was ($1.3) million and $5.1 million, respectively. Cumulative
comprehensive income (loss) for the nine months ended September 30, 2001 and
September 30, 2000, was ($12.1) million and $26.7 million, respectively. Total
comprehensive income for the Company includes net income and foreign currency
translation adjustments.

Note 6 - Commitments and Contingencies

         In June 2000, an explosion at the Nissin Chemical plant in Japan
disrupted the Company's supply of hydroxylamine. This is a key ingredient in the
Company's patented HDA(R) remover products for the semiconductor industry. The
Nissin plant was the world's sole supplier of hydroxylamine until late 1999 when
BASF established production in Germany. Initially, BASF's supply capabilities
were less than the worldwide demand for hydroxylamine. As a result, BASF
allocated hydroxylamine to its customers, including the Company, which in turn
put its customers on allocation for its hydroxylamine-containing products.
Capacity expansions by BASF, coupled with the semiconductor industry downturn,
has allowed the Company to suspend allocations of HDA(R) remover products.
However, allocations may become necessary again if demand picks up before
additional supplies of hydroxylamine become available. Nissin and Honeywell
International, Inc. previously announced plans to construct new hydroxylamine
plants, although it is unclear when construction of either of these plants will
begin.

         While electronic chemical sales have been hurt by the disruption in
hydroxylamine supply, the Company's business interruption insurance has helped
to reduce the impact of the associated lost profits. The primary policy has a
coverage limit of $25.0 million, less a one-time insurance deductible of $1.0
million, with an indemnity period for this claim of up to 30 months from June
21, 2000. Operations in Scotland are covered by a separate policy that provides
a limit of liability of 6.0 million British Pounds (approximately 8.5 million in
current U.S. dollars) with no deductible and an 18-month indemnity period from
the date of loss. While the Company intends to vigorously pursue its claims with
the insurance companies for its lost profits, the claims process can be lengthy
and uncertain and successful recoveries cannot be predicted with certainty.
Furthermore, additional sources of hydroxylamine may not be available when
expected, which could affect the availability and adequacy of insurance
coverage. For the quarters ended June 30, 2001 and September 30, 2001, the
Company did not record an insurance recovery as it has been unable to reach an
agreement with its carrier as to the amount of additional loss. Since June 2000,
$9.0 million has been recorded after meeting the one-time $1.0 million
deductible ($3.6 million in the current year) and reflected in the consolidated
statement of operations as Other Operating Income. As of September 30, 2001,
cash of $8.8 million has been received.









                                       9
<PAGE>



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

Results of Operations - Nine months ended September 30, 2001 Compared to the
nine months ended September 30, 2000

Consolidated Results

         Results of continuing operations for the nine months ended September
30, 2001, were a loss of $12.2 million or $0.86 cents per share. Results include
an after tax loss of $17.2 million or $1.21 per share resulting from the
Company's decision to exit and discontinue its fine chemical operations, and an
after tax gain of $0.7 million or $0.05 cents per share from the sale of the
Company's interest in a captive insurance company, which occurred in the second
quarter. Excluding these items, earnings from continuing operations were $4.3
million or $0.31 per share, down from $17.0 million and $1.06 per share
respectively prior year, primarily due to lower sales and margins in both
electronic and polyurethane chemicals. The decline in earnings per share was
lessened by the 12% decrease in average shares outstanding resulting from share
repurchases by the Company.

Segment Operations

                               Segment Information
                            (In Thousands of Dollars)


<Table>
<Caption>
                                                                      9 Months Ended
                                                                       September 30
                                                              ------------------------------
                                                                 2001               2000
                                                              ------------      ------------
<S>                                                           <C>               <C>
Sales:

        Electronic and Other Specialty Chemicals              $    117,553           140,248
        Polyurethane Chemicals                                     124,658           152,428
                                                              ------------      ------------
               Total                                          $    242,211           292,676
                                                              ============      ============

Operating profit (loss) before income taxes (benefit):
        Electronic and Other Specialty Chemicals              $    (28,512)           11,091
        Polyurethane Chemicals                                      19,149            26,034
                                                              ------------      ------------
                                                                    (9,363)           37,125
        Unallocated corporate expenses                              (9,708)           (7,898)
        Interest expense, net                                       (1,431)           (1,877)
        Other income (expense), net                                  1,045              (111)
                                                              ------------      ------------
               Total                                          $    (19,456)           27,239
                                                              ============      ============
</Table>


         Electronic and Other Specialty Chemicals results for the current nine
months were an operating loss before taxes of $28.5 million, including a $27.5
million second quarter loss resulting from the Company's decision to exit and
discontinue its custom and fine chemical operations (See note 2 to the
consolidated financial statements). Pretax operating results of custom and fine
chemical operations for the current year were a loss of $2.6 million on $31.3
million in sales versus a $1.9 million loss on $55.0 million in sales for the
prior year. The custom and fine chemical business suffered over the last several
years from declining sales of agricultural intermediates, industry over capacity
and competition from the Far East. These declines were partially offset with
growth in electronic chemical products and pharmaceuticals, however, capacity
utilization and investment returns continued to be low. Excluding the custom and
fine chemicals loss on disposal and operating




                                       10
<PAGE>

results, current year results were a profit of $1.6 million, down from $13.0
million for the prior year. Operating profits declined as sales decreased 12%
and gross margin decreased from 36% to 33% on lower volumes due to the
semiconductor industry recession. Also, other operating expenses in electronic
chemicals were up over the prior year. This increase in expenses reflects higher
CMP product and market development cost as well as approximately $0.8 million in
severance cost related to workforce reductions. In addition, current year
operations continue to be effected by the June 2000 explosion at Nissin
Chemical, which disrupted the supply of hydroxylamine raw material for HDA (R)
electronic chemicals. The impact in the current year has been reduced somewhat
by a business interruption recovery for the first quarter of $3.6 million.
However, recoveries for the quarters ended June 30, 2001 and September 30, 2001,
have not been recorded as the Company has been unable to reach an agreement with
its carriers as to the amount of additional loss. Prior year results reflect an
insurance recovery of $2.4 million received for the quarter ended September 30,
2000. (See note 6 to the consolidated financial statements).

         Polyurethane Chemicals pretax operating profits for the nine months
were $19.1 million, down from $26.0 million for the same period prior year on
lower sales and margins. Sales were $124.7 million, down from $152.4 million as
volume decreased 6% on lower demand. Gross margin declined from 21% last year to
18% this year, primarily due to raw material price volatility. While most of the
Company's polyurethane products are sold under long-term contracts that provide
for price adjustments based on the cost of raw materials, abrupt changes in
costs, such as we have experienced from time to time (during the periods being
compared) in the last two years, may not always be matched by equal changes in
revenue. The Company believes the net effect of such timing will be immaterial
over the term of these contracts.

         Unallocated corporate expense for the current year was $9.7 million, up
from $7.9 million in the prior year, and includes $0.5 million in severance
accruals related to corporate workforce reductions and $0.7 million in higher
insurance deductibles for legal costs in cases being defended by the Company's
insurer. Net interest expense for the current year was down $0.4 million from
the prior year to $1.4 million on lower average debt and increased interest
income from the proceeds of the custom and fine chemicals disposal. Other income
for the current year included a $1.1 million gain from the sale of the Company's
interest in an offshore captive insurance company.


Results of Operations - Three months ended September 30, 2001 Compared to the
three months ended September 30, 2000

Consolidated Results

         Results of continuing operations for the quarter ended September 30,
2001, were a loss of $1.0 million or $0.7 cents per share, down from operating
profits of $5.2 million and $0.33 cents per share, respectively, for the same
period of the prior year. The decline was primarily due to lower sales and
margins in both polyurethane and electronic and other specialty chemical
operations. Average shares outstanding for the current quarter declined 8% from
the prior year due to share repurchases and increased the current year loss per
share results.








                                       11
<PAGE>

Segment Operations


                               Segment Information
                            (In Thousands of Dollars)


<Table>
<Caption>
                                                                       3 Months Ended
                                                                        September 30
                                                               ------------------------------
                                                                   2001              2000
                                                               ------------      ------------
<S>                                                            <C>               <C>
Sales:

        Electronic and Other Specialty Chemicals               $     23,191            43,568
        Polyurethane Chemicals                                       38,338            49,383
                                                               ------------      ------------
               Total                                           $     61,529            92,951
                                                               ============      ============

Operating profit (loss) before income taxes (benefit):

        Electronic and Other Specialty Chemicals               $     (5,818)            3,363
        Polyurethane Chemicals                                        7,125             8,135
                                                               ------------      ------------
                                                                      1,307            11,498
        Unallocated corporate expenses                               (2,993)           (2,539)
        Interest expense, net                                            84              (664)
        Other income (expense), net                                     (22)              (51)
                                                               ------------      ------------
               Total                                           $     (1,624)            8,244
                                                               ============      ============
</Table>


         Electronic and Other Specialty Chemicals results for the current
quarter were an operating loss before income taxes of $5.8 million, down from
$3.4 million in operating profit for the prior year. Results for the current
quarter include $0.6 million in additional operating expenses associated with
completing the disposition of the custom and fine chemical business, while prior
year results included $1.0 million in losses and $14.5 million in sales from
these operations. Excluding custom and fine chemical operations, current quarter
results were a loss of $5.2 million versus a profit of $4.3 million, as sales
decreased 20% on lower volumes due to the semiconductor industry recession.
Gross margin for the current year was 22%, down from 35% in the prior year.
Margins declined on lower production and a $1.3 million inventory reserve for
early generation DUV resin products. Also, other operating expenses in
electronic chemicals were up over the prior year, primarily due to increases in
staffing and facilities and approximately $0.8 million in severance costs
related to workforce reductions. In addition, current quarter results do not
reflect a recovery under the company's business interruption policies related to
the hydroxylamine raw material disruption, while prior year results include a
recovery of $2.4 million.

         Polyurethane Chemicals pretax operating profits for the quarter were
$7.1 million, down from $8.1 million for the same quarter of last year. Sales
were $38.3 million, down from $49.4 million, due to the pass-through of lower
energy and raw material costs, which increased the gross margin from 19% to 22%
in the current quarter. Unit margins declined, however, due to raw material
price volatility.

         Unallocated corporate expenses for the current quarter were up $0.5
million over the same quarter of the prior year as higher expenses, including
$0.5 million in severance for corporate workforce reductions, $0.7 million in
higher insurance deductibles and a $0.6 million increase in




                                       12
<PAGE>

contract services, more than offset a $1.8 million reduction in accruals for
benefit plans indexed to the company's stock price. Net interest income for the
current quarter was $0.1 million versus net interest expense of $0.7 million for
the prior year due to lower average debt and increased interest income from the
proceeds of the custom and fine chemicals disposal.


Discontinued Operations

         A gain of $9.7 million on disposal of discontinued operations was
recorded during the quarter ended March 31, 2000. The gain included $10.1
million from a reduction in estimated tax liabilities related to the
distribution of Getchell Gold Corporation in 1995. The reduction in estimated
tax liabilities resulted from the Company's reevaluation of tax exposure items
associated with the Getchell Gold Corporation distribution. The Company
reevaluated its tax exposure during the quarter ended March 31, 2000, when
various statutes governing the handling of the disposition for tax purposes
expired. Also, during the first quarter of last year, the Company recorded an
additional $0.4 million (net of $0.3 million in tax benefit) after tax loss on
disposal of discontinued operations related to final settlement of post-closure
issues associated with the dispositions of Callidus Technology, Inc. and
FirstMiss Steel, Inc.

Capital Resources and Liquidity

         Cash flow from continuing operations for the current year was $9.6
million, down from $48.0 million in the prior year, primarily due to lower
earnings and reduced accounts payable. Net cash provided by investing activities
for the current year includes $78.9 million in proceeds received in July 2001
from the disposal of custom and fine chemicals operations and $1.6 million in
April 2001 from the sale of the Company's interest in an offshore captive
insurance company. Prior year investing activities included $12.6 million in
proceeds from the sale of the Company's steel business and $1.5 million
collected on a note related to a previous property sale.

         Note 2 to the financial statements describes the Company's disposal and
exiting of custom and fine chemical operations effective June 30, 2001. Proceeds
of the transaction were used to retire debt, which as of September 30, 2001, is
down $36.0 million from December 31, 2000, with the balance to be used to
repurchase stock and for general corporate purposes.

         The Company has expended $3.8 million to repurchase common stock in the
current year, compared to $66.7 million during the same period last year,
leaving approximately $65.0 million remaining under the current repurchase
authorization. The Company believes that its cash flow from operations, access
to existing or additional bank credit facilities and the balance of proceeds
from the above disposal, adequately provide for its cash requirements, including
share repurchases as authorized.

Forward-Looking Statements

         Certain statements included in this Form 10-Q which are not historical
in nature, may constitute "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. Such forward-looking
statements, as well as other forward-looking statements made from time to time
by the Company, or in the Company's press releases and filings with the U.S.
Securities and Exchange Commission, are based on certain underlying assumptions
and expectations of management. These forward-looking statements are subject to
risks and uncertainties which could cause actual results to differ materially
from those expressed in such forward-looking statements. Such risks and
uncertainties include, but are not limited to, general




                                       13
<PAGE>

economic conditions, availability and pricing of utilities and raw materials,
including hydroxylamine, supply/demand balance for key products, new product
development, manufacturing efficiencies, conditions of and product demand by key
customers, the timely completion and start up of construction projects, pricing
pressure as a result of domestic and international market forces and insurance
coverage and timing of any claim payments related to the disruption in supply of
hydroxylamine, and other factors as may be discussed in the company's Form 10-K
for the fiscal year ended December 31, 2000.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

         The Company is exposed to changes in financial market conditions in the
normal course of its business, including changes in interest rates and foreign
currency exchange rates. At September 30, 2001, the Company had no open
derivative instrument contracts. Financial instruments related to foreign
operations were limited to short-term debt denominated in Japanese yen with a
U.S. dollar equivalent of $8.7 million. Due to the short-term nature and amount
of this yen obligation, the Company does not consider its exposure to
fluctuations in foreign currency exchange rates or interest rates to be
material.

         The Company typically utilizes fixed and variable-rate debt to maintain
liquidity and fund its domestic business operations, with the terms and amounts
based on business requirements, market conditions and other factors. At
September 30, 2001, this included long-term, fixed rate debt denominated in U.S.
dollars, the fair value of which was approximately $4.7 million. A 100 basis
point change in interest rates (all other variables held constant) at September
30, 2001, would result in an approximate $0.1 million annualized change in fair
value but would not affect interest expense or cash flow. At September 30, 2001,
there was no variable rate debt outstanding.



Item 6. Exhibits and Reports on Form 8-K


            (b) Reports on Form 8-K

                   A report on Form 8-K illustrating the pro forma effect of a
                  significant asset disposition was filed by the Registrant
                  during the three months ended September 30, 2001 on July 23,
                  2001.




                                       14
<PAGE>


                                   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.




                                      CHEMFIRST INC.


November 13, 2001                     /s/ J. Kelley Williams
-----------------                     -----------------------------------------
Date                                  J. Kelley Williams
                                      Chairman and Chief Executive Officer



November 13, 2001                     /s/ Troy B. Browning
-----------------                     -----------------------------------------
Date                                  Troy B. Browning
                                      Controller (Principal Accounting Officer)





                                       15