The Urethane Blog
May 27, 2025
Stepan Company Announces Polyol Price Increase for North America effective July 1, 2025
Northfield, IL, May 23, 2025 – Effective July 1, 2025, or as contracts allow, Stepan will increase the price for STEPANPOL® and TERATE® Rigid Polyester Polyols used in the Americas by $0.05 per pound. This increase is necessary due to the continued escalation in raw material costs.
Please contact your Stepan Company sales representative to learn more about the price increase.
May 26, 2025
CertiPUR-US Trailblazers Crowell and Sullivan Inducted Into Flexible Polyurethane Hall of Fame
Sullivan is first woman to be honored
FOR IMMEDIATE RELEASE – May 22, 202
St. Petersburg, Fla. — Michael Crowell and Helen Sullivan were inducted into the Flexible Polyurethane Foam Hall of Fame at the spring Polyurethane Foam Association (PFA) meeting.
They were honored for their work with the CertiPUR-US® foam certification program, which has transformed the flexible polyurethane foam, bedding and furniture industries and significantly contributed to safer and more sustainable homes across America.
Sullivan is the first woman inducted into the hall of fame, marking a historic milestone for the industry.
“Sullivan and Crowell’s leadership of the now highly recognized and respected CertiPUR-US® program has had a positive and lasting impact on the polyurethane foam industry globally. The program is a powerful reflection of our industry’s safety, health and environmental stewardship,” says Russ Batson, executive director of the PFA, which organizes the hall of fame.
Crowell has served as the CertiPUR-US® program’s executive director for the last 10 years. His commitment to maintaining the program’s rigorous standards as a dynamic document, continuously updated to reflect new safety and environmental regulations, has ensured its ongoing relevance. He was honored with the organization’s Outstanding Leadership Award and retired as executive director at the end of 2024.
Crowell’s distinguished career includes more than 40 years of senior management experience in the flexible polyurethane foam industry, spanning technical, manufacturing, sales and marketing positions. Before taking the helm at the Alliance for Flexible Polyurethane Foam, the nonprofit that administers the CertiPUR-US program, he served as vice president of marketing and sales for Flexible Foam Products. He previously was vice president of automotive sales for Foamex International (now known as FXI).
Sullivan’s connection with polyurethanes began in 1983 as an advertising and public relations agency account manager for the International Sleep Products Association’s Better Sleep Council. During her decade-long tenure, she was influential in reshaping consumer behavior, shortening the mattress replacement cycle and helping to establish a market for ultra-premium bedding. Her creation of the now-iconic “May Is Better Sleep Month” campaign significantly boosted mattress sales and increased the use of polyurethane foam. The program earned Sullivan two of her three prestigious Public Relations Society of America Silver Anvil awards.
In 1995, Sullivan headed a PFA-led marketing initiative aimed at raising awareness of the benefits of flexible polyurethane foam. She later served as communications counsel for the PFA, where she worked with association leadership on complex issues such as fire prevention, crisis communications and flame-retardant policies.
Her most enduring contribution to the polyurethane foam industry came through her work with the CertiPUR-US® program. As brand manager, communications strategist and continuous improvement officer, she helped grow the program from its inception into a globally recognized standard for foam safety and performance.
Sullivan crafted the CertiPUR-US® program’s memorable tagline — “foams that feel good and you can feel good about®” — and developed its distinctive branding and promotional strategies. She also played a key role in designing the supply-chain record-keeping systems that underpin the program’s credibility.
More than 100 foam producers worldwide supply certified foam through the program to more than 1,000 companies and brands, covering a significant share of foam used in the U.S. bedding and upholstered furniture industries.
The Flexible Polyurethane Foam Hall of Fame recognizes individuals and companies who have significantly contributed to the growth and betterment of the North American flexible polyurethane foam industry. Awardees are nominated by their peers and elected by the PFA awards committee.
www.pfa.org
May 18, 2025
FOR IMMEDIATE RELEASE May 16, 2025
COIM USA Announces Acquisition of Strategic Site in New Boston, Texas
West Deptford, NJ — COIM USA, a leading specialty chemical manufacturer and part of the global COIM Group, is pleased to announce the acquisition of a 20-acre property in New Boston, Texas (Texarkana Region), from Palmer International.
The acquisition includes an existing logistics infrastructure, as well as a new, renewable polyol product line, consisting of materials made principally from rapidly-renewable Cashew Nutshell Liquid (CNSL). This product line will complement COIM’s existing Isoexter line of polyester polyols, allowing them to better serve the market.
COIM also plans to expand operations at the new site, adding 100 million lbs. of capacity for additional product lines by the middle of 2027.
“This acquisition represents a significant milestone in COIM USA’s long-term growth strategy,” said Michelangelo Cavallo, President of COIM USA. He further commented: “The New Boston location broadens our geographic reach, expands our sustainable portfolio, and enhances COIM USA’s ability to serve customers with greater speed, efficiency, and resiliency.”
In summary, the New Boston site will create operational synergies by enhancing COIM USA’s current product portfolio with innovative, sustainable materials. The planned expansion will also deliver geographic efficiencies and operational redundancy, with the goal of ensuring consistent service and supply reliability for customers across North America.
About COIM USA COIM USA is a subsidiary of COIM Group, an international leader in the production of specialty chemicals, including polyesters, polyurethanes, adhesives, and other high-performance materials used in foam, elastomers, packaging, coatings, adhesives, and composites. With a global presence and a
Recorded: May 2024
Published: May 2025
Location: PFA Conference, St. Petersburg, FL
At the 2024 Polyurethane Foam Association meeting, we sat down for beers and a candid conversation with industry legend John Meehan, who has now retired after more than 60 years in the Urethane business. What followed was a rich tapestry of stories — from the birth of flexible foam to corporate buyouts, mysterious plant fires, and lessons in loyalty that today’s chemical industry would do well to remember.
Summary of the conversation at the bottom. Listen to the interview here:
Read the transcript in full here:
From Hand Mixes to Multinationals
Meehan started his journey in 1960 at Olin Research Labs doing hand mixes, balancing part-time work with school. By 1970, he was formulating rigid and flexible foams for Olin, just as the industry was beginning to take shape.
“We had a $30 million TDI plant — the pilot plants today are bigger than that.”
Back then, Olin was a sprawling industrial force — aluminum, brass, Bible paper, even skis — and Meehan had a front-row seat to its dive into isocyanates and polyols.
The Industry Evolves
The interview charts the transition from conglomerate-dominated foam production to the rise of entrepreneurial foam shops, some run by characters straight out of central casting.
“Chuck Moeller ran a multi-million-dollar operation and spat tobacco juice into a Styrofoam cup at board meetings.”
From dealing with General Tire’s foam division to confronting delinquent customers like Joe DiMaggio’s brother, Meehan’s stories illustrate both the grit and absurdity of business in the chemical trenches.
Then vs. Now: Relationship-Driven Sales
One of Meehan’s recurring themes was the loss of human connection in modern sales.
“In those days, you shook a customer’s hand — and that was the deal. Now, they don’t even answer the phone.”
He describes a time when sales was personal: you knew your customers, their kids’ names, their lunch orders. Today, too often, it’s just price-checking and ghosted emails.
The Vanishing Mentor
Meehan laments the decline of in-house R&D and mentorship, once the bedrock of technical sales and innovation.
“We had a ton of people doing real R&D. Now you can’t even find a pilot machine.”
Companies, Meehan argues, have become too focused on short-term returns, cutting staff and gutting their ability to nurture new talent or develop future technologies.
Is There Hope for Small Companies?
Despite the challenges, Meehan believes companies like Everchem have an opportunity to thrive — precisely because they still value relationships and technical integrity.
“You get spec’d in, and you don’t have to worry about the nickel-and-dime pricing.”
His advice: stay close to the customer, focus on being reliable, and speak the language of the people who actually use the product — not just the procurement departments.
Final Thoughts
Meehan’s reflections are more than nostalgia — they’re a call to rebuild the human side of an industry that too often runs on autopilot.
“Sales and marketing is still the best job in the world — if you do it right.”
As he steps away from the business, we’re left with a deep appreciation for the people, processes, and personalities that built the urethanes world — and a reminder that people still matter.
May 12, 2025
Somnigroup International Inc. (SGI) Q1 2025 Earnings Call Transcript
May 10, 2025 2:06 PM ETSomnigroup International Inc. (SGI) StockSGI
Q1: 2025-05-08 Earnings Summary
EPS of $0.49 beats by $0.02
| Revenue of $1.60B (34.92% Y/Y) misses by $22.03M
Somnigroup International Inc. (NYSE:SGI) Q1 2025 Results Conference Call May 8, 2025 8:00 AM ET
Company Participants
Aubrey Moore – Investor Relations
Scott Thompson – Chairman, President & Chief Executive Officer
Bhaskar Rao – Executive Vice President & Chief Financial Officer
Scott Thompson
Good morning, and thank you for joining us on our first quarter 2025 earnings call. I’ll begin with some highlights from the first quarter 2025 and then turn the call over to Bhaskar to review our financial performance in more detail and discuss our revised 2025 guidance. After that, we’ll open up the call for Q&A.
A quick call out. This is the first quarter since we acquired Mattress Firm. So the financial statements are a bit complicated when looking at trend performance. We’ll focus on like-for-like numbers adjusted for the acquisitions impact to provide insight into the underlying business trends. In the first quarter of 2025, net sales were approximately $1.6 billion and adjusted EPS was $0.49. We’re pleased with these results given the weakness of the President’s Day holiday period and the decline in U.S. consumer confidence.
We continue to outperform the U.S. bedding market, which we believe was down high single digits, which was below our expectations. Turning to the first highlight of the quarter. We reported continued strong performance in our international business. We reported mid-single-digit sales growth. Excluding the negative impact of FX, sales grew at a healthy single — high single-digit rate. This is the eighth quarter of mid- to high single-digit sales expansion on a constant currency basis for our legacy international business, while clearly operating in a soft market.
Our new collection of Tempur products continue to be a leading catalyst for growth fueled by expanded price points that have broadened our total addressable market and the improved late-stage customization manufacturing process that allows us to seamlessly tailor products to individual markets and channels. These strategies have already resulted in over 10% growth in distribution with third-party retail partners with additional expansion opportunities underway.
Strong demand for these products, coupled with our ongoing expansion opportunities reinforce our confidence in that the international Tempur Collection will remain a key growth driver for years to come. Our U.K.-based retail business, Dreams, also had a strong quarter, delivering solid mid-single-digit growth against the backdrop that continues to be pressured. Our second highlight was the market outperformance of our Tempur Sealy North America and Mattress Firm business units. Like-for-like net sales for our Tempur Sealy North American business unit were down 3% in the quarter, excluding the mid-single-digit headwind from the foreclosed distribution discussed last quarter.
Our first quarter performance was highlighted by the successful launch of our all-new Sealy Posturepedic collection, a comprehensive reimagining of our posturpedic product branding and marketing strategy. We expect the product to be approximately 80% floored by Memorial Day. Early results from locations where the product is already floored are encouraging with solid performance and share gain. We’re supporting the launch with a national advertising campaign throughout the Memorial Day holiday selling period, which starts this week.
Our Mattress Firm business unit also outperformed the broader industry, reporting like-for-like sales down 1% from the prior year. The team remained agile throughout the quarter as we faced unexpected choppy demand period and managed through post-acquisition transition activities. Our third highlight for the quarter is our mitigation strategy regarding recent tariff announcements. While this is an evolving situation, we are confident that we are well positioned to effectively manage through it.
First and foremost, it’s important to remind everyone that our direct exposure to tariffs on finished goods is structurally mitigated as the vast majority of the products that we sell in the U.S. are manufactured domestically. For our Tempur Sealy business unit, we estimate approximately $750 million of our cost of goods sold are exposed to tariffs. We estimate this could have resulted in approximately $120 million of incremental annual cost before any mitigation actions.
However, our operations team acted swiftly to collaborate with our suppliers and resolved about half of the impact. The balance of the estimated impact of tariffs is being passed through to the market via a modest price increase, which we announced earlier this week and will take effect in the third quarter. The price increase represents a 2% increase in annual sales for our North American stand-alone business unit.
There will be a bit pricing between products, but 2% overall. Based on historical price increases, we would describe this pricing action as average in size. We expect beginning in the third quarter, the combination of the actions just discussed will fully offset the impact of the tariffs currently in place. Due to the timing lag between when the tariffs were enacted and when our pricing adjustment takes effect, we expect a onetime tariff-related headwind of approximately $5 million in the second quarter of 2025.
Turning to our Mattress Firm business unit. We anticipate some tariff impact will be passed through price increases from some of their suppliers, including Tempur Sealy. We expect Mattress Firm will pass along any future price increase to the end consumer or make merchandising adjustments. Thus, we are currently not expecting any headwinds from tariffs in the Mattress Firm unit. Finally, it’s worth mentioning that tariffs are most impactful on imported finished goods, which create a competitive advantage for us.
While there’s no question that tariffs can be disruptive, they also present an opportunity to strengthen our relative market position by making import products more expensive and the tariffs are likely to exert outside pressure on small domestic manufacturers and retailers. Our final highlight is the progress we have made on our synergy initiatives following the acquisition of Mattress Firm.
We are 3 months post acquisition and making good progress on bringing Mattress Firm, Tempur Sealy and Dreams under the Somnigroup holding company structure. In the first few months, we’ve aligned on our leadership organization and established clear goals and objectives to guide our efforts. I’m pleased with the progress made on our opportunities to reduce costs, drive efficiencies and fully leverage our global scale.
The teams at Tempur Sealy and Mattress Firm have collaborated closely to refine and execute our plans, and we’re on track to achieve our target of at least $100 million in annual run rate synergies by 2028. In fact, we’ve already increased our near-term expectations. We now anticipate to realize $15 million of those cost synergies in 2025, an increase from our prior expectation of $10 million.
There are many projects actively underway along the Somni Group organization. One of the opportunities is within our logistics operation is the ability to streamline order fulfillment. We’re advancing a project to leverage Mattress Firm’s home delivery network for Tempur Sealy. In addition to driving cost efficiencies, we expect this initiative to add value by enhancing oversight of delivery processes, in turn, improving customer outcomes and satisfaction. One of our largest opportunities from the acquisition is our combined advertising power. On a consolidated basis, SomniGroup is now the largest bedding advertiser in the industry by a factor of 2.
We expect to leverage this competitive advantage in a couple of ways. First, our enhanced global scale provides us a unique opportunity to drive cost synergies in our advertising investment. Our marketing teams are actively identifying ways to leverage our combined volume to secure more favorable placement and pricing terms.
Second, we see an additional potential to enhance the effectiveness of our combined advertising spend by aligning our advertising approach and messaging. We can deliver higher-quality campaigns, ensuring 1 plus 1 equals more than 2. As part of this alignment, our strategy is position the product as the hero of future ad campaigns, cutting through the noise and better showcasing bedding innovation.
This approach will help consumers more clearly understand the value of products, drive interest and increase retail traffic industry-wide. Another key opportunity lies in Mattress Firm’s merchandising strategy. We see value in taking a more holistic approach to product selection, leaning into suppliers who offer differentiated, high-quality products at a competitive price point and to drive in-store traffic through investments in advertising.
We communicated these expectations at Mattress Firm’s first-ever major vendor summit. The response was constructive. Consistent with this customer-focused merchandising plan, Mattress Firm recently executed new supply arrangements with Resident Home, a subsidiary of Ashley Furniture, Purple Innovation and Leggett & Platt, which provide for the distribution and development of mattresses, foundations and other bedding-related products across a range of price points.
The expanded assortment of products is expected to be available at Mattress Firm starting in late 2025 and through 2026. These products and others ensure Mattress Firm will meet its objective of servicing customers with different needs and preferences. At the same time, we’re working to optimize Somnigroup’s own brands. Mattress Firm’s new merchandising philosophy removes the pre-acquisition self-imposed cap on Tempur Sealy brands, ensuring the floor and sales reflect in consumer demand.
Tempur Sealy manufactured products represented mid-40% of Mattress Firm sales in 2024, and we expect to be in the high 40 percentages of Mattress Firm’s floor and sales of 2025. This improvement is driven in part by the expanded private label partnership between Tempur Sealy and Mattress Firm. As of the first quarter of 2025, Tempur Sealy is now manufacturing the vast majority of Mattress Firm’s Sleepy’s private label mattresses.
While still in the early stages of implementing this plan, we’re confident in its potential. Importantly, we believe we can execute this strategy while continuing to provide third-party suppliers with significant volume and continuing to be their largest customer. We look forward to providing you further updates on these initiatives as we continue to make progress.
Susan Maklari
I want to talk a bit about demand. Can you give us some color on how things trended through the quarter, what you saw coming into the second quarter? And then when you talk about a modest second half improvement this year, how should we think about what that means and what the drivers are of that?
Scott Thompson
Sure. Thank you, Susan, for your question. Look, the first quarter was a little bit challenged. Obviously, it was a little bit slower than we expected. It actually after President’s Day, gotten better and what I’d call stable, flat, flattish post President’s Day. But President’s Day holiday, as we’ve spoken about earlier, was challenged, I think, for the industry, speaking particularly about the U.S.
If you go after first quarter into the second quarter, it started out — it started out slow. If you’re talking about the last couple of weeks going into the holiday that we’re headed towards, it’s gotten better and then I’d call relatively good the last couple of weeks. So we’ll call it choppy, for lack of a better word. If you’re talking about internationally, internationally, it was — in the market, it was probably weak, but we’re taking significant share both in the first quarter and continuing through the second quarter.
And that market has not been as challenged as the U.S. market as the U.S. market deals with, we’ll call it, interesting dynamics coming out of Washington, D.C. for lack of a better way to explain it and the impact that’s had on consumer confidence or sentiment.
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