Stepan Posts Record Quarter
NORTHFIELD, Ill., April 25, 2017 /PRNewswire/ — Stepan Company (NYSE: SCL) today reported:
First Quarter Highlights
- Reported net income was a record $31.9 million, or $1.37 per diluted share versus $27.9 million, or $1.22 per diluted share, in the prior year. Adjusted net income* was a record $31.7 million, or $1.36 per diluted share versus $29.7 million, or $1.30 per diluted share, in the prior year.
- Surfactant operating income was a record $38.2 million versus $37.2 million in the prior year. This increase was primarily attributable to lower manufacturing costs, mostly resulting from previous actions taken to close plants in Canada and Brazil. Surfactant sales volume was down 7% from the prior year.
- Polymer operating income was $21.4 million versus $22.2 million in the prior year. This decrease was mostly attributable to higher costs associated with the new production facility in China and higher raw material costs. Polymer sales volume was up 8% versus prior year.
- Specialty Product operating income was $1.3 million versus $2.3 million in the prior year. This decrease was primarily attributable to order timing differences within our pharmaceutical and flavor business.
* Adjusted net income is a non-GAAP measure which excludes deferred compensation income/ expense as well as other significant and infrequent/non-recurring items. See Table II for reconciliations of non-GAAP adjusted net income and adjusted earnings per share.
“The Company had a good start to the year and delivered record quarterly results,” said F. Quinn Stepan, Jr., Chairman, President and Chief Executive Officer. “The quarter benefited from structurally lower manufacturing costs, enhanced internal efficiencies and higher Polymer volumes.”
Polymer net sales were $126.6 million in the first quarter, an 11% increase versus prior year. Sales volume increased 8% in the quarter primarily due to continued growth in polyols used in rigid foam insulation and insulated metal panels. Increased selling prices partially offset higher raw material costs. Polymer operating income decreased $0.8 million versus the prior year. This decrease was attributable to higher costs associated with the Company’s new production facility in China and slightly lower unit margins, partially offset by higher global Rigid Polyol sales volume.
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