Stepan posts doubling of Q2 net profit to $9.8m

29 July 2008 14:25  [Source: ICIS news]

TORONTO (ICIS news)--Stepan posted a doubling of its second-quarter net income to $9.8m on strong gross profits in its surfactant and polymer segments, the US producer said on Tuesday.

 

Net sales for the three months ended 30 June rose 25% to $420m, it added.

 

Surfactant gross profit grew by 42%, or $9.8m, on an improved customer and product mix even though volumes declined by 1%, Stepan said.

 

Polymer gross profit rose by 20%, or $2.5m, on improved margins and a 5% increase in volume, it added.

 

However, phthalic anhydride (PA) sales were down due to the slow US economy, Stepan said.

 

"While we remain concerned about the economic environment, we believe our improved profitability is sustainable," said CEO Quinn Stepan commenting on the near-term outlook.

 

The company also confirmed plans for a fourth-quarter maintenance turnaround at its PA plant in Joliet, Illinois.

 

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By: Stefan Baumgarten
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