US Stepan Q2 net income rises 6%, sales volume up 4%

24 July 2013 14:51  [Source: ICIS news]

HOUSTON (ICIS)--Stepan’s second-quarter net income rose by 6% year on year to $22.7m (€17.3m) as sales volumes increased by 4% while selling prices fell by 3%, the US-based chemicals firm said on Wednesday.

Stepan’s sales for the three months ended 30 June were $474m, compared with $470m in the 2012 second quarter.

Overall gross profit was $73.7m, up slightly from $73.4m in the 2012 second quarter.

Second-quarter gross profit in Stepan’s surfactants business fell by 7% to $48.3m.

Stepan cited lower North American sales of functional surfactants to the oil field market, reduced profits from biodiesel sales, and lower North American consumer products earnings because of the consumption of higher-cost raw material inventories, in explaining the decline in surfactants gross profit.

Furthermore, higher raw material cost inventory built to support Stepan’s Singapore surfactants plant start-up, and the subsequent decline in commodity prices, hurt surfactants margins, it said.

Stepan’s polymer business saw its second-quarter gross profit rise by 15% year on year to $19.9m, mainly because of 6% growth in polyol volumes in North America and Europe. The polyol business acquired from Bayer Material Science “added a small contribution to the quarter”, the company said.

In specialty products, Stepan’s gross profit grew by 19% year on year to $6.6m because of a favourable sales mix in nutritional supplements and pharmaceutical products.

“The slow start to the year will make full year earnings growth an aggressive target,” said CEO Quinn Stepan.

“We will continue to pursue investments that can accelerate our growth," he added.

($1 = €0.76)

By: Stefan Baumgarten
+1 713 525 2653

AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly