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Stepan Reports Record Net Income

February 23, 2017

On essentially flat sales.

Stepan reported 2016 net income roe 13% to a record $86.2 million, as sales fell less than 1% to more than $1.76 billion. Volume rose 6%, but lower prices and negative currency rates negated gains. Company executives credited the results to a combination of strong polymer sales and internal cost-cutting measures.

"(It) was a very good year as the company delivered record reported and adjusted net income," said F. Quinn Stepan Jr., president and chief executive officer. "Strong global polymer volumes, increased asset utilization and enhanced internal efficiencies continued to deliver results."

According to Stepan Jr., the surfactant segment delivered $99.8 million of operating income while overcoming certain non-recurring items. Operating income improved in the US, Asia and Latin America. Polymers delivered its seventh consecutive year of record operating income, primarily due to higher volumes in rigid polyols which benefited from new customers and global energy conservation efforts. Specialty Product results were up significantly for the year as the segment benefited from structural actions taken in 2015.

Fourth quarter sales were flat at $420.6 million.

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