Surfactant Results Lift Stepan

Surfactant sales and profits rebounded at Stepan, both in the fourth quarter and for the full year. In Q4, reported net income was $12.9 million and adjusted net income was $17.0 million, a 93% increase from the previous year. Surfactant operating income more than doubled to $24.3 million, and polymer operating income increased 38% to $18.1 million. Total sales volume increased 10% for the quarter. Surfactant and polymer sales volumes increased 10% and 7%, respectively.


For the year, reported net income was $76.0 million and adjusted net income was $79.4 million compared to $57.7 million the prior year. Surfactant operating income rose 71% to $104.1 million. The polymer segment delivered record operating income of $80.9 million, a 33% increase versus prior year, but specialty product operating income fell 58% to $4.4 million. Total sales volume increased 5%. Surfactant and polymer sales volumes both increased 5% for the full year.


“2015 was a good year. We addressed our challenges and completed key components of our short-term and long-term strategy,” said F. Quinn Stepan Jr., president and CEO. “Operationally, we increased asset utilization, improved product mix, reduced costs and enhanced our internal efficiency. Both surfactant and polymer results improved.


He noted that surfactant income increased on strong volume growth and an improved global product mix. The company delivered savings from the previously reported restructuring charges and executed actions to improve earnings going forward through the dissolution of its enhanced oil recovery JV and discontinuing ethoxylation in Canada. Polymers delivered its sixth consecutive record income year as volumes and margins grew.  Polymer results benefited from energy conservation efforts globally and expanded sales into metal panel and CASE applications. Specialty Product results were down significantly for the year, but are expected to benefit going forward from actions taken in 2015.


“In 2015, adjusted net income grew from $57.7 million to $79.4 million, a strong rebound from 2014 and our second best income year,” Stepan concluded.