Adjusted net income across the business fell by 9% to $63m in the half, compared to the 2019 figure of $69m.
Sales in the company's polymers business shrank by 16% compared to the first half of 2019, to $219m from $261m. Operating income in the division fell by 34% to $23m, compared with $35m in the first half of 2019.
Stepan said that second-quarter sales in the polymer division were hit by coronavirus-related construction project delays and cancellations, which hit demand for its rigid foam polyols in North America and Europe.
Margins fell because of higher raw materials costs, and because inventory was carried over from the first quarter. The carry-over resulted from problems at its plant in Martinsdale, Illinois.
Looking at the first half of the year, CEO Quinn Stepan, CEO said: 'Despite these challenges and the impact of the first quarter power outage at our Millsdale facility, the company had a solid first half of the year. Today, the world continues to be challenged in many ways.'
The company's insurers have agreed that the power cut to its plant in Millsdale, which hit production in the first quarter, was covered. Stepan said it is chasing its insurers for business interruption and incremental supply chain expenses.