Illinois, US – Sales slid by 6% year-on-year at Stepan, falling from 2023’s $2.33bn to $2.18bn in 2024. Operating income, however, was up 20% to $70.5m, an increase from $58.6m the year before. Global sales volume was up 1% year on year.
The company said it had managed to deliver $48m in cost-out savings during the year, despite significant one-time extra costs. These included higher operating costs at its Millsdale site after a flood in the first half of the year, and increased costs related to criminal fraud at an Asian subsidiary.
Business was even tougher in its polymer business, where net sales fell 9% from $643m in 2023 to $585m last year. Operating income was down a third, to $40.6m. Demand weakness in this part of the business partially offset the strong double-digit growth in the company’s surfactants and specialty products businesses.
“While we are disappointed with our overall financial performance in 2024, we advanced our strategic investments and took necessary steps to return the company to profitable growth,” said Luis Rojo, the company’s president and CEO. “We are optimistic that Polymer demand will increase as we execute our innovation and growth plans.”
