Northfield, Illinois – Polyol maker Stepan generated sales of $602.7m in the third quarter of 2021, up 29.75% on the same period last year. Operating income across the business fell 5.2% to $40.2m in the period.
Stepan posts solid underlying business in Q3
'Our polymer operating income was down 12% mostly due to the non-recurrence of an insurance recovery and compensation received from the Chinese government in the third quarter of 2020,' said CEO Quinn Stepan. ‘Global polymer sales volume was up 27% largely due to the INVISTA acquisition.’
In the company's polymers business, sales rose by 70.4% between the third quarter of 2020 and the third quarter of 2021, to $198.8m, up from $116.7m.
Operating income in the division fell 11.6%to $19.8m in the quarter. This compares with $22m in the equivalent period in 2020.
The company was able to push through a 44% increase in prices, as its input prices rose and volumes were up 27% because of the business it purchased from Invista, and there was a 33% increase in rigid polyol demand. The stronger dollar hit the numbers, as did disruption at its customers.
Stepan added that the third quarter of 2020 was unusual because it benefited from an insurance settlement of $2.8m following a power cut at its plant in Millsdale, Illinois, earlier in 2020. It also benefited from compensation from the Chinese government for shutting a JV there in 2012. That incomplete settlement was worth $1.2m in the third quarter of 2020, the company said.