Northfield, Illinois - Stepan Co. has posted higher second-quarter net income of $22.7 million, up 6% from the year ago quarter. Net sales for the quarter were $474 million, up 1% from the year ago quarter, the company said in its 24 July quarterly report.
Sales volume for the three months ended 30 June 2013 grew by 4%. However year-to-date net income fell by 9% to $41.9 million.
In the polymers business, which includes aromatic polyester polyols, Q2 sales rose by 6% year-on-year totalling $121 million. Polymer sales volume grew by 1%. Polyol volume grew by 6%, with both North America and Europe contributing to the increase, Stepan said. However, lower phthalic anhydride sales volume partially offset the growth in polyol volume.
Gross profit in the polymer business grew by 15% to $19.9 million. Stepan said the contribution from China to its overall gross profit declined by $1.1 million as its plant there shut down as planned to be relocated at Chinese government's request. Customers will continue to be supplied from Stepan's US and European plants, which will result in lower margins, the company noted. Construction of the plant in China is expected to take 18-24 months.
