Northfield, Illinois - Stepan Company has recorded record third quarter (Q3) and year-to-date results for the period ended 30 Sep 2008, the company said recently. Cash dividend also rose to $0.22 per share, bringing the annual dividend rate to $0.88 per share, which according to Stepan is "the forty-first consecutive year in which the dividend on its common stock has been increased."
Polymer gross profit declined $1.1 million, or 11 percent, on volume that grew by five percent in the quarter, caused by higher raw material costs and logistic costs, according to Stepan. "Improved customer and product mix and recovery of past margin erosion caused by the rise of raw material costs over the prior year" led to surfactant gross profit increasing by $10.1 million, or 46 percent, to $32.2 million on two percent growth in volume, the company added.
Net income was up to $17 million compared to $3.1 million in 2007, including a $6.1 million after tax gain on the sale of a product line to Bayer Material Science LLC and $5.2 million after tax gain on the sale of land. Gross profit increased by $7.9 million.
The sold product line, which accounts for $16 million in annual net sales, will continue to be produced by Stepan during the transition period.