Northfield, Illinois -- Polyol producer Stepan Co. has reported net income for fiscal 2011 of $72.0 million, which it said was a ten-percent rise for a fourth consecutive year. Fourth quarter net income rose 55 percent to $13.2 million.
Net sales at Stepan rose 29 percent for the year to $1800 million, on sales volume 3 percent higher. Northfield, Illinois-based Stepan said higher selling prices resulting from higher raw material costs and an improved mix of higher priced products accounted for a 24 percent increase in sales.
In its polymers business, volume grew by 2 percent for the quarter and 9 percent for the full year. Stepan said sales volumes of polyols, used primarily in rigid foam insulation, grew by 14 percent for the year due to "higher demand for insulation in replacement roofing on commercial buildings and growing demand in metal panel insulation and adhesive applications."
Polymer gross profit grew by 11 percent to $61.6 million for the year, driven by higher sales volumes of polyols.
The growth in polyol volume more than offset lower gross profit on phthalic anhydride (PA), Stepan said.
Fourth quarter polymer gross profit declined 11 percent to $12.7 million due to weaker PA margins resulting from consuming higher priced raw material inventory.
Stepan also noted that "fire damage repairs to our second polyol reactor in Germany have been completed and no property damage loss was recorded as insurance is expected to cover the damage."
The company commented that the fire did result in business interruption and higher costs for supplying product from the US to Europe, adding that business interruption insurance claims are expected to be settled in 2012, and consequently, no benefit was recorded in 2011.