Northfield, Illinois -- Stepan Co. has recorded a 70-percent increase in net income for the full-year 2009 to $63 million, a 9 Feb company statement said. Income for the fourth quarter of 2009 (Q4) was up to $8.8 million from $1.6 million against the same period in 2008. The company's total sales were down 15 percent to $310.8 million and 20 percent to $1276 million for the fourth quarter and full-year 2009, respectively.
Stepan's polymer business reported gross profit up by 35 percent for Q4 and up 23 percent for the full-year, despite sales being down 8 percent to $65.5 million and down 27 percent to $260.7 million for the same periods, on a like-for-like basis.
The drop in sales, Stepan said, was a result of lower use of flat roof insulation due to the global economic crisis. Sales volumes of Stepan's plasticiser, phthalic anhydride, also declined further during 2009.
According to Stepan, polyol products generated most of the improvement on lower raw material costs and cost reduction initiatives, whilst sales volumes increased 3 percent for the fourth quarter but fell 16 percent for the full-year.
"The company and all three of our business segments delivered record results in 2009 on lower commodity raw material costs and cost-containment efforts," said Stepan ceo, Quinn Stepan. "Given expectations for a slow economic recovery, we are focused on global market share growth and penetrating new end use markets," he added. (RD)