Northfield, Illinois - Stepan Co. has recorded a net income of $19.5 million for the third quarter of 2009 (Q3), compared to $17 million in the same period last year.
Despite a decline in volume, gross profit in the company's polymer business increased 120 percent to $19.5 million, compared to Q3 2008, with polyol products generating most of the improvement on lower raw material costs and cost reduction initiatives, a 20 Oct company statement said. Sales volumes fell 13 percent, "primarily for polyol used in commercial flat roof insulation," as new construction and replacement roofs have both been hit by the economic downturn, Stepan said.
Overall net sales were down 25 percent to $326 255 million for the quarter and down 22 percent to $965 567 million over a nine-month period.
"In the fourth quarter, earnings will be lower than in the three previous quarters due to seasonal volume declines and acceleration of planned maintenance items including a planned 2010 shutdown of our phthalic anhydride (PA) plant in order to complete the work while the PA market remains slow," said Stepan ceo, Quinn Stepan. "We are on track to deliver a record year in 2009 and are now focused on driving business growth in 2010." (RD)