Northfield, Illinois - Stepan Co. has reported a 101-percent increase in income in Q2 2009 to $19.6 million and an 88-percent increase in income for the first half of the year.
The group's polymer business reported a profit increase of $0.4 million, despite a decline of 18 percent in sales volumes, primarily due to lower sales of polyols used in rigid PU insulation foam for flat-roof commercial construction, Stepan said in its 28 July results statement. Polymer sales revenues in Q2 were down by 31 percent to $71 130 million and down by 35 percent for the first six months of the year. Phthalic anhydride (PA) sales volumes declined seven percent as demand for PA-based unsaturated polyester resins in the automotive, boating, housing and vehicle industries remained weak, the company explained.
For the group as a whole, sales fell by 24 percent for the quarter due to declines in sales volumes, lower selling prices, and lower foreign sales because of currency translation. The lower selling prices had been due to falling raw materials prices, which in some cases have started to move higher, Stepan added.
"Polymer and functional surfactant volumes have been and will continue to be negatively impacted by the economy," said Stepan ceo, Quinn Stepan. "Our business should continue to fare better than most in this difficult environment. We expect to deliver record profits from operations again in 2009," he added. (RD)