Northfield, Illinois – Stepan’s net sales were 5% higher in the first quarter of 2014 at $477m (EUR344m) compared to $456m in Q1 2013.
Surfactant sales dropped by 1% but the company’s polymers segment and specialty products both saw sales increases of 24% and 10% respectively.
Net income dropped to $13m compared to $19m in the first quarter of 2013.
Quinn Stepan, president and chief executive officer, blamed poor weather conditions in the US for the drop. The company though, expected “earnings from operations to improve for the remaining nine months.”
"Despite the disappointing first quarter results, we continue to make progress on our strategic initiatives,” Stepan said.
Volumes of North American polyols – which the company supplies for use in rigid foam insulation applications – grew by 5% between Q1 2013 and the first quarter of 2014.
In Europe, polyol volume growth was 29%, which Stepan said was down to market growth in CASE applications in part. Polymer profit increased 4% - or $0.7m - compared to the first quarter of 2013.
Stepan described the company’s balance sheet as “solid” and said the outlook included optimistic predictions for the company's polymer segment.
“Improving economies in the US and Europe, as well as the recent conversions of insulated metal panel and new CASE customers, should contribute to full-year organic earnings growth,” he said.
The North American polyester resin business purchased from Bayer – as utech-polyurethane.com reported at the time - was now fully integrated and “delivering the benefits previously projected,” Stepan noted.
According to the report, the Bayer acquisition contributed $2.1m to the polymer segment's gross profit.
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