Stepan’s Q1 operating income fell nearly 67% year on year to USD21m as sales volumes in the surfactants and polymers segments fell amid softening demand, said the company.
Also hurting results were delays in the startup of new low 1,4 dioxane production assets and continued customer and channel destocking, the company said.
Surfactant operating income fell to USD27.1m, from USD53.8m in Q1 2022, primarily due to a 13% decline in global sales volume. Polymer operating income was USD10.0m, down from USD14.1m in Q1 2022, primarily due to an 18% decline in global sales volume, including a 19% volume decline in rigid polyols and lower demand in the specialty polyols and phthalic anhydride businesses.
“Looking forward, we believe second quarter volumes will remain depressed as markets continue to reconcile forward demand with inventory levels throughout the channel,” said CEO Scott Behrens.
“We expect second half year over year volume growth driven by modest recovery in demand for rigid polyols, growth in surfactant volumes associated with new contracted business, and a low comparable base," he said.
We remind, Stepan Company on 16 Feb 2023 reported that on 15 Feb 2023, the board of directors of Stepan Company declared a quarterly cash dividend on the Company's common stock of USD0.365/share. The dividend is payable on 15 Mar 2023, to common stockholders of record on 3 Mar 2023. The Company increased its quarterly cash dividend in 4Q 2022 by USD0.030/share, marking the 55th consecutive year that the Company has increased its cash dividend to stockholders.
mrchub.com