Stepan Company Reports Unaudited Consolidated Earnings Results for Third Quarter and Nine Months Ended September 30, 2018; Provides Capital Expenditure and Effective Tax Rate Guidance for the Full Year 2018
October 24, 2018 at 11:55 am
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Stepan Company reported unaudited consolidated earnings results for third quarter and nine months ended September 30, 2018. For the quarter, the company's net sales were $507,997,000 against $487,814,000 a year ago. This increase was primarily attributable to 6% global volume growth. Operating income was $27,694,000 against $30,434,000 a year ago. Income before income taxes was $25,243,000 against $29,312,000 a year ago. Net income attributable to company was $22,168,000 against $21,899,000 a year ago. Net income per common diluted share attributable to company was $0.95 against $0.94 a year ago. Adjusted net income was $25,965,000 or $1.11 per diluted share against $21,448,000 or $0.92 per diluted share a year ago. Net debt as on September 30, 2018 was $12.2 million. Capital expenditures were $19.2 million against $19.6 million a year ago.
For the period, the company's net sales were $1,527,198,000 against $1,451,184,000 a year ago. Operating income was $112,034,000 against $115,797,000 a year ago. Income before income taxes was $105,404,000 against $110,705,000 a year ago. Net income attributable to company was $85,816,000 against $81,694,000 a year ago. Net income per common diluted share attributable to company was $3.68 against $3.50 a year ago. Adjusted net income was $90,109,000 against or $3.86 per diluted share against $84,041,000 or $3.60 per diluted share a year ago. Capital expenditures were $62.9 million against $57.9 million a year ago. The effective tax rate was 18.6% compared to 26.2% a year ago. This decrease was primarily attributable to a lower U.S. statutory tax rate of 21% in the first nine months of 2018 versus 35% in the first nine months of 2017.
For the full year, capital expenditures are expected to be between $90 million and $100 million. The company also expects its full year effective tax rate to be in the range of 19% to 22%.
Stepan Company is a producer and seller of specialty and intermediate chemicals that are used in a variety of end products. The Company operates through three segments: Surfactants, Polymers and Specialty Products. The Surfactants segment offers ingredients in consumer and industrial cleaning and disinfection products, such as detergents for washing clothes, dishes, carpets, floors and walls, as well as shampoos and body washes. Other applications include fabric softeners, germicidal quaternary compounds, disinfectants, lubricating ingredients, emulsifiers for spreading agricultural products and industrial applications. The Polymers segment includes polyurethane polyols, polyester resins and phthalic anhydride. Polyurethane polyols are used in the manufacture of rigid foam for thermal insulation in the construction industry. The Specialty products segment includes flavors, emulsifiers and solubilizers used in food, flavoring, nutritional supplement and pharmaceutical applications.
Stepan Company Reports Unaudited Consolidated Earnings Results for Third Quarter and Nine Months Ended September 30, 2018; Provides Capital Expenditure and Effective Tax Rate Guidance for the Full Year 2018