Stepan Company expects continued elevated inflation, high interest rates in 2023

"The Company delivered record income in 2022 and I want to thank all our employees for their excellent work. We have now delivered three consecutive years of record earnings," said Scott Behrens, president and CEO. "Looking forward, we believe 2023 will be challenged by continued elevated inflation and high interest rates. We believe this macro environment could negatively impact consumer demand and construction-related activity which will affect both our Surfactant and Polymer businesses. Additionally, we believe higher overall cost inflation, higher depreciation and pre-start up expenses associated with our new Pasadena site, will challenge our ability to deliver earnings growth in 2023. We are seeking to partially offset these 2023 headwinds with productivity improvements, pricing increases where possible, and furthering our efforts to improve product and customer mix. Despite this projected macro environment, we remain committed to executing our long-term growth strategy."