Stepan Company reports Q2 adjusted EPS 53c, consensus $1.17

Reports Q2 revenue $579.98M, consensus $669.85M. “The Company’s second quarter and first half of the year financial results were significantly lower than the record quarterly results in both the first and second quarters of 2022. Lower sales volume due to demand softness across most of our markets, continued inventory destocking and the backward integration of one customer associated with the low 1,4 dioxane transition drove the 17% sales volume reduction in the first half of the year,” said Scott Behrens, President and Chief Executive Officer. “Specific to the second quarter, Surfactant and Polymer unit margins were only slightly lower versus the prior year due to less favorable product mix. Specialty Product unit margins were significantly lower due to high-cost inventory and pricing pressure related to increased imports of MCTs into certain market segments. Rigid Polyol volumes gradually improved throughout the quarter. Surfactant volumes were negatively impacted by unexpected destocking activity within our Agricultural business. Cash expenses were slightly lower versus prior year due to proactive headcount and discretionary expense controls implemented earlier in the year and lower accruals for incentive-based compensation.”