Stepan Company to reduce inventory levels by additional $40M

“Looking forward, we continue to believe second half of the year volume and margins will incrementally improve versus the first half of 2023, driven by the continued gradual recovery in Rigid Polyol demand, growth in Surfactant volumes associated with new contracted business and sequentially lower raw material costs,” said Scott Behrens, president and CEO. “Further cost control and cash management initiatives are underway given the current business performance and include a voluntary early retirement program for eligible employees at our corporate headquarters and a plan to reduce inventory levels by an additional $40 million during the remainder of the year. Additionally, capital spending in the second half of the year is projected to be in the range of $80 to $90 million, down from the record $160 million spent in the first half of the year, due to the expected completion of our low 1,4 dioxane investments in the coming weeks and lower second half capital spending required to complete our Pasadena alkoxylation investment which is expected to be operational mid-year 2024. While we acknowledge the current environment has been challenging, we remain confident in our long-term strategic growth and innovation initiatives.”