Stepan reports Q1 adjusted EPS 64c, consensus 35c

Reports Q1 revenue $551.42M, consensus $575.82M. “We are encouraged by the Q1 volume growth in several of our core end markets. Surfactants experienced double-digit volume growth within the Personal Care and Oil Field end markets and with our Distribution partners…This weakness in the Agricultural market, coupled with lower Phthalic Anhydride volumes due to operational issues at our Millsdale site, mostly offset volume recovery across our core markets in Surfactants, Polymers and Specialty Products. Margins were in line with expectations despite unfavorable product mix,” said Scott Behrens, CEO. “I am pleased with our Q1 progress towards our full year $50 million cost reduction program. We delivered adjusted EBITDA growth of 5% and generated positive free cash flow despite higher operating costs related to operational interruptions at our Millsdale site, pre-commissioning expenses at our new Alkoxylation investment in Pasadena, Texas and the continuing impact of Agricultural destocking.”