Stepan reports Q2 EPS 50c vs. 42c last year

Reports Q2 revenue $594.69M vs. $556.40M last year. “Quarterly earnings were up double digits driven by improved Polymer and Crop Productivity results as well as a lower effective tax rate. Polymer volume was up 7% as the North American Rigid, European Rigid and Phthalic Anhydride businesses all delivered volume growth. Within Surfactants, we also continued to experience double digit volume growth within the Agricultural and Oilfield end markets. This growth was offset by lower demand within the global commodity Consumer Products end markets,” said Luis E. Rojo, President and CEO. “Q2 adjusted EBITDA grew 8% and adjusted EBITDA is up 10% for the first half despite higher start-up expenses at our Pasadena site, the negative one-time events and a significant run up in Oleochemical raw material costs that we are planning to recover during the second half of the year. We remain encouraged by the growth within several of our key strategic end markets and we believe in our ability to recover raw material inflation gradually. Free cash flow was negative primarily due to inventory builds. As previously communicated, our new alkoxylation site in Pasadena, Texas is now operational and will provide benefits in the second half of the year and going forward.”