Stepan Co posted record earnings for 4Q and year ended 31 Dec 2010. The firm reported net income for 2010 of $65.4 M, up 4% on net income of $63 M in 2009. Net income for 4Q 2010 was $8.5 M (net income of $8.8 M in 2009). Sales for 2010 were $1276 M (+12% over $1431 M in 2009) and $360 M in 4Q 2010 (+16% over $310.8 M in 4Q 2009). Sales volume was up 5% for the year. Stepan's surfactants business earned revenues of $1057 M in 2010 (+9% over $972.6 M in 2009) and $267 M in 4Q 2010 (+14% over $234 M in 4Q 2009) for the company. The increases were due to higher selling prices and volume. Sales volumes for the year rose 4%, partly due to the first-time consolidation of Stepan Philippine volumes, but gross profit declined by $5.2 million, or 3%. Volumes in North America were flat for the year but declined 9% in 4Q 2010. Higher raw material costs and competition led to lower margins, particularly in Europe. Higher manufacturing costs, in large part due to a labour dispute and lockout at the Illinois plant [Focus on Surfactants, Sep 10], contributed to the lower gross profit. Revenues for the firm's polymers business rose sharply but the speciality products segment saw revenues decline both for the year and the final quarter. R&D expenses for 2010 stood at $38.3 M ($36.5 M in 2009) and $8.96 M in 4Q 2010 ($10.1 M in 4Q 2009). Registration under the European REACH programme added $1.4 M in costs to the annual research expenditure. Stepan's products serve the household, industrial, personal care, agricultural, food and insulation-related sectors.
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