Stepan Company reported a decrease in net income but an increase in adjusted net income for Q4 2019. Surfactant earnings improved due to insurance recovery and margin improvements, while the Polymer business benefited from rigid polyol growth. Specialty Products income saw a slight decrease due to order timing.
Reported net income was $22.0 million, or $0.95 per diluted share, compared to $24.0 million, or $1.03 per diluted share, in the prior year.
Adjusted net income was $25.7 million, or $1.10 per diluted share, versus $19.5 million, or $0.84 per diluted share, in the prior year.
Surfactant operating income increased to $33.9 million, driven by insurance recovery and margin improvements.
Polymer operating income rose to $11.4 million, attributed to higher volume and improved margins.
The company anticipates a challenging first quarter but expects benefits from end market diversification, customer focus, and cost-out activities. Energy conservation should support the Polymer business, and Specialty Products are expected to approximate 2019 results. Headwinds include potential Coronavirus impact and higher raw material costs.
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