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Dec 31, 2021
Stepan Q4 2021 Earnings Report
Stepan's Q4 2021 earnings decreased due to supply chain disruptions and non-recurrence of insurance recovery, while sales increased due to higher selling prices.
Key Takeaways
Stepan Company's fourth quarter net income decreased by 44% to $17.0 million, or $0.73 per diluted share, compared to the prior year. Adjusted net income decreased by 32% to $22.5 million, or $0.97 per diluted share. Total Company sales volume decreased 4% versus the prior year. The results were impacted by supply chain disruptions and the non-recurrence of a $13.0 million insurance recovery from the prior year.
Net income was $17.0 million, or $0.73 per diluted share, versus $30.4 million, or $1.30 per diluted share, in the prior year.
Adjusted net income was $22.5 million, or $0.97 per diluted share versus $33.1 million, or $1.42 per diluted share, in the prior year.
Surfactant operating income was $32.4 million versus $43.3 million in the prior year, due to supply chain disruptions and lower sales volume.
Polymer operating income was $12.9 million versus $22.8 million in the prior year, impacted by supply chain disruptions and the non-recurrence of insurance recovery and government settlement.
Revenue by Segment
Forward Guidance
The Company believes that demand for our products will remain strong but that the Company will continue to be challenged by the same external factors that impacted us during 2021.
Positive Outlook
- Surfactant volumes within the institutional cleaning, agricultural and oilfield markets will grow versus 2021.
- Consumer consumption of cleaning, disinfection and personal wash products will improve slightly in 2022 after significant de-stocking efforts in 2021.
- Polymer business will deliver growth versus prior year.
- Long-term prospects for rigid polyols remain attractive as energy conservation efforts and more stringent building codes should increase demand.
- Specialty Product business results will improve slightly year-over-year.
Challenges Ahead
- Company will continue to be challenged by the same external factors that impacted us during 2021.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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