Stepan Company reported unaudited consolidated earnings results for the fourth quarter and full year ended of December 31, 2017. For the quarter, the company's net income was $9.9 million, or $0.42 per diluted share versus $8.4 million, or $0.36 per diluted share, in the prior year. Adjusted net income was $24.6 million, or $1.06 per diluted share versus $12.3 million, or $0.52 per diluted share, in the prior year. Net sales were $473,823,000 compared to $420,636,000 a year ago. Operating income was $30,831,000 compared to $9,932,000 a year ago. Income before income taxes was $28,532,000 compared to $7,009,000 a year ago.

For the full year, the company reported net income was a record $91.6 million, or $3.92 per diluted share, a 6% increase versus $86.2 million, or $3.73 per diluted share, in the prior year. Adjusted net income was a record $108.7 million, or $4.65 per diluted share, an 11% increase versus $98.2 million, or $4.25 per diluted share, in the prior year. Net sales were $1,925,007,000 compared to $1,766,166,000 a year ago. Operating income was $146,160,000 compared to $126,193,000 a year ago. Income before income taxes was $139,237,000 compared to $113,816,000 a year ago. Free cash flow for the year was $101 million versus $92 million in the prior year.

The company expects the effective tax rate to be in the range of 20% to 23% in 2018.