Stepan Company Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended of December 31, 2017; Provides Tax Rate Guidance for 2018
February 22, 2018 at 06:59 am EST
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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.
Stepan Company is a producer and seller of specialty and intermediate chemicals that are used in a variety of end products. The Company operates through three segments: Surfactants, Polymers and Specialty Products. The Surfactants segment offers ingredients in consumer and industrial cleaning and disinfection products, such as detergents for washing clothes, dishes, carpets, floors and walls, as well as shampoos and body washes. Other applications include fabric softeners, germicidal quaternary compounds, disinfectants, lubricating ingredients, emulsifiers for spreading agricultural products and industrial applications. The Polymers segment includes polyurethane polyols, polyester resins and phthalic anhydride. Polyurethane polyols are used in the manufacture of rigid foam for thermal insulation in the construction industry. The Specialty products segment includes flavors, emulsifiers and solubilizers used in food, flavoring, nutritional supplement and pharmaceutical applications.
Stepan Company Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended of December 31, 2017; Provides Tax Rate Guidance for 2018