Stepan Reports First Quarter Results

Apr 24, 2001, 01:00 ET from Stepan Company

    NORTHFIELD, Ill., April 24 /PRNewswire Interactive News Release/ -- Stepan
 Company (NYSE:   SCL) today reported first quarter results for period ended
 March 31, 2001.
     Net sales increased one percent in the first quarter of 2001, from
 $174,988,000 to $176,857,000.  Net earnings for the first quarter were
 $3,628,000, or $0.36 per share (diluted), down 15 percent from $4,271,000, or
 $0.41 per share (diluted) a year ago.
     Year over year utility costs were significantly higher in the 2001 first
 quarter accounting for approximately $600,000 after taxes, or $0.06 per share.
     Surfactant earnings declined primarily in North America as a result of
 margin pressure and higher utility costs.  North American surfactant volume
 grew modestly, even though Mexico experienced a decline in volume.  European
 earnings improved slightly on improved margins in France, while the decline in
 margins in Germany was wider than expected.
     Earnings for the polymer group declined as a result of weakening sales
 volume and margins for phthalic anhydride.  Polyurethane polyols reported
 higher earnings on improved margins.  Polyurethane systems earnings improved
 as a result of improved margins and higher sales volume.
     Specialty products earnings increased significantly as sales volume
 recovered from the very weak first quarter of 2000.  The prior year quarter
 volume was disrupted by post Y2K inventory adjustments.
     Operating expenses remained relatively unchanged from the year ago
 quarter.  Interest expense declined five percent due to lower average debt
 levels and improving interest rates.
     "The year 2001 is turning out to be the challenge we were expecting with a
 slowing economy and higher utility costs," said Mr. Stepan. "We do believe we
 see opportunity for earnings improvement as the year progresses, coming both
 from volume and improved sales mix.  We expected a slow start, but full year
 results should be in the range of $2.00 to $2.30 per diluted share."
     Stepan Company will host a conference call to discuss the first quarter
 results at 2 p.m. Eastern Daylight Time this date, April 24, 2001. To listen
 to a live webcast of this call, please go to our Internet website at:
 http://www.stepan.com, click on investor relations, next click on conference
 calls and follow the directions on the screen.
     Stepan Company, headquartered in Northfield, Illinois, is a leading
 producer of specialty and intermediate chemicals used in household,
 industrial, personal care, agricultural, food and insulation related products.
 The common and the convertible preferred stocks are traded on the New York and
 Chicago Stock Exchanges under the symbols SCL and SCLPR.
 
     tables follow
 
     Information in this press release contains forward-looking statements,
 which are not historical facts.  These statements involve risks and
 uncertainties that could cause actual results to differ materially, including
 without limiting foreign currency fluctuations, prospects for our foreign
 operations and certain global and regional economic conditions and factors
 detailed in the company's Securities and Exchange Commission filings.
 
 
                                   STEPAN COMPANY
                                Statements of Income
                 For the Three Months Ended March 31, 2001 and 2000
                            (Unaudited - 000's Omitted)
 
                                               Three Months Ended
                                                    March 31
                                        2001            2000             %
                                                                    Change
 
     Net Sales                      $176,857        $174,988            +1
     Cost of Sales                   150,956         147,905            +2
       Gross Profit                   25,901          27,083            -4
 
     Operating Expenses:
       Marketing                       6,241           6,176            +1
       Administrative                  6,200           6,149            +1
       Research, Development
         and Technical Services        5,631           5,758            -2
                                      18,072          18,083             -
 
     Operating Income                  7,829           9,000           -13
     Other Income (Expense):
       Interest, Net                  (1,956)         (2,051)           -5
       Income from Equity
         Joint Venture                   127              54          +135
                                      (1,829)         (1,997)           -8
 
     Income Before Income Taxes        6,000           7,003           -14
     Provision for Income Taxes        2,372           2,732           -13
     Net Income                       $3,628          $4,271           -15
 
     Net Income Per Common Share
       Basic                           $0.37           $0.43           -14
       Diluted                         $0.36           $0.41           -12
 
     Shares Used to Compute Net
       Income per Common Share
         Basic                         9,241           9,501            -3
         Diluted                      10,154          10,416            -3
 
     NOTE:  Sales and cost of sales data for prior periods have been restated
            to reflect current accounting standards requiring shipping costs be
            included in cost of sales rather than netted against revenues.
 
                                   STEPAN COMPANY
                                   Balance Sheets
                        March 31, 2001 and December 31, 2000
                            (Unaudited - 000's Omitted)
 
                                                      2001         2000
                                                     March 31    December 31
     ASSETS
 
     Current Assets                                  $181,103       $177,213
 
     Property, Plant & Equipment, net                 194,138        199,147
 
     Other Assets                                      38,097         38,689
 
       Total assets                                  $413,338       $415,049
 
     LIABILITIES AND STOCKHOLDERS' EQUITY
 
     Current Liabilities                              $95,374       $105,962
 
     Deferred Income Taxes                             38,117         39,170
 
     Long-term Debt                                   103,731         96,466
 
     Other Non-current Liabilities                     21,508         19,275
 
     Stockholders' Equity                             154,608        154,176
 
       Total liabilities and stockholders' equity    $413,338       $415,049
 
                     MAKE YOUR OPINION COUNT -- Click Here
                http://tbutton.prnewswire.com/prn/11690X73357135
 
 

SOURCE Stepan Company
    NORTHFIELD, Ill., April 24 /PRNewswire Interactive News Release/ -- Stepan
 Company (NYSE:   SCL) today reported first quarter results for period ended
 March 31, 2001.
     Net sales increased one percent in the first quarter of 2001, from
 $174,988,000 to $176,857,000.  Net earnings for the first quarter were
 $3,628,000, or $0.36 per share (diluted), down 15 percent from $4,271,000, or
 $0.41 per share (diluted) a year ago.
     Year over year utility costs were significantly higher in the 2001 first
 quarter accounting for approximately $600,000 after taxes, or $0.06 per share.
     Surfactant earnings declined primarily in North America as a result of
 margin pressure and higher utility costs.  North American surfactant volume
 grew modestly, even though Mexico experienced a decline in volume.  European
 earnings improved slightly on improved margins in France, while the decline in
 margins in Germany was wider than expected.
     Earnings for the polymer group declined as a result of weakening sales
 volume and margins for phthalic anhydride.  Polyurethane polyols reported
 higher earnings on improved margins.  Polyurethane systems earnings improved
 as a result of improved margins and higher sales volume.
     Specialty products earnings increased significantly as sales volume
 recovered from the very weak first quarter of 2000.  The prior year quarter
 volume was disrupted by post Y2K inventory adjustments.
     Operating expenses remained relatively unchanged from the year ago
 quarter.  Interest expense declined five percent due to lower average debt
 levels and improving interest rates.
     "The year 2001 is turning out to be the challenge we were expecting with a
 slowing economy and higher utility costs," said Mr. Stepan. "We do believe we
 see opportunity for earnings improvement as the year progresses, coming both
 from volume and improved sales mix.  We expected a slow start, but full year
 results should be in the range of $2.00 to $2.30 per diluted share."
     Stepan Company will host a conference call to discuss the first quarter
 results at 2 p.m. Eastern Daylight Time this date, April 24, 2001. To listen
 to a live webcast of this call, please go to our Internet website at:
 http://www.stepan.com, click on investor relations, next click on conference
 calls and follow the directions on the screen.
     Stepan Company, headquartered in Northfield, Illinois, is a leading
 producer of specialty and intermediate chemicals used in household,
 industrial, personal care, agricultural, food and insulation related products.
 The common and the convertible preferred stocks are traded on the New York and
 Chicago Stock Exchanges under the symbols SCL and SCLPR.
 
     tables follow
 
     Information in this press release contains forward-looking statements,
 which are not historical facts.  These statements involve risks and
 uncertainties that could cause actual results to differ materially, including
 without limiting foreign currency fluctuations, prospects for our foreign
 operations and certain global and regional economic conditions and factors
 detailed in the company's Securities and Exchange Commission filings.
 
 
                                   STEPAN COMPANY
                                Statements of Income
                 For the Three Months Ended March 31, 2001 and 2000
                            (Unaudited - 000's Omitted)
 
                                               Three Months Ended
                                                    March 31
                                        2001            2000             %
                                                                    Change
 
     Net Sales                      $176,857        $174,988            +1
     Cost of Sales                   150,956         147,905            +2
       Gross Profit                   25,901          27,083            -4
 
     Operating Expenses:
       Marketing                       6,241           6,176            +1
       Administrative                  6,200           6,149            +1
       Research, Development
         and Technical Services        5,631           5,758            -2
                                      18,072          18,083             -
 
     Operating Income                  7,829           9,000           -13
     Other Income (Expense):
       Interest, Net                  (1,956)         (2,051)           -5
       Income from Equity
         Joint Venture                   127              54          +135
                                      (1,829)         (1,997)           -8
 
     Income Before Income Taxes        6,000           7,003           -14
     Provision for Income Taxes        2,372           2,732           -13
     Net Income                       $3,628          $4,271           -15
 
     Net Income Per Common Share
       Basic                           $0.37           $0.43           -14
       Diluted                         $0.36           $0.41           -12
 
     Shares Used to Compute Net
       Income per Common Share
         Basic                         9,241           9,501            -3
         Diluted                      10,154          10,416            -3
 
     NOTE:  Sales and cost of sales data for prior periods have been restated
            to reflect current accounting standards requiring shipping costs be
            included in cost of sales rather than netted against revenues.
 
                                   STEPAN COMPANY
                                   Balance Sheets
                        March 31, 2001 and December 31, 2000
                            (Unaudited - 000's Omitted)
 
                                                      2001         2000
                                                     March 31    December 31
     ASSETS
 
     Current Assets                                  $181,103       $177,213
 
     Property, Plant & Equipment, net                 194,138        199,147
 
     Other Assets                                      38,097         38,689
 
       Total assets                                  $413,338       $415,049
 
     LIABILITIES AND STOCKHOLDERS' EQUITY
 
     Current Liabilities                              $95,374       $105,962
 
     Deferred Income Taxes                             38,117         39,170
 
     Long-term Debt                                   103,731         96,466
 
     Other Non-current Liabilities                     21,508         19,275
 
     Stockholders' Equity                             154,608        154,176
 
       Total liabilities and stockholders' equity    $413,338       $415,049
 
                     MAKE YOUR OPINION COUNT -- Click Here
                http://tbutton.prnewswire.com/prn/11690X73357135
 
 SOURCE  Stepan Company