Stepan Reports Second Quarter Results and First Half Earnings
Second Quarter Highlights
- Reported net income was
$30.2 million , or$1.30 per diluted share, versus$33.5 million , or$1.44 per diluted share, in the prior year. Adjusted net income* was$35.1 million , or$1.50 per diluted share versus$32.2 million , or$1.39 per diluted share, in the prior year.
- Surfactant operating income was
$32.1 million versus$34.1 million in the prior year. This decrease was primarily attributable to an 8% decline in global Surfactant volume and the unfavorable impact of foreign currency translation, partially offset by margin improvement. The decline in global sales volume was principally due to the Company's exit from its sulfonation business inGermany in 2018 and lower demand in the global personal care end markets. The unfavorable impact of foreign currency translation negatively impacted results by$0.5 million . Latin American losses associated with theEcatepec, Mexico sulfonation equipment failure were offset by one-time benefits related to a VAT tax recovery in Brazil. TheEcatepec facility is now fully operational and the Company's insurance provider has acknowledged this incident is a covered event. The Company is pursuing insurance recovery for damaged equipment, incremental supply chain expenses and business interruption.
- Polymer operating income was
$22.8 million versus$20.3 million in the prior year. This increase was mostly attributable to higher volume and slight margin improvement. Global Polymer sales volume increased 5% versus the prior year. North American and European rigid polyol sales volume grew 19% and 10%, respectively, partially offset by lower phthalic anhydride volume.
- Specialty Product operating income was
$6.0 million versus$4.2 million in the prior year. This increase was primarily attributable to improved volume and margins within our medium chain triglyceride (MCTs) product line and order timing differences within our pharmaceutical business.
- As previously disclosed, during the current year quarter the Company voluntarily prepaid the entire outstanding principal balance of its 5.88% Series 2010-A Senior Notes due
June 1 , 2022. The pre-tax make-whole expense associated with this prepayment was$1.2 million .
- The effect of foreign currency translation negatively impacted net income by
$0.6 million , or$0.03 per diluted share, versus the prior year.
First Half Highlights
- Reported net income was
$55.2 million , or$2.37 per diluted share, versus$65.4 million , or$2.80 per diluted share, in the prior year. Adjusted net income of$65.8 million , or$2.82 per diluted share, mirrored prior year results.Total Company sales volume declined 1% compared to the first six months of 2018.
- As disclosed in the first quarter of 2019, the Company elected to change its method of accounting for U.S. inventories from the last in, first out (LIFO) basis to the first in, first out (FIFO) basis. The Company has retrospectively applied this change to its prior year financial statement comparables and denoted impacted prior year columns "As Adjusted". The net effects on prior year results of changing from the LIFO method to the FIFO method were
$0.5 million and$1.8 million of additional income for the second quarter and first half, respectively. The Company will recognize$1.6 million of additional expense for full year 2018.
* Adjusted net income is a non-GAAP measure which excludes deferred compensation income/expense, cash-settled stock appreciation rights (SARs), as well as other significant and infrequent/non-recurring items. See Table II for reconciliations of non-GAAP adjusted net income and earnings per diluted share.
"Despite many challenges in the first half, the Company matched its 2018 record first half adjusted net income," said
Financial Summary
Three Months Ended June 30 |
Six Months Ended June 30 |
||||||||||||||||||||||
($ in thousands, except per share data) |
2019 |
2018 As Adjusted |
% Change |
2019 |
2018 As Adjusted |
% Change |
|||||||||||||||||
Net Sales |
$ |
473,003 |
$ |
519,866 |
(9) |
% |
$ |
962,173 |
$ |
1,019,201 |
(6) |
% |
|||||||||||
Operating Income (1) |
$ |
41,065 |
$ |
45,386 |
(10) |
% |
$ |
70,803 |
$ |
86,669 |
(18) |
% |
|||||||||||
Net Income (1) |
$ |
30,218 |
$ |
33,454 |
(10) |
% |
$ |
55,202 |
$ |
65,406 |
(16) |
% |
|||||||||||
Earnings per Diluted Share (1) |
$ |
1.30 |
$ |
1.44 |
(10) |
% |
$ |
2.37 |
$ |
2.80 |
(15) |
% |
|||||||||||
Adjusted Net Income (1) (2) |
$ |
35,131 |
$ |
32,211 |
9 |
% |
$ |
65,766 |
$ |
65,815 |
(0) |
% |
|||||||||||
Adjusted Earnings per Diluted Share (1) (2) |
$ |
1.50 |
$ |
1.39 |
8 |
% |
$ |
2.82 |
$ |
2.82 |
0 |
% |
|||||||||||
(1) |
The 2018 amounts for the noted line items have been retrospectively changed from the amounts originally reported as a result of the Company's first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO. |
(2) |
See Table II for reconciliations of non-GAAP adjusted net income and earnings per diluted share. |
Summary of Second Quarter Adjusted Net Income Items
Adjusted net income excludes non-operational deferred compensation income/expense, cash-settled SARs and other significant and infrequent or non-recurring items.
- Deferred Compensation: The current year second quarter includes
$1.2 million of after-tax expense versus$1.0 million of after-tax income in the prior year.
- Cash-Settled SARs: These management incentive instruments provide cash to participants equal to the appreciation on the price of specified shares of Company stock over a specified period of time. Because income or expense is recognized merely on the movement in the price of Company stock it has been excluded, similar to deferred compensation, to arrive at adjusted net income. The current year second quarter includes
$0.2 million of after-tax expense versus$0.4 million of after-tax income in the prior year.
- Business Restructuring: The current year second quarter includes
$0.3 million of after-tax decommissioning expense primarily related to the Company's prior year Canadian plant closure andGermany sulfonation shutdown versus$0.2 million of after-tax expense in 2018.
- Environmental Remediation: The current year second quarter includes
$2.2 million of after-tax expense versus no expense recognition in the prior year. The majority of the current year expense reflects environmental remediation costs associated with the Company'sMaywood, New Jersey site.
- Voluntary Debt Prepayment: The current year second quarter includes
$0.9 million of after-tax expense associated with our previously disclosed voluntary prepayment of debt.
Percentage Change in Net Sales
Net sales decreased 9% in the year-over-year second quarter due to a 5% decline in global sales volume, the unfavorable impact of foreign currency translation due to weaker European and Latin American currencies versus the U.S. dollar, and lower selling prices mainly attributable to the pass-through of lower raw material costs. The lower sales volume reflects a Surfactant decline of 8% partially offset by Polymer growth of 5%.
Three Months Ended June 30, 2019 |
Six Months Ended June 30, 2019 |
|||||||
Volume |
(5) |
% |
(1) |
% |
||||
Selling Price & Mix |
(2) |
% |
(2) |
% |
||||
Foreign Translation |
(2) |
% |
(3) |
% |
||||
Total |
(9) |
% |
(6) |
% |
Segment Results
Three Months Ended June 30 |
Six Months Ended June 30 |
|||||||||||||||||||||||
($ in thousands) |
2019 |
2018 |
% Change |
2019 |
2018 |
% Change |
||||||||||||||||||
Net Sales |
||||||||||||||||||||||||
Surfactants |
$ |
313,380 |
$ |
356,884 |
(12) |
% |
$ |
663,030 |
$ |
715,824 |
(7) |
% |
||||||||||||
Polymers |
$ |
140,636 |
$ |
140,867 |
- |
$ |
260,815 |
$ |
262,800 |
(1) |
% |
|||||||||||||
Specialty Products |
$ |
18,987 |
$ |
22,115 |
(14) |
% |
$ |
38,328 |
$ |
40,577 |
(6) |
% |
||||||||||||
Total Net Sales |
$ |
473,003 |
$ |
519,866 |
(9) |
% |
$ |
962,173 |
$ |
1,019,201 |
(6) |
% |
Three Months Ended June 30 |
Six Months Ended June 30 |
|||||||||||||||||||||||
($ in thousands) |
2019 |
2018 As Adjusted |
% Change |
2019 |
2018 As Adjusted |
% Change |
||||||||||||||||||
Operating Income * |
||||||||||||||||||||||||
Surfactants |
$ |
32,086 |
$ |
34,078 |
(6) |
% |
$ |
69,253 |
$ |
75,546 |
(8) |
% |
||||||||||||
Polymers |
$ |
22,760 |
$ |
20,299 |
12 |
% |
$ |
34,865 |
$ |
37,604 |
(7) |
% |
||||||||||||
Specialty Products |
$ |
5,982 |
$ |
4,240 |
41 |
% |
$ |
9,113 |
$ |
3,890 |
134 |
% |
||||||||||||
Total Segment Operating Income |
$ |
60,828 |
$ |
58,617 |
4 |
% |
$ |
113,231 |
$ |
117,040 |
(3) |
% |
||||||||||||
Corporate Expenses |
$ |
(19,763) |
$ |
(13,231) |
49 |
% |
$ |
(42,428) |
$ |
(30,371) |
40 |
% |
||||||||||||
Consolidated Operating Income |
$ |
41,065 |
$ |
45,386 |
(10) |
% |
$ |
70,803 |
$ |
86,669 |
(18) |
% |
||||||||||||
* The 2018 Segment operating income amounts have been retrospectively changed from the amounts originally reported as a result of the Company's first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO. |
Total segment operating income increased
- Surfactant net sales were
$313.4 million for the quarter, a 12% decrease versus the prior year. Sales volume decreased 8% mostly due to the Company's exit from its sulfonation business inGermany in 2018 and lower demand in the North American functional product and personal care end markets. Second quarter 2019 agricultural sales volume was negatively impacted by the wet weather in the U.S. farm belt. Lower demand for products sold to our distribution partners and the impact of theEcatepec equipment failure also contributed to this sales volume decline. Selling prices were down 2% primarily due to the pass-through of lower raw material costs. The translation impact of a stronger U.S. dollar decreased net sales by 2%. Surfactant operating income decreased$2.0 million versus the prior year primarily due to lower sales volumes and the unfavorable impact of foreign currency translation, partially offset margin improvement. Latin American losses associated with theEcatepec equipment failure were offset by one-time benefits related to a VAT tax recovery in Brazil.
- Polymer net sales were
$140.6 million for the quarter, essentially even with prior year. Sales volume increased 5% primarily due to higher North American and European polyols used in rigid foam insulation and insulated metal panels, partially offset by lower phthalic anhydride volumes. Selling prices declined 3% and the translation impact of a stronger U.S. dollar negatively impacted net sales by 2%. Polymer operating income increased$2.5 million versus the prior year quarter primarily due to higher sales volumes and more favorable product mix.
- Specialty Product net sales were
$19.0 million for the quarter, a 14% decrease versus the prior year. Sales volume declined 1% for the quarter. Operating income increased$1.7 million versus the prior year quarter primarily due to order timing differences within our pharmaceutical business and improved volume and margins within our medium chain triglycerides (MCTs) product line.
Corporate Expenses
Three Months Ended June 30 |
Six Months Ended June 30 |
|||||||||||||||||||||||
($ in thousands) |
2019 |
2018 |
% Change |
2019 |
2018 |
% Change |
||||||||||||||||||
Total Corporate Expenses |
$ |
19,763 |
$ |
13,231 |
49 |
% |
$ |
42,428 |
$ |
30,371 |
40 |
% |
||||||||||||
Less: |
||||||||||||||||||||||||
Deferred Compensation |
$ |
(2,395) |
$ |
865 |
NM |
$ |
(9,868) |
$ |
(749) |
NM |
||||||||||||||
Business Restructuring |
$ |
(450) |
$ |
(273) |
65 |
% |
$ |
(1,183) |
$ |
(631) |
87 |
% |
||||||||||||
Adjusted Corporate Expense |
$ |
16,918 |
$ |
13,823 |
22 |
% |
$ |
31,377 |
$ |
28,991 |
8 |
% |
||||||||||||
* See Table III for a discussion of deferred compensation plan accounting. |
- Corporate expenses, excluding deferred compensation and business restructuring expenses, increased
$3.1 million , or 22%, for the quarter. The quarterly increase was primarily due to a$2.9 million pre-tax adjustment to the Company's environmental remediation reserves.
Income Taxes
The Company's effective tax rate was 21.8% for the first half of 2019 versus 20.7% for the first half of 2018. This year-over-year increase was primarily attributable to a favorable, non-recurring 2018 tax benefit related to nontaxable foreign interest income.
Shareholder Return
The Company paid
Selected Balance Sheet Information
The Company's net debt level decreased
($ in millions) |
6/30/19 |
3/31/9 |
12/31/18 As Adjusted |
||||||||
Net Debt |
|||||||||||
Total Debt |
$ |
232.6 |
$ |
271.9 |
$ |
276.1 |
|||||
Cash |
275.3 |
269.5 |
300.2 |
||||||||
Net Debt |
$ |
(42.7) |
$ |
2.4 |
$ |
(24.1) |
|||||
Equity * |
857.7 |
831.4 |
807.4 |
||||||||
Net Debt + Equity * |
$ |
815.0 |
$ |
833.8 |
$ |
783.3 |
|||||
Net Debt / (Net Debt + Equity) |
-5 |
% |
0 |
% |
-3 |
% |
The major working capital components were:
($ in millions) |
6/30/19 |
3/31/19 |
12/31/18 As Adjusted |
||||||||
Net Receivables |
$ |
289.0 |
$ |
298.9 |
$ |
280.0 |
|||||
Inventories * |
216.3 |
215.0 |
231.5 |
||||||||
Accounts Payable |
(184.7) |
(175.6) |
(206.0) |
||||||||
Total * |
$ |
320.6 |
$ |
338.3 |
$ |
305.5 |
|||||
* The 2018 amounts for the noted line items have been retrospectively changed from the amounts originally reported as a result of the Company's first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO. |
Capital spending was
Outlook
"Despite the challenging current environment, we believe our Surfactant strategy will deliver value for our shareholders. Our focus on end market diversification, Tier 2 & Tier 3 customers, as well as our cost-out activities should continue to improve our margins. Given the strong volume growth in the first half, we believe our Polymer business will continue to benefit from the growing market for insulation materials and we remain optimistic the business will deliver both full year volume growth and incremental margin improvement versus 2018. On the strength of first half earnings we believe full year Specialty Product results will improve versus 2018. Overall, we remain cautiously optimistic about the balance of the year," said
Conference Call
Supporting Slides
Slides supporting this press release will be made available at www.stepan.com through the Investor Relations center at approximately the same time as this press release is issued.
Corporate Profile
Headquartered in
The Company's common stock is traded on the
Tables follow
Certain information in this news release consists of forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include statements about
There are a number of risks, uncertainties and other important factors, many of which are beyond
These forward-looking statements are made only as of the date hereof, and
Table I |
||||||||||||||||
STEPAN COMPANY For the Three and Six Months Ended June 30, 2019 and 2018 (Unaudited – in thousands, except per share data) |
||||||||||||||||
Three Months Ended June 30 |
Six Months Ended June 30 |
|||||||||||||||
2019 |
2018 As Adjusted |
2019 |
2018 As Adjusted |
|||||||||||||
Net Sales |
$ |
473,003 |
$ |
519,866 |
$ |
962,173 |
$ |
1,019,201 |
||||||||
Cost of Sales * |
380,044 |
429,885 |
784,605 |
838,022 |
||||||||||||
Gross Profit * |
92,959 |
89,981 |
177,568 |
181,179 |
||||||||||||
Operating Expenses: |
||||||||||||||||
Selling |
14,140 |
13,369 |
28,109 |
28,259 |
||||||||||||
Administrative |
21,544 |
18,098 |
40,850 |
37,537 |
||||||||||||
Research, Development and Technical Services |
13,365 |
13,720 |
26,755 |
27,334 |
||||||||||||
Deferred Compensation (Income) Expense |
2,395 |
(865) |
9,868 |
749 |
||||||||||||
51,444 |
44,322 |
105,582 |
93,879 |
|||||||||||||
Business Restructuring |
450 |
273 |
1,183 |
631 |
||||||||||||
Operating Income * |
41,065 |
45,386 |
70,803 |
86,669 |
||||||||||||
Other Income (Expense): |
||||||||||||||||
Interest, Net |
(1,766) |
(2,672) |
(3,619) |
(5,823) |
||||||||||||
Other, Net |
235 |
484 |
3,380 |
1,644 |
||||||||||||
(1,531) |
(2,188) |
(239) |
(4,179) |
|||||||||||||
Income Before Income Taxes * |
39,534 |
43,198 |
70,564 |
82,490 |
||||||||||||
Provision for Income Taxes * |
9,324 |
9,746 |
15,376 |
17,093 |
||||||||||||
Net Income * |
30,210 |
33,452 |
55,188 |
65,397 |
||||||||||||
Net Loss Attributable to Noncontrolling Interests |
8 |
2 |
14 |
9 |
||||||||||||
Net Income Attributable to Stepan Company * |
$ |
30,218 |
$ |
33,454 |
$ |
55,202 |
$ |
65,406 |
||||||||
Net Income Per Common Share Attributable to Stepan Company * |
||||||||||||||||
Basic * |
$ |
1.31 |
$ |
1.45 |
$ |
2.39 |
$ |
2.84 |
||||||||
Diluted * |
$ |
1.30 |
$ |
1.44 |
$ |
2.37 |
$ |
2.80 |
||||||||
Shares Used to Compute Net Income Per Common Share Attributable to Stepan Company |
||||||||||||||||
Basic |
23,086 |
23,039 |
23,092 |
23,059 |
||||||||||||
Diluted |
23,329 |
23,295 |
23,329 |
23,341 |
* The 2018 amounts for the noted line items have been retrospectively changed from the amounts originally reported as a result of the Company's first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO. |
Table II |
||||||||||||||||||||||||||||||||
Reconciliations of Non-GAAP Net Income and Earnings per Diluted Share * |
||||||||||||||||||||||||||||||||
Three Months Ended June 30 |
Six Months Ended June 30 |
|||||||||||||||||||||||||||||||
($ in thousands, except per share amounts) |
2019 |
EPS |
2018 As Adjusted |
EPS As Adjusted |
2019 |
EPS |
2018 As Adjusted |
EPS As Adjusted |
||||||||||||||||||||||||
Net Income Reported |
$ |
30,218 |
$ |
1.30 |
$ |
33,454 |
$ |
1.44 |
$ |
55,202 |
$ |
2.37 |
$ |
65,406 |
$ |
2.80 |
||||||||||||||||
Deferred Compensation (Income) Expense |
$ |
1,210 |
$ |
0.05 |
$ |
(1,015) |
$ |
(0.04) |
$ |
5,090 |
$ |
0.22 |
$ |
24 |
$ |
0.00 |
||||||||||||||||
Business Restructuring |
$ |
325 |
$ |
0.01 |
$ |
204 |
$ |
0.01 |
$ |
865 |
$ |
0.04 |
$ |
473 |
$ |
0.02 |
||||||||||||||||
Cash-Settled SARs |
$ |
220 |
$ |
0.01 |
$ |
(432) |
$ |
(0.02) |
$ |
1,451 |
$ |
0.06 |
$ |
(88) |
$ |
(0.00) |
||||||||||||||||
Environmental Remediation |
$ |
2,210 |
$ |
0.09 |
$ |
- |
$ |
2,210 |
$ |
0.09 |
$ |
- |
||||||||||||||||||||
Voluntary Debt Prepayment |
$ |
948 |
$ |
0.04 |
$ |
- |
$ |
948 |
$ |
0.04 |
$ |
- |
||||||||||||||||||||
Adjusted Net Income |
$ |
35,131 |
$ |
1.50 |
$ |
32,211 |
$ |
1.39 |
$ |
65,766 |
$ |
2.82 |
$ |
65,815 |
$ |
2.82 |
* All amounts in this table are presented after-tax |
The Company believes that certain measures that are not in accordance with generally accepted accounting principles (GAAP), when presented in conjunction with comparable GAAP measures, are useful for evaluating the Company's operating performance and provide better clarity on the impact of non-operational items. Internally, the Company uses this non-GAAP information as an indicator of business performance, and evaluates management's effectiveness with specific reference to these indicators. These measures should be considered in addition to, neither a substitute for, nor superior to, measures of financial performance prepared in accordance with GAAP. |
Reconciliation of Pre-Tax to After-Tax Adjustments |
||||||||||||||||||||||||||||||||
Three Months Ended June 30 |
Six Months Ended June 30 |
|||||||||||||||||||||||||||||||
($ in thousands, except per share amounts) |
2019 |
EPS |
2018 |
EPS |
2019 |
EPS |
2018 |
EPS |
||||||||||||||||||||||||
Pre-Tax Adjustments |
||||||||||||||||||||||||||||||||
Deferred Compensation (Income) Expense |
$ |
1,592 |
$ |
(1,335) |
$ |
6,698 |
$ |
31 |
||||||||||||||||||||||||
Business Restructuring |
$ |
450 |
$ |
273 |
$ |
1,183 |
$ |
631 |
||||||||||||||||||||||||
Cash-Settled SARs |
$ |
289 |
$ |
(569) |
$ |
1,909 |
$ |
(116) |
||||||||||||||||||||||||
Environmental Remediation |
$ |
2,908 |
$ |
- |
$ |
2,908 |
$ |
- |
||||||||||||||||||||||||
Voluntary Debt Prepayment |
$ |
1,247 |
$ |
- |
$ |
1,247 |
$ |
- |
||||||||||||||||||||||||
Total Pre-Tax Adjustments |
$ |
6,486 |
$ |
(1,631) |
$ |
13,945 |
$ |
546 |
||||||||||||||||||||||||
Cumulative Tax Effect on Adjustments |
$ |
(1,573) |
$ |
388 |
$ |
(3,381) |
$ |
(137) |
||||||||||||||||||||||||
After-Tax Adjustments |
$ |
4,913 |
$ |
0.20 |
$ |
(1,243) |
$ |
(0.05) |
$ |
10,564 |
$ |
0.45 |
$ |
409 |
$ |
0.02 |
Table III |
||||||||||||||||||||||||||||
Deferred Compensation Plan |
||||||||||||||||||||||||||||
The full effect of the deferred compensation plan on quarterly pre-tax income was $1.6 million of expense versus $1.3 million of income in the prior year. The year to date impact was $6.7 million of expense versus a de minimis impact in the prior year. The accounting for the deferred compensation plan results in operating income when the prices of Company common stock or mutual funds held in the plan fall and expense when they rise. The Company also recognizes the change in value of mutual funds as investment income or loss. The quarter end market prices of Company common stock are as follows: |
||||||||||||||||||||||||||||
2019 |
2018 |
|||||||||||||||||||||||||||
12/31 |
9/30 |
6/30 |
3/31 |
12/31 |
9/30 |
6/30 |
3/31 |
|||||||||||||||||||||
Stepan Company |
N/A |
N/A |
$ |
91.91 |
$ |
87.52 |
$ |
74.00 |
$ |
87.01 |
$ |
78.01 |
$ |
83.18 |
The deferred compensation income statement impact is summarized below: |
||||||||||||||||
Three Months Ended June 30 |
Six Months Ended June 30 |
|||||||||||||||
($ in thousands) |
2019 |
2018 |
2019 |
2018 |
||||||||||||
Deferred Compensation |
||||||||||||||||
Operating Income (Expense) |
$ |
(2,395) |
$ |
866 |
$ |
(9,868) |
$ |
(749) |
||||||||
Other, net – Mutual Fund Gain |
803 |
469 |
3,170 |
718 |
||||||||||||
Total Pretax |
$ |
(1,592) |
$ |
1,335 |
$ |
(6,698) |
$ |
(31) |
||||||||
Total After Tax |
$ |
(1,210) |
$ |
1,015 |
$ |
(5,090) |
$ |
(24) |
Table IV |
||||||||||||||||||||||||||||||||
Effects of Foreign Currency Translation |
||||||||||||||||||||||||||||||||
The Company's foreign subsidiaries transact business and report financial results in their respective local currencies. As a result, foreign subsidiary income statements are translated into U.S. dollars at average foreign exchange rates appropriate for the reporting period. Because foreign exchange rates fluctuate against the U.S. dollar over time, foreign currency translation affects period-to-period comparisons of financial statement items (i.e., because foreign exchange rates fluctuate, similar period-to-period local currency results for a foreign subsidiary may translate into different U.S. dollar results). Below is a table that presents the impact that foreign currency translation had on the changes in consolidated net sales and various income line items for the three and six month periods ending June 30, 2019 as compared to 2018: |
||||||||||||||||||||||||||||||||
($ in millions) |
Three Months Ended June 30 |
Increase (Decrease) |
Decrease Due to Foreign Currency Translation |
Six Months Ended June 30 |
(Decrease) |
Decrease Due to Foreign Currency Translation |
||||||||||||||||||||||||||
2019 |
2018 As Adjusted |
2019 |
2018 As Adjusted |
|||||||||||||||||||||||||||||
Net Sales |
$ |
473.0 |
$ |
519.9 |
$ |
(46.9) |
$ |
(9.8) |
$ |
962.2 |
$ |
1,019.2 |
$ |
(57.0) |
$ |
(26.0) |
||||||||||||||||
Gross Profit |
93.0 |
90.0 |
3.0 |
(1.5) |
177.6 |
181.2 |
(3.6) |
(3.7) |
||||||||||||||||||||||||
Operating Income |
41.1 |
45.4 |
(4.3) |
(0.9) |
70.8 |
86.7 |
(15.9) |
(2.0) |
||||||||||||||||||||||||
Pretax Income |
39.5 |
43.2 |
(3.7) |
(0.8) |
70.6 |
82.5 |
(11.9) |
(2.0) |
Table V |
||||||||
Stepan Company Consolidated Balance Sheets June 30, 2019 and December 31, 2018 |
||||||||
June 30, 2019 |
Dec 31, 2018 As Adjusted |
|||||||
ASSETS |
||||||||
Current Assets * |
$ |
806,807 |
$ |
833,893 |
||||
Property, Plant & Equipment, Net |
609,208 |
608,892 |
||||||
Other Assets * |
112,953 |
71,829 |
||||||
Total Assets * |
$ |
1,528,968 |
$ |
1,514,614 |
||||
LIABILITIES AND STOCKHOLDERS' EQUITY |
||||||||
Current Liabilities |
$ |
299,466 |
338,582 |
|||||
Deferred Income Taxes * |
28,271 |
$ |
24,961 |
|||||
Long-term Debt |
207,748 |
239,022 |
||||||
Other Non-current Liabilities |
135,086 |
103,864 |
||||||
Total Stepan Company Stockholders' Equity * |
857,658 |
807,425 |
||||||
Noncontrolling Interest |
739 |
760 |
||||||
Total Liabilities and Stockholders' Equity * |
$ |
1,528,968 |
$ |
1,514,614 |
* The 2018 amounts for the noted line items have been retrospectively changed from the amounts originally reported as a result of the Company's first quarter 2019 change in method of accounting for U.S. inventory valuation from LIFO to FIFO. |
View original content:http://www.prnewswire.com/news-releases/stepan-reports-second-quarter-results-and-first-half-earnings-300889938.html
SOURCE
Luis E. Rojo, (847) 446-7500