Stepan Reports Third Quarter Results and Nine Month Earnings
Third Quarter Highlights
- Reported net income was
$25.9 million , or$1.11 per diluted share versus$21.8 million , or$0.93 per diluted share, in the prior year. Adjusted net income* was$27.9 million , or$1.20 per diluted share versus$26.4 million , or$1.13 per diluted share, in the prior year. - Surfactant operating income was
$19.7 million versus$28.8 million in the prior year. This decrease was primarily attributable to an 8% decline in global sales volume. The decline in global sales volume was mostly due to the Company's exit from its sulfonation business inGermany in 2018, lower agricultural demand due to the wet weather in the U.S. farm belt and lower demand in the U.S. commodity consumer product end markets. The current quarter was also significantly impacted by higher inventory-related costs associated with the Company's internal Asian-U.S. supply chain and the residual impact of the equipment failure inEcatepec, Mexico . The Company's insurance provider has acknowledged theEcatepec incident is a covered event and the Company is pursuing insurance recovery for damaged equipment, incremental supply chain expenses and business interruption. - Polymer operating income was
$23.3 million versus$19.3 million in the prior year. This increase was mostly attributable to higher volume and improved margins. Global Polymer sales volume increased 3% versus the prior year. Global rigid polyol volume growth of 6% more than offset lower volume in other end markets. - Specialty Product operating income was
$2.3 million versus$2.7 million in the prior year. This decrease was primarily attributable to unfavorable order timing differences within our pharmaceutical business largely offset by improved margins within our medium chain triglycerides (MCTs) product line. - The effect of foreign currency translation negatively impacted net income by
$0.4 million , or$0.02 per diluted share, versus the prior year. - The Company increased its quarterly cash dividend in the fourth quarter of 2019 by $.025 per share, or 10%, marking the 52nd consecutive year that the Company has increased its cash dividend to stockholders.
YTD Highlights
- Reported net income was
$81.1 million , or$3.48 per diluted share, versus$87.2 million , or$3.74 per diluted share, in the prior year. Adjusted net income* was$93.7 million , or$4.02 per diluted share, versus$92.2 million , or$3.95 per diluted share, in the prior year.Total Company sales volume declined 3% compared to the first nine months of 2018. Sales volume growth within the Polymer and Specialty Product segments was offset by a 4% decline in Surfactant sales volume, or a 2% decline excluding the exit from the sulfonation business inGermany . - 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 impact of changing from the LIFO method to the FIFO method on prior year results was
$0.4 million of additional expense recognition in the third quarter and$1.3 million of additional income recognition for the first nine months. The Company will recognize$1.6 million of additional expense for full year 2018.
* Adjusted net income is a non-GAAP measure which excludes deferred compensation income/expense, cash-settled stock appreciation rights (SARs), as well as other significant and infrequent/non-recurring items. See Table II for reconciliations of non-GAAP adjusted net income and adjusted earnings per diluted share.
"Despite the challenging current environment, the Company's quarterly net income and adjusted net income exceeded prior year, and through nine months, adjusted net income is ahead of last year's record," said
Financial Summary |
|||||||||||||||||||||||
Three Months Ended September 30 |
Nine Months Ended September 30 |
||||||||||||||||||||||
($ in thousands, except per share data) |
2019 |
2018 |
% Change |
2019 |
2018 |
% Change |
|||||||||||||||||
Net Sales |
$ |
451,582 |
$ |
507,997 |
(11) |
% |
$ |
1,413,755 |
$ |
1,527,198 |
(7) |
% |
|||||||||||
Operating Income (1) |
$ |
27,966 |
$ |
27,145 |
3 |
% |
$ |
98,769 |
$ |
113,814 |
(13) |
% |
|||||||||||
Net Income (1) |
$ |
25,889 |
$ |
21,754 |
19 |
% |
$ |
81,091 |
$ |
87,160 |
(7) |
% |
|||||||||||
Earnings per Diluted Share (1) |
$ |
1.11 |
$ |
0.93 |
19 |
% |
$ |
3.48 |
$ |
3.74 |
(7) |
% |
|||||||||||
Adjusted Net Income (1) (2) |
$ |
27,929 |
$ |
26,356 |
6 |
% |
$ |
93,695 |
$ |
92,170 |
2 |
% |
|||||||||||
Adjusted Earnings per Diluted Share (1) |
$ |
1.20 |
$ |
1.13 |
6 |
% |
$ |
4.02 |
$ |
3.95 |
2 |
% |
(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 Third 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 third quarter includes
$1.4 million of after-tax expense versus$2.6 million of after-tax expense 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
$0.3 million of after-tax expense versus$0.8 million of after-tax expense in the prior year. - Business Restructuring: The current year third quarter includes
$0.3 million of after-tax decommissioning expense related to the Company's prior year Canadian plant closure andGermany sulfonation shutdown versus$1.2 million of after-tax expense in 2018.
Percentage Change in Net Sales
Net sales decreased 11% in the year-over-year third quarter due to a 6% decline in global sales volume, lower selling prices mainly attributable to the pass-through of lower raw material costs, and the unfavorable impact of foreign currency translation. The lower sales volume primarily reflects a Surfactant decline of 8% partially offset by Polymer growth of 3%.
Three Months Ended September 30, 2019 |
Nine Months Ended |
|||||||
Volume |
(6) |
% |
(3) |
% |
||||
Selling Price |
(4) |
% |
(2) |
% |
||||
Foreign Translation |
(1) |
% |
(2) |
% |
||||
Total |
(11) |
% |
(7) |
% |
Reported Segment Results |
||||||||||||||||||||||||
Three Months Ended September 30 |
Nine Months Ended September 30 |
|||||||||||||||||||||||
($ in thousands) |
2019 |
2018 |
% Change |
2019 |
2018 |
% Change |
||||||||||||||||||
Net Sales |
||||||||||||||||||||||||
Surfactants |
$ |
299,719 |
$ |
346,884 |
(14) |
% |
$ |
962,749 |
$ |
1,062,708 |
(9) |
% |
||||||||||||
Polymers |
$ |
135,089 |
$ |
141,646 |
(5) |
% |
$ |
395,904 |
$ |
404,446 |
(2) |
% |
||||||||||||
Specialty Products |
$ |
16,774 |
$ |
19,467 |
(14) |
% |
$ |
55,102 |
$ |
60,044 |
(8) |
% |
||||||||||||
Total Net Sales |
$ |
451,582 |
$ |
507,997 |
(11) |
% |
$ |
1,413,755 |
$ |
1,527,198 |
(7) |
% |
Three Months Ended September 30 |
Nine Months Ended September 30 |
|||||||||||||||||||||||
($ in thousands, all amounts pre-tax) |
2019 |
2018 |
% Change |
2019 |
2018 |
% Change |
||||||||||||||||||
Operating Income * |
||||||||||||||||||||||||
Surfactants |
$ |
19,660 |
$ |
28,824 |
(32) |
% |
$ |
88,913 |
$ |
104,370 |
(15) |
% |
||||||||||||
Polymers |
$ |
23,283 |
$ |
19,259 |
21 |
% |
$ |
58,148 |
$ |
56,863 |
2 |
% |
||||||||||||
Specialty Products |
$ |
2,261 |
$ |
2,653 |
(15) |
% |
$ |
11,374 |
$ |
6,543 |
74 |
% |
||||||||||||
Segment Operating |
$ |
45,204 |
$ |
50,736 |
(11) |
% |
$ |
158,435 |
$ |
167,776 |
(6) |
% |
||||||||||||
Corporate Expenses |
$ |
(17,238) |
$ |
(23,591) |
27 |
% |
$ |
(59,666) |
$ |
(53,962) |
(11) |
% |
||||||||||||
Consolidated Operating |
$ |
27,966 |
$ |
27,145 |
3 |
% |
$ |
98,769 |
$ |
113,814 |
(13) |
% |
* 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 decreased
- Surfactant net sales were
$299.7 million for the quarter, a 14% decrease versus the prior year. Sales volume decreased 8% mostly due to the Company's exit from its sulfonation business inGermany in 2018, lower agricultural demand due to the wet weather in the U.S. farm belt and lower demand in the global commodity consumer products end markets. Selling prices were down 4% 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$9.2 million primarily due to lower sales volume, higher inventory-related costs associated with the Company's internal Asian-U.S. supply chain and the residual impact of the equipment failure inEcatepec, Mexico . - Polymer net sales were
$135.1 million for the quarter, down 5% versus the prior year. Total sales volume increased 3%. Global rigid polyol volume growth of 6% was partially offset by lower phthalic anhydride and specialty polyol volumes. Selling prices declined 6% and the translation impact of a stronger U.S. dollar negatively impacted net sales by 2%. Polymer operating income increased$4.0 million versus the prior year quarter primarily due to higher sales volume and a more favorable product mix. - Specialty Product net sales were
$16.8 million for the quarter, a 14% decrease versus the prior year. Sales volume declined 2% for the quarter. Operating income decreased$0.4 million versus the prior year quarter primarily due to unfavorable order timing differences within our pharmaceutical business, partially offset by improved margins within our medium chain triglycerides (MCTs) product line.
Corporate Expenses |
||||||||||||||||||||||||
Three Months Ended September 30 |
Nine Months Ended September 30 |
|||||||||||||||||||||||
($ in thousands) |
2019 |
2018 |
% Change |
2019 |
2018 |
% Change |
||||||||||||||||||
Total - Corporate Expenses |
$ |
17,238 |
$ |
23,591 |
(27) |
% |
$ |
59,666 |
$ |
53,962 |
11 |
% |
||||||||||||
Less: |
||||||||||||||||||||||||
Deferred Compensation * |
$ |
1,610 |
$ |
4,222 |
(62) |
% |
$ |
11,478 |
$ |
4,971 |
131 |
% |
||||||||||||
Business Restructuring |
$ |
459 |
$ |
1,715 |
(73) |
% |
$ |
1,642 |
$ |
2,346 |
(30) |
% |
||||||||||||
Adjusted Corporate Expense |
$ |
15,169 |
$ |
17,654 |
(14) |
% |
$ |
46,546 |
$ |
46,645 |
(0) |
% |
||||||||||||
* See Table III for a discussion of deferred compensation plan accounting. |
- Corporate expenses, excluding deferred compensation and business restructuring expenses, decreased
$2.5 million , or 14% for the quarter. The quarterly decrease was primarily attributable to the non-recurrence of employee separation costs incurred in the prior year quarter.
Income Taxes and Net Interest
The Company's effective tax rate was 17.3% for the first nine months of 2019 versus 18.7% for the first nine months of 2018. This year-over-year decrease was primarily attributable to higher current year U.S. research and development tax credits, partially offset by the combined non-recurrence of 2018 favorable tax benefits and unfavorable 2018 tax consequences of repatriating foreign cash. Net interest expense is down 42% year-over-year primarily due to interest earned on higher U.S. cash balances after the cash repatriation completed in 2018.
Shareholder Return
The Company paid $5.6 million of dividends to shareholders and repurchased
Selected Balance Sheet Information
The Company's net debt level decreased
($ in millions) |
9/30/19 |
6/30/19 |
3/31/19 |
12/31/18 |
||||||||||||
Net Debt |
||||||||||||||||
Total Debt |
$ |
231.9 |
$ |
232.6 |
$ |
271.9 |
$ |
276.1 |
||||||||
Cash |
286.0 |
275.3 |
269.5 |
300.2 |
||||||||||||
Net Debt |
$ |
(54.1) |
$ |
(42.7) |
$ |
2.4 |
$ |
(24.1) |
||||||||
Equity * |
854.2 |
857.7 |
831.4 |
807.4 |
||||||||||||
Net Debt + Equity * |
$ |
800.1 |
$ |
815.0 |
$ |
833.8 |
$ |
783.3 |
||||||||
Net Debt / (Net Debt + Equity) |
-7 |
% |
-5 |
% |
0 |
% |
-3 |
% |
The major working capital components were:
($ in millions) |
9/30/19 |
6/30/19 |
3/31/19 |
12/31/18 |
||||||||||||
Net Receivables |
$ |
283.0 |
$ |
289.0 |
$ |
298.9 |
$ |
280.0 |
||||||||
Inventories * |
203.3 |
216.3 |
215.0 |
231.5 |
||||||||||||
Accounts Payable |
(175.8) |
(184.7) |
(175.6) |
(206.0) |
||||||||||||
$ |
310.5 |
$ |
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
"Adjusted net income for the first nine months of 2019 is up 2% from our record in 2018, despite the Mexican equipment failure and the decrease in commodity surfactant volumes. We believe our continued focus on end market diversification, Tier 2 and Tier 3 customers, as well as our cost-out activities should improve future Surfactant margins. We remain optimistic the Polymer business will deliver full year volume growth and incremental margin improvement versus 2018 given our strong rigid polyol growth in the first nine months. We believe full year Specialty Product results will improve versus 2018. Overall, despite the current year challenges, we have an opportunity to deliver another year of adjusted net income growth," said
Conference Call
Supporting Slides
Slides supporting this press release will be made available at www.stepan.com through the Investor Relations page at approximately the same time as this press release is issued.
Corporate Profile
Headquartered in
The Company's common stock is traded on the
Contact: Luis E. Rojo |
(847) 446-7500 |
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 |
||||||||||||||||
Three Months Ended September 30 |
Nine Months Ended September 30 |
|||||||||||||||
2019 |
2018 |
2019 |
2018 |
|||||||||||||
Net Sales |
$ |
451,582 |
$ |
507,997 |
$ |
1,413,755 |
$ |
1,527,198 |
||||||||
Cost of Sales * |
374,180 |
424,421 |
1,158,785 |
1,262,443 |
||||||||||||
Gross Profit * |
77,402 |
83,576 |
254,970 |
264,755 |
||||||||||||
Operating Expenses: |
||||||||||||||||
Selling |
14,186 |
14,613 |
42,295 |
42,872 |
||||||||||||
Administrative |
19,708 |
21,904 |
60,558 |
59,441 |
||||||||||||
Research, Development and Technical Services |
13,473 |
13,977 |
40,228 |
41,311 |
||||||||||||
Deferred Compensation (Income) Expense |
1,610 |
4,222 |
11,478 |
4,971 |
||||||||||||
48,977 |
54,716 |
154,559 |
148,595 |
|||||||||||||
Business Restructuring |
459 |
1,715 |
1,642 |
2,346 |
||||||||||||
Operating Income * |
27,966 |
27,145 |
98,769 |
113,814 |
||||||||||||
Other Income (Expense): |
||||||||||||||||
Interest, Net |
(1,402) |
(2,797) |
(5,021) |
(8,620) |
||||||||||||
Other, Net * |
885 |
346 |
4,265 |
1,990 |
||||||||||||
(517) |
(2,451) |
(756) |
(6,630) |
|||||||||||||
Income Before Income Taxes * |
27,449 |
24,694 |
98,013 |
107,184 |
||||||||||||
Provision for Income Taxes * |
1,569 |
2,940 |
16,945 |
20,033 |
||||||||||||
Net Income * |
25,880 |
21,754 |
81,068 |
87,151 |
||||||||||||
Net Income (Income) Loss Attributable to Noncontrolling Interests |
9 |
- |
23 |
9 |
||||||||||||
Net Income Attributable to Stepan Company * |
$ |
25,889 |
$ |
21,754 |
$ |
81,091 |
$ |
87,160 |
||||||||
Net Income Per Common Share Attributable to Stepan Company * |
||||||||||||||||
Basic * |
$ |
1.12 |
$ |
0.95 |
$ |
3.52 |
$ |
3.78 |
||||||||
Diluted * |
$ |
1.11 |
$ |
0.93 |
$ |
3.48 |
$ |
3.74 |
||||||||
Shares Used to Compute Net Income Per Common Share Attributable to Stepan Company |
||||||||||||||||
Basic |
23,025 |
22,986 |
23,070 |
23,036 |
||||||||||||
Diluted |
23,300 |
23,288 |
23,320 |
23,324 |
||||||||||||
* 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 |
||||||||||||||||||||||||||||||||
Reconciliation of Non-GAAP Net Income and Earnings per Diluted Share * |
||||||||||||||||||||||||||||||||
Three Months Ended September 30 |
Nine Months Ended September 30 |
|||||||||||||||||||||||||||||||
($ in thousands, except per share amounts) |
2019 |
EPS |
2018 |
EPS |
2019 |
EPS |
2018 |
EPS |
||||||||||||||||||||||||
Net Income Reported |
$ |
25,889 |
$ |
1.11 |
$ |
21,754 |
$ |
0.93 |
$ |
81,091 |
$ |
3.48 |
$ |
87,160 |
$ |
3.74 |
||||||||||||||||
Deferred Compensation (Income) Expense |
$ |
1,392 |
$ |
0.06 |
$ |
2,610 |
$ |
0.11 |
$ |
6,482 |
$ |
0.28 |
$ |
2,633 |
$ |
0.11 |
||||||||||||||||
Business Restructuring |
$ |
334 |
$ |
0.02 |
$ |
1,187 |
$ |
0.05 |
$ |
1,199 |
$ |
0.05 |
$ |
1,660 |
$ |
0.07 |
||||||||||||||||
Cash-Settled SARs |
$ |
314 |
$ |
0.01 |
$ |
805 |
$ |
0.04 |
$ |
1,765 |
$ |
0.08 |
$ |
717 |
$ |
0.03 |
||||||||||||||||
Environmental Remediation |
$ |
- |
$ |
- |
$ |
- |
$ |
- |
$ |
2,210 |
$ |
0.09 |
$ |
- |
$ |
- |
||||||||||||||||
Voluntary Debt Prepayment |
$ |
- |
$ |
- |
$ |
- |
$ |
- |
$ |
948 |
$ |
0.04 |
$ |
- |
$ |
- |
||||||||||||||||
Adjusted Net Income |
$ |
27,929 |
$ |
1.20 |
$ |
26,356 |
$ |
1.13 |
$ |
93,695 |
$ |
4.02 |
$ |
92,170 |
$ |
3.95 |
||||||||||||||||
* 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 September 30 |
Nine Months Ended September 30 |
|||||||||||||||||||||||||||||||
($ in thousands, except per share amounts) |
2019 |
EPS |
2018 |
EPS |
2019 |
EPS |
2018 |
EPS |
||||||||||||||||||||||||
Pre-Tax Adjustments |
||||||||||||||||||||||||||||||||
Deferred Compensation (Income) Expense |
$ |
1,831 |
$ |
3,434 |
$ |
8,529 |
$ |
3,465 |
||||||||||||||||||||||||
Business Restructuring |
$ |
459 |
$ |
1,715 |
$ |
1,642 |
$ |
2,346 |
||||||||||||||||||||||||
Cash-Settled SARs |
$ |
413 |
$ |
1,059 |
$ |
2,322 |
$ |
943 |
||||||||||||||||||||||||
Environmental Remediation |
$ |
- |
$ |
- |
$ |
2,908 |
$ |
- |
||||||||||||||||||||||||
Voluntary Debt Prepayment |
$ |
- |
$ |
- |
$ |
1,247 |
$ |
- |
||||||||||||||||||||||||
Total Pre-Tax Adjustments |
$ |
2,703 |
$ |
6,208 |
$ |
16,648 |
$ |
6,754 |
||||||||||||||||||||||||
Cumulative Tax Effect on Adjustments |
$ |
(663) |
$ |
(1,606) |
$ |
(4,044) |
$ |
(1,744) |
||||||||||||||||||||||||
After-Tax Adjustments |
$ |
2,040 |
$ |
0.09 |
$ |
4,602 |
$ |
0.20 |
$ |
12,604 |
$ |
0.54 |
$ |
5,010 |
$ |
0.21 |
Table III |
||||||||||||||||||||||||||||||
Deferred Compensation Plan |
||||||||||||||||||||||||||||||
The full effect of the deferred compensation plan on quarterly pretax income was $1.8 million of expense versus $3.4 million of expense in the prior year. The year-to-date impact was $8.5 million of expense versus $3.5 million of expense in the prior year. The accounting for the deferred compensation plan results in operating income when the price 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 |
$ |
97.06 |
$ |
91.91 |
$ |
87.52 |
$ |
74.00 |
$ |
87.01 |
$ |
78.01 |
$ |
83.18 |
|||||||||||||||
The deferred compensation income statement impact is summarized below: |
||||||||||||||||
Three Months Ended September 30 |
Nine Months Ended September 30 |
|||||||||||||||
($ in thousands) |
2019 |
2018 |
2019 |
2018 |
||||||||||||
Deferred Compensation |
||||||||||||||||
Operating Income (Expense) |
$ |
(1,610) |
$ |
(4,222) |
$ |
(11,478) |
$ |
(4,971) |
||||||||
Other, net – Mutual Fund Gain (Loss) |
(221) |
788 |
2,949 |
1,506 |
||||||||||||
Total Pre Tax |
$ |
(1,831) |
$ |
(3,434) |
$ |
(8,529) |
$ |
(3,465) |
||||||||
Total After Tax |
$ |
(1,392) |
$ |
(2,610) |
$ |
(6,482) |
$ |
(2,633) |
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 currency 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). The table below presents the impact that foreign currency translation had on the changes in consolidated net sales and various income line items for the three and nine month periods ending September 30, 2019 as compared to 2018: |
||||||||||||||||||||||||||||||||
($ in millions) |
Three Months Ended September 30 |
Increase |
Decrease Due to Foreign Currency Translation |
Nine Months Ended September 30 |
(Decrease) |
Decrease Due to Foreign Currency Translation |
||||||||||||||||||||||||||
2018 |
2018 |
2019 |
2018 |
|||||||||||||||||||||||||||||
Net Sales |
$ |
451.6 |
$ |
508.0 |
$ |
(56.4) |
$ |
(7.2) |
$ |
1,413.8 |
$ |
1,527.2 |
$ |
(113.4) |
$ |
(33.2) |
||||||||||||||||
Gross Profit |
77.4 |
83.6 |
(6.2) |
(1.0) |
255.0 |
264.8 |
(9.8) |
(4.6) |
||||||||||||||||||||||||
Operating Income |
28.0 |
27.1 |
0.9 |
(0.5) |
98.8 |
113.8 |
(15.0) |
(2.5) |
||||||||||||||||||||||||
Pretax Income |
27.4 |
24.7 |
2.7 |
(0.5) |
98.0 |
107.2 |
(9.2) |
(2.4) |
Table V |
||||||||
Stepan Company |
||||||||
Sept. 30, 2019 |
Dec. 31, 2018 |
|||||||
ASSETS |
||||||||
Current Assets * |
$ |
798,028 |
$ |
833,893 |
||||
Property, Plant & Equipment, Net |
611,279 |
608,892 |
||||||
Other Assets |
109,063 |
71,829 |
||||||
Total Assets * |
$ |
1,518,370 |
$ |
1,514,614 |
||||
LIABILITIES AND STOCKHOLDERS' EQUITY |
||||||||
Current Liabilities |
$ |
292,963 |
$ |
338,582 |
||||
Deferred Income Taxes * |
25,218 |
24,961 |
||||||
Long-term Debt |
207,783 |
239,022 |
||||||
Other Non-current Liabilities |
137,499 |
103,864 |
||||||
Total Stepan Company Stockholders' Equity * |
854,209 |
807,425 |
||||||
Noncontrolling Interest |
698 |
760 |
||||||
Total Liabilities and Stockholders' Equity * |
$ |
1,518,370 |
$ |
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-third-quarter-results-and-nine-month-earnings-300943562.html
SOURCE