Stepan Company, a major manufacturer of specialty and intermediate chemicals, Q2 net income was a record $43.3 million, or $1.85 per diluted share, versus $35.7 million, or $1.54 per diluted share, in the prior year.
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Adjusted net income was a second quarter record $42.2 million, or $1.81 per diluted share, versus $38.3 million, or $1.65 per diluted share, in the prior year. Total Company sales volume increased 5% versus the prior year.
Surfactant operating income was $45.9 million versus $48.5 million in the prior year. This decrease was largely attributable to higher North American supply chain costs due to inflationary pressures and higher planned maintenance costs. Global Surfactant sales volume decreased 6% but the associated impact was more than offset by improved margins, product and customer mix.
Consumer product sales volume was negatively impacted by feedstock supply issues following the first quarter 2021 severe weather in Texas, customer inventory rebalancing efforts and lower demand for cleaning products versus the pandemic peak in 2020. Higher demand for products sold into our institutional cleaning and functional product end markets partially offset the above.
Polymer operating income was $23.0 million versus $15.5 million in the prior year.
This increase was primarily attributable to a 44% increase in global Polymer sales volume.
Global rigid polyol volume was up 41% versus the prior year largely due to the INVISTA polyester polyol acquisition. Global rigid polyol volume, excluding the INVISTA acquisition, was up 7% versus the prior year. Higher demand within the phthalic anhydride and specialty polyols businesses also contributed to the sales volume growth.
Specialty Product operating income was $7.0 million versus $3.2 million in the prior year. This increase was primarily attributable to order timing differences within food and flavor business and improved margins within our medium chain triglycerides (MCT) product line.
The effect of foreign currency translation positively impacted net sales by 4% and net income by $1.4 million, or $0.06 per diluted share, versus the prior year. ■