Printer Friendly

STEPAN ANNOUNCES RECORD EARNINGS FOR THE YEAR

 NORTHFIELD, Ill., Feb. 17 /PRNewswire/ -- Stepan Company (AMEX: SCL) today reported record sales and earnings for 1992.
 Net earnings for 1992 were up 26 percent to $15,829,000, or $2.93 per share, compared to $12,547,000, or $2.30 per share reported in 1991. Net sales for the year were $435,764,000, up five percent from $414,069,000.
 The fourth quarter resulted in a loss of $1,151,000, or 29 cents per share compared to net earnings of $3,628,000, or 67 cents per share reported in the same quarter of 1991. This was the result of unusual charges to earnings for environmental expense and a write-down of an investment in Mexico. The unusual charge for environmental expenses resulted in an after-tax charge of $3,100,000 to earnings, or 63 cents per share and the write-down of an investment in Mexico had an after- tax impact of $1,300,000, or 26 cents per share. Net sales were up four percent to $104,554,000 compared to $100,727,000 recorded in the fourth quarter of 1991.
 The results for the year, in addition to the unusual charges, reflect the impact of the adoption of a new accounting standard for income taxes and a change in accounting method for investment tax credits. This resulted in a cumulative benefit of $5,406,000, or $1.02 per share. These changes are retroactive to Jan. 1, 1992, and will result in the restatement of earnings for the first three quarters of 1992. The effective tax rate for 1992 was 40 percent compared to 33.5 percent for 1991. The change in accounting for investment tax credits and the write-down of an investment accounted for a majority of the increase in the effective tax rate increasing the provision by $834,000, or 16 cents per share.
 Excluding the unusual charges and changes in accounting methods, the company had a record year exceeding the previous record of $14,491,000 in 1990,'' said F. Quinn Stepan, chairman and president. Both surfactants and polymers experienced improved earnings while specialty products were flat. Our international surfactant operations also reported a record year driven primarily by European operations. Earnings of our domestic surfactant operations were down slightly due to decreased margins. The polymers product group experienced a very strong year. Both phthalic anhydride and polyurethane polyols recorded significant improvements over 1991.
 Operating expenses rose five percent. The majority of the increase was due to legal expenses. Interest expense was up two percent as a result of higher average debt levels partially offset by lower average cost of funds.
 Overall it was a good, solid year for the company; we achieved a record
in a less than robust economy,'' said Mr. Stepan. We also feel good about 1993 and look forward to another strong year.''
 Stepan Company, headquartered in Northfield, Ill., is a leading producer of basic and intermediate chemicals used in household, industrial, personal care, agricultural and energy-related products. The stock is traded on the American and Midwest Stock Exchanges under the symbols SCL and SCLPR.
 STEPAN COMPANY
 Statement of Income
 (Unaudited - 000S Omitted)
 Periods ended Three Months Twelve Months
 Dec. 31 Percent Percent
 1992 1991 Change 1992 1991 Change
 Net sales $104,554 $100,727 4 $435,764 $414,069 5
 Operating costs and expenses:
 Cost of sales 84,943 81,134 5 353,950 340,047 4
 Operating expenses 12,931 12,776 1 51,305 48,672 5
 Interest expense,
 net 1,788 1,465 22 6,644 6,484 2
 Unusual charges 6,500 -- -- 6,500 -- --
 Total 108,162 95,375 11 418,399 395,203 6
 Pre-tax income (loss)
 before accounting
 changes (1,608) 5,352 (130) 17,365 18,866 (8)
 Provision for income
 taxes (benefit) (457) 1,724 (127) 6,942 6,319 10
 Net income (loss)
 before accounting
 changes (1,151) 3,628 (132) 10,423 12,547 (17)
 Cumulative effect
 of accounting
 changes (a) -- -- -- 5,406 -- --
 Net income
 (loss) $ (1,151) $ 3,628 (132) $ 15,829 $ 12,547 26
 Net income (loss) per
 common share before
 accounting changes
 Primary $ (0.29) $ 0.67 (143) $ 1.91 $ 2.30 (17)
 Fully diluted $ -- $ -- -- $ 1.87 $ -- --
 Cumulative effect of
 accounting changes
 per common share
 Primary $ -- $ -- -- $ 1.02 $ -- --
 Fully diluted $ -- $ -- -- $ 0.97 $ -- --
 Net income (loss)
 per common share
 Primary $ (0.29) $ 0.67 (143) $ 2.93 $ 2.30 27
 Fully diluted $ -- $ -- -- $ 2.84 $ -- --
 Average shares
 outstanding 4,916 5,437 (10) 5,286 5,458 (3)
 NOTE: (a) Accounting changes are adopted in the fourth quarter, and retroactively applied effective Jan. 1, 1992.
 -0- 2/17/93
 /CONTACT: Walter J. Klein of Stepan Company, 708-446-7500/
 (SCL)


CO: Stepan Company ST: Illinois IN: CHM SU: ERN

TM -- NY106 -- 7516 02/17/93 16:38 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Feb 17, 1993
Words:800
Previous Article:SOUTHLAND EXPECTS TO RECORD NONRECURRING CHARGES IN FOURTH QUARTER
Next Article:STEPAN DECLARES QUARTERLY DIVIDENDS
Topics:


Related Articles
STEPAN REPORTS 1991 SALES AND EARNINGS
STEPAN REPORTS IMPROVED THIRD QUARTER RESULTS
STEPAN REVISES 1993 OUTLOOK
STEPAN REPORTS LOWER FIRST QUARTER EARNINGS
STEPAN REPORTS RECORD QUARTERLY EARNINGS
STEPAN ANNOUNCES RECORD SALES AND EARNINGS
STEPAN EXPECTS RECORD YEAR IN SPITE OF LOWER 2ND QUARTER
Stepan Reports Record Earnings
Stepan Expects Record Year in Spite of Lower 1st Quarter Net Income
Stepan Reports Record Quarterly Earnings on Target for Record Year

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters