By Kiah Haslett | Northfield chemical manufacturer Stepan Co. said first-quarter profits
were $20.7 million, up 36 percent from a year ago, on increased sales
helped by favorable foreign currency translations.

First-quarter earnings, which were $1.88 per diluted share, exceeded
analysts’ expectations of $1.32 a share. In morning training, Stepan
shares were up 7.8 percent to $66.52 on the news.

Stepan saw rising sales of surfactant, a base for detergent. Sales of polymer, a main product in roof insulation, also rose, as did sales for an automotive plasticizer, as well as specialty products, also rose. Dan Rizzo, an analyst at Sidoti & Co., was surprised by the 30 percent growth in the polymer segment. He predicted the next three quarters of polymer would be more moderate, closer to 11 percent.

Improved sales in all three sectors were aided by raw lower raw material costs.

“Our record first quarter earnings were the result of sustained margins and improved volumes across all three business segments,” said F. Quinn Stepan, Jr., president and chief executive officer.  “We believe our core markets provide opportunities for additional profit growth.”

Stepan said the company is adding new capabilities to its surfactant plant in Brazil and expanding its polyol plant in Germany.

“These and other investments should create the opportunity for us to sustain our earnings momentum,” he said.

Stepan expects to continue globalizing their chemical manufacturing, and is in discussion with lenders about an additional $40 million in long-term debt financing for capital expenditures and possible acquisitions.