Stepan increases PU sales and earnings

Stepan Company, Northfield, Illinois, USA, has announced a 53% rise in sales and “significantly better” earnings for its Polymers group in the first quarter. The business produces aromatic polyester polyols (APPs), polyurethane systems as well as phthalic anhydride for use in plasticizers and polyester resins.

In the three months of 2005, the Polymer group sales rose to USD57.4 million largely because of higher selling prices caused by continued raw material cost increases, said Stepan. Sales volume grew 5% for the period ended March 31, according to the company.

Polymer earnings improved due to higher volumes, particularly for higher margin polyurethane polyols, and an improved sales mix, said the company. Volume growth was partially offset by a decline in phthalic anhydride volume, added Stepan.

“The polymer group has started the year with a strong performance, but weaker specialty products earnings offset the improvement,” commented F. Quinn Stepan, chairman and CEO of Stepan. He said that the company is optimistic about full year earnings growth.

Stepan produces APPs at a 100,000 MT/yr facility in Millsdale, Illinois, USA, and a 30,000 MT/yr plant in Wesseling, Germany. The company also recently started a joint venture with Sinopec, Jinling Petrochemical Corporation, Nanjing, China, to build a 20,000 MT/yr APPs plant to supply the Chinese market.