Q3 2024 Stepan Co Earnings Call Transcript
Key Points
- Stepan Co (SCL) reported a third quarter adjusted EBITDA of $53 million, marking an 11% increase compared to the previous year.
- The company achieved significant growth in its agricultural business, with a 22% increase in global agriculture volumes.
- Stepan Co (SCL) is on track to meet its $50 million cost reduction goal for 2024, demonstrating effective cost management.
- The company declared a quarterly cash dividend increase of 2.7%, continuing its 57-year streak of dividend growth.
- Construction of the new alkoxylation production facility in Pasadena, Texas is 99% complete, expected to contribute fully by the second half of 2025.
- Global sales volume decreased by 1% due to demand weakness and competitive pressures in the polymer business.
- The polymer segment experienced a 12% decrease in net sales, primarily due to sluggish demand and competitive pressures.
- Free cash flow for the first nine months was only $7 million, impacted by increased inventory levels and planned plant turnarounds.
- The company faced a $3.3 million expense related to a fraud event in Asia, affecting corporate expenses.
- The specialty products segment saw a 24% decrease in net sales, driven by lower selling prices and a 5% decline in sales volume.
Good morning and welcome to the Stepan Company third quarter 2024 earnings conference call. (Operator instruction). Please be advised that today's conference is being recorded as a reminder. This call is being recorded on Wednesday, October 30th, 2024. It is now my pleasure to turn the call over to Mr. Sam Hinrichsen, Vice President and interim Chief Financial Officer of Human Company, Mr. Hinrichsen. Please go ahead.
Good morning and thank you for joining Stepan Company's third quarter, 2024 financial review. Before we begin, please note that information in this conference call contains forward-looking statements which are not historical facts. These statements involve risks and uncertainties that could cause actual results to differ materially including but not limited to prospects for our foreign operations, global and regional economic conditions and factors detailed in our securities and exchange commission's filings.
In addition, this conference call will
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