Stepan Company (SCL) has reported 34.61 percent plunge in profit for the quarter ended Dec. 31, 2016. The company has earned $8.42 million, or $0.36 a share in the quarter, compared with $12.87 million, or $0.56 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $12.29 million, or $0.52 a share compared with $17.01 million or $0.74 a share, a year ago.
Revenue during the quarter went up marginally by 0.32 percent to $420.64 million from $419.29 million in the previous year period. Gross margin for the quarter contracted 148 basis points over the previous year period to 16.34 percent. Total expenses were 97.64 percent of quarterly revenues, up from 95.18 percent for the same period last year. That has resulted in a contraction of 246 basis points in operating margin to 2.36 percent.
Operating income for the quarter was $9.93 million, compared with $20.22 million in the previous year period.
"After record results in 2016, we are positioned for further growth in 2017," said F. Quinn Stepan, Jr., chairman, president and chief executive officer. "Although we had several events that negatively impacted the fourth quarter of 2016, our base business remains strong. Benefits from our product and end market diversification efforts, continued growth in core polymer markets, and enhanced internal efficiencies should positively impact 2017."
Working capital increases marginallyStepan Company has recorded an increase in the working capital over the last year. It stood at $388.28 million as at Dec. 31, 2016, up 3.17 percent or $11.95 million from $376.33 million on Dec. 31, 2015. Current ratio was at 2.31 as on Dec. 31, 2016, down from 2.55 on Dec. 31, 2015.
Debt comes downStepan Company has recorded a decline in total debt over the last one year. It stood at $288.86 million as on Dec. 31, 2016, down 7.58 percent or $23.69 million from $312.55 million on Dec. 31, 2015. Total debt was 21.34 percent of total assets as on Dec. 31, 2016, compared with 25.21 percent on Dec. 31, 2015. Debt to equity ratio was at 0.45 as on Dec. 31, 2016, down from 0.56 as on Dec. 31, 2015. Interest coverage ratio deteriorated to 2.96 for the quarter from 5.36 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
