SCL - Earnings call transcript Q4 2018

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Operator

Ladies and gentlemen, thank you for standing by and welcome to the fourth quarter and full-year 2018 earnings call. [Operator Instructions] As a reminder, this conference is being recorded today, Thursday, February 21, 2019. I would now like to turn the conference over to Mr. Luis Rojo, Vice President and Chief Financial Officer. Please go ahead, sir.

Luis Rojo

you financial Stepan review. thank and fourth and XXXX full-year morning, for Company's joining quarter Good

us Exchange not our statements or issued, Before time global to foreign in make could but contains We at and are section not presentation, this conditions when begin, as we cause have joining and online conference we Relations facts. and over encourage Securities release we please you're that you same hope website. differ available review detailed Commission prospects factors which information call regional these the forward-looking note actual results limited the earnings you filings. find slides made www.stepan.com phone, Investor statements, economic materially, our uncertainties to, the slide risks under available the Whether the operations, and involve that at and and helpful. to information historical in is investor that of These including, the which our we perspectives of approximately

I with the Quinn to over Officer. Chairman, to Chief Jr., like our Now call Stepan President turn and would that, Executive

Quinn Stepan Jr.

Thank you joining today. year net strong flows income all year-end. Company for first and morning million us the $X good you, and higher time, at in cash had net for a sales with sales, debt reported Good The XXX, no volumes, Luis. in thank billion over net $XXX

sales record was than reported eight record million, net X% We XXXX Polymer was optimization. the income $XXX.X basis versus in year. European record and year rate. sales acquisition, market income percent X.X%, volume, loss net income last net recorded effective reflects higher quarterly versus which American in manufacturing our share net product prior down annual the energy by XX% lower The the accretive a XX was Surfactant Surfactant and have years. an increase North to Reported The of of XX up Adjusted higher The we a Specifically, for XXXX of insulation net Mexico business growth European impact a continued XXXX driven as for $XXX.X and for of improved into that XXXX. America million, polyiso still the income versus market. conservation due was the had points mix customers last our XXXX. now growing sell due insulation and and margin challenges boards, is adjusted efforts. income XXXX, to earnings were the tax North product Adjusted

the and XXXX both Product Specialty business $X.XXX Company would the to results that Our At through XX%, details results. or dividend few cash Luis the Company more for marking our about increased The the increased to a has share by point, fourth like in year consecutive shareholders. its XXst I dividend quarter the this quarter improved cash quarter quarterly fourth walk per full full-year its year. and

Luis Rojo

comments My follow will slide Quinn. you, presentation. Thank the generally

Table million comparable X net of quarter. Slide a Because press or quarter or for Appendix we release. presentation $XX.X in X and is XXXX full decrease versus fourth diluted $X.XX XXXX. the the the Let found net GAAP of with be non-GAAP to reconciliations X $XX.X to start income diluted a of can measure, in X% of provide quarter fourth Adjusted was these per the the us a share the adjusted and measures, per share, recap $X.XX income million

our on price operating as compared compensation Company's we the diluted of some decreases, compensation the or per stock expenses in adjustment changes When payouts of is future however, is income; the change Naturally, $X.XX quarter The quarter, allow employee date, last value. we for item this $XXX,XXX incentive closure the Specifically, XXXX. to diluted income period generated future diluted in defer opportunity stock stock Canadian future adjusted operational their after-tax or item related $X.X our also deferred from income of consist discussion. restructuring income all business until per quarter deferred Adjusted of income reported net deferred income the expenses. employee price. excluded the price, change mark restructuring share and the market normal with we excluding compensation share to to liability the consistently $X.XX income net income same compensation million our to exclude adjustments year. this or the payment current and charges only for compensation of employees in in net share $X.XX are $X reflected based Because to million this plant

year's decrease are We the our additional $X breaks and basis. after-tax compared The net and Company here income. income, expect shows $X million an an of after-tax noted this the Because expenses Canadian decommissioning million in down fourth bridge to in X quarter last plants figures total on German is Slide at the quarter for fourth to net adjusted XXXX. the earnings

will for XXXX. XXXX, each U.S. due tax Products Corporate XXXX legal rate up was discrete Specialty were mainly the impacted XX.X% during XX% that tax prior was in segment Polymer costs were effective and a XXXX. the Surfactants favorable full in summarize, lower in We The while one-time to rate versus projects XXXX was to expenses down Company's the quarter versus XX.X% tax decrease year. cover in more for statutory XX% of year of The detail, but a versus full and one-time XXXX. year certain to due the lower

XX%. sales be the the for year effective year increased results X% selling to X average focused same prices Surfactants the on net from XXXX ago. basically a segment $XXX while range to flat. in Slide tax Volume quarter. quarter expect rate of the Surfactant full were million, XX% flat We were

first region $X.X United income to due Foreign in States. manufacturing quarter and of million exchange Latin or savings. for operating the Mexico. increase in basis operating was showed our support XX% we distribution America the in driven due sales primarily of cost translation America and production and acquisition increased XXX the primarily by surfactant had results operating channel a driven Asia points. up, same X In the margins in is positive for business year, acquisition increased business were category, and most volume prior small because in the North segment an to in versus Surfactant and the accretive points. our used mix unfavorable the by North improved demand to is sales strong Brazil related impact of The and in that growth The margins improved Asia quarter was to price year. America relatively bridge,

be by negatively at a First results sulfonation our that Mexico in plant occurred XXXX America failure for equipment quarter XXXX. should January Ecatepec impacted Latin of

albeit of to we deliver down results. results business of low product impacted case However, unfavorably $X XXXX, favorable the range a for at XXXX. expect fourth issue. end diligently of the the our claim on European also volume primarily million. the Lower at European We're working our were resolution due to still quarter to fix in

the the net on quarter sales negatively global prices shortage. XXXX prior associated versus were in principally pressures with a volume, quarter-over-quarter. selling lower $XX.X million Slide Now to lower volumes quarter and back of the same the European down X; the shutdown. from X% million, for was MDI polyol Europe, polyol sales last costs X% due due were volume X%, margin income polyol income down $XXX quarter effect $XX.X for The rigid mostly turning stronger higher decreased Operating with maintenance sales X% volume U.S. Global impacted net down scheduled by by translation where rigid to dollar X% volume volume. million lingering the driven year. year due was decreased while to a period. decreased of flat Total to in Polymers Operating PA

the operating polyol American continued half material the by favorable PA higher rigid timing anticipated for with due XXXX food polyol in We our the second volume. remains business. rigid North market X% conservation of increased strong in energy As our Product increased income and versus global volume and versus year, decreased business pharmaceutical the a prior Specialty to XXXX, shutdown. order scheduled $X.X driven margins insulation half primarily second differences to million global due anticipated to X% increase in of efforts. believe income a maintenance operating volume due

million, share, bridge, We compared in and bridge in operating our XX.X%. The of The and segment year net XXXX. growth from year Adjusted operating decrease the here increase XX% was figures performance. a income take strong acquisition The operating in and $XXX.X to Like an Slide European XX% diluted a X increase for shows $XX.X was increase North net X% XX of the quarter income versus the on are demand Specialty year income diluted the Slide on $X.XX in record productivity a Surfactant to due points. of financial the will Mexico. record lower year. challenges pharmaceutical was was at The income per now operating full-year XXXX and basis XX XXXX. a versus from operating, North moment in volume or delivered decrease margin increase up Polymer to or full share X% million Product flavor prior after-tax quarterly recap per America due $XXX.X by a volumes. to earnings $XX.X $X.XX XX.X% versus million, XXXX again last of driven $XXX.X XXXX. was first expansion Company's improved XX% million XXXX was in margin and a primarily to net million sales income due margins sales strong in business. to Ecatepec prior noted total from basis. Specialty America the the

Slide debt we our remains sheet had XX, to balance no strong, at as Turning year-end.

and XXXX, also our select $XX dividend XXst In on group consecutive very returned us placing of XX, cash dividends a Quinn on value. now for in share shareholders to via to have plans our repurchases. update Slide year, you increased Beginning the million increase We companies. will our we shareholder

Quinn Stepan Jr.

business Polymer that volume deliver base years, full our from in into the will three believe past Luis. will After Polymer materials will continue functional growth versus efforts to improvement Surfactant our you, globally. are new results both Thank for we year improved insulation products, into and from expanded efficiencies margin diversification optimistic our record benefit of and our growing business and business believe sales customer benefit market XXXX. internal We we broad our incremental technologies, each the

We also XXXX. should expect that operating Specialty Product income improve in

expect levels to fund increase support sustainability. our growth, projects to in to innovation XXXX and capital We expenditure

progress the continue momentum well to While long-term in we priorities strategic we positioned year XXXX, are on delivering our made XXXX. another in record also delivered and

operational intimacy, will and We excellence shareholder customer continue value priorities, on focusing our market by innovation, to maximize M&A. strategic diversification

the engrained the markets, Our in these core foundation Company's are of at our from as to strategy. and be this are personal execution opportunity key of Stepan specialty markets specifically agricultural, strategy. our rates market into for currently oilfield the Surfactants, organization, low values, has continues which serve throughout within More greater component share penetration a above provides returns end diversification relatively base. current the asset improve care GDP. to an growing large which Market

efforts biocides for customers. and, will by base the specialty chemistries base. well fact, and pursued alkoxylates environmentally small our portfolio year, believe to regards aggressively focused of our suited to production to new including product Personal being delivering customer lead higher-performing, launches. new we grew presence all expand customers' in in In on XX% First, are from markets of albeit providing in with across participation are oilfield, last Opportunities our friendly market our oil cost-effective remain several agricultural market, our our the With the in farmers our use technical in solutions to specialty end efforts resources. solutions a Care to of

as continues a group. maintain to Surfactant intimacy seek continues leadership priority priority of to Tier customer key to our X Tier X and market several our Next, position we for be Growth be and within our businesses. base a customer

Our grew X% sales customers XXXX. to in these

to products their us local smaller so knowledge help win the in in product markets. they within applications can and Our companies consumer enables and compete expertise develop industry

customers Our effectively, more reach, frequently. enhanced to world. also digital a aspect resources, acquire of and objective is sales base strategy. as customers, have customer In as to this local strategy heroes touch around reach added these our and key more Innovation fragmented order product is well divide, we new the to our development

we the headwinds our in optimistic polyester rigid polyol the our next-generation for the Surfactant remain and to innovate friendly globally. in work in leader continued to Within recent standards, to a developing and to rigid growth As segment, we our for more are continue pipeline. chemistries create about customer environmentally energy market, the of our technologies we research value-added efforts construction customers. excited due the increased polyol base, growth continue advances our business, on Despite insulation about conservation solvents the market surfactant green and in

Personal customers Our body liquid launch This more for products such while replace to solvent reduce for of and Care customers viscosity a new end maintaining as to market the technology hand enables environmentally advantaged cleansing foam performance. shampoos, expensive allows cost formula washes soaps. and solubilizers

within oilfield grow next have U.S. is stimulation of year cost market, per over successfully Finally between fracking reduced the XX% the the the five to X% including hydraulic hydraulic to oil segment years. projected fracking. producers

modifiers friction costs Use flowback further. patent growing of fracturing to freshwater, costs New in restrict should use Stepan provide which reduce has [indiscernible] that chemistries can the significant offer technology pending regulations in that products. use the for of including boosters biocides is for market reducers advantages. developed opportunities our fracking, help and biocidal due production

an reduced of Although remain Surfactant in during the still market confident saw due that XXXX, be growth will area oilfield to we our of lower for fourth demand XXXX. we quarter business oil the prices

is operational our strategy. integral excellence our of on an part Next, focus

reduce to $X XXXX in opportunities continue excess New Fieldsboro, in contributed We million XXXX. savings of to actively our of networks. plant Jersey our The in restructure pursue capacity

to on seize fourth further future a growth. and German plan refocus markets the our XXXX, During production higher of we our repurpose margin polyol to assets executed support at fixed cost quarter surfactant to resources reduce plant surfactant

also We practices, value saving XXXX application drive opportunities that will network and cost create Ecatepec our in of believe best sulfonation synergies further the from acquisition.

the optimize, our serve and more to utilization improve customers We the around continue examine asset efficiently for further base to opportunities world. capacity our

important growth. Finally, a tool represents to as means deliver M&A an EPS

years, marketplace have for relatively multiples in have seen over we recently. the multiples high few the acquisitions drop Although been chemical last

and continue fill position as Given end western in merchant operating the we XXXX of plant to largest the product new prudently XXXX, the production in previously was amphoteric XXXX accretive with The portfolio issues M&A in sheet, hemisphere our utilize of the should strength surfactants surfactant acquisition million given to add balance our our anionic lower $X at our million income acquisition. market disclosed and to plan in that In chemistries. strengthened we to discussed. the of contribute in to platform gaps the and Ecatepec $X the we producer range

provides customer innovation for we we core growth capture people positioned continuous Our values, first, to our focus, time. are call. integrity, accomplish feel at The our improvement, the will prepared call and how for portion [Leiva] please turn today's like opportunities and market and sustainability concludes we shareholders. of the at plan. question This challenges remarks our questions. this well describe the to review for opportunities We'd this you, instructions over

Operator

the from comes question ahead. of go first Seaport Please Our Instructions] Securities. line Global Harrison Mike [Operator with

Mike Harrison

little to a in flat you of slowed on in environment intense the of still terms competition Polymers. there? seeing pointed you price competitive a if pretty the the but environment Obviously, if comment what Quinn, some wondering has or wondering could down you if I bit are seeing pricing, was you're

Quinn Stepan Jr.

Yes, I short is, the probably a think - it's slowed it answer bit. down

the space price lower think in decreased this the today currently. the marketplace in available us of I competition to amount have margins

Mike Harrison

as we're toward on seen quarter. bit We've season? that comment what the relates to hopefully improvement players maybe during overall Europe any a Polymers construction spring the you're you in better a heard little slowing can it in just terms starting head Have of was from And as you business? particular trends fourth the several seeing to

Quinn Stepan Jr.

in say, improvement little February, in has I a improvement January of and Mike, recovered little market bit Europe point. specifically; this say the a would we would bit it's to that an I at but saw early state fully

before conclusions that we're that. coming seen we've sustain first half encouraged what of see year, need about itself think in and any the I to So we a but to by month the

Mike Harrison

the that if QX? bit for? maybe integrated that improvements you efficiency business. talk about detail more in you And a it's process in network little give referenced aim saw Have about the you in issues production plant it there. the Mexico the you surfactants your - into the Have you then Wondering fully completed and you integration can just

Quinn Stepan Jr.

So and facility sulfonation currently our down into shut will for that is the unit at first shut down quarter. quarter for the be and of second month the probably balance a

that quarter. a that and equipment full delayed an to failure address we the so by occur working probably to integration had So that had are process we has anticipated we

and move Mexican we So as Ecatepec move historic our us and those to into facility Matamoros believe is that. synergies our facility. there the sulfonation rationalize meaningful in We are in plan volume available to that complete customers

at our I the to delayed second point, quarter response be. that probably months won't so market very initial by three the been - acquiring So But that's would facility. have occur end Stepan of the probably that until what are encouraged we this from plan

prior grown down path to on of in the outage. end our Mexico the we good lower albeit Mexico, in of a business range we've shutdown down about because and that the will we're production had be communicated Our XX% by that believe so at

We facility. about of are excited ownership very our enthusiastic that and

Mike Harrison

that and for pricing XXXX? pricing talk about back, segment look and during comment materials last you're I I'll on And Were now it wondering into turn operating the we raw either question seeing. maybe raw on on out then a then you you the is in both raw if versus for outlook material as surfactants. am And drag QX? just polymers versus environment can can margin material

Quinn Stepan Jr.

throughout Surfactants our in business tailwind a was it oleochemical say, with prices would I XXXX. Yes. falling

slightly most year. for oleochemical part of looking a the - We're the think start us through to in environment that margins improve the I XXXX at enabled relatively So stable XXXX. our

seeing in we'll benefit in and are benefit in see We QX then small Specialty should our that that benefit relatively the QX. big business, some some business or into but picture, Products going

So glycol, based raw perspective, is we've from business. key on diethylene Polymer for seen material petroleum some which a a prices declining our

also more higher prices work but a tail priced Polymer benefit then bit in some in of due business some months States to Europe. through diethylene and inventory see We will specifically QX first the for glycol the really our we end QX, should in and two of falling QX United little the in

incremental talk do margin So glycol. about in mostly business; we in come the decrease diethylene from it we will Polymer believe improvement the

Mike Harrison

All very much. right. Thanks

Quinn Stepan Jr.

products petroleum relatively narrow within Other up are be not does appear a today, buy and that at a to that we this point. bumping so down or significant tailwind headwind range

Operator

line Our Jason the Review. of with next Great Lakes is from go Rodgers ahead. question Please

Jason Rodgers

out about could that of am Polymer us you kind talked in that if what could there in for You just the the business positive that you are in grow see optimism wondering volumes that frame that segment? XXXX. I are factors

Quinn Stepan Jr.

So, the last year, share in market. lost talked we about some

that marketplace. We have the regained in share

point So that's one aspect of XXXX. XXXX increased versus that we in to terms volume can

our or our board different technologies, of issue second We regain that competing share extruded are the relates polyiso business. European that board, some phenolic more to to customers one starting which rock-wool, is The several believe polystyrene. boards, the of polyiso

And boards MDI that we've in because are lost that of XXXX, in So some the seen shortage regaining XXXX. we signs in polyiso share XXXX. share

continue to We encourage in will basis to government our would issue are will for grow that standards in space. conservation give and that's just going us to efforts that evolve and the continue additional those do that benefit on would global be third two market point optimism due to energy insulation market believe growth the that itself. So and a then space. this volumes the growth that were to the we And the things

Jason Rodgers

share, you happened lost some market around there? And mind what then, detail more European would that giving insulation

Quinn Stepan Jr.

in aromatic hard together get shortage product In our In expensive XXXX, and which board. MDI, to is polyiso very and was the a there the two that product is was XXXX, polyester you - make which polyol, - make marketplace. mixed put with that those you to

versus insulation are told very So a And that architects products, alternative XXXX. polyiso low are other no shortages, use share specking of widely we as Currently, technology they the and our we've customers, polyiso the currently a Europe. been of beginning of to result in in as historic that, are who beginning in by price of forms is board. MDI advantages are with contributes recapture the there because it is - the that of available the result projects XXXX

Jason Rodgers

Care And then market? finally, front of opportunity that else anything year? new new for solvent product the aware we can how be large be this Personal should an of on significance of in the And

Quinn Stepan Jr.

both of kind introducing the our our Tier if So, customer will, smaller we're with base our technology. X new working local - heroes, and you

that this the in the a of would that developmental at we're and are on by the are we phase number customers feedback getting updates you what customers contributor We business basis start encouraged with point, I to and our global would tell be a going forward. we volumes. as just sell today starting relatively provide And meaningful to small that to we'll We're customers. some is convert

a new for just technology quarter, performance hair that, markets. In - their to is first as got better this profile, believe what we we've environmental customers in is conditioner, it our introduced past but significant this a which and technology advantages that as new also and addition for we

But those Personal technologies . Care that goes big that how see are two the offered we'll So today. we've

Operator

the question ahead. The Please from with of Stifel. Anderson is line go next Vincent

Vincent Anderson

return us you have with for related immediate that investments? the How Could environmental safety-related of much walk maintenance it step in versus capital associated of sort expenditures to an expect XXXX. more up through and would or you

Quinn Stepan Jr.

that are there's people's some our classified reducing that's Yes. hazardous, as reducing reducing which not consumption water our probably emissions. where capital The maintenance I is, related, of and of - some reducing within XX% is return more some mind say, would some we're it, sustainability co-products, short immediate capital, Company, probably answer

to polyol our the prepared capabilities are of spending technology. of polymer would products, And to getting maintenance But sell we refer I kind and enhance basis. to initiatives sustainability to there's just next-generation so going then money the capital on significant as regular those be a

over XXXX So in in carry that XXXX significant the that is well. will as expenditure into

of with there well. the functional our of So products as we or base. dollars a product biocidal to to is And will enhancing capabilities Specialty oxides then fair Products, specialty our amount be to [indiscernible] of higher for associated We'll that. some capabilities capital sell enhancing amine those margins be

Vincent Anderson

platform still side, pipeline M&A good acquisition a at you you your and of when to it's deck you a talk are are matter and your surfactants Surfactants or do about idea chemistries, building your your the On specifically talking in altogether And in have targets maybe slide execution? potentially new about Polymers? prepared pretty point, or chemistries verticals remarks, what referring this that just are you you are complement or of pricing

Quinn Stepan Jr.

or chemistries, our our within platform could that be to the in Polymer base same Surfactant customers than customers. to Surfactant sold that that our to case --primarily chemistries we New it customer for technologies more are sell

some case So platform of we we would are but we've we to in are we've stage identified anywhere deal chemistries, some add would portfolio. near chemistries relatively the I at execution point. this new say early identified And that our targets, to like on, not

communication smaller a couple have. just an don't which acquisitions are opportunistic, We I we various - to but I in that that have identified there bolt-on more, - want existing say, more businesses would were stages complementary other with of

Vincent Anderson

to products. wanted go one last from I me, to the agricultural And back then

on based have of know You product to roughly would to you confirmation step pretty in both a think in expect development strong chance chemicals, have your spec those of your crop understanding new the when about there? success seemed into cycles, to public you being the

Quinn Stepan Jr.

those will dates which months. and - the we to will over occur in customer products customers our numerous that done. occurring be and launches work next will that has Based continue that been over believe We R&D occurring the - be previously be the now XX launch new - will will are where

Operator

And from of Instructions] our question KeyBanc with the is ahead. Siegmeyer go [Operator Capital Markets. Curt line next Please

Curt Siegmeyer

good. I'm

optimistic the as think well, but just of that Just XQ talked Would a get I why as on the if of in raw on that back op your starting in to of to questions terms margin income know you the of you what would front couple XXXX. back and that expect you're material volume happen through benefit be us to level expect earnings you increases to about Polymers. for you walk need kind that kind able of segment? to you would to some

Quinn Stepan Jr.

this XXXX do point. that We anticipate not happening at in

So see at that point, I the this so. as outcome likely don't

Curt Siegmeyer

on can a sort longer-term something have is so what Just walk to you through that just context, of happen? would

Quinn Stepan Jr.

Yes.

volumes So order going from to make continue there assets, happen, than have will de-bottleneck for volume those plans that our to a from and be the assets to to and grow business lower so in costs. and perspective we're to available existing new rather manufacturing new

in perspective, and could that don't in there So, scenario be in the get for will competitive margin back I were help I margin believe try There a be continue environment, see the correspondingly. they margins to to actually current us the reduce from to the most to back likely space, where up this XXXX. increase - to but will some grow volume but and going our cost manufacturing

Curt Siegmeyer

the give on impact just a turning seemingly volumes MDI Could some about of no you but just - one when talked I know expect that a more to on color you little European volume that headwind? longer you be

Quinn Stepan Jr.

quarter weeks mean, of first growth seen Europe. will volume Well, XXXX, date believe six the first in Europe we've in we've growth - grow volume in seen in I and the in year, to the we our

so. So, we're currently, growth seeing

Operator

Securities. Seaport question follow-up Harrison with line of Please a Mike have the sir. proceed We from Global

Mike Harrison

phthalic maintenance understand the on business, is you I the shutdown One had anhydride in QX.

the exclude looks underlying business like your Just we looked. been operating It income wondering the the how year-on-year higher the if what's if have forecast can of for of performance might of that kind business? you outage, kind underlying discuss impact actually of

Quinn Stepan Jr.

at No in anticipated time. as significant change point this

a perspective, of from we what terms I volumes market. merchant to you sell think our in relatively the stable, historical look if at are

is challenges Our customer for they were competitor, be not over the our The associated the be up going perspective. coming what less have going to additional business. mix production the an are going with on that we'll will are from years. some - primary but from to this down some from or to some has evolved it just historical work standpoint from River parts only of there - margins year, Chicago, be shut from a because costs and four They're the and XXXX ourselves, business than changed XXXX, that last Mississippi three in to

in - no try but we'll that the changes the PA recover in So business. to marketplace, significant should anticipated

Mike Harrison

sales and customers then, X mentioned Tier how some those in up talk investments? help you investment returns maybe marketing get to X accessing And expecting Tier additional some you us Surfactants. digital from and and about to frame Can you're related that efforts

Quinn Stepan Jr.

So help our video on in past, customer Brazil doing globally, conferencing XXX using smaller talked and global soon we've customer via laboratories you - to surfactant at a our just about customer in be smart and new virtual to base. added Mexico, basis. small our in real-time the connecting our coordinate but our we try customers us XXXX, with or formulation activities base, reaching and at salesforce.com the to But to base indication, we're give in an

partners, are today. or are distribution them visibility have on some big of basis customers, Now, a those to served some great served of our but very on a them we customers are basis, those direct small, global small through

or that product, in And the we year that but do we not and products so, not iceberg. do new of a the and expand last tip products grew space a be then to customers we one we believe that's X% is to sell them strong global of five of will adding products, a period believe going now the products a two customer, that to just we're four customers, of we number and you but so two on volume portfolio opportunity time, believe over sell that that the basis have

Operator

And Mr. Rojo, are this time. further questions there no at

So, call back I the sir. to will turn now you,

Luis Rojo

to our much interest forward today's Have We to Stepan We Thank joining day. on call. you for Company. in very a and ownership reporting appreciate first great quarter on your call. look us you XXXX

Operator

your conclude line. we the We for you call that that you gentlemen, participation disconnect and does and for conference ask thank your please Ladies today.

Stepan (SCL) 23 Feb 192018 Q4 Earnings call transcript