SCL - Earnings call transcript Q2 2021

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Operator

Greetings, and welcome to the Q2 Stepan Company 2021 Earnings Conference Call.

During the presentation all participants will be in a listen-only mode. Afterwards we will conduct a question and answer session. [Operator Instructions] As a reminder, this conference is being recorded Wednesday, July 28, 2021. I would now like to turn the conference over to Luis Rojo, Vice President and Chief Financial Officer. ahead. go Please

Luis Rojo

thank XXXX and joining Company’s Stepan Good Review. you Quarter Financial Second morning, for

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

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

Quinn Stepan

Thank families be Luis. way had and us. you We opportunity Good your yourself and so. protect for to to thank you morning vaccinated. hope all is you, you to have that be vaccinated joining best and an done have and The family your

higher $XX.X and wash $X.XX results. has these committed $XX.X good from net the the slowed cost. supply per higher adjusted due delivered was share half driven Surfactant products personal were The had to chain plant North first share. XX% second the we Millsdale and customers adjusted disinfection or negatively X%, cost, was our and outage. by income planned doing Both impacted Adjusted had to remain half largely pressures net market. net to diluted of down cleaning, part at adjusted by supply products quarter operating the record delivered and We income a income peak, XXXX, for Stephen million demand by first best income. maintenance inflationary which was million Although essential our company earnings that versus pandemic and American supporting per up

income XX% driven Polymer both polyester our volume business polyol the gone INVISTA business growth. company growth Our and growth. integration has on-track is up XX% polymer well, on was The Overall, of sales by acquisition operating organic our market into was and the INVISTA plans. with

Our up improved order results Specialty within were to due timing, product MCT margins business line. Product our

quarterly September about stock a on share years. of Stepan payable walk XX common consecutive our few results. a will its quarter has second more per details dividend declared Directors dividend cash of for Stepan’s Luis Board through $X.XXX on Our XX, you XXXX. increased

Luis Rojo

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

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

X quarter deferred or per this adjustment net income compensation share, the million income $X.X $X.XX income represent deferred million compensation compensation share $X.XX numbers expenses. minor net reported last and second is of compared the well to down basis. this figure item shows rights the Because year. income, The increase compared excludes with adjusted the the movement in Adjusted related price, discussion. is and Slide diluted deferred deferred in the the change the our plan in earnings restructuring to net compensation we to liabilities the same this to our as appreciation income. deferred after-tax expense net the breaks stock on adjustment diluted stock Specifically company quarter for net sell an consists total for of These fees last of exclude for expense for period Company’s cash operational as second not employees. or from quarter, year’s compensation here $X.X per at quarter

to inflation. were year-over-year prior the effective compared the the more to each due rate We tax will was XX.X% specialty XXXX geographical period. first of prior attributable overall a segment to Company’s quarter less and down higher and versus surfactant The year. primarily cover mix expenses others favorable were This increase year products and Corporate half in in of was higher XX.X% was but detail, in during summarize, where up to expenses the acquisition-related income. polymers all

expect product products year. raw as million, was by prior to the costs, in lower versus by pandemic market. a Surfactant focuses were increase XXXX. X mix disinfection cleaning, up demand improved volume decreased on X%. the This full-year XX%. XX% impacted as reflects $XXX sales effective customer XX%, foreign year-over-year. Volume We to decrease tax versus for in for XX% higher driven the the be end of range quarter. Selling the of material primarily sales and XXXX peak wash well X% net of personal into Surfactant effect due Most the of rate lower Slide The were consumer net the to prices results pass-through positively reduction currency America and product North segment this translation consumer

planned demand operating result due income in functional higher as $X.X offset increased Additionally, experience demand product X% or million to rebalancing for by supply prior was end million Latin products cost for tax higher primarily the markets. into chain quarter. VAT inflationary and year, to products. in demand the inventory year sold and operating Europe maintenance versus consumer decreased offset in customer slightly we continue results institutional a Surfactant to the partially supply issues functional America from benefit feedstock lower recovery and by cleaning costs. America efforts. pressures a results our quarter decreased of $X.X due higher project This partially current North products,

operating Slide of polymers on the in plus polyol volumes, million business due onetime primarily growth. business from raw results growth to Polymers Polymer year. primarily North benefit lower base to prior materials China within volumes. partially and was quarter, up demand and the volume double-digit X. rigid our from decreased XX%, prior improved income XXXX to in double-digit our XXX%. U.S. increase Vista or was the up volumes. the higher to volumes. prices rigid specialty manufacturing and base $XX due XXXX were increased flavor business within Products first X% polyol the to contributed product net by XX% increased prior to of weaker increased XX%, operating and period INVISTA and to turning translation results $X.X a sales for also between operating acquisition. year. Global sales the China positively the primarily The volumes costs, year were Specialty XX% XX% XX% volume volume timing food of Net quarters, due results the grew was attributable margins order increased MCT income Volume Europe offset up million polyol and X%. dollar polyol $XXX America impact the the in due net businesses versus to INVISTA growth from Sales decreased million X%. differences quarter, quarter. volume line. sales excluding Selling acquisition. Now the in acquisition, increased up and plus Higher XX% the $X.X income legacy due growth in increased rising million by a half non-recurrence the or within PA in

X. Slide to on Moving

and Our invest liquidity ample in have we remains business. strong, to sheet balance the

interest in XXXX, a in rates strong placement cash very $XXX continues of inflation. material levels. coverage growth at new interest capital, investments, at very million and raw and given was debt which leverage executed fixed investments working CapEx for We of healthy of private dividends, for the share around Our the attractive used and operations sales first a ratios X%. agreements from buybacks strong We had and half

our We inorganic will corporate fund general and cash other to for new organic purposes. use and opportunities a growth

expenditures now capital million Slide Beginning of the on Scott range to million. $XXX are update be to you will on full-year, the priorities. For in our XX, $XXX expected strategic XXXX

Scott Behrens

you, Thank Luis.

first half delivered pleased earnings our and forward record look to to the of carrying half second have are to the We shareholders momentum into year. that

to We continue of safety the products we fight employees health contribute the that COVID-XX. against as prioritize to deliver our and

versus and believe new behaviors however, customer biocide formulation Therefore, levels, cleaning the peak families higher institutional products. COVID-XX XXXX. reopen surfactant demand end protect and pandemic. consumer novel in settings. for pre-pandemic customers lower higher continue Based to of and EPA-approved and in of have use believe kills additional higher feedback, provide around with personal product will Our people virus habits the our and their the disinfection to in to on than tools these public cleaning our causes and grow We pandemic allow QX we changed, consumer that volumes fight a volume disinfection, economies as the demand world will market to remain public standards cleaning require specific wash

versus also benefit and will agricultural XXXX. oilfield commodity from demand improve to within the markets that agricultural anticipate and We continue higher for surfactants and prices

income. product Globally, and as our customer ensure We are can increasing we certain will customers. lines, capacity continue operating mix working to we product and requirements productivity including on surfactant as higher in improve meet amphoterics to improving biocides from well

Stepan we process the produce increasing generated used $XXX equipment, to sulfate requirements. and discussed key to new cleaning as to of driver manufacture the byproduct capability sulfate, well. will formulations. regulatory of and As optimization product surfactants, X,X-dioxane meet forecast to are supply capital consumer primary over project combination expenditure capacity additional prepared ingredients minor and foaming and that the million a ether is XXXX will North of carry are manufacturing our XXXX which previously, sulfates This a Through in of American in $XXX low ether be million customers

to these and Tier focus financial year. Tier in increased more than be X during Tier volume XXX We working in and first this XXX customers the of half to second a our the by grew customers with X are customers targets. quarter quarter, X new We our customer added deliver driven the and our ensure strategy. of projects X continue Tier return customers penetration.

strategy diversification markets Stepan. a into Our for key to continues priority functional be

with oil business growth obtained optimistic prices $XX the world. due higher prices. have per was segment products level. pesticide future new oil up global single volume agricultural remain We Oilfield opportunities half, barrel high post-patent this in the digits the the and as launched to throughout During to strong first about mid-single increased recovered in digits volume

to CapEx our capacity accelerated interventions increase and consulting We investments continued Millsdale work productivity. both and plant in our in and improve and expense

We expect investment to continue this this rest throughout level of the and year. project

We return capacity projecting and are good anticipate year increase in and improvements, processes our coming polyol project strong business the as through beyond. Polymers demand. remain business and half COVID of attractive, this starting debottlenecking customers. had conservation through codes high-margin due a a year in from long-term challenging XXXX to of quarter first as back and lines this several more the a key building on should energy for We benefits the see restrictions. more service is product stringent The our a efforts to project and to improve productivity of prospects combination investment

million we expect business and stated, from in going $XX to of million to integration acquired of this Quinn the INVISTA As $XX EBITDA well, deliver XXXX. is

plan the of to Quinn continue to to Given for I balance new call and strength fill acquisition in to identify platform also and opportunities closing turn sheet, add comments. chemistries. pursue portfolio to our back will now we the our gaps

Quinn Stepan

record Thank The first in company Scott. earnings XXXX. you, delivered half

we believe XXXX. product challenged market in surfactant versus be North Looking America peak-pandemic in end forward, will levels consumer volumes

our continue While demand agricultural year, to year. the delays pandemic-related grow We with not versus will our for XXXX. like energy compensate polyols believe We oilfield as prior we more prepared Daisy, long-term XXXX to attractive material rigid business and markets of our believe and recovery, building our the This conservation we when question of please year-over-year. for and results portion from we combined anticipate personal optimistic cleaning, business we disinfection remains acquisition, Despite to expected do improve costs, will polyols anticipate first to the prospects for today’s higher institutional this maintenance of growth questions. deliver demand stringent would reroofing cautiously believe are versus surfactants will continued time, price We and that concludes remain prior cancellations turn to polymer cleaning call. the efforts This consumer the it continues raw new increases of improve remainder remarks. and quarter slightly construction over consumption codes rigid the and for the lower should volume projects. Product for planned instructions continue. review Specialty will position versus products. about for wash At year. Global recover call

Operator

Thank Instructions] with question. Harrison first Seaport Our the proceed your you. from with [Operator line comes Please Partners. Mike of question Research

Michael Harrison

I timing walk through the offset that HI terms pricing overall, the look guess, and the up material second of those like in good pricing was margin more raws But surfactants impact margin of of both I could maybe the morning. do was pricing in hoping trajectory cost segments? like segments, what and in much quarter. How you were your dynamics feel raw does polymers. you need the higher you you in of, and before two that some key seeing you can XX%

Quinn Stepan

start will that, Mike. I with Okay.

the good our just shape July increases on in in well, we price business. has is Let surfactants, surfactants say, pretty me are and implemented as say that well. going increase would Xst company price I The

maintain likely, North in restore think work catch America. or margins particularly to a in and do that to margins in I most more QX segment, in we move have our our little up polymers, and

We in in pretty polymers shape and time. in at this are point good Europe

Michael Harrison

inventory lot everything given the demand over X peak several and see cleaning Where in do terms Tier going to are levels in stabilizes, compared of once view the well demand consumer you on as see mentioned destocking. surfactants pre-pandemic Tier Alright obviously, well as especially, your brought a off X coming that the as pandemic some past we the volume that customers addition the that and sustained you higher quarters? as of consumer decline surfactant you business, to the of from have

Scott Behrens

difficult Yes, to what Mike, second It is half this to going Scott. project the year. little the of is bit in is a happen

got have forward. open are we going We questioning economies that and are about restricting

have be still that open. economies have yet We to

So it going forward. to it what is look really hard predict going is like to

in would versus uncharted we made, And up pre-pandemic about you we where the think the in are our times. peak but comments business what pantries be this at throughout is peak the in left production seen. XXXX that last based the the the say, have if saw of lot supply consumers’ basically is to We chain I and in levels, emptied inventories year. is a trade on inventory yet point below and

in it say are hard where continuum really would point. I is So to predict this we at that

Quinn Stepan

facilities, say would they there is higher hotels, that told within our I homes institutional cleaning believe and But for cetera. within demand a customers have restaurants, also et that us that

in believe do end XXXX, participating sustained we versus virtually that we all markets in we seen cleaning have are in. So a increase

Michael Harrison

as either INVISTA single Maybe as we deal, of not robust business, Alright to and year-over-year. Are on kind that then might excluded those the dragging mid- chain and volumes were that recovery some maybe up of polyols still within construction construction high applications. the of like polyol pandemic on we the issues expect it supply are digits if dragging business? issues activity sounds there volumes or rigid a and in on

Quinn Stepan

we business, if at business our was So up look X%. legacy legacy our

Luis Rojo

For rigid.

Quinn Stepan

For rigid polyols.

been within shortage some you has of our market have the that marketplace, our has number been that pricing of impacted the is for on. has growth and China issue negatively in right polyol But MDI time of good seen we So an that demand. products calculated short was in your kind specifically, reaction periods reacted

But throughout say are there see And supply NI. we fire demand for higher on see year ingredients been polymer optimistic also have that issues that do well. would some our to as I we the I we going are guess business. So retardant some

Luis Rojo

INVISTA, polyols. legacy the PA what And business, Yes. strong PA whole We just strong specific in grew polyol the very very Mike, growth a X% excluding to top I on CASE business. of also is well strong because case rigid quarter will as very the and takes had rigid a that double-digit on and complement and

Michael Harrison

know terms question earnings going then of have comparisons. for Alright I is lot feel now you don’t moving last the of guidance, provide and a pieces like I in you but on

a is Millsdale the QX. year the record and QX also then posted in of Obviously, including unusual. prior the You Texas couple XXXX the outage and here included quarters impact impact was which freeze,

we like And us without can that the give half direction So on of a those sense what in us your half? you the give earnings second tell would have a earnings looked effects? about as should growth bit little growth what maybe get us the first of pace underlying into more

Luis Rojo

This question, Luis. Great is Mike.

you that first if year, And last the half, the for freeze. yes, all insurance we the in the remember half. meal proceeds in the we basically had of event second bell So had then impact

So basis if sure first we in that we around have a base, the will reporting income be apples-to-apples half an today move net the adjusted on we that clear the XX%. are plus growth income XX% to to make

about is in we quarters, well next continue is a a the but couple that for for and higher of business, more happy are it this net did growth. income a in of don’t perspective going you growth and lot on little We situation. So bit double-digit with we seeing versus we costs our perspective Scott good guidance are know, future, And QX. quarter, we strong the know volume as what provided provide providing the as double-digit maintenance we a

So underlying XX%. - first is at but apples-to-apples plus the if we half, look

Michael Harrison

much. very Alright, thanks

Operator

Our Vincent next Stifel. with Anderson proceed line of from Please question. question with the comes your

Vincent Anderson

morning, good Yes thanks.

want some that margins rather extensively on any the case raw pretty shortage is there I logistics already. there impact revenues it, to make question the than this shortage. quantify of covered Mike either basically did material But hit just in quarter from missed way or material think sure I to raw I

kind as of So being the able price of as that material? you to much regardless specifically not wanted of to deliver raw

Quinn Stepan

difficult it and shortages think break perspective, in be our I derivative that income impacted ethylene QX oxide say, to out. propylene an I would would business. from But primarily oxide

so in from and value And operating areas, million a are our perspective, with associated North dollar those probably we be - with I our two and income of dollars business probably perspective below would would maybe that an America income Mexico. couple we in business say

Vincent Anderson

like I’m looking in fair. That issues, that going should and think, that likes you that of kind And is we do this Okay. eye polyol demand what and something some Asia. we MDI flame-retardant installation? not mentioned rigid into the I right are mostly on is where the see XXXX, now, you with, at Germany dealt on shortage of co an to is kind for going of be materials in or the we another just had your feel XXXX, and keeping just of Is

Scott Behrens

This are I would on managed. is being plants operating. Scott, it Vincent. are The say They is plan.

are on Some scheduled turnaround. plants

So at half, balance the We do is would of very the characterize supply-demand in improvement is would second managing expect it not but this I type event. XXXX industry tight it. say as I point. a this

Vincent Anderson

a so, no as target one, you validity strategy? try there willing good be maybe any figured what study that to M&A more from that maybe One alright. you been size your didn’t acquisition of to any if just Okay. short know would in I Stepan longer to and would in you. a from to if I speak sizable fairly business But to by had that target? general case if, might participation very it And be terms you if is mix, drew portfolio a That there were a ask answer remiss I is be linked to me, in

Quinn Stepan

Yes.

our remain portfolio. basis, So enhancing a making product we on in and acquisitions global interested specifically

as and Brazil it in perspective than for a and a tell little that geographic was product press in reported activities in so ambitious were our not in were in America the we that focused So what interested bit interest that line or is more on primarily company reported based our North the a would an is on press. Brazil. I acquisition in you

Vincent Anderson

Understood.

just the really capacity Texas, in I then? if remember, was that alkoxlic So

Quinn Stepan

Alkoxylation priority remains on States the our United the Gulf Company. Coast of a for

Vincent Anderson

the appreciate I of Wonderful. rest gentlemen. color. the luck year, Good the on

Quinn Stepan

very you much, Okay. Vincent. Thank

Operator

comes question the Please Marco next proceed Stonegate question. your of line Our Capital from Markets. with with Rodriguez

Marco Rodriguez

for that you says talking maybe are to believe heard if if Can comment XXX I into you that questions. XXXX, Thank obviously in the everybody. fiscal I I additional correctly, correctly? that color wondering if that you was comments taking CapEx when a expand to heard expansion morning Good But should you carry provide my I could about here XXX. it I guiding some maybe heard XXXX. surrounding some on

Luis Rojo

That score of will in the comment Marco, from higher is project XXXX. one drivers which X,X-dioxane low was continue to this project, of basically key related the the the CapEx the execution year.

Marco Rodriguez

it Got to related too spend what to additional is it quantify be maybe and that? early might

Luis Rojo

Yes.

year CapEx and next year I think perspective provide we in all a next for will once clear have provide budget and the for guidance projects very the through on. we out, once we we go later clear will

Marco Rodriguez

it. Got

kind circling Very spent raw and around And price guys addressing increases some already that. time you have material Okay. the increases with just back of appreciated. much the price

you trying your expectation. you fact an competition obviously those you that is contract, ability resigned levels obviously, terms also can feedback might in them being may maybe comment that but of on that seeing just customer the in of to hold to second sort if something to a be standpoint the perhaps can wondering what on half? of the it increases kind any sort if maybe be through push of from in provide And of that is Just

Scott Behrens

tight every six first the material every well. or inflation part in a is value probably their and of this industry touches it market Marco, unprecedented start customer by And any has seen our Scott. I saying been last of service XX-years. as in chain. has off that year Yes. is And this months would the the the that is

were out low. You a of COVID-restricted are environment. Inventories coming

market in You lack inventory. and have what the automotive of the happening seen is

our of is with of to deal the wave are that us trying to in real-time best all it a ability. So

is that best So at way point. the this I could the describe environment

Quinn Stepan

Yes. has say only many an that issue, is different industry, for the think I not chemical been further What would supply the chain for whole products. but I I whole think transportation across

And and to flexibility limited for in transportation so respond people ourselves changes also as think other I to in the less marketplace, been has created it has demand.

I increases environment able a up. would that So most say pass the or from recognizes price are pricing, and have costs been the most of competitive we generally the to perspective, material raw and increases North that market particularly work have the surfactants price of we polymer have business more seen in earlier, do in our America. mentioned to we in the in through I

Marco Rodriguez

Got it. last me. Very And helpful. question for quick

kind If a little you about bit more quarter of what if talk last might what M&A you just just then in And can look valuations address like. looks like maybe terms your versus size? can maybe that of pipeline, just

Quinn Stepan

a Generally, within we small have number of our projects pipeline. active M&A

We couple years. have go last up significantly multiples of the over seen

commodity I of bit look, as a bit plateauing maybe a and specialty keep opportunities marketplace. the and today. decrease will at to peak chemicals assets, certain a and relatively we little more are But announced multiples in projects we continue seeing of are think maybe for little We you informed remain

Luis Rojo

Marco, quarter. out the of whole there very Yes. are every industry is projects And M&A, the is coming active and good news, on plenty

being engage continue in that will we diligent course, make So will and those of we about sense for process, our us. very

Scott Behrens

short-term us. anything for from though, I would don’t say, look

Marco Rodriguez

helpful. it. I you. guys. appreciate time the Very Got Thank

Operator

Seaport Partners. question comes line Please proceed with Harrison with [Operator Instructions] your Research of the Mike from Our question. next

Michael Harrison

Hi.

me. for a Just few more

One capital to I of you talked associated in X,X-dioxane about the wanted changes understand, with things the the that.

and capacity have quantify there I there lines? been these may in guess, be of be demand course, been capacity? to the on enough with elevated adding And demand cleaning still in disinfection you out going its You some to order how some additional additional capacity. product justify much brought pandemic the other Can key has running is

Quinn Stepan

product primarily have and would So area capital you that our our biosite mostly and the lines, around have small incremental what our in we driven America. relatively capacity by in That I amphoteric been. specific Mexico customer amounts expansion where world added in of is with tell is enhancements North request

our added also capability business We support in have some to Brazil agricultural new that in country. reactor

Scott Behrens

It new to it not Mike, a And of a able specific new existing regulations. expansion capacity sulfonation is on to capability be network. assets putting our the X,X-dioxane, to is our meet

capacity. So not it is incremental

Quinn Stepan

the polymer of low And to acquisition but was for then over provide opportunities polyester polyol INVISTA’s the also the primary cost driver the our business, last to for capacity thing business relative today us where within support is and significant debottleneck excess there Wilmington opportunities within capacity acquired plant European Blesigen Netherlands that the are next expand we our decade, there business. and to to asset the

Michael Harrison

maybe just strategic Perfect. or the the seeing we geographic application agricultural growth that volumes to the Ag is if other higher Alright. it there? product it understand see strong that wins are And just then to expansion or drive of business, market is on this is the efforts But great there. driving trying that fundamentals if is or

Scott Behrens

a comes of of Yes. their Commodity Corn where acre, applications. Mike, last per on year. significantly That improving the is it is soybean increased a confidence all focus since which from really really prices yields prices and Xx little above. have driven bit risen were. farmer they chemical are

throughout that market And right. formulations So that application growth, differentiated achieving in customers post then is are our there emerging smaller as we our targeted as regions. underlining well certain pesticide international wins new through initiatives are

have seen first grow of we So regions the in our volumes half. four the all in agricultural

Michael Harrison

the a are the terms potential of deck your sometime have give that Alright the last business revenue detail Can you I of and and on relaunch? slide timing associated KMCO question XXXX. planning in business, in that the oilfield is a mentions relaunch you with then little more

Scott Behrens

of couple say was in replicate to manufactured line things. would a facility. I trying a a KMCO’s old different product facility, we Yes. One, are

a had have in lot R&D XXXX. process work and we to So of development do

had operations and potentially supply with bit have raw are partners, we materials we in COVID chain target. of the impact the With little manufacturing and our disruptions a behind

more not than However, model supply the XX-month a the more was rebuilding Stepan This network, within incremental be a honestly, time it is to to was chain which XXXX. going of to line. XX-month quite

Michael Harrison

much. Thanks Alright. very

Operator

question next of the line Anderson from with Stifel. Our Vincent comes

Vincent Anderson

I this in Yes of it but know couple I it had thanks. wasn’t you a ago, notes. and my addressed thought, quarters

just I X,X-dioxane, So a is where conversations regulatory wrong, elsewhere otherwise, can you bodies actually capital buyers and states already make New are kind major of on to other regulation correct are going U.S., this you that in in the getting to I’m the to you that similar a is, either paid coordinate the say, are for spend? want is me, sure state, share ahead with from is in gain question or to driving customers or be the York really this you with get regulations the maybe market this. that having of with If

Quinn Stepan

consumer are they SKUs to multiple that product their the large chains most don’t in So have want marketplace. supply such companies,

if They going United is it the about are entire state the of in the think have in meet majority standard So vast meets product for just our will though States. approved vast, of the today. to this New product that line even you customers York, standard, their one

the what our really of majority doing. vast customers are is that So

we to very standard. closely opportunity, at we how we this get work a approached that the return to If the challenge ensure capital market are from and you with take this new have spending our the fair customers, a we marketplace. have look We on and that meet this

Vincent Anderson

Understood. I Thank appreciate the you. clarification.

Operator

closing your no presentation at time. questions further are Please or continue this remarks. There with

Quinn Stepan

get use interest your today’s frequently healthy, for Stepan hands We Thank your Please much and and great a Have appreciate surfaces to and us stay wash day. clean ownership you. joining Thank in you disinfectants vaccinated. Company. safe on call. very

Operator

participation We please your does ask the thank your you today. That conference conclude lines. call that for for and disconnect you

Stepan (SCL) 28 Jul 212021 Q2 Earnings call transcript