SCL - Earnings call 4 2023

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Operator

Greetings, and welcome to the Stepan Company Fourth Quarter and Full Year 2023 Earnings Conference Call. [Operator Instructions].

As a reminder, this call is being recorded on Tuesday, February 20, 2024. It is now my pleasure to turn the call over to Mr. Luis Rojo, Vice President and Chief Financial Officer of Stepan Company. Mr. ahead. go please Rojo,

Luis Rojo

thank Year joining XXXX and Quarter Company's and Full financial you morning, Stepan for Fourth Good review.

economic and facts. which Before information we cause Securities operations, not in not actual statements, including, differ that our foreign limited in that detailed filings. involve regional historical are condition our but this conference results global and begin, call conditions contains could please uncertainties factors These Exchange statements note to, and materially, for risks to forward-looking and prospects

as In income, of side I available conference presentation is We earnings you GAAP call www.stepan.com to make perspective our at the website. are cash adjusted addition, to approximately the comparable will phone, presentation. this Investor the made joining you're Whether slide helpful. measures. find we We include adjusted Executive flow, and Chief or time under the the call the of Scott press encourage turn discussions President us provide non-GAAP our free the online in net reconciliations release, to EBITDA section investor like over Mr. you which and measures available have that, which Behrens, hope With that at the is and Officer. we review when earnings this would information to over same and issued, release we

Scott Behrens

strategic I for we'll up today year To financial discuss comments then to full also on will and all us additional will brief our and joining quarter thank and our will I comments with on begin, results. XXXX. provide provide you share full Luis finish our on quarter Good year morning, our results, investments, and highlights. details and fourth fourth

channel was full markets, to across were in year, record and full due million inventory volume decline significant of the impacted $XXX.X a For adjusted a including income demand most slowdown million. significantly year end-use by destocking. the XX% for Earnings an versus net customer prior year $XX.X in

While of agricultural us, to destocking negative discretionary controls controlling similar an the XXXX. year impacts due expenses. lower were within we mostly implemented at job headcount expenses Cash our the start business did continue of and the proactive year are incentive-based to destocking expense prior excellent team cash and our we believe earlier the accruals. behind in experience compensation to The

quarter, versus our Dioxane in in X% Care to X, workforce Additionally, significant polymers year. and level we Low $XX.X The that X strategic in or quarter growth will growth X% delivered executed prior company improvement up reported million representing driven volume X% our adjusted the driven the double-digit the In projects. and continued year. savings in in increased $X.X million of million, $XXX inventory compared from of volume our investments. fourth year, Within productivity operations we prior Personal versus surfactants, in while deliver strong In in income our surfactants. early previous up was program reducing cash flow other with growth voluntary the retirement liquidity investment XXXX, from we was our XXXX. to million Volume $XX actions levels by net fourth in of by growth

offset by customer line. polymers. in compensation The and the to year partially channel the lower and pricing and volume customer income partially cleaning was discretionary to largely of incentive-based prior market in agricultural offset destocking revenues Specialty reduction imports. EBITDA to Latin record as was and The due was adjusted year pressure an agricultural lower also in lower versus last our end $XX.X doubled volume EBITDA market. accruals. fact partners. the in lower year controls and X% for polymers due down nearly accounting growth. growth Expenses our industrial expense by million and the mix, were the lower year. end within fourth cost implemented grew American versus to These was to strong unfavorable and Specialty EBITDA in materials. Adjusted Latin similar earlier strong quarter due in American due Products, competitive EBITDA $XX.X results prior product business. product in driven volumes chemicals proactive gains and recovering Products to margins Surfactants million and continue with experienced also raw we continued distribution We due the surfactants by higher digits Surfactants for double grew were volume biocide Adjusted

that continue on levels inventory of adjectives, quarter dividend $XX million million We of heavy cash $XX dividend positive delivered quarter free quarterly cash XXth our make phase. reduction We $X.XX our during the cash increased investment flow has quarter, finished fourth an the the capital significant year. during of the Directors last share of declared our to another the year increase In cash Board or we its delivering X%, company the our to as to progress marking in stockholders. consecutive per the

the year the to very for and in projects the will pursue dividends our details and and in concurrently company's and grateful of our efforts remain shown productivity biggest for strategic by the repurchase quarter history, team its in proud our of gains Luis shareholders in for workforce some but was strength and has in company Board company, the paid confident to year fourth cash opportunities During us any am and I results. in executing current cash and our not to resilience and our repurchase actions. to In will by shareholders. M&A about share business, the while program our remaining the full year. a diversity share delivering did XXXX the $XXX.X million return summary, year invest full XXXX, growth million We X stock now during Directors. challenging and ability million of allow generate company business that under the authorized $X.X $XX quarter the fourth company's The the shareholders dividends to

Luis Rojo

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

was net $XX.X diluted income of million quarter million fourth for Let's recap Fourth per year. X Slide share the per adjusted versus $X.XX $X.X start quarter. with $X.XX or last share quarter or to diluted the

Specifically, and net total Both $X.X of compensation after environmental reserve for excludes the tax. to the adjusted al a fourth were expenses prior changes. quarter for deferred similar items income a year million

quarter for goodwill plan well productivity restructuring as figures with deferred as our recorded tax. related we change program represent The cash asset Finally, liabilities compensation company's compensation rights employees. the settle these Because stock impairments. includes to the after net charges as $X as This of million well and deferred noncash income workforce our the noted appreciation stock this income, X the to fourth our shows price, in total operational is income for breaks item exclude company basis. movement from and quarter this the down figures year's income. we decrease fourth on net discussion. bridge the after-tax the an Because the here in net last compared Slide are adjusted net

will more in on for summarize, operating lower cover excellent Surfactant polymers We but delivered segment results the income segment quarter. focus surfactants Products. and the in detail, peak a Slide operating growth we and for X to Specialty results

the million So prior the due pass-through quarter, for the of versus sales net raw fact decrease to X,X costs, primarily increased in XX% $XXX XX%, growth Volume were were the lower to year, Low due material product down that X% strong selling prices Personal year-over-year, in double-digit from primarily and unfavorable mix America. our investments. competitive Care pressures a Dioxane Latin pricing

lower we digits the We also as within customer to also demand Surfactant America volume and strong was market double end by distribution continued in grew grew and agricultural inventory our business. destocking. with growth the market and industrial continue channel volume cleaning This Latin offset the partners. largely due recovering

decreased for million, product operating mainly margins by mix due Foreign due to lower to X%. in quarter competitive Latin currency net translation $X.X pressures. the impacted positively and sales America unit Surfactant income the

X% XX%, X. Net prior prices to growth versus within to Polyol higher a Specialty a were the lower Now XX%, sales due Rigid increased pass-through material in business. of decrease experienced global a all Rigid decreased turning demand in Slide the and strong costs. Polymers raw XX% Selling primarily by regions. $XXX Volume driven increase the Polyols year. Polyol million, on

net year, Polyol Xx and XX% impacted than Rigid positively volumes sales X%. by more operating prior Global increased translation due in increase improvements. the income currency margin to versus primarily Foreign Polymer

operating within the income volume million. margins This product a The Finally, competitive MCT decreased Specialty $X.X was Product decline unit and unit lower margins mostly pricing lower to due line. to due pressure. primarily were

Turning to X. Slide

Adjusted a Total lower XX% channel overhead to a versus versus the inventory in XX% year, in of year company XX% XX% and XXXX a net the record prior the million was and was company's full XX% largely absorption. decrease decrease delivered or million, of per Segment XXXX. reduction decrease For by prior operating and a was delivered due prior income demand diluted $X.XX million record reduction significant down compared in Surfactants driven volume. X% volume destocking across the of down of income share, most year, in $XX per lower volume. $XXX diluted Polymer a the or million, The million, The markets. by to reduction $XX EBITDA for driven Segment declined volume driven versus year. XX% $XXX.X operating a by adjusted year, end customer share $X.XX income $XX.X

to by in tax prior million, Finally, to a compensation The dynamics. awards XX% R&D base. competitive year. income the driven XX% company's year of tax Specialty decrease primarily year-over-year stock-based due $XX.X Products segment prior over was lower effective and versus delivered rate the volumes and versus contraction XXXX pretax operating in down was lower credits This margin tribute XX% full year,

projecting GLT foreign bond anticipated effective from an for of capital expected investment. deduction for XXXX rate Pasadena our We of the a resulting election to tax are and higher depreciation credits, due tax disallowance

Slide to on Moving XX.

cash significant continue position. making our progress We on

adapt We and to working the spending to have current increased environment. efforts produce to our lower capital capital business

versus year. For $XXX was million, flow operation the year, up X% prior cash

payments the $XXX million debt again, we deployed CapEx investments, and During year, dividends.

was we million versus in the versus prior QX investments capital inventory Finally, The inclusive million Dioxane our X,X reduced the U.S. year $XXX full spending $XXX Low company's XXXX. by in of year, $XXX million

are that projecting the XXXX, our levels return For while expenditures still of executing historical capital will to phase Pasadena our project. we final

XX, Scott on will our beginning and strategic priorities. you Slide Now on update XX

Scott Behrens

Throughout Pasadena significant actions in capital continued and remained of and cash a inflation Dioxane, Thanks, investments the and higher costs expenses a increase in Low investments major Louis. our from year-over-year. took I related proactive growth program to cost the and executed from on and initiatives successfully our priorities. my progress productivity our cost strategic our pressure we to led general focus cash expenses that also operations. Despite generated year, X% X,X control cash major will flat and on management comments to

which programs million positive initiated to in the along returning As cash productivity this our and to may improved XXXX, our anticipate last across deliver pretax we year, XXXX. performance The cost-out free you from call, underway with around operational our heavy are October earnings that centered are end manufacturing approaching now flow cost-reduction $XX recall, network additional are activities of expected phase. generation savings we year in in investment

Slide is XX. new activity attractive approximately underlying the its to volume continued plant market. in facility a chemicals agricultural and XX% XXXX business complete, quarter alkoxylation destocking to third Texas the very our at Pasadena, Construction within XXXX. continued margin Pasadena Moving supports and despite unit that growth investment the the alkoxylation the in at The production start during expect of up we happening

increased have that As Low capability produce now mechanically we completed. in on installed are meet facility ether you our American capacity Dioxane. assets know, regulatory sulfates Recently limits X,X new Millsdale North to and

North market, already should has full Dioxane reach we Low installed X,X largest grow production Stepan the which enable quarter in our volumes will have most to Low XXXX. during as power external our contracted early operations. first installed North and merchant X,X American serving restart and Stepan capacity Millsdale by the started weather now the of Dioxane provider shipping site New The capacity maintain the our was from period The grow compounded due of disruptions power cold to encountered unit of In series successfully to and business extremely in interruptions able plant site beyond. January. American XXXX from sulfonation a XXXX, a operational

Operations Polyol in full Unit by impacted Polyol outage, unplanned we PA to Our significantly expect to back and the more and be shortly. production [indiscernible] were

XX. Slide to Moving

costs by improve As will we recovery volumes in we business the business merged due recovery along XXXX, of growth look driven margins of in demand, year the in volumes material continued to XXXX. to agricultural the the expected lower raw polyols and versus second contracted and believe half overall surfactant new with

deliver $XX incentive-based deliver the offset anticipated associated expenses. to strategic our our reduction reductions with positive the initiatives. position review well increased This free planned in turn should and call higher remarks. the I'd questions. which remain are growth activities inflation, At of alkoxylation flow commissioning cost Daniel, call. initiatives today's Our adjusted long-term help assets cash XXXX, executing like million market combination cost A in of will our us for in aforementioned confident please We and pretax the for expected of new to Pasadena portion this prepared question EBITDA savings expenses innovation the in recovery, time, concludes compensation over and to our instructions future XXXX. and growth

Operator

Instructions]. [Operator

Partners. Harrison question with Research comes Seaport Mike first from Our

Michael Harrison

surfactants. So with I wanted to start couple questions of on out a

investment. volume more been? are on or just Can like you lot mentioned can looked the their in at of returns all related talk What X,X assets your the expectations? those margins the a a customer little bit growth response ramp? recent if to And there was Dioxane where what has give maybe to about color compared have you there You Low

Scott Behrens

last Mike, both production our of for facility. X,X Low to Dioxane XX the those months up up volumes up we've X investment Georgia each new assets our facility startup separate months, the through operational and or at So ramping sequentially the XX XX assets gone last did over with on Millsdale We Winder, investment we last install is and have been heavy so. assets this quarter. at Millsdale, All now a those as phase which capability. independent final X units are and at over of commissioning bought X asset going But

of terms think I margins, In issued. it's

Luis Rojo

growth on don't if surfactants. volume context I know Mike, waiting you other were for in

with Latin as grew in grew due had digits surfactants, Care We to in a distribution XX,XXX well in strong we America We double-digit Personal So partners, growth institutional strong was as investment, cleaning high mid- our grew the low single mentioning. Scott double to that digits. well.

that So course, of from unfortunately, see good X% plus but offset the the is by Ag. coming surfactants of with lot places in in you a destocking growth,

So if is number. destocking Ag exclude X%, pretty grew the a robust surfactants which you

Michael Harrison

little Obviously, there. share in the think And imported dragging you're America. what business bit on more maybe products. some seeing pressure, I loss some Latin Ag you detail But to pricing a mentioned is related

America actions earnings better curious you what talk can like? and path surfactants you're the look might if any just taking So to about in Latin

Scott Behrens

you're Mike, absolutely correct.

to prior security with XXXX caused XXXX, and in in supply, customers calls, the supply which the disruptions are improve margin we recovering have I'm on imports second in the enticed we As share continued and shared of to happy of I report chain forward. share some marketplace half our and our gradually margins of going in were early But for think looking they issues.

Luis Rojo

Mike, competitive in And are happened a that's raw and margins materials. one that is thing America why in situation, XXXX, also carrying high-cost Latin but depressing

January, big in drag the that in last material we improve high-cost was but just that in XXXX. XXXX, for and region the should out So actually, flush a

Michael Harrison

comments switching you disruption then, facility issues and and power Millsdale on the And to the had made you over operational there. the

it'd way of be I Millsdale for some you my quantify thought is, impact there's we there. if potential to had question the helpful the any at power But impacts gone I reduce to broader improvements disruption. through think

improving of resiliency an update in on there. just where are terms maybe we So

Luis Rojo

the then of Let the in company. numbers vis-a-vis Mike, me a also At end, EBITDA expand and small the give this you situation Scott on the can number is Millsdale.

now, it's impact QX. Again, $X the a a understanding expenses, doing extra fixes, still EBITDA but So precise be to the all probably number million we tolling we're of QX. $X some roughly we going don't million final in impact have so EBITDA projecting around in are details,

Scott Behrens

years over terms you're better on disruptions these fared focused prior operational power has winter investment of I say Mike, with improve correct area site the in the years our And X over the -- in of of months. much based the this January. of been a the last reliability couple investments month last in the can to

disrupted. more the investments areas As to polyol site the to to we my than comments, through have in investment within work been years. earlier was. and fix were do broader I resiliency more PA obviously pretty assets we've more we're think impacted improved the mentioned able overall, last But the pleased PA of the polyol with over that I couple were the do the And

Luis Rojo

of And power we the was partnership on drag are that the because working now external with our supplier situation.

as PA. improve I mention, that lot need on forgot a to well. resiliency side I And about Scott to think we talked So

will Polymers $X So million the the majority be in of business. the

Michael Harrison

high-level me question is a question. last then for of more And

on the Just XXXX outlook.

number out But seems maybe or improvements inflection cadence about It EBITDA to point. about at think earnings all little a and about a called understand talk like be there drivers we how some think come, a step-up meaningful You point, additional or the which positive bit in should detail of we should color I just positive of maybe that. of XXXX.

maybe on can help you if like potential curious what timing us understand looks Just the inflection. that

Luis Rojo

mentioned in Mike, Ag of revamp still remarks, in Ag continue to our we're the first expecting we we are business destocking second as a in half. half, the in and expecting the prepared

one that's our drivers. so of key And

say a are you of already going kicking, have productivity Second, but $XX gradual million to that I will program ramp-up program. the

of course, blocks not savings starting building effect the And I that on the more have business, So for positive and first you are our second Pasadena the third building all know and the for half key are than spend in we course, X money. the should plant with stronger Polymers to is of see. say, some one the expect Still to that second you up the QX thing going typically beginning, the all construction in will blocks to need QX we deliver half seasonality activity. at of half. is where And that big the you be a those But XXXX.

the in earnings the more half. skewed that EBITDA second So

Scott Behrens

And QX. core that Mike, the business just has I would in also out growth demonstrated specific through, went underlying just initiatives Luis outside of point those sequential

assets polymers, that's that our the destocking should of continue is supposed in really, is grow Pasadena. I&I, Luis distribution, the forward. the incrementally as online So But said, through second new Ags half what year to when going And quarters subside. to come

Operator

Anderson next question Our from with Vincent comes Stifel.

Vincent Anderson

couple a to follow Mike's questions. I on up wanted of

foremost, I context and first second lot think, financial pressure in recovery more seeing some acres I both hoping really positions. a your we're of confidence a of half agriculture, the more but and get on was on to in given overall [indiscernible] then farmer just Brazil still

Scott Behrens

the in Vincent, trend So remains. been the demand news And macro is the you've some companies, if agricultural of the the is there. good downstream reading field

second this destocking half going is what is volumes. improved the with And now. to we a that see we start to talked through should So activity customers, truly and when we're the read our right have again, have

rate the probably are you're that Ag business all Brazil for ramp-up nature. are that destocking. how do us. is through right, and of our cadence be to Now Europe of the could But North America, think Asia or work that recover the happens, slowest geographical I and global in important

start second recover anticipation those we So in see good that half. have volumes to we'll the

Luis Rojo

getting with line in XXX% customers. feedback is that our this in line with from their is And forecast. the This we're

Vincent Anderson

to going then as to Latin out of that American I recently. pointed just because pressure area you think specific back Brazil a And I business. called the

in. by can were But with imports get supply they chain as disruptions. compete they it Chinese a incentivized if imports, tough framed were to recall, once you those toehold be I think I

there that you being perspective Or a comfortable assets now? the say, a running are have more going room from to for play don't to closely. Or is pretty imports compete with something let's nice, to supplier? this to those So you're where continue domestic if monitor you is you're margin right

Scott Behrens

we feel pretty think good, Vincent. I

And which where first all But happy local Luis that year, As I when law going think customers showing always And to competed the inventory I valuations impacted we prefer material market in supply. market win But to double-digit margins we we margins reported raw is, we're mentioned, continue, half And in QX, to expect that as improve. quite in through buy we improve can but with last our to currently game. there. really materials, demonstrating our that those down frankly. the from hangover QX, where things We're the pricing we that. think domestic matching where were high-cost equal, are go growth we or continue at pleased to not volume expect margins with is forward. are as of yes,

Vincent Anderson

got really ones. then quick I've just And X

little of a mentioned continued creating some headwind. that's business headwinds? destocking? Does there a biocide portfolio on the maybe that You just one-off that concentration Or bit being customer is

Scott Behrens

that just off of It customer in concentration and some was of QX really types the came rolling of XXXX. off in COVID business activity

Vincent Anderson

then one to anything is polyol annual this the remarkable And year? negotiations last on report just

Luis Rojo

to new business. Vincent. report Nothing competitive It's now, very a

We in stores volumes protecting good the will margin margins. continue are and marketplace, and we

Operator

next David King with Silver Associates. Our & comes CL from question

David Silver

more and A German and strongest quarter, lately. side has technical your called in just the market industries go on you growth recession Polyol indicated Rigid and regions, don't couple to cetera. construction had remarks And that bit. And a you not In just like asked, if words, release, and robust. out that North called of growth that's et opinion, maybe could hasn't America and the in U.K. out double-digit speak just I back this the in where in goods maybe little was things. related wondering been all I I'm durable been my and a the especially during was Europe, the believe other necessarily think they're the

called You higher the volume you per believe, out unit out or growth I margins, margins. called

this your situation? Polymers Is should be of what thinking about type drivers share we growth? business? Or that of for that driving opinion, the your in is what So gain portion

Luis Rojo

is in XXXX. would started this destocking particular say I for business remember What that QX

needs market of in not with construction of and that to activity what the a reroofing effect all are the that needs have the lot So impact, XX% for with you happen you all Rigid and in Polyol. opportunities the U.S. still destocking see to the growth that's happen the why There

strong, pipeline America If that X years. on for reroofing you provide next of still is growth projects and at backlog the X the and pretty look the market in should North to

is we our are believe opportunities next should peak saying we're what good. So industry are and this still energy that, few we a destocking be just There in of reflection is plenty customers and a and like conservation of all is for the with healthy also what not construction and activity. is of This with this reroofing years.

David Silver

I was hoping to change subject fiscal to your year CapEx budget XXXX. for

is so. the that consider nonsustaining Could just for highlight $XXX discretionary the you point, more the the half to of your And you what midpoint to the was CapEx So of of portion XXX, where XXXX. then of midpoint in that range was how almost I much about maybe the the in talk is spent of you terms sustaining. might was is exactly If for take or hoping directed. could million being just maybe of I what discretionary

in So in looking wondering, for there. directed? being incremental is of be Dioxane other for your there? where also should CapEx else capacity Or the and But budget X,X does some XXXX is where words, with we remaining anything Pasadena need portion discretionary Polyols Rigid

Scott Behrens

Dioxane spot and the of No, minority final million you're finishing this Pasadena on portion Definitely million. on David, X,X the us $XXX that in is is the the of $XXX the Scott. last inclusive investments. touches

and that against in spend. outside significant generating start I assets be extensions. we certain anything returns line not may as to opportunities these And execute it's up Pasadena running or would produce customer-specific product where get characterize million X,X In would $XXX and Dioxane new terms to them spends, of important opportunities reactor of sets modifying other them. fully us on incremental discretionary or for I call discretionary and

pause a And I'll discretionary for consider capital projects. major incremental it in at that. any So XXXX new leave

David Silver

of Luis, remind of to end just you debt structure. ask billion. the that I the me debt at have the year about if $X.X And north total did you here, want could the

fixed then subject or terms locked might predictable. me If the derivatives what or in are to you with much you highly either interest in of of that rates something consider that where rate could base is been indices? be variable fluctuations just your remind short-term that's balance would costs And in how

Luis Rojo

saw,$ you think million you from $XXX when net debt is as in debt, rate. XX%, during And COVID interest $XXX XX% that very a And fixed the lot we a that. of debt I about we say, Look, would the have include our fixed of million XXX debt cash. if at and gross XXXX is, million majority you attractive

and So did below $XXX also derivatives X%. hedging below for some X%, we million, also

fixed is majority very attractive a rate. the So at

David Silver

last one, on more program. a get million the I could. biggest just hoping was But to if workplace of then bit the And I color reduction tiny $XX programs the part productivity that are cost

have if So start maybe growing see it where rate do to you here. wondering from to or opportunity $XX to you and next I'm where are the the point areas there you here. could qualitatively you global cost But were in now reductions run X year or just the some just a network get And I'm scratching my X most million X? out over head

Luis Rojo

cost. The for on the our is our reducing in job of logistics. $XX majority the side, of of team from logistics the favor great doing a million that. And is market the comes Look, example operational course,

going XX%, the we whole that So the improving our have. of down on our logistics cost savings inefficiencies in in raw supply reduce operations plans to chain is XX% procurement materials,

we of last So we the on that and roughly the with And operations workforce only This then the some was already program the side. announced productivity reductions that already the early year executed. XX% $XX program in is XX% retirement is million force.

So that's the other XX%.

Operator

[Operator Instructions].

next with Storms question from Dave Our Stonegate. comes

David Joseph Storms

you sourcing seeing what these about and upstream both change over ask coming could raw from lens from a I cost material if wondering that you're a quarters. expect Just might and next standpoint, how

Luis Rojo

Dave think and think when material prices we're a pricing, about pretty raw good I position. you in

despite is our sold XX%. down cost down in XX%, saw goods sales of QX As you our

down our XX% raw we So XX% margin a million, the And to stable why gross have prices And see they what pockets oil stable, catching this XX sales. on XX stabilized. almost we are coming the up $XX for and but a side. material the is flattish is despite relatively few basically hold little margin still $XX where is have range. million the now There in are bit, drop seen a you are in we XX%

Scott Behrens

just ago, And overall XX much looser XX is it the would chemical was in say months I months ago. capacity industry than

So in to current opportunity work and raw really costs there's on the greater material environment. optionality the

David Joseph Storms

your And into then through there like? looking to market what's potential environment and defended Xs? Xs, clients, continue the defend either pretty Is more Tier share expand like also, you acquisition It market to well pretty just customer sounds share well.

Scott Behrens

So part business had to strategy the customers. market we continue the that's financially, and Even challenging last X X is big growth in obviously within and we sell our a of service Tier to more grew difficult Tier year our over net XXX that are and within the surfactants line. market. And truly those new in value our broad challenging Then expertise our product world our technical around customers. customers by a that continues service, Surfactant formulation

So job customers continue we're company. into very do sales new great a to the excited R&D and that our bringing teams

David Joseph Storms

Or you inventory. did specific Was that quick more inventory? I one Luis, question. and of that mentioned clarifying think were through that most you just then Polymer And earlier to high-cost include Specialty? Surfactants the

Luis Rojo

businesses. X the It's

Operator

remarks. now questions would like further it I no showing turn at to I'm closing for back Scott time. Behrens to this

Scott Behrens

your very Stepan Company, you day. appreciate us joining and in We a great today's Thank on please much have ownership for call. and interest

Operator

conference today's participating. for call. concludes Thank you This

disconnect. now may You

Stepan (SCL) 20 Feb 242023 Q4 Earnings call transcript