Trump announces trade deal with EU following months of negotiations
Northbrook, IL-based Stepan Company (NYSE:SCL), a $1.44 billion market cap manufacturer in the chemical industry, disclosed on January 29, 2025, the upcoming retirement of its Vice President, General Counsel, and Secretary, David G. Kabbes. The announcement comes as the company’s stock trades near its 52-week low of $59.70, significantly below its peak of $94.77. According to InvestingPro, the company maintains a FAIR financial health rating. Kabbes is set to retire on March 14, 2025, after a notable tenure with the company.
The announcement, made via an 8-K filing with the Securities and Exchange Commission, stated that Kabbes will maintain his day-to-day responsibilities until his retirement date. Post-retirement, he will continue to provide support to ensure a smooth transition for a period of at least three months.
Stepan Company has initiated the process to find Kabbes’s replacement, searching both internally and externally for potential candidates. The company has not yet named a successor.
This executive change comes as part of the natural cycle of corporate leadership transitions. Stepan Company, incorporated in Delaware and headquartered in Illinois, operates within the soap, detergent, cleaning preparations, perfumes, and cosmetics industry under the standard industrial classification code 2840.
The departure of such a senior officer is a significant event for Stepan Company, as the role of General Counsel and Secretary is critical for overseeing legal matters and corporate governance. The company’s forward-looking approach in announcing the transition and search for a successor suggests a commitment to continuity and stability. Notably, Stepan has demonstrated long-term stability through its impressive 54-year streak of consecutive dividend increases, with a current yield of 2.39%. InvestingPro analysis reveals several more key insights about the company’s performance and outlook, available in their comprehensive Pro Research Report.
Investors and stakeholders of Stepan Company will be watching closely as the company moves to fill this key executive position, particularly with the upcoming earnings report scheduled for February 20, 2025. The company currently trades at a P/E ratio of 31.52x, with analysts maintaining coverage of the stock. The information for this report is based on statements provided in the company’s recent SEC filing and enriched with data from InvestingPro, which offers detailed analysis of over 1,400 US stocks through their comprehensive Pro Research Reports.
In other recent news, Stepan Company reported a growth in its third-quarter earnings, with adjusted EBITDA increasing by 11% to $53 million, and adjusted net income soaring by 61% to $23.7 million. Despite a slight decline in global sales volume, the Surfactant segment led the performance improvements. The company also announced the appointment of Luis Rojo as the new President and CEO.
These are part of the latest developments for Stepan Company, which remains on track to achieve a $50 million cost reduction goal by 2024. The company also declared a boost in its quarterly dividend and anticipates a positive free cash flow by the end of the year.
Furthermore, Stepan is nearing the completion of a new alkoxylation production facility in Pasadena, Texas, which is expected to contribute to growth by the second half of 2025. Despite a 12% decrease in Polymer net sales due to sluggish demand, the company is optimistic about a demand recovery in the Agricultural and Rigid Polyol segments.
Lastly, Stepan Company has expressed its commitment to sustainability, energy efficiency, and strategic growth. However, it is important to note that the third-quarter free cash flow was impacted by turnarounds and inventory buildup from hurricane effects.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.