Exhibit 99.1

Stepan Reports First Quarter Earnings

Northfield, Illinois, April 21, 2020 -- Stepan Company (NYSE: SCL) today reported:

First Quarter Highlights

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“Today we are living in a difficult and uncertain world.  We are all concerned about our health and the health of those we love.  At Stepan, we are fortunate that many of the products we sell contribute to the fight against COVID-19. Our plants are running and most importantly, we have been able to keep our employees safe and healthy.  We want to thank all our employees, customers, suppliers, government agencies and local communities that are helping us maneuver in this challenging environment,” said F. Quinn Stepan, Jr., Chairman, President and Chief Executive Officer.  

“Excluding the impact of the Millsdale power outage, the Company had a solid start to the year.  Surfactant operating income, excluding the Millsdale incident, was up significantly.  Global Surfactant sales volume declined 1% due to strong volumes in the global consumer product end markets driven by increased demand for cleaning and disinfection products, as a result of COVID-19, offset by lower demand within our Functional Product end markets.  Mexican operations delivered strong year-over-year earnings growth.  The Polymer business was down primarily due to the Millsdale power outage, impacting mostly our phthalic anhydride business.  Rigid Polyol volume was flat as growth within North America and China was fully offset by lower demand in Europe as a result of COVID-19. Global Specialty Polyols results were up with all regions growing operating income year-over-year.  Our Specialty Product business results were higher due to improved volume and margins within our MCTs product line due to pantry loading and higher demand in the infant nutrition market, as a result of the COVID-19 outbreak.”  

Financial Summary

Summary of First Quarter Adjusted Net Income Items

Adjusted net income excludes non-operational deferred compensation income/expense, cash-settled SARs and other significant and infrequent or non-recurring items.

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Percentage Change in Net Sales

Net sales decreased 8% quarter-over-quarter due to lower selling prices, mainly attributable to the pass-through of lower raw material costs, a 3% decline in global sales volume and the unfavorable impact of foreign currency translation.  The decline in sales volume was predominantly due to the Millsdale plant incident.      

Segment Results

Total segment operating income decreased $4.7 million, or 9%, versus the prior year.  

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Corporate Expenses

Income Taxes

The Company’s effective tax rate was 22.5% in the first quarter of 2020 versus 19.5% in the first quarter of 2019. The increase was primarily attributable to lower tax benefits derived from stock base compensation awards exercised or distributed in the first quarter of 2020 versus the first quarter of 2019.  

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Shareholder Return

The Company paid $6.2 million of dividends to shareholders and repurchased $7.2 million of Company stock in the first quarter of 2020.  The Company has 260,605 shares remaining under its Board of Directors’ share repurchase authorization.  The Company has increased its dividend on the Company’s common stock for 52 consecutive years.  

Selected Balance Sheet Information

The Company’s net debt level increased $61.1 million versus prior year-end and the net debt ratio increased from -12% to -4%.  The increase in net debt was due to a $61.1 million cash reduction resulting from higher working capital requirements, inclusive of accrued expenses, that are typical for the Company in the first quarter.    

The major working capital components were:

Capital spending was $33.2 million versus $25.7 million in the prior year quarter. For the full year, capital expenditures are expected to be in the range of $100 million to $120 million.

Outlook

“2020 is going to be a difficult year for the world, our country, our industry and Stepan Company.  However, we believe that in the current environment our business is positioned better than most,” said F. Quinn Stepan, Jr., Chairman, President and Chief Executive Officer.   “With empty store shelves around the world for disinfection and cleaning products, our surfactant volume in the Consumer Products end markets should remain relatively strong.  Falling raw material prices may provide an opportunity for margin improvement.  With dramatically lower oil prices, demand for surfactants within the oil field end-markets will be down.  We anticipate our Agriculture business should approximate last year. Overall, we believe our Surfactant business should remain relatively recession resistant.  

Our Polymer business most likely will face a reduction in demand as people defer or cancel re-roofing and new construction projects. We also anticipate higher North American costs due to the Illinois River lock closure scheduled during the second half of 2020.  The long term prospect of this business remains attractive as energy conservation efforts and more stringent building codes should increase demand.  

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Our Specialty Product business should continue to benefit from higher MCT demand in the infant nutrition market as pantry loading and retail restocking occur. Our flavor and pharmaceutical product sales should be stable for the year.  

We have a strong Balance Sheet with significant cash on hand.  We have a $350.0 million revolver which is essentially untapped. Our debt maturity in 2020 is only $23.6 million.  Given our balance sheet and available liquidity, we are well positioned to operate in the challenging near-term environment.  We have paid a dividend for 62 consecutive years and expect to do so in the future. Despite the difficult current environment, we remain optimistic about the future at Stepan Company and our ability to deliver value for our customers and shareholders”.  

Conference Call

Stepan Company will host a conference call to discuss the first quarter results at 8:00 a.m. ET (7:00 a.m. CT) on April 21, 2020. The call can be accessed by phone and webcast. Telephone access will be available by dialing 866-394-0807, and the webcast can be accessed through the Investor Relations/Conference Calls page at www.stepan.com. A webcast replay of the conference call will be available at the same location shortly after the call.

Supporting Slides

Slides supporting this press release will be made available at www.stepan.com through the Investor Relations page at approximately the same time as this press release is issued.

Corporate Profile

Stepan Company is a major manufacturer of specialty and intermediate chemicals used in a broad range of industries. Stepan is a leading merchant producer of surfactants, which are the key ingredients in consumer and industrial cleaning compounds and in agricultural and oilfield solutions. The Company is also a leading supplier of polyurethane polyols used in the expanding thermal insulation market, and CASE (Coatings, Adhesives, Sealants, and Elastomers) industries.

Headquartered in Northfield, Illinois, Stepan utilizes a network of modern production facilities located in North and South America, Europe and Asia.

The Company's common stock is traded on the New York Stock Exchange (NYSE) under the symbol SCL. For more information about Stepan Company please visit the Company online at www.stepan.com

More information about Stepan’s sustainability program can be found at https://stepan.gcs-web.com/static-files/5fb8f458-df94-44ba-9fca-4f1997b4594d

Contact: Luis Rojo 847-446-7500

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Tables follow

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Certain information in this news release consists of forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include statements about Stepan Company’s plans, objectives, strategies, financial performance and outlook, trends, the amount and timing of future cash distributions, prospects or future events and involve known and unknown risks that are difficult to predict. As a result, Stepan Company’s actual financial results, performance, achievements or prospects may differ materially from those expressed or implied by these forward-looking statements. In some cases, you can identify forward-looking statements by the use of words such as “may,” “could,” “expect,” “intend,” “plan,” “seek,” “anticipate,” “believe,” “estimate,” “guidance,” “predict,” “potential,” “continue,” “likely,” “will,” “would,” “should,” “illustrative” and variations of these terms and similar expressions, or the negative of these terms or similar expressions. Such forward-looking statements are necessarily based upon estimates and assumptions that, while considered reasonable by Stepan Company and its management based on their knowledge and understanding of the business and industry, are inherently uncertain. These statements are not guarantees of future performance, and stockholders should not place undue reliance on forward-looking statements.

There are a number of risks, uncertainties and other important factors, many of which are beyond Stepan Company's control, that could cause actual results to differ materially from the forward-looking statements contained in this news release. Such risks, uncertainties and other important factors include, among other factors, the risks, uncertainties and factors described in Stepan Company's Form 10-K, Form 10-Q and Form 8-K reports and exhibits to those reports, and include (but are not limited to) risks and uncertainties related to the impact of the COVID-19 pandemic; disruptions in production or accidents at manufacturing facilities; reduced demand due to customer product reformulations or new technologies; our inability to successfully develop or introduce new products; compliance with laws; our ability to make acquisitions of suitable candidates and successfully integrate acquisitions; global competition; volatility of raw material and energy costs and supply; disruptions in transportation or significant changes in transportation costs; downturns in certain industries and general economic downturns; international business risks, including currency exchange fluctuations, legal restrictions and taxes; unfavorable resolution of litigation against us; maintaining and protecting intellectual property rights; our ability to access capital markets; global political, military, security or other instability; costs related to expansion or other capital projects; interruption or breaches of information technology systems; our ability to retain executive management and key personnel, and; our debt covenants.

These forward-looking statements are made only as of the date hereof, and Stepan Company undertakes no obligation to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise.

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Table I

STEPAN COMPANY

For the Three Months Ended March 31, 2020 and 2019

(Unaudited – ‘000s Omitted)

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Table II

Reconciliations of Non-GAAP Net Income and Earnings per Diluted Share*

* All amounts in this table are presented after-tax

The Company believes that certain measures that are not in accordance with generally accepted accounting principles (GAAP), when presented in conjunction with comparable GAAP measures, are useful for evaluating the Company’s operating performance and provide better clarity on the impact of non-operational items.  Internally, the Company uses this non-GAAP information as an indicator of business performance and evaluates management’s effectiveness with specific reference to these indicators.  These measures should be considered in addition to, and are neither a substitute for, nor superior to, measures of financial performance prepared in accordance with GAAP.

Reconciliations of Pre-Tax to After-Tax Adjustments

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Table III

Deferred Compensation Plan

The full effect of the deferred compensation plan on quarterly pre-tax income was $3.8 million of income versus $5.1 million of expense in the prior year.  The accounting for the deferred compensation plan results in operating income when the price of Stepan Company common stock or mutual funds held in the plan fall and expense when they rise.  The Company also recognizes the change in value of mutual funds as investment income or loss.  The quarter end market prices of Company common stock are as follows:

The deferred compensation income statement impact is summarized below:

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Table IV

Effects of Foreign Currency Translation

The Company’s foreign subsidiaries transact business and report financial results in their respective local currencies. As a result, foreign subsidiary income statements are translated into U.S. dollars at average foreign exchange rates appropriate for the reporting period. Because foreign exchange rates fluctuate against the U.S. dollar over time, foreign currency translation affects period-to-period comparisons of financial statement items (i.e., because foreign exchange rates fluctuate, similar period-to-period local currency results for a foreign subsidiary may translate into different U.S. dollar results).  Below is a table that presents the impact that foreign currency translation had on the changes in consolidated net sales and various income line items for the three-month period ending March 31, 2020 as compared to 2019:

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Table V

Stepan Company

Consolidated Balance Sheets

March 31, 2020 and December 31, 2019

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