By Will Feuer
Shares of Stepan climbed in afternoon trading after the chemical manufacturer raised its dividend, reported third-quarter results and said it expects to have positive free cash flow next year.
The stock rose about 7% to $72.86. So far this year, shares are still down about 32%.
Earlier Wednesday, Stepan raised its quarterly dividend by a penny to 37.5 cents. The company also reported a roughly 68% drop in third-quarter profit and 22% decline in sales. Both figures fell below analysts’ expectations, according to FactSet.
But Stepan’s end markets are recovering and the company is cutting costs, Chief Executive Scott Behrens said. Stepan is also nearing the end of its investment cycle meant to boost North American production capacity. The company’s Pasadena, Tex., plant is expected to open in mid-2024.
Behrens said he expects free cash flow to be positive next year.
Write to Will Feuer at [email protected]
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