Stepan Company (NYSE:SCL) Q2 2022 Earnings Conference Call July 27, 2022 10:00 AM ET
Company Participants
Luis Rojo - VP & CFO
Scott Behrens - President & CEO
Conference Call Participants
Vincent Anderson - Stifel
Mike Harrison - Seaport Research Partners
David Silver - CL King
Operator
Greetings, and welcome to the Stepan Company Second Quarter 2022 Results Call. [Operator Instructions]
As a reminder, today's call is being recorded, Wednesday, July 27, 2022. I would now like to turn the conference over to Luis Rojo, Vice President and Chief Financial Officer. Please go ahead, sir.
Luis Rojo
Good morning, and thank you for joining Stepan Company's Second Quarter 2022 financial review. Before we begin, please note that information in this conference call contains forward-looking statements, which are not historical facts. These statements involve risks and uncertainties that could cause actual results to differ materially, including, but not limited to prospects for our foreign operations, global and regional economic conditions and factors detailed in our Securities and Exchange Commission filings. Whether you're joining us online or over the phone, we encourage you to review the investor slide presentation, which we have made available at www.stepan.com under the Investors section of our website. We made these slides available at approximately the same time as with the earnings release is issued. And we hope that you find the information and perspective helpful.
With that, I would like to turn the call over to Mr. Scott Behrens, our President and Chief Executive Officer.
Scott Behrens
Thank you, Luis, and good morning. and thank all of you for joining us today to discuss our second quarter results. To begin, I will share our second quarter highlights and strategy outlook, and Luis will provide additional details on our financial results for the quarter. The second quarter continued to be a challenging operating environment given continued raw material and transportation constraints, cost inflation and global macroeconomic uncertainties. Nonetheless, I am proud of how our team has continued to overcome these challenges by delivering record results for the second quarter.
Reported net income reached a record of $52.1 million or $2.26 per diluted share, while adjusted net income was a record $53 million or $2.30 per diluted share. Surfactant operating income was $48.2 million compared to $45.9 million in the prior year quarter. Growth was mainly driven by a better product and customer mix, but was partially offset by a 3% decline in global sales volume related to commodity laundry. Lower commodity laundry volumes were the result of continued raw material supply constraints in North America, and lower overall demand in Latin America. The sales volume decline was driven by laundry products within the Consumer Products business, partially offset by very strong functional products volume growth.