RPM International Inc., a provider of specialty coatings, sealants, and building materials, reported financial results for its fiscal 2023 first quarter, which ended August 31, 2022. Key highlights in the report include:

• First-quarter net sales increased 17.1% to a record $1.93 billion
• First-quarter net income increased 25.6% to a record $169.0 million, income before income taxes was a record $225.1 million, diluted EPS was $1.31, and adjusted diluted EPS was a record $1.47
• First-quarter EBIT increased 29.8% to a record $255.5 million and adjusted EBIT increased 33.1% to a record $275.3 million
• Fiscal 2023 second-quarter outlook calls for sales growth of 9% to 12% and adjusted EBIT growth of 30% to 40%

“I am proud of RPM associates’ ability to generate record first-quarter consolidated sales and adjusted EBIT. Our businesses skillfully navigated supply chain tightness, cost inflation, macroeconomic challenges, and foreign exchange headwinds to expand margins and deliver record first-quarter financial results. In addition, they have continued to implement MAP operational improvement initiatives, with a positive impact on our top and bottom lines,” said RPM chairman and CEO Frank C. Sullivan.

“All four of our segments achieved double-digit sales growth driven by our procurement and technical teams’ ability to increase material supply through insourcing and qualifying new suppliers. Additionally, pricing was managed by implementing increases to catch up with persistent cost inflation. Three out of our four segments generated strong adjusted EBIT growth, led by our Consumer Group, which benefited from MAP operational efficiencies that were enhanced by our ability to improve material supply. While the global macroeconomic outlook is uncertain, we believe that our MAP 2025 initiatives, diversified business model and strategic focus on maintenance and restoration position us well for the future,” he added.

Performance Coatings Group

PCG’s record sales were driven by double-digit growth in flooring systems, protective coatings, and fiberglass-reinforced plastic grating, all of which are strategically well-positioned to benefit from the trend of reshoring manufacturing to the United States. Additionally, energy market demand was strong. Emerging markets’ strength, pricing and improved sales management contributed to the record revenue as well. Sales included 23.6% of organic growth, no impact from acquisitions and foreign currency translation headwinds of 4.4%.

Record first-quarter adjusted EBIT was driven by volume growth, selling price increases and favorable mix resulting from digital sales management tools, which were partially offset by foreign exchange headwinds.

For more information, visit: www.RPMinc.com.