RPM International Inc. reported financial results for the fiscal second-quarter 2023, which ended November 30, 2022. The company’s second-quarter net sales increased 9.3% to a reported record $1.79 billion. Its net income increased 5.2% to a record $131.3 million. The company’s income before income taxes was a record $175.1 million, diluted EPS was a record $1.02, and adjusted diluted EPS was a record $1.10. Its second-quarter EBIT increased 4.9% to $196.2 million, and adjusted EBIT increased 36.4% to $214.7 million. The company’s fiscal 2023 third-quarter outlook calls for sales to increase in the low to mid-single-digit percentage range, and adjusted EBIT to be between $75 million and $85 million.

“The second quarter was a positive one for RPM, with record sales and significant margin expansion resulting in record adjusted EBIT,” said Frank C. Sullivan, RPM chairman and CEO. “We generated these impressive results despite several macroeconomic challenges. We also introduced our MAP 2025 operating improvement program at an investor day during the quarter, and are off to a promising start with year-to-date MAP benefits exceeding our targets.”

“All four of our segments achieved record second-quarter sales, which included the impact of significant foreign exchange headwinds, and three of our four segments generated record second-quarter adjusted EBIT, despite continued year-over-year cost inflation,” continued Sullivan.

Performance Coatings Group

The company’s PCG second-quarter sales were supported by volume growth across most of its businesses, as well as price increases in response to continued cost inflation. Flooring systems, protective coatings, and fiberglass-reinforced plastic grating all generated double-digit sales growth, fueled by a strong demand from manufacturing customers, due in part to reshoring. Sales included 15.4% organic growth, 0.6% from acquisitions, and foreign currency translation headwinds of 5.2%.

Specialty Products Group

The company’s SPG second-quarter sales were led by strength in food coatings and additives, as a result of strategically refocusing sales management and selling efforts. Sales included 11.5% organic growth, 0.9% growth from acquisitions, and foreign currency translation headwinds of 2.9%.

RPM reports its fiscal 2023 second-quarter sales were driven by increased pricing in response to continued inflation. In addition, volume grew in businesses that are benefiting from reshoring and infrastructure spending, and material supply improved through insourcing and qualifying new suppliers. Geographically, demand was strong in the United States across a number of businesses and was solid in emerging markets. Demand in Europe, which accounted for 13.5% of sales, was weak as the region continued to be challenged by high inflation and difficult macroeconomic conditions.

RPM’s sales included 12.4% organic growth, 1.0% growth from acquisitions, and foreign currency translation headwinds of 4.1%. The company reports its fiscal 2023 second-quarter adjusted EBIT was driven by strong sales growth, as well as MAP 2025 benefits, primarily from manufacturing and commercial improvement initiatives. Partially offsetting this growth was the weak performance in Europe, the negative impact of foreign currency translation, and continued material cost inflation.

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