CEO Sullivan: RPM Will Deal Effectively with Asbestos Issue
MEDINA, OH - RPM International Inc. CEO Frank Sullivan expressed confidence that the company will deal effectively with asbestos-related litigation following a decline in the company's stock price attributed to Sullivan's previous comments about the issue.
Sullivan had disclosed that the company's insurance assets involving asbestos claims will likely run out in fiscal 2004, after which RPM would be responsible for 100% of the related costs. The company subsequently issued a statement by Sullivan saying the company has "been successfully managing this issue for close to 20 years." He said that based on "the strength of our operating results, balance sheet and solid cash flow, coupled with the numerous legal, defense and reserve strategies available to the company, we expect to continue to successfully manage this issue going forward."