RPM Announces Fiscal 2009 Third-Quarter Loss
April 16, 2009
MEDINA, OH - RPM International Inc. has reported a loss for its fiscal 2009 third quarter ended Feb. 28, 2009, resulting from lower sales reflecting the worldwide recession and traditional seasonal slowness, one-time restructuring costs, and write-downs of marketable securities in its captive insurance company.
RPM's net sales of $635.4 million were down 13.2 percent from the $731.8 million reported a year ago. Excluding a foreign exchange loss of 6.7 percent, partially offset by net acquisition growth of 3.0 percent, organic sales declined 13.1 percent.
The net loss for the third quarter was $30.9 million, or $0.24 per diluted share, compared to record net income of $12.2 million, or $0.10 per diluted share, earned in the year-ago period.
"Sales reflected the seasonally weak nature of the third quarter, coupled with both our industrial and consumer segments now feeling the impact of the worldwide recession," stated Frank C. Sullivan, Chairman and Chief Executive Officer.
Sales in the company's industrial segment declined 13.0 percent to $406.7 million from $467.6 million in the year-ago third quarter. Organic sales decreased 17.7 percent, including net foreign exchange losses of 8.4 percent, with acquisition growth of 4.7 percent mitigating the decline. The segment had a loss before interest and taxes of $21.0 million, compared to EBIT of $18.0 million a year ago.
Sales in RPM's consumer segment declined 13.4 percent to $228.7 million from $264.2 million in the third quarter a year ago. The entire decline was organic, including 3.6 percent in net foreign exchange losses. Consumer segment EBIT fell 81.2 percent to $3.7 million from $19.9 million a year ago.