MEDINA, OH -- RPM International Inc. reported double-digit gains in sales, net income and earnings per diluted share for its fiscal 2011 fourth quarter ended May 31, 2011, compared to fourth-quarter 2010 pro-forma results.
Net sales, net income and earnings per share for the fourth quarter were all up sharply over prior-year pro-forma results. Net sales grew 10.9 percent to $981.8 million from a pro-forma $885.6 million in fiscal 2010. Consolidated earnings before interest and taxes (EBIT) increased 10.2 percent to $119.8 million from a pro-forma $108.7 million a year ago. Net income attributable to RPM stockholders was up 14.8 percent to $70.2 million from $61.1 million a year ago. Diluted earnings per share improved 14.9 percent to $0.54 from $0.47 in the fiscal 2010 fourth quarter.
"Our strong fourth-quarter performance reflects the resilience of our operating companies in the face of stiff headwinds generated by escalating raw material costs, continued weakness in the domestic housing market and a commercial construction market that is only gradually recovering from depressed levels," said Frank C. Sullivan, Chairman and Chief Executive Officer. "Our deliberate strategic balance between industrial and consumer markets once again proved effective in addressing challenging market conditions."
Looking forward, Sullivan commented, "We see continuing strength in our industrial businesses as we build on the market share gains made in businesses that address the recovering commercial construction market and benefit from ongoing momentum in businesses serving our core industrial maintenance and repair markets. We anticipate industrial sales growth in upper single-digit to low double-digit levels, while expecting more modest growth rates in our consumer segment. As a result, we anticipate overall sales growth of 8 percent to 10 percent, with 10 percent to 15 percent growth in diluted earnings per share. Although we remain challenged by both price and availability of raw materials, along with unsettled economic conditions in both Europe and North America, we are confident that our strategically balanced portfolio of businesses will enable us to achieve these targets.”
RPM Profit Rises for Fiscal 2011
July 31, 2011