RPM Reports Sharp Improvement in Fiscal 2012 Third-Quarter Results
MEDINA, OH - RPM International Inc. reported marked increases in net sales, net income and diluted earnings per share for its fiscal 2012 third quarter ended February 29, 2012.
Net sales, net income and earnings per share for the third quarter all posted strong improvements versus prior-year results in the seasonally weak period. Net sales grew 14 percent to $773.6 million from $678.9 million, while consolidated earnings before interest and taxes (EBIT) grew 99.8 percent, to $27.1 million from $13.6 million a year ago. Net income attributable to RPM stockholders increased 503.9 percent to $6.6 million, compared to $1.1 million in the year-ago period. Diluted earnings per share were $0.05, compared to $0.01 in the fiscal 2011 third quarter.
“RPM's operations delivered exceptional performance during our third quarter, with market share gains and improved demand, as nearly all of our business units generated solid sales increases and substantially stronger growth in earnings,” said Frank C. Sullivan, Chairman and Chief Executive Officer.
Industrial segment sales grew 11.8 percent to $501.9 million in the fiscal 2012 third quarter from $449.1 million a year ago. Organic sales improved 5 percent, including a 2 percent decline attributable to foreign exchange, while acquisition growth added 6.8 percent. Industrial segment EBIT increased 56.9 percent, to $21.3 million from $13.6 million in the fiscal 2011 third quarter.
"Most of our industrial product lines, both domestically and in Europe, posted gains in sales and EBIT, with high-performance industrial coatings and maintenance products continuing to perform exceptionally well. Overall unit volume in the segment was up more than 5 percent. Some units serving commercial construction markets, notably concrete admixtures and construction sealants, had sharp improvements over the prior year. We are heartened by the sales improvements by most of our businesses serving commercial construction, as depressed conditions in that market have challenged us for the past three years," Sullivan stated.
RPM's consumer segment enjoyed an 18.2 percent increase in net sales to $271.7 million from $229.8 million in the fiscal 2011 third quarter, including a 17.9 percent gain in organic sales, which included a 0.6 percent decline due to unfavorable foreign exchange, while acquisition growth contributed 0.3 percent. Consumer segment EBIT increased 34.4 percent, to $21.5 million from $16.0 million a year ago.
Looking forward, Sullivan said, “Having recently completed our annual growth and strategy meetings with our operating companies, we remain confident in our initial guidance for the 2012 fiscal year of diluted earnings per share growth of 10 percent to15 percent, and that fiscal 2013 will be another year of solid sales and earnings growth for RPM.”
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