MEDINA, Ohio - RPM International Inc. announced that outstanding performance in the company's consumer segment and more modest gains in its industrial segment resulted in significant increases in sales, net income and diluted earnings per share for the fiscal 2014 first quarter ended August 31, 2013.

Fiscal 2014 first-quarter net sales of $1.165 billion increased 11.3 percent over the $1.047 billion reported a year ago. RPM's consolidated earnings before interest and taxes (EBIT) grew 96.4 percent to $164.0 million from $83.5 million reported in the fiscal 2013 first quarter. First-quarter net income increased 204.0 percent to $103.1 million, up from the $33.9 million reported in the year-ago period, and diluted earnings per share improved by 196.2 percent to $0.77 from $0.26.  

During last year's first quarter, the company incurred a one-time, non-cash charge of $45.3 million for the partial write-down of its investments in Kemrock Industries and Exports Limited in India and an $11.0 million charge in its roofing business.

Excluding the impact of these charges in the year-ago period, RPM's 2014 first-quarter net sales increased 11.0 percent from an adjusted $1.050 billion, consolidated EBIT grew 17.3 percent over an adjusted $139.8 million, net income was up 21.6 percent from the adjusted $84.8 million last year, and diluted earnings per share improved 20.3 percent from the adjusted $0.64 earned a year ago.

RPM's consumer segment reported a 26.2 percent increase in sales to $433.4 million from $343.4 million in the fiscal 2013 first quarter. Organic growth was 9.1 percent, principally volume driven, with negative foreign exchange of 0.3 percent and acquisition growth of 17.4 percent. Consumer segment EBIT improved 40.6 percent to $82.7 million in the fiscal 2014 first quarter from $58.8 million in the same period a year ago, driven primarily by higher volume, as well as strong performance from fiscal 2013 acquisitions.

"Our consumer segment continued trends set over the past several quarters, benefiting from higher sales that resulted from market share gains, innovative newer products at selling prices significantly above our norm and the recovery in the U.S. housing market," stated Frank C. Sullivan, Chairman and Chief Executive Officer. "Additionally, two consumer segment businesses acquired in fiscal 2013, Kirker and Synta, are both performing well above expectations."

The company's industrial segment net sales improved 4.0 percent, to $731.2 million from the $703.3 million reported a year ago, with 3.5 percent in organic growth offset by 0.2 percent in foreign exchange losses, while acquisitions added 0.7 percent. Industrial segment EBIT grew 30.2 percent to $100.1 million from the $76.9 million reported in the fiscal 2013 first quarter. The first-quarter industrial segment sales increase was 3.5 percent over the adjusted $706.2 million last year, and EBIT growth was 2.5 percent over the adjusted $97.7 million in last year's first quarter.  

"In the industrial segment, sales increased modestly in both our European businesses and our North American roofing business, marking an earlier than anticipated turnaround from last year's performance. Both Europe and roofing are already showing bottom-line leverage as a result of restructuring actions taken in the last fiscal year. We continue to see gradual improvement in RPM businesses serving North American commercial construction markets, while our unique industrial companies within the RPM2 Group are experiencing particularly robust sales growth," stated Sullivan.