RPM’s Q2 EBIT rises 21.8% on diversification

08 January 2008 14:54 [Source: ICIS news]

TORONTO (ICIS news)--RPM International’s fiscal second-quarter earnings before interest and tax (EBIT) rose 21.8% year on year to $93m, on the back of new products and diversification, and despite negative impacts from the weak US housing market on its consumer business, the US-based coatings and sealants maker said on Tuesday.

The comparison excludes a one-off $15m asbestos-related insurance recovery that boosted EBIT in the corresponding quarter a year ago. Including the recovery, EBIT for the three months ended 30 November was up 1.8%.

Sales were $905.7m, up 11.9% year on year, while gross profits for the quarter totalled $367.7m, up 12.8%, and net income rose 3.6%, to $54.9m, RPM said.

"RPM's second-quarter operating results reflect the impact of new products, the diversity of our end-use markets, many of which are driven by maintenance and repair spending, good expense controls and strong international growth in virtually all of our industrial businesses," said RPM CEO Frank Sullivan.

Sales in the company's industrial segment rose 14.5% to $605.2m, on strong growth in RPM’s flooring, corrosion control coatings and roofing products markets.

Sales in the consumer segment rose 7% year on year to $300.6m, although that part of RPM’s business continued to face a difficult retail climate because of the weak US domestic housing market, the company said.

RPM expected full-year sales and earnings to grow between 8-10%, Sullivan said.

($1 = €0.68)

By: Stefan Baumgarten
+1 713 525 2653

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