RPM posts $88m net Q4 loss on asbestos charges

21 July 2008 15:48  [Source: ICIS news]

LONDON (ICIS news)--RPM International reported a net loss of $88m (€53m) for the fiscal fourth quarter, down from an $84m net profit a year earlier on charges for future asbestos litigation costs, the US specialty coatings company said on Monday.

 

The $288m pre-tax charge had extended the period covered by the company’s asbestos accrual from 2018 to 2028, it said.

 

Excluding the asbestos charge, sales and net income reached record levels. Net sales rose 7% to $1.08bn from $1.01bn, while net income increased 16% year on year to $97.5m from $84m.

 

“RPM's business units delivered a strong finish to our fiscal year in the face of record high raw material prices and a recessionary environment in our core North American markets,” said RPM CEO Frank Sullivan.

 

RPM’s industrial segment booked a 14% increase in operating profits to $89.4m from $78.7m driven by strong international demand and market share gains.

 

The consumer segment’s operating profits dropped 2% to $66.7m from $68.2m on raw material hikes and a decline in the US housing and retail markets.

 

“We anticipate another year of record growth in both sales and net income for the coming year,” said Sullivan, adding that 2009 would be an active year for acquisitions.

 

Sullivan said he expected RPM to record an earnings per diluted share of $1.85 in in fiscal 2009, up from $1.75 in 2008.

 

($1 = €0.63)

 

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By: Mark Watts
+44 20 8652 3214

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