RPM Q1 net rises 1.8%, sees tough times in US

First-quarter net income was $69.5m (€50.7m), up from $68.3m in the year-earlier period, helped by price increases.

Sales were up 5.9% to $985.5m, with acquisitions accounting for most of the increase, and the industrial segment outperforming the consumer segment.

"Industrial-product demand continued to be driven by worldwide strength in end markets that include petrochemical, power generation, infrastructure improvement, pharmaceuticals and health care," RPM said in a statement.

"Organic and acquisition-related growth in Europe and Latin America provided stronger levels of sales activity than did our domestic markets," said the Medina, Ohio-based company.

Consumer segment sales declined 10.5% in RPM's first fiscal quarter to $287.9m. Around half the decline was due to the sale of the company's Bondo subsidiary.

RPM said that while its own capital structure was robust, there would be tough times ahead due to the global credit crisis.

"Deterioration in the broader economy, as a result of the unprecedented turmoil in the capital markets, suggests that the balance of the year will be more volatile and difficult than we anticipated just a few weeks ago," it said.

"Weak domestic market conditions for our consumer segment and raw material cost pressure in both segments...[have] caused us to be more cautious in our outlook," RPM said