06 October 2010 13:33 [Source: ICIS news]
LONDON (ICIS)--RPM International’s fiscal first-quarter net income rose by 2.6% compared with the same period last year to $75m (€54m) on the back of a sharp improvement in sales by its industrial segment, the US-based coatings, sealants and specialty chemical firm said on Wednesday.
Net sales for the three-month period ended 31 August of $894.8m were 2.3% below the $916.0m reported a year ago, the company said.
Consolidated operating profit was $122.0m, up 1.1% from the $120.7m in the same year-ago period.
On a pro-forma basis, assuming that the deconsolidation of Specialty Products Holding Corp (SPHC) subsidiaries had been in effect during the first quarter of fiscal 2010, sales increased by 6.1%, to $894.8m from $843.0m a year ago, said RPM.
Pro-forma net income attributable to RPM stockholders improved 8.3% to $69.0m.
Frank Sullivan, chairman and chief executive, said that going forward the company would report its results on a pro-forma basis, taking into account the impact of the SPHC deconsolidation.
SPHC subsidiaries were deconsolidated from RPM's financial results when SPHC and its Bondex subsidiary filed Chapter 11 reorganisation proceedings on 31 May as part of a plan to resolve the company's long-standing asbestos claims.
“On an apples-to-apples basis, we are pleased with our first-quarter results in this challenging economy. We were especially encouraged by a sharp improvement in sales by our industrial segment," said Sullivan.
"Our consumer segment faced some very tough comparisons in the first quarter, as our year-earlier first quarter had strong double-digit growth in both sales and EBIT,” he said.
Sullivan added that the segment was also affected by significant increases in raw material costs, as well as a slowdown in consumer spending over the summer.
"Businesses within the segment continued to hold or gain market share, which should serve RPM well as consumer spending picks up," he said.
($1 = €0.72)
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