05 January 2012 13:29 [Source: ICIS news]
HOUSTON (ICIS)--RPM International’s fiscal 2012 second-quarter net income rose slightly to $49.9m (€38.4m) from $48.8m in the same period a year ago, but sales rose 10.9% year on year to $916.1m, the US-based coatings and sealants firm said on Thursday.
RPM said higher raw material costs and acquisition-related expenses were the reasons why net income lagged sales growth during the three months ended 30 November 2011.
RPM’s gross profit was $369.0m, up 8.7% from $339.5m in the fiscal 2011 second quarter.
"Investments in future growth, including much higher acquisition expenses associated with the roughly $165m in annualised sales from businesses acquired so far this fiscal year, and higher raw material costs were the primary factors behind our net income lagging sales growth," said CEO Frank Sullivan.
RPM reiterated its full-year guidance for the fiscal year ending 31 May 2012 of 8%-10% sales growth and an increase in diluted earnings per share of 10%-15%.
“As usual, we expect weaker results for the seasonally difficult fiscal third quarter ending 29 February 2012 , but anticipate a strong fiscal fourth quarter, with continued strength in top-line sales from both our industrial and consumer segments, combined with a moderating of raw material costs and improved gross margin contribution," Sullivan said.
($1 = €0.77)
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