US RPM fiscal Q1 net income falls 56% on write-down in India

03 October 2012 13:18  [Source: ICIS news]

US RPM fiscal Q1 net income falls 56%HOUSTON (ICIS)--RPM International’s fiscal 2013 first-quarter net income fell 56% year on year to $33.9m (€26.1m), mainly because of the write-down of an investment in India, the US-based coatings, sealants and building materials firm said on Wednesday.

RPM said that during the quarter it incurred a one-time charge of $45.3m for the write-down of its investment in Kemrock Industries in India because of a worsening in local economic conditions. Kemrock is a producer of fibre-reinforced composite materials.

In addition, RPM’s fiscal first quarter ended 31 August included an $11.0m charge in its roofing division because of a decision to exit certain unprofitable contracts outside North America, it said.

Excluding those one-time adjustments, RPM’s first-quarter earnings before interest and tax (EBIT) were up 2.4% year on year to $139.8m, and net income was up 10.4% year on year to $84.8m.

Fiscal first-quarter sales rose by 6.2% year on year to $1.05bn.

“First-quarter operating results were on plan, with both our industrial and consumer segments posting increases in sales and EBIT, prior to the one-time adjustments that impacted the industrial segment,” CEO Frank Sullivan said.

“Most of our operating units are seeing growth in unit volume, pricing improvement and a stabilisation of raw material prices," Sullivan added.

($1 = €0.77)

By: Stefan Baumgarten
+1 713 525 2653

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