08 January 2013 13:12 [Source: ICIS news]
LONDON (ICIS)--RPM International’s fiscal 2013 second-quarter net income fell 17% to $41.7m (€31.7m) from the same period a year ago, following a non-cash charge of $10.8m related to the write-down of the group’s remaining equity investment in Kemrock Industries, the US-based coatings and sealants firm said on Tuesday.
The write-down of RPM's equity investment in Kemrock, a producer of fibre-reinforced composite materials based in India, was because of a worsening in local economic conditions, and the resulting impact on Kemrock's operating performance and stock price.
Excluding one-time adjustments, RPM’s net income for the three months ended 30 November 2012 rose 17% year on year to $52.5m.
On an as reported basis, the group’s net sales for the period increased 11% to $1.02bn from $916.1m a year ago, although consolidated earnings before interest and tax (EBIT) decreased 3.7% to $89.5m.
On an as adjusted basis, excluding the Kemrock impact, RPM's fiscal 2013 second-quarter consolidated EBIT improved 14% to $100.4m from $87.8m a year ago.
"Second-quarter operating results, on an adjusted basis, continue to meet our plan with sales, EBIT and net income posting strong double-digit increases," said Frank Sullivan, chairman and CEO.
"We are also seeing benefits from our robust acquisition programme, which has added businesses generating approximately $300m in annual sales during the past 12 months," he added.
Looking ahead, the company continues to anticipate sales growth of 8% to 10% and growth in diluted earnings per share of 9% to 12% for its full fiscal year.
“As usual, we expect weaker results for the seasonally difficult fiscal third quarter ending February 28, 2013, but anticipate a strong fiscal 2013 fourth quarter. We see continued strength in top- and bottom-line performance in our consumer segment as the US residential housing market steadily improves,” said Sullivan.
"Most of our industrial businesses are also performing well, with the exception of many European operations and the Building Solutions Group roofing division. Current-year acquisitions will offset these weaker sectors and contribute to our results," he added.
($1 = €0.76)
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