08 January 2013 20:24 [Source: ICIS news]
HOUSTON (ICIS)--RPM International expects year-over-year sales and earnings growth in its fiscal third quarter, stemming partly from improving commercial and housing construction markets, the US-based coatings and sealants firm said on Tuesday.
“In the third quarter, we are seeing continued improvements – the positive benefit of our acquisitions,” CEO Frank Sullivan said in the company’s second-quarter earnings call. “We will likely have a stronger third quarter on an operational basis than we did last year.”
“Construction markets are picking up again,” he added. “We’re seeing steady improvement, especially commercial construction in the US. We see that continuing.”
The housing market recovery “has gotten people back to spending on maintenance and repairs and small-project redecorating,” Sullivan said.
Despite a 17% quarter-over-quarter net income loss stemming from a one-time write-down, the company is also maintaining its full-year earnings guidance of $1.80–1.85/share on an adjusted basis.
“We are maintaining our full-year 2013 guidance of consolidated sales growth of 8–10% and earnings growth of 9–12%,” chief financial officer Russell Gordon said.
The weakest market for RPM will be its roofing business, in which the company expects continued declines in the second half of its fiscal year but improved performance in 2014.
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