US RPM records $42.4m fiscal 2013 Q3 net loss on government probe

04 April 2013 14:11  [Source: ICIS news]

HOUSTON (ICIS)--RPM International reported a $42.4m (€33.1m) fiscal 2013 third-quarter net loss, compared with a net income of $6.6m in the same period a year ago, the US-based coatings and sealants firm said on Thursday.

The manufacturer attributed the loss mainly to an accrual charge for likely losses from a US investigation into government contracts

RPM said it is in discussions with the US Department of Justice to resolve the investigation, which relates to roofing contracts by the company’s building solutions group with the US General Services Administration.

The actual loss RPM may incur from the probe could vary from the $68.8m accrual it set up in the third quarter, it added.

RPM’s sales for the three months ended 28 February increased by 9.1% year on year to $843.7m. Gross profit was $343.6m, compared with $303.2m in the same period a year ago.

RPM said underlying strong operating performance helped offset weaknesses in its European operations and the North American roofing business in the third quarter.

“Net sales, net income and diluted earnings per share all increased significantly on an as-adjusted basis, driven by strong performance in all of our consumer segment businesses and in many industrial segment businesses,” said CEO Frank Sullivan.

“The improvement was all the more noteworthy given the difficult comparisons to last year's strong third quarter, during which RPM's sales and earnings grew to record levels as a result of the exceptionally mild weather throughout most of North America," Sullivan said.

($1 = €0.78)

By: Stefan Baumgarten
+1 713 525 2653

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