22 July 2013 14:26 [Source: ICIS news]
HOUSTON (ICIS)--RPM International’s fiscal 2013 fourth-quarter net profit, on an as-reported basis, fell by 21% year on year to $65.4m (€49.7m) despite a rise in sales, the US-based coatings and sealants firm said on Monday.
On an as-reported basis, fiscal fourth-quarter net sales increased by 6.3% year on year to $1.17bn, while consolidated earnings before interest and taxes (EBIT) declined by 9.6% to $126.1m.
The manufacturer attributed the fall in net income during the quarter partly to one-time pre-tax adjustments of $42.7m during the quarter.
These included a $22.5m write-down of RPM's remaining financial investments in Kemrock Industries – a producer of fibre-reinforced composite materials based in India, which continues to struggle in the face of a difficult Indian economy and significant debt, RPM said.
As of the end of fiscal 2013, RPM added that it has no remaining investment on its books in Kemrock.
On an adjusted basis, net income was up by 16% to $95.4m from $82.6m in the fiscal 2012 fourth quarter. On an as-adjusted basis, net sales grew by 6.3% year on year to $1.17bn, while EBIT grew 11%, to $155.2m
"Our overall operating results for both the quarter and year were strong, especially given the headwinds in Europe and previously reported difficulties in our roofing division," said Frank Sullivan, chairman and CEO.
"Net sales, net income and diluted earnings per share experienced significant growth, on an as-adjusted basis, as our consumer segment continued its robust performance and many industrial segment businesses posted gains," he added.
For the full fiscal 2013, on an as-reported basis, RPM's consolidated net sales increased by 8.0% year on year to $4.08bn, consolidated EBIT decreased 37% to $250.6m, while net income declined 54% to $98.6m.
Looking ahead to the company’s fiscal 2014, Sullivan said the company expects 5-7% growth in consolidated net sales, while net income is expected to increase by 9-13%.
Sullivan said: “This expectation is predicated on continued robust growth within our consumer segment, as a result of continued recovery in the North American housing market, market share gains and market acceptance of new products at higher price points than our traditional consumer product lines.
“In the industrial segment, we expect modest overall growth, with stronger performances by our businesses serving the North American commercial construction market.
However, RPM does expect its roofing division and European businesses to continue to experience deterioration through the first half of fiscal 2014.
($1 = €0.76)
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