Higher sales help RPM to post record Q4 earnings

23 July 2007 16:34  [Source: ICIS news]

HOUSTON (ICIS news)--US coatings and sealant company RPM reported on Monday a record net income of $84m (€60m) for the fourth quarter ended 31 May, compared with a net loss of $142m for the same period last year.

Operational profits (earnings before interest and tax) were $133.2m during the fourth quarter, compared with a loss of $209.5m during the same time last year.

The losses in 2006 were due mostly to the company establishing a long-term asbestos liability reserve, RPM said.

Fourth-quarter net sales reached a record of $1bn, up 10.6% from $909m for the same time last year. Growth, acquisitions and foreign exchange gains caused the increase.

The company's industrial segment reported net sales of $601m for the quarter, up 11.9 % from $537m, the figure reported during the same time last year.

Sales were solid across most of the company's product lines, RPM said. The segment also benefited from good international sales.

The company's consumer segment reported net sales of $405m, up 8.9% from $372m for the same period last year. However, RPM said that rising raw material costs hurt its consumer segment.

For the fiscal year 2008, RPM expects that revenues and net income should increase by 8%, said CEO Frank Sullivan. RPM should achieve such growth through acquisitions and by investing in such countries as India and China, he said.

Meanwhile, raw material costs will remain relatively high, Sullivan said. He expects zinc and several resins to increase throughout the fiscal year.

At 11:19 local time, RPM shares were trading at $24.70 on the New York Stock Exchange, up 1.65% from Friday's close.

($1 = €0.72)

ICIS Copyright © Reed Business Information 2009

Author: Al Greenwood
+1 713 525 2653

< previous article(ICIS Chemical Business podcast November 2, 2009)

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.