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2007 Annual Report
2007 Report Cover
Growing Green
11-Year Financial Highlights
Solid Financial Performance
Growth Opportunities
Contents
Letter from the CEO
What's New
Letters to the Editor
Acquisition News Briefs
Q & A with the CEO
Building a Balanced and Diversified Portfolio
Leveraging Efficiencies for Growth
Industrial Segment
Consumer Segment
Strong Values and Service
Management's Discussion and Analysis
Financial Statements
Notes to Financial Statements
Quarterly Stock Prices and Dividend Information
Management Report on Internal Control
Auditor's Report
Stockholder Information
Subsidiaries
Directors and Officers
Raising the Flag in World Markets
  

To Paint Like a Pro, Prime Like a Pro
Zinsser’s national television ad campaign is based on two key facts: First, consumer do-it-yourselfers use primers less than professionals, who understand their value; and, second, professionals prefer Zinsser primers two-to-one over any other brand, according to a survey by PWC Magazine.

The 2007 “Prime Like a Pro” campaign follows a successful launch in 2006, as Zinsser Bulls Eye 1-2-3 primer sales achieved doubledigit incremental sales growth during last year’s campaign. The 2007 effort was launched on Memorial Day and will run into October on national cable networks and select college football games on ESPN. Other media include HGTV, DIY Network, The Learning Channel, A&E, Discovery Home and Fox Sports, all strategically chosen based on their reach with consumers who have painted interiors in the past 12 months.

Building a Balanced and Diversified Portfolio

RPM’s consumer businesses manufacture and market the leading brands in North America for small project paints, primer-sealers, caulks and sealants, wood finishes, auto restoration products and hobbyist products. These are but a few examples of their innovation in action.

Consumer   Segment

Delivering on Consumer Needs
Eliminating two major hassles of patch and repair jobs — mess and mixing — DAP has developed Presto Patch Ready-Mixed Multi-Purpose Patching Compound. Formulated to repair both interior and exterior surfaces, Presto Patch sets in just 30 to 60 minutes and dries with minimal shrinkage.

Ahoy! A Pirate-Themed Makeover
When the decorative painters from the hit television show Extreme Makeover: Home Edition require special effects paints, they turn to Modern Masters. Used in a half-dozen episodes, Modern Masters’ products have helped transform ordinary rooms into extraordinary — including a pirate-themed bedroom with mural (below). On it, pirates become ghostly skeletons thanks to black light-activated Wildfire Ultraviolet Sensitive Paint.



Varathane Takes On the Competition - Head to Head
Varathane holds the number two position within the wood care category, yet its stains far outperform the market leader in terms of depth, richness and color. To gain market share, Varathane’s marketing strategies focus on a direct comparison of its stains to the competition. An innovative and proprietary combination of soya oil and premium pigments allows the stain to penetrate deeply into the wood. The result: independent research confirms that consumers prefer Varathane’s stain colors two-to-one over the competition.


Product Performance Propels Innovation
New from Bondo is its Dynatron-branded UltraGrip II, a specialized lightweight autobody filler used by repair professionals and designed for superior adhesion to galvanized steel and aluminum on today’s advanced vehicles.

Bondo has also introduced Laminex Lexzar M-Pact Gel Coat, a patentpending product designed to replace polyester gel coats used in the boat building industry. Its new technology provides longterm protection from the sun’s harmful ultraviolet rays, reduces labor costs, speeds production and is free from VOCs.

Innovation Continues at Rust-Oleum
Rust-Oleum’s history of innovation dates back to its founding in 1921, when Captain Robert Fergusson introduced the first commercially available rust-preventative paint, which featured fish oil as the rust inhibitor. Meeting consumer needs remains a cornerstone of Rust-Oleum’s foundation, with today’s new products and innovations predicated on extensive consumer research that addresses the product, labeling and retail merchandising preferences of shoppers.

Recent product innovations include Stops Rust MultiColor Textured, which provides a high-end, premium look to update everything from patio furniture to planters, and Rust-Oleum Semi-Transparent Concrete Stain Kit. The latter includes the first water-based concrete stain that gives the appearance of acid stains in an easy to use DIY-friendly format.