Company expected to file an immediate appeal
MEDINA, Ohio, Dec. 2 /PRNewswire-FirstCall/ -- RPM International Inc.
(NYSE: RPM) today announced that its subsidiaries, RPM, Inc. and Bondex
International, received a ruling in their pending asbestos-related insurance
coverage case. Based on the substance of the ruling, the company's
subsidiaries are expected to appeal the court's decision.
"While we have finally secured a ruling in this insurance coverage case,
we are disappointed with the outcome. Once the judge's decision has been
analyzed by counsel, we will have a better feel for the grounds of an appeal,
which will be filed as expeditiously as possible. As a preliminary matter, we
note that the judge appears to have based her decision on a limited state
corporate law concept that does not undermine the merits of our underlying
insurance contract claims. Moreover, the judge's application of this corporate
law concept to insurance contracts appears to be without precedent in Ohio
law," stated Frank C. Sullivan, Chairman and CEO.
"Our preliminary analysis suggests that the ruling will be appealed to the
Sixth Circuit Court of Appeals. In the coming weeks, specific appellate
strategies will be explored with outside counsel and we look forward to a
fresh review by the appellate court," stated Mr. Sullivan. "In the meantime,
it is important to recognize that this ruling will have no substantive impact
on our existing asbestos accrual or related cash costs. We will continue to
manage this liability challenge as we have been doing for several years,"
added Mr. Sullivan.
RPM International Inc., a holding company, owns subsidiaries that are
world leaders in specialty coatings and sealants serving both industrial and
consumer markets. RPM's industrial products include roofing systems, sealants,
corrosion control coatings, flooring coatings and specialty chemicals.
Industrial brands include Stonhard, Tremco, illbruck, Carboline, Day-Glo, Euco
and Dryvit. RPM's consumer products are used by professionals and
do-it-yourselfers for home maintenance and improvement, boat repair and
maintenance, and by hobbyists. Consumer brands include Zinsser, Rust-Oleum,
DAP, Varathane and Testors.
For more information, contact P. Kelly Tompkins, executive vice president
-- administration and chief financial officer, at 330-273-5090 or
This press release contains "forward-looking statements" relating to our
business. These forward-looking statements, or other statements made by us,
are made based on our expectations and beliefs concerning future events
impacting us, and are subject to uncertainties and factors (including those
specified below) which are difficult to predict and, in many instances, are
beyond our control. As a result, our actual results could differ materially
from those expressed in or implied by any such forward-looking statements.
These uncertainties and factors include (a) general economic conditions; (b)
the price, supply and capacity of raw materials, including assorted pigments,
resins, solvents and other natural gas- and oil-based materials; packaging,
including plastic containers; and transportation services, including fuel
surcharges; (c) continued growth in demand for our products; (d) legal,
environmental and litigation risks inherent in our construction and chemicals
businesses and risks related to the adequacy of our insurance coverage for
such matters; (e) the effect of changes in interest rates; (f) the effect of
fluctuations in currency exchange rates upon our foreign operations; (g) the
effect of non-currency risks of investing in and conducting operations in
foreign countries, including those relating to domestic and international
political, social, economic and regulatory factors; (h) risks and
uncertainties associated with our ongoing acquisition and divestiture
activities; (i) risks related to the adequacy of our contingent liabilities,
including for asbestos-related claims; and (j) other risks detailed in our
filings with the Securities and Exchange Commission, including the risk
factors set forth in our Annual Report on Form 10-K for the year ended May 31,
2008, as the same may be updated from time to time. We do not undertake any
obligation to publicly update or revise any forward-looking statements to
reflect future events, information or circumstances that arise after the date
of this release.
SOURCE RPM International Inc.
executive vice president -- administration and
chief financial officer of RPM, Inc.