Company Cites Strong Internal Growth
MEDINA, Ohio, Sep 27, 2004 /PRNewswire-FirstCall via COMTEX/ -- RPM International Inc.
(NYSE: RPM) announced today that sales for its fiscal 2005 first quarter,
ended August 31, 2004, will be approximately 13-14 percent higher than same-
period sales a year ago.
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"More than 80 percent of this sales increase represents internal growth,"
said Frank C. Sullivan, president and CEO, "with both operating segments
producing double-digit gains. The momentum in our industrial businesses,
which began during the second half of fiscal 2004, continued through this
first quarter. Our consumer segment continues to generate solid results
comparable to the levels we have seen the past couple of years."
First-quarter earnings and earnings per share are expected to increase
13-15 percent over the previous year's first-quarter results.
The company further indicated that while pricing initiatives are being
phased in, higher material costs remain a challenge. In addition, RPM
estimates that its quarterly asbestos costs, the details of which will be set
forth in the company's report on Form 10-Q, will amount to approximately
$19 million. Overall, these quarterly costs and claims activity remain in
line with the company's expectations, and are consistent with the assumptions
underlying its reserve.
RPM's anticipated results will also reflect the early adoption of FAS 123
("Accounting for Stock-Based Compensation") and a reclassification of co-op
advertising expenses to be more in conformity with industry practice. The
adoption of FAS 123 is expected to impact first-quarter earnings by
approximately one-half cent per share. The reclassification will not impact
earnings results, but will reduce reported net sales and SG&A expenses by the
same amount, estimated to be 1-1.5 percent of sales for fiscal 2005. Prior
periods will also be reclassified for comparability purposes.
"We are very pleased with these initial results for our first quarter,
which fall well in line with our full-year fiscal 2005 guidance for high-
single-digit growth in revenue and 10-12 percent growth in earnings," Sullivan
added. "We will be presenting our complete first-quarter results the morning
of October 6, when we will be issuing our earnings release followed by our
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, Carboline, Day-Glo, Euco and
Dryvit. RPM's consumer products are used by professionals and do-it-
yourselfers for home maintenance and improvement, automotive and boat repair
and maintenance, and by hobbyists. Consumer brands include Zinsser,
Rust-Oleum, DAP, Varathane, Bondo and Testors.
For more information, contact Glenn R. Hasman, Vice President of Finance
and Communications, at 330-273-8820 or email@example.com .
This press release contains "forward-looking statements" relating to the
business of the company. These forward-looking statements, or other
statements made by the company, are made based on management's expectations
and beliefs concerning future events impacting the company and are subject to
uncertainties and factors (including those specified below) which are
difficult to predict and, in many instances, are beyond the control of the
company. As a result, actual results of the company 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 and supply of raw materials, particularly titanium dioxide,
certain resins, aerosols and solvents; (c) continued growth in demand for the
company's products; (d) legal, environmental and litigation risks inherent in
the company's construction and chemicals businesses and risks related to the
adequacy of the company's existing reserves and insurance coverage for such
matters; (e) the effect of changes in interest rates; (f) the effect of
fluctuations in currency exchange rates upon the company's foreign operations;
(g) the effecu 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 the company's ongoing acquisition and
divestiture activities; (i) risks inherent in its contingent liability
reserves, including asbestos; and other risks detailed in the company's other
reports and statements filed with the Securities and Exchange Commission,
including the risk factors set forth in the company's prospectus included as
part of the company's Registration Statement on Form S-4 (File No. 333-
114259). RPM does 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.
Glenn R. Hasman, Vice President of Finance and Communications,
of RPM International Inc., +1-330-273-8820, or firstname.lastname@example.org
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