RPM REPORTS RECORD RESULTS FOR FISCAL 2018 FIRST QUARTER
Medina, Ohio October 4, 2017 RPM
International Inc. (NYSE: RPM) today reported record sales, net income and earnings per diluted share for its fiscal 2018 first quarter ended August 31, 2017, despite continued strong headwinds from rising raw material costs.
Fiscal 2018 first-quarter net
sales of $1.35 billion increased 7.5% over the $1.25 billion reported a year ago. First-quarter net income was up 3.2% to $116.4 million from $112.8 million in the year-ago period, and diluted earnings per share of $0.86 were up 3.6% from $0.83 in
the fiscal 2017 first quarter. Income before income taxes (IBT) increased 4.6% to $155.3 million from $148.5 million in the fiscal 2017 first quarter. RPMs consolidated earnings before interest and taxes (EBIT) increased 6.1% to
$177.6 million from $167.4 million reported in the fiscal 2017 first quarter.
We derived significant benefits from the nine acquisitions
made in fiscal 2017, along with our selling, general and administrative (SG&A) cost reduction actions taken last year. Rising raw material costs negatively impacted gross
profit margins. As a result, we instituted price increases, which began to
take effect late in the quarter. After three years of foreign currency headwinds attributable to the strengthening U.S. dollar, currency translation was essentially neutral this quarter, stated Frank C. Sullivan, RPM chairman and chief
First-Quarter Segment Sales and Earnings
The companys industrial segment net sales increased 8.0%, to $729.8 million from $675.8 million reported a year ago, with 3.2% in organic growth, while
acquisitions added 4.3%. Foreign currency translation increased sales by 0.5%. Industrial segment EBIT increased 0.4% to $91.5 million from $91.1 million in the fiscal 2017 first quarter.
Our industrial segment results reflect a combination of higher raw material costs, unfavorable product mix, higher distribution expense and
disappointing results from a struggling Latin America. Our European and Canadian businesses performed very well in the quarter. North American commercial construction markets, which have bolstered the industrial segments performance over the
past several years, have become a bit choppy, with some areas performing well and others showing weakness. Our businesses serving the oil and gas industries were down in the mid-single digits, compared to double-digit declines over the past three
years. We expect sales at those businesses to turn positive in the second half of this fiscal year, stated Sullivan.
RPMs consumer segment
reported a 6.8% increase in sales to $427.1 million from $399.9 million in the fiscal 2017 first quarter. Organic sales declined 1.2%, while acquisition growth contributed 8.1%. Foreign currency translation reduced sales by 0.1%. Consumer segment
EBIT improved 3.5% to $72.6 million from $70.1 million in the fiscal 2017 first quarter.
RPM International Inc. (NYSE: RPM) owns subsidiaries that are world leaders in coatings, sealants, building materials and related services. From homes to precious landmarks worldwide, their brands are trusted by consumers and professionals alike to protect, improve and beautify. Among its leading consumer brands are Rust-Oleum, DAP and Zinsser. Learn more about RPM brands >>
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