RPM Reports Record Fiscal 2018 Second-Quarter Results
MEDINA, OH January 4, 2018 RPM International Inc. (NYSE:
RPM) today reported record sales, net income and diluted earnings per share for its fiscal 2018 second quarter ended November 30, 2017. Sales increased 10.5% and net income of $95.5 million, or $0.70 per diluted share, compared to a year-ago net loss of $70.9 million, or loss of $0.54 per diluted share. The fiscal 2017 second-quarter results included a $188.3 million pre-tax ($129.2 million
or $0.97 per diluted share, after-tax) impairment charge. The fiscal 2017 second-quarter results also included a charge of $12.3 million, or $0.09 per share, which had no tax impact, related to the
decision to exit an industrial segment business in the Middle East.
Net sales of $1.32 billion were up 10.5% over the $1.19 billion reported a year ago.
Organic sales improved 4.2% and acquisition growth added 4.7%.
Foreign currency translation increased sales by 1.6%. Net income of $95.5 million compares to last years adjusted net income of $70.5 million. Earnings per diluted share of $0.70 in the current quarter, which included a $0.09 per
diluted share tax benefit relative to last years tax rate, compare to an adjusted $0.52 per diluted share last year. Earnings per diluted share increased 34.6% from last years adjusted earnings per diluted share of $0.52, and increased
17.3% excluding the $0.09 per diluted share tax benefit. Income before income taxes (IBT) of $109.2 million compares to a loss before income taxes of $106.9 million reported in the fiscal 2017 second quarter. RPMs consolidated
earnings before interest and taxes (EBIT) of $131.8 million compare to a consolidated loss before interest and taxes of $86.4 million reported in the fiscal 2017 second quarter. Excluding the
year-ago charges, RPMs consolidated EBIT for the fiscal 2018 second quarter improved 15.4% over $114.2 million in the fiscal 2017 second quarter. The EBIT improvement of 15.4% included the cost
savings benefit in Corporate/Other expenses of $11.1 million from lower pension, healthcare, acquisition-related expenses and professional fees.
We were very pleased with RPMs results during the fiscal second quarter. Our strategically balanced business model performed as intended with
strength in our industrial and specialty businesses offsetting weakness in our consumer segment. Sales growth was strong across all three of our business segments, with a balance of organic and acquisition growth. We are also seeing the benefits of
last years product line acquisitions and cost reduction efforts on improved leverage, which more than offset higher raw material costs that have negatively impacted gross profit margins, stated Frank C. Sullivan, chairman and chief
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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