RPM International – RPM – Record Year-end Results for Fiscal 2012

RPM International Inc. (NYSE: RPM) reported sharp gains in net sales, net income and diluted earnings per share for its fiscal 2012 fourth quarter and year ended May 31, 2012.

• Fourth-quarter sales increase 12.2% over prior year
• Net income for the quarter up 17.7% over prior year
• Record fiscal 2012 full-year sales; increase 11.7% over prior year
• Record fiscal 2012 full-year net income; up 14.2% over prior year

RPM Fourth-Quarter Results

Net sales, net income and diluted earnings per share for the fourth quarter were all up significantly over prior-year results. Net sales grew 12.2% to a record $1.1 billion from $981.8 million in fiscal 2011. Consolidated earnings before interest and taxes (EBIT) increased 16.5% to $139.5 million from $119.8 million a year ago. Net income was up 17.7% to $82.6 million from $70.2 million a year ago. Diluted earnings per share improved 16.7% to $0.63 from $0.54 in the fiscal 2011 fourth quarter.

“Our operating companies posted an excellent finish to the fiscal year by delivering double-digit increases in sales and net income over last year’s strong fourth quarter,” stated Frank C. Sullivan, chairman and chief executive officer. “This performance was driven by internal growth initiatives, market share gains and continued geographic expansion, despite ongoing raw material challenges and an uncertain global economy.”

RPM Fourth-Quarter Segment Sales and Earnings

Industrial segment sales grew 15.8% to $724.8 million in the fiscal 2012 fourth quarter from
$625.9 million a year ago. Organic sales improved 10.2%, despite 3.3% in foreign exchange translation losses, while acquisition growth added 5.6%. Industrial segment EBIT increased 28.7% to $90.4 million from $70.3 million in the fiscal 2011 fourth quarter.

“Nearly all of our industrial businesses delivered improved sales and earnings for the quarter.  Areas of particular strength included industrial maintenance coatings and corrosion control coatings, which have benefited from increasing demand in energy markets, as well as industrial capital spending and infrastructure investment.   The slowly recovering commercial construction markets in North America also led to increased sales in sealants, waterproofing, roofing materials, concrete admixtures and other construction chemical product lines,” stated Sullivan.

Net sales for RPM’s consumer segment grew 5.9% to $377.0 million from $355.9 million in the fiscal 2011 fourth quarter. Organic sales were up 4.8%, including foreign exchange translation losses of 0.8%, while acquisition growth added 1.1%. Consumer segment EBIT increased 12.5% to
$60.3 million from $53.6 million a year ago.

“Sales in the consumer segment, particularly at our Rust-Oleum subsidiary, benefitted from successful new product introductions and continued strong take-away in small-project maintenance, repair and redecorating by consumers,” stated Sullivan. “Sales in the mid-single-digit range for the fourth quarter were in line with our estimates, given the pull-forward of sales into our fiscal third quarter due to the extremely mild winter season in most of the U.S.”

About RPM

RPM International Inc., a holding company, owns subsidiaries that are world leaders in specialty coatings, sealants, building materials and related services serving both industrial and consumer markets.  RPM’s industrial products include roofing systems, sealants, corrosion control coatings, flooring coatings and specialty chemicals.

More Posts by this author

• Stocks End Lower for a Third Consecutive Day
• Gold Prices Settle Lower; Silver Prices also Edge Lower
• Stocks Continue to Tumble
• U.S. Stocks Edge Lower After Gloomy Manufacturing Data
• Cybex International – CYBI – Progress in profit margins is anticipated in Q4
• Carlisle Companies – CSL – Another quarter of outstanding performance
• ICON – ICLR – Reports second quarter 2012 revenue up 19% to $277 million

Post Written By: Ed Liston Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.