RPM International Q1 Profit Rises
RPM International Inc. (NYSE: RPM) reported a rise in its earnings for its fiscal first quarter on Wednesday.
The Medina, Ohio-based company reported quarterly net income of $99.8 million, or $0.74 per share, compared to $99.1 million, or $0.73 per share, in the year-earlier period. During the latest quarter, translational and transactional foreign exchange reduced EPS by $0.08.
Its net sales gained 3.2 percent year-over-year to $1.24 billion from $1.20 billion. However, analysts were expecting earnings of $0.81 per share on revenue of $1.27 billion.
Sales for RPM's consumer segment slipped 8.0 percent to $395.6 million, while industrial segment net sales dropped 4.5 percent to $663.3 million. The company's sales for new specialty segment climbed 130.7 percent to $183.6 million in the quarter.
Its consolidated earnings before interest and taxes slipped 1.9 percent to $160.6 million from $163.7 million.
At August 31, 2015, total debt was $1.73 billion, versus $1.5 billion at the end of year-ago quarter.
"With the tepid results of the first quarter behind us, principally weather related, the underlying economic fundamentals of our consumer businesses remain strong in the U.S. We expect to gain market share in various categories as the year progresses and believe the weather-related consumer sales shortfall in the first quarter will be picked up in future quarters this year," Sullivan said.
For FY16, RPM projects earnings of $2.50 per share, versus analysts' estimates of $2.56 per share.
RPM shares fell 1.14 percent to close at $43.28 yesterday.
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