21st April 2018

RPM REPORTS RECORD SALES

RPM Inc. (Medina, Ohio), the parent company of consumer paints company Rust-Oleum and other coatings firms including Carboline, Stonhard and Tremco, is reporting record sales and record net income in the third quarter of its fiscal year 2018. The company has announced sales of $1.1-billion for the quarter, which ended February 28, representing a third-quarter record for the company. Sales were up 7.8 percent compared with the third quarter of 2017.

Net income was up substantially year over year, at $40.2-million in Q3 2018, compared with $11.9-million during the same period last year. During the third quarter of last year, net income had been affected by pre-tax charges for an intangible impairment on its Rust-Oleum Restore product line, and by the closing of a manufacturing facility in Europe.

Consolidated earnings before interest and taxes (EBIT) were reported at $56.7-million for Q3, up more than 50 percent compared with prior-year numbers.

“RPM’s operating performance for the third quarter was outstanding, despite severe, continued industry-wide headwinds from higher raw material costs,” said chairman and CEO Frank C. Sullivan.

RPM’s Industrial segment, which includes Carboline, Stonhard, Tremco and illbruck, saw increased sales for the quarter. The segment totaled $569.2-million in Q3, up 9.2 percent compared with the previous year.

"Our industrial segment, representing over 50 percent of consolidated sales, increased EBIT by nearly 40 percent through greater SG&A (selling, general and administrative expenses) cost leverage, despite higher raw materials costs,” Sullivan said. “Our Tremco Roofing and international polymer flooring businesses did extremely well, partially offset by continued weakness in Brazil and mixed results in Europe.”

In both Consumer and Industrial, acquisition-related growth largely came from purchases the firm made in fiscal year 2017, including Georgia-based infrastructure chemicals company Prime Resins; raw-materials manufacturer Arnette Polymers; industrial tape maker Adhere Industrial Tapes; and Specialty Polymer Coatings Inc. More recently, RPM has boosted its consumer businesses with the acquisitions of Dutch decorative and specialty coatings company SPS and Iowa-based stain-remover firm Whink Products (both in December) and California-based Miracle Sealants Co. (in March).

The company anticipates “mid- to upper-single-digit sales growth” in the fourth quarter, according to Sullivan, led by the industrial segment, where the firm anticipates mid- to upper-single digit growth. RPM expects mid-single-digit growth in consumer and marginal growth in the specialty segment.

www.RPMInc.com