RPM International Backs FY17 Earnings View After Higher Q1 Profit - Quick Facts

(RTTNews) - RPM International Inc. (RPM), a provider of specialty coatings, sealants, building materials and related services, Wednesday said it has maintained guidance for earnings per share in fiscal 2017 of between $2.68 and $2.78.

Frank Sullivan, RPM chairman and chief executive officer, said, "We continue to generate growth across most RPM businesses despite many market and economic challenges, and our operating units were able to leverage this modest sales growth into very strong EBIT growth."

In its first quarter, net income was up 13% to $112.8 million from $99.8 million in the year-ago period. Earnings per share of $0.83 increased 12.2% from $0.74 last year.

During the quarter, the company early adopted ASU 2016-09, "Improvements to Employee Share-Based Payment Accounting." As a result of adoption of this accounting standard, the company recognized a tax benefit, which contributed to lowering the quarterly effective tax rate to 23.6%.

RPM's consolidated earnings before interest and taxes or EBIT increased 4.2% to $167.4 million.

First-quarter net sales were $1.25 billion, up 0.8% over the $1.24 billion reported a year ago.