RPM International Q1 Profit Declines, Backs Full-year Outlook - Update

(RTTNews) - Specialty chemical products company RPM International, Inc. (RPM) Wednesday reported a decline in the first-quarter profit, as comparatives were affected by unusually strong performance in the prior year.

The company, however, expects to resume improved financial performance for the remainder of the fiscal year, and backed its full-year earnings guidance for fiscal 2015.

"During last year's first quarter, our Synta and Kirker subsidiaries had exceptionally strong performance due to highly successful new product introductions and distribution expansion since being acquired by RPM," said Frank Sullivan, chairman and chief executive officer.

For the first quarter ended August 31, net income attributable to stockholders declined to $99.08 million or $0.73 per share from $103.1 million or $0.77 per share in the prior year.

On average, 10 analysts polled by Thomson Reuters expected the company to report earnings of $0.79 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales for the quarter increased 3.4 percent to $1.20 billion from $1.16 billion reported a year ago. Wall Street expected revenues of $1.23 billion.

Consumer segment, which includes Kirker and Synta business units, reported a 0.8 percent decrease in sales to $430 million. Industrial segment net sales improved 5.8 percent to $773.9 million.

For the fiscal year ending May 31, 2015, the company still anticipates growth in earnings per share of 9 to 11 percent, or in the range of $2.38 to $2.42 per share. Wall Street currently is looking for fiscal year 2015 earnings of $2.42 per share, on annual revenues of $4.65 billion.

For fiscal 2016, the firm expects to deliver earnings of $2.70 to $2.90 per share on a reconsolidated basis, excluding estimated transaction costs. Analysts project annual earnings per share of $2.74.

RPM is currently trading at $43.73, down 0.64 percent.