RPM International Q1 Profit Down; Back FY15 Profit View - Quick Facts

(RTTNews) - Specialty chemical products company RPM International Inc. (RPM) reported that its net income attributable to stockholders for the first-quarter of fiscal 2015 declined 3.9% to $99.1 million from $103.1 million in the year-ago period. Earnings per share dropped 5.2% to $0.73 from $0.77 in the fiscal 2014 first quarter. 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.

Non-recurring costs in this year's first quarter totaled $5.6 million pre-tax, and were related primarily to legal expenses incurred in conjunction with a Securities and Exchange Commission investigation of timing of expense accruals in the 2013 fiscal year, which did not affect full-year earnings, along with the proposed Specialty Products Holding Corp. or SPHC settlement, and a voluntary self-disclosure agreement with the state of Delaware for unclaimed property.

Quarterly net sales were $1.204 billion up 3.4% from $1.165 billion reported a year ago. Wall Street expected revenues of $1.23 billion.

The company maintained its full-year earnings guidance for fiscal 2015. Full-year guidance for the fiscal year ending May 31, 2015 anticipates growth in diluted earnings per share of 9% to 11%, or a range of $2.38 to $2.42 per share.

The company said its outlook for fiscal 2015 remains the same as previously announced, with industrial sales increasing 6% to 8%, consumer sales increasing 5% to 7% and consolidated sales increasing 6% to 8%.

Wall Street currently is looking for fiscal year 2015 earnings of $2.42 per share on annual revenues of $4.65 billion.

On September 26, 2014, SPHC filed its plan of reorganization in Delaware Bankruptcy Court. The plan memorializes the settlement in principle reached with representatives of current and future asbestos claimants.

"We look forward to plan confirmation for SPHC and its emergence from bankruptcy. While the amounts required to fund a 524(g) trust are substantial from a financial perspective, this transaction will be good for RPM shareholders, both in terms of our ongoing operations and as a process which will bring finality to the Bondex asbestos liability," said Frank Sullivan, chairman and chief executive officer.

On a reconsolidated basis, excluding estimated transaction costs, the company believes that it will be in a position to deliver $2.70 to $2.90 in earnings per share for the fiscal year ending May 31, 2016. Analysts project annual earnings per share of $2.74.