RPM International Q2 Profit Misses Estimates; Net Sales Up 10.3%

(RTTNews) - RPM International Inc. (RPM) reported a decline in its second quarter adjusted EBIT due to continued material, wage and freight inflation, and supply chain disruptions that were exacerbated by Hurricane Ida and increased conversion costs. The company recorded strong double-digit sales growth at three of four operating segments.

Looking forward, RPM expects to generate double-digit consolidated sales growth in the third quarter. Consolidated adjusted EBIT is expected to decrease 5% to 15% from last year.

Excluding items, second quarter adjusted EBIT was $157.3 million, a decrease of 21.0% from $199.3 million, a year ago. Excluding items, adjusted EPS was $0.79, compared to $1.06. On average, 12 analysts polled by Thomson Reuters expected the company to report profit per share of $0.83, for the quarter. Analysts' estimates typically exclude special items.

Net income was $124.9 million, a decrease of 2.2% from prior year. Earnings per share was $0.96, compared to $0.98.

Second-quarter net sales were $1.64 billion, up 10.3% from a year ago. Analysts on average had estimated $1.55 billion in revenue.