RPM International Revises FY18 Earnings Guidance - Quick Facts

(RTTNews) - RPM International Inc. (RPM) narrowed its fiscal 2018 earnings guidance upwards to a range of $3.05 to $3.10 per share from previous guidance of $3.00 to $3.10 per share, reflecting the company's expectation of a continuation of solid top-line sales and double-digit EBIT growth.

"On a consolidated basis in the fourth quarter, we expect RPM to generate mid-to-upper-single-digit sales growth that will drive double-digit EBIT growth, reflecting continued tight SG&A spending controls, despite the challenging higher raw material environment. Overall, these anticipated results are consistent with what we communicated back in January," stated Frank Sullivan, RPM CEO.

Third-quarter earnings per share were $0.30 compared to $0.09 reported last year. During the quarter, the company recognized a non-recurring $0.01 per share net tax benefit as a result of the enactment of the Tax Cuts and Jobs Act on December 22, 2017, and an additional $0.08 per share benefit from the resulting lower U.S. statutory tax rate. Consolidated earnings before interest and taxes (EBIT) were $56.7 million, up 52.6% from year-ago EBIT of $37.1 million.

Third-quarter net sales grew 7.8% to $1.1 billion from $1.0 billion, prior year. Organic sales improved 1.8%, while acquisitions added 3.1%. Foreign currency translation positively affected sales by 2.9%.

"RPM's operating performance for the third quarter was outstanding, despite severe, continued industry-wide headwinds from higher raw material costs. We continue to generate exceptional EBIT leverage, reflecting the early success of cost savings initiatives we began implementing last year and rigorous SG&A spending discipline we have exercised throughout this year," stated Frank Sullivan.