RPM International Turns To Profit In Q3; Lifts FY14 EPS View - Quick Facts

(RTTNews) - Specialty chemical products company RPM International Inc. (RPM) said that its net income attributable to stockholders for the fiscal 2014 third quarter was $16.2 million or $0.12 per share, compared to net loss of $42.4 million or $0.33 per share in the year-ago quarter. Analysts polled by Thomson Reuters expected the company to report earnings of $0.09 per share for the quarter. Analysts' estimates typically exclude special items.

Adjusted net income attributable to stockholders for the prior year quarter was $8.67 million or $0.07 per share.

Adjustments in the year-ago period related to a $68.8 million accrual associated with an investigation of Tremco roofing contracts with the U.S. General Services Administration (GSA) and a $6.1 million non-operating adjustment associated with the strategic repositioning of the company's existing flooring business in Brazil in light of the Viapol acquisition there earlier in fiscal 2013.

Consolidated earnings before interest and taxes (EBIT) were $37.2 million, compared to a reported negative $48.6 million in the fiscal 2013 third quarter.

Quarterly net sales grew 2.3% to $863.4 million from $843.7 million last year. Seven analysts estimated revenues of $877.67 million for the quarter.

Due to stronger than anticipated leverage in our industrial segment, resulting from solid performance in Europe and businesses serving U.S. construction markets, the company raised its fiscal 2014 earnings per share guidance to a range of $2.10 -$2.15 per share, or 15% to 18% year-over-year growth, versus the range of $2.05 -$2.10 per share announced last quarter. Analysts project annual earnings per share of $2.11.

The company expects improving momentum in its industrial segment, combined with pent-up demand in its consumer segment as a result of the severe weather this winter in North America. The company's guidance for fiscal 2014 segment sales remains consistent with its view from last quarter, with industrial sales growth of 4% to 6% and consumer sales growth of 8% to 10%.