RPM Q4 Profit Falls, Adj. Earnings Beat Estimates

(RTTNews) - Specialty chemical products company RPM International Inc. (RPM) Monday reported a fall in its fourth-quarter profit that reflected one-time write down and restructuring charge. Quarterly net sales grew about 6 percent from last year. Adjusted earnings topped analysts' expectations, but revenues were slightly below view.

Frank Sullivan, chairman and chief executive officer of the company stated, "...Net sales, net income and diluted earnings per share experienced significant growth, on an as-adjusted basis, as our consumer segment continued its robust performance and many industrial segment businesses posted gains."

In the fourth quarter, net income attributable to stockholders decreased to $65.38 million or $0.49 per share from $82.57 million or $0.63 per share in the prior year.

The firm recorded one-time pre-tax adjustments totaling $42.7 million for the recent quarter, which included a $22.5 million write down of RPM's remaining financial investments in Kemrock Industries and Exports Ltd., in India, and a $4.5 million restructuring charge related to an agreement in principle between RPM's roofing division and the U.S. General Services Administration.

Adjusted earnings were $0.72 per share, while the company posted $0.63 per share a year ago. On average, ten analysts polled by Thomson Reuters expected the company to earn $0.67 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales for the quarter grew 6.3 percent to $1.17 billion, but came slightly below analysts' expected revenue of $1.18 billion.

For fiscal 2013, net income fell to $98.6 million or $0.74 per share from $215.9 million or $1.65 per share last year. Consolidated net sales increased 8.0 percent to $4.08 billion.

Looking ahead to fiscal 2014, the company expects net income to increase 9 to 13 percent, resulting in earnings per share in the range of $1.98 to $2.05. It anticipates consolidated net sales growth of 5 to 7 percent.

Analysts expect the company to report fiscal 2014 earnings of $2.03 per share, on revenue of $4.39 billion. RPM is currently trading at $34.71, up $0.59 or 1.71 percent.