RPM International fiscal 2Q profit falls 17 pct
MEDINA, Ohio (AP) — RPM saw its second-quarter net income dip 17 percent as the maker of Rust-Oleum took a hit on an investment in India.
For the quarter ended Nov. 30, the company, which makes other chemicals, sealants and paints, posted earnings of $41.7 million, or 31 cents per share, down from $49.9 million, or 38 cents per share, in the same quarter last year.
RPM took a charge of a charge of $10.8 million, or 9 cents per share, related to the company's remaining stake in Kemrock Industries and Exports Ltd., due to weak economic conditions in India, where Kemrock is based.
However, even when that charge is excluded, the company still fell 2 cents shy of Wall Street's per-share expectations.
Revenue rose 11 percent to $1.02 billion. Analysts were looking for revenue of only $997.7 million, according to a FactSet poll.
Industrial sales grew 7.7 percent to $691 million, while consumer sales jumped 19 percent to $326.4 million. Both divisions were helped by acquisitions.
RPM International Inc., Based in Medina, Ohio, backed its full-year guidance, saying that it still expects adjusted earnings of $1.80 to $1.85 per share on sales growth of 8 to 10 percent. Based on the company's $3.78 billion in fiscal 2012 revenue, the guidance implies 2013 revenue of $4.08 billion to $4.16 billion.
Analysts expect earnings of $1.85 per share on $4.12 billion in revenue.