PaintSquare.com
Follow us on Twitter Follow us on LinkedIn Like us on Facebook Follow us on Instagram Visit the TPC Store
Search the site

 

Advertisement

Sherwin-Williams


Coatings Industry News

Main News Page


RPM Sets Sales Record in Q3, Names New VP

Friday, April 6, 2018

Comment | More

Holding company RPM Inc. (Medina, Ohio), parent company of coatings firms including Carboline, Stonhard and Tremco, as well as consumer paints companies like Rust-Oleum, saw record sales and record net income in the third quarter of its fiscal year 2018, according to a quarterly report issued Thursday (April 5).

RPM reported sales of $1.1 billion for the quarter (which ended Feb. 28), representing a third-quarter record for the company. Sales were up 7.8 percent compared with the third quarter of 2017.

RPM products
Images courtesy of RPM International unless noted

RPM Inc., parent company of Carboline, Stonhard and other coatings firms, reported record sales in the third quarter of 2018.

Net income was up dramatically for the company year over year, at $40.2 million in Q3 2018, compared with $11.9 million during the same period last year. During the third quarter of 2017, net income had been detrimentally affected by pre-tax charges for an intangible impairment on its Rust-Oleum Restore product line, and by the closing of a manufacturing facility in Europe.

Consolidated earnings before interest and taxes (EBIT) were reported at $56.7 million for Q3, up more than 50 percent compared with prior-year numbers.

“RPM’s operating performance for the third quarter was outstanding, despite severe, continued industry-wide headwinds from higher raw material costs,” said chairman and CEO Frank C. Sullivan.

Industrial Segment

RPM’s Industrial segment, which includes Carboline, Stonahrd, Tremco and illbruck, saw increased sales on the quarter, owing both to organic sales (up 2.2 percent) and acquisitions  (up 2.8 percent). Sales in the segment totaled $569.2 million in Q3, up 9.2 percent compared with the previous year.

Carboline Carbozinc
Carboline

RPM's Industrial segment, which includes a number of protective and marine coatings firms, saw increased organic and acquisitions-based sales.

“Our industrial segment, representing over 50 percent of consolidated sales, increased EBIT by nearly 40 percent through greater SG&A [Selling, General and Administrative Expenses] cost leverage, despite higher raw materials costs,” Sullivan said. “Our Tremco Roofing and international polymer flooring businesses did extremely well, partially offset by continued weakness in Brazil and mixed results in Europe.”

Consumer Segment

The Consumer segment also saw growth in sales, spurred more by acquisitions (up 4.2 percent) than by organic sales growth (up just 0.7 percent). Consumer sales got a slight boost courtesy of foreign currency translation, which had a positive effect of 1.5 percent.

“In our consumer segment, prior-year acquisitions continue to drive incremental sales and our organic growth has outperformed that of our peers in the consumer space,” Sullivan said. “However, the overall sluggishness in consumer point-of-sale takeaway over the last several quarters continued. We expect a robust advertising schedule in the fourth quarter to position the consumer segment for accelerated growth in fiscal 2019.”

Miracle sealants
Miracle Sealants

Recent RPM acquisitions in the Consumer segment include California-based Miracle Sealants.

In both Consumer and Industrial, acquisition-related growth was largely a result of a series of buys the firm made in fiscal year 2017, including Georgia-based infrastructure chemicals company Prime Resins; raw-materials manufacturer Arnette Polymers; industrial tape maker Adhere Industrial Tapes; and Specialty Polymer Coatings Inc.

More recently, RPM has boosted its Consumer side with the acquisitions of Dutch decorative and specialty coatings company SPS and Iowa-based stain-remover firm Whink Products (both in December) and California-based Miracle Sealants Company (in March), all joining the Rust-Oleum brand.

Specialty Segment

In the Specialty segment, sales were up as well, up 6.5 percent over prior-year numbers, to $170.1 million.

“Sales were brisk in our restoration, OEM and pleasure marine coatings businesses, which were partially offset by expected declines in our edible coatings business as a result of a patent expiration,” Sullivan explained.

Outlook, New VP

The company anticipates “mid- to upper-single-digit sales growth” in the fourth quarter, according to Sullivan, led by the Industrial segment, where the firm anticipates mid- to upper-single digit growth. RPM expects mid-single-digit growth in Consumer and marginal growth in the Specialty segment.

Timothy Kinser
RPM Inc.

Timothy R. Kinser, formerly executive vice president of DAP Products, will become vice president of operations for RPM in June.

The company also announced Thursday that Timothy R. Kinser has been appointed vice president of operations for the company,  a position he will take effective June 1. Kinser previously served as executive vice president of RPM’s DAP Products Inc. subsidiary, a maker of caulks, sealants and adhesives.

"Throughout his career, Tim has proven himself as an outstanding operational leader," Sullivan said. "His commitment to RPM and his experience at DAP have aptly prepared him to produce continuous, sustainable improvements for all of our business segments."

   

Tagged categories: Business matters; Carboline; Earnings reports; Finance; RPM; Rust-Oleum Corp.; Stonhard; Tremco

Comment Join the Conversation:

Sign in to our community to add your comments.

Advertisements
 
Mitsubishi Gas Chemical America
 
Performance Amine 1,3-BAC
 
A highly reactive cycloaliphatic diamine offering superior performance. Reasonable cost and curing efficacy makes it suitable for all types of epoxy resin applications.
 

 
BASF
 
New resins from BASF will have metals loving water!
 
Excellent corrosion resistance, low VOC, high gloss, thin films www.basf.us/industrialcoatings dpsolutions@basf.com 800-231-7868
 

 
Tarps manufacturing, Inc.
 
QUALITY MADE IN AMERICA —Available near you!
 
CLICK to get a behind-the-scenes look at how Tarps Manufacturing makes the highest-quality tarps right here in the USA — available nationwide.
 

 
SAFE Systems, Inc.
 
Portable Dust Collectors for Tough Environments
 
Trailer and skid-mounted models in numerous sizes, powered by electric and/or diesel. Sloped roofs, multiple dust inlets, high static, dampered fans. Lockable power & drive compartments.
 

 
Jotun Paints Inc.
 
Jotun Jotachar 1709
 
Mesh-free passive fire protection epoxy designed to protect against hydrocarbon pool fire scenarios for up to four hours as defined in the ANSI/UL1709 standard.
 

 
HoldTight Solutions Inc.
 
NO FLASH RUST - NO CONTAMINANTS
 
Our HoldTight®102 salt remover & flash rust
preventer prevents flash
rust by removing surface contaminants. Contact us
for your nearest distributor.
(800) 319.8802 sales@holdtight.com
 

 
Carboline Company
 
Carboline launches new website!
 
The completely revamped website, offers quick and easy access to essential product information and is now mobile-friendly.
 

 
SSPC: The Society for Protective Coatings
 
http://www.sspc.org/
 
Join SSPC and Enhance
Your Career !
 

 
Fischer Technology Inc.
 
FISCHER Expands Corrosion Product Line
 
Rounding out Fischer’s extensive line of products for measuring protective coatings in the corrosion industry is the new ultrasonic wall thickness gauge UMP series.
 

 
Sika-Us
 
Sika® Industrial Floor Coatings
 
Click to learn about floor and wall systems relied upon for performance, durability, easy maintenance and aesthetics across the every industry and environment.
 

 
 
 

Technology Publishing Co., 1501 Reedsdale Street, Suite 2008, Pittsburgh, PA 15233

TEL 1-412-431-8300  • FAX  1-412-431-5428  •  EMAIL webmaster@paintsquare.com


The Technology Publishing Network

Durability + Design PaintSquare the Journal of Protective Coatings & Linings Paint BidTracker

 
EXPLORE:      JPCL   |   PaintSquare News   |   Interact   |   Buying Guides   |   Webinars   |   Resources   |   Classifieds
REGISTER AND SUBSCRIBE:      Free PaintSquare Registration   |   Subscribe to JPCL   |   Subscribe to PaintSquare News
MORE:      About PaintSquare.com   |   Privacy Policy   |   Terms & Conditions   |   Support   |   Site Map   |   Search   |   Contact Us