RPM International Inc. (Medina, OH) reported its net income and sales for the fourth quarter and fiscal year (FY) 2009, which ended May 31, 2009. The fourth quarter and year included a one-time charge of $15.5 million for goodwill and other intangible asset impairments in the industrial segment. Excluding these charges, FY 2009 net income and sales declined for the quarter and full year.
Sales for the quarter fell 20.3% to $857.3 million, and FY sales dropped 7.6% to $3.37 billion. The industrial segment declined 21.9% in the fourth quarter and 4.3% for the year. Industrial segment sales represented 67% of total sales. Organic sales fell by 9.5% for the year and 23.5% for the quarter, including a net foreign exchange loss of 4.1% and 7.2%, respectively. Net foreign exchange losses were partially offset by acquisition growth of 5.2% for the year and 1.6% for the quarter. The consumer segment, which accounted for 33% of total sales, fell 17.6% in the fourth quarter and 13.6% for the year.
Fourth quarter net income was $39.3 million, or $0.31 per diluted share, compared to a fourth quarter loss in 2008 of $87.6 million. FY net income was $119.6 million, or $0.93 per diluted share. The 2008 FY was $47.7 million. FY 2009 cash from operations was a record $267 million, up 13.8%. Free cash flow increased by 52.5%, totaling $110.2 million. The company’s total debt was $930.8 million, down from $1.1 billion the previous year.
Frank C. Sullivan, chairman and chief executive officer of RPM, stated, “While our industrial businesses will continue to face economic challenges as a result of weak commercial construction and industrial capital spending activity, our prior year actions have effectively reduce the breakeven point at every RPM business…We expect a recovery in our industrial markets sometime in the spring of 2010.”
RPM is a holding company that owns subsidiaries in specialty coatings and sealants serving industrial and consumer markets.