PaintSquare.com
      | Connect Follow us on Twitter Like us on Facebook
About | Subscribe | Advertise
  

 

Download our free e-book! Protecting and maintaining transmission pipeline

Paint and Coatings Industry News

Main News Page


Rust Coatings Fuel Strong Q1 for RPM

Wednesday, October 5, 2011

More items for Coating Materials

Comment | More

Booming sales in corrosion-control coatings helped deliver a powerful first quarter of double-digit gains for the parent company of Carboline and other major industrial coatings brands.

Industrial segment sales at RPM International Inc. improved by 10.7% in the first quarter, to $667 million, from $602.3 million a year ago, the company reported Wednesday (Oct. 5).

 RPM decorated Dream Chaser III for the Make A Wish Foundation

 Photos: RPM

A Day-Glo color scheme, courtesy of RPM, decorated “Dream Chaser III” to fly children for the Make-A-Wish Foundation. Industrial coatings make up 67% of RPM’s sales.

Industrial coatings account for two-thirds of sales by the Medina, OH-based conglomerate, which owns Carboline, Nullifire, Increte, Tremco (and Tremco illbruck), Stonhard, Flowcrete and many other high-performance coatings brands, as well as the Euclid Chemical Company.

Overall Q1 Results

Overall, the company reported FY 2012 first-quarter net sales of $985.9 million—10.2% ahead of the $894.8 million reported a year ago. Consolidated Earnings Before Interest and Taxes (EBIT) was $136.5 million, up 11.9% from the $122 million reported in the same quarter a year ago.

Net income attributable to RPM stockholders was $76.8 million, up 11.3% from the first quarter of FY 2011. First-quarter diluted earnings per share were $0.59, an 11.3% increase over the $0.53 reported a year ago.

Raw Materials Bite

The gains triumphed over “stubbornly high” raw-material costs and a still-sluggish economic climate, said chairman and CEO Frank C. Sullivan.

Improvements on the industrial side “reflect continued strength in repair and maintenance product lines, along with more modest growth from business units serving new commercial construction markets,” Sullivan said. “Particularly robust growth occurred in our high-performance corrosion-control coatings and fiberglass-reinforced plastic grating businesses.”

 Frank Sullivan
Repair and maintenance products boosted the industrial segment, said chairman and CEO Frank C. Sullivan.

Consumer Segment Results

RPM’s consumer business —home to Zinsser, Rust-Oleum, DAP and other well-known brands—reported a 9% increase in sales, to $318.9 million from the year-ago quarter. Organic sales were up 9.2%: 2% in foreign exchange translation gains, 4% in volume growth, and 3.2% from pricing. A small divestiture reduced the sales increase by 0.2%. Consumer segment EBIT improved 5.0% to $51.5 million from the first quarter of FY 2011.

"Our consumer segment continued to be impacted by stubbornly high raw-material costs, resulting in EBIT growth below the level of sales growth," Sullivan said.

"We continue to gain market share in our consumer businesses, which are also benefiting from the introduction of new, higher-end products at price points that are significantly higher than our traditional consumer lines. Our consumer primer/sealers line also performed well in the quarter."

Cash Flow and Acquisitions

Cash from operations was $7.5 million in FY 2012’s first quarter, compared to $41.1 million a year ago. Total debt on Aug. 31 was $1.105 billion, compared to $1.108 billion on May 31 and $935.8 million at the end of last year's first quarter.

On Sept. 30 (after the close of the first quarter), the company's RPM2 Group acquired the Legend Brands group of companies, providers of equipment and solutions for water and fire damage restoration, professional cleaning and environmental control. The Burlington, WA-based company has annual sales of more than $70 million.

Business Outlook

RPM’s financial performance is considered a bellwether of the health of the global coatings industry. The Tremco brand is No. 1 in the North American high-end institutional roofing market and No. 2 in the North American sealants market. Stonhard is the top global supplier of industrial, high-performance polymer flooring systems; Carboline is the top U.S. supplier (and a leading global supplier) of industrial, high-performance corrosion control coatings.

Sullivan said the company would hold to its FY 2012 guidance issued in July. He added: “We continue to anticipate sales growth of between 8% and 10%, leading to growth in diluted earnings per share of between 10% and 15% for the 2012 fiscal year.”

   

Tagged categories: Carboline; Corrosion control coatings; Earnings reports; Economy; Finance; High-performance coatings; RPM; Tremco

Comment Join the Conversation:

Sign in to our community to add your comments.

Sherwin-Williams
Sherwin-Williams Protective & Marine Coatings

With 4,000 distribution points and 3,700+ years of experience, Sherwin-Williams delivers the products, support and expertise you need, right where you need it.


Wasser High-Tech Coatings Inc.
Wasser Coatings Protect

Wasser Coatings offer a complete range of Moisture Cure Urethane (NEPCOAT approved) systems in addition to Polyurea membranes and linings(NSF).
www.wassercoatings.com


Jessup Manufacturing Company
More Traction for Extreme Marine Conditions

Jessup Safety Track® 3800 Military Grade peel-and-stick non-skid tapes and treads provide extra slip resistance for decks. MIL-PRF-24467C Type XI, Black & Gray.


Polyval Coatings
Polyflex® Polyurea Linings

Polyflex™ new Polyurea Geotextile Membrane System has been specifically engineered to protect the environment in containment applications.
www.polyflexlinings.com


BASF
New resins from BASF will have metals loving water:

Excellent corrosion resistance, low VOC, high gloss, thin films basf.us/industrialcoatings
polyorders@basf.com
800-231-7868


International Paint LLC
Rapid cure, high temperature lining

AkzoNobel introduces Enviroline 405HTR, an ultra-low VOC lining. 405HTR offers rapid return to service, and excellent chemical resistance at high temperatures.


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.


Carboline Company
Fireproofing Solutions

Pyroclad® X1 Thermo-Lag® Pyrocrete® – protecting against hydrocarbon and jet fires, explosions, and cryogenic spills.


Clemco Industries Corp.
Global engineering-trusted solutions

For more than 70 years, Clemco has provided the highest quality blast equipment with a total commitment to comfort and safety.


Armorthane
Polyurethane and Polyurea Sprayed-On Protection

Buy POLYURETHANE or POLYUREA coatings and spray equipment for years of proven chemical resistance, water- and weather-proofing, and structural improvements.

 
 
 
Technology Publishing

The Technology Publishing Network

The Journal of Protective Coatings & Linings (JPCL) PaintSquare
Durability + Design 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   |   Site Map   |   Search   |   Contact Us
 

© Copyright 2000-2015, Technology Publishing / PaintSquare, All rights reserved
2100 Wharton Street, Suite 310, Pittsburgh PA 15203-1951; Tel 1-412-431-8300; Fax 1-412-431-5428; E-mail webmaster@paintsquare.com