RPM International Earned 52 Cents per Share

This morning, RPM International (RPM) reported fiscal Q2 earnings of 52 cents per share. Sales rose 3.6% to $1.36 billion. This was not a good report. Wall Street had been expecting 68 cents per share.

“We achieved solid top-line improvement with sales growth of 3.6%, despite the unfavorable foreign currency translation effect of 2.0%,” stated Frank C. Sullivan, RPM chairman and chief executive officer. “Like many manufacturers, our bottom line was impacted by a continued rise in costs for raw materials, freight, labor and energy, as well as adverse foreign exchange translation. SG&A improved by 30 basis points, and adjusted SG&A, excluding restructuring expenses, improved by 100 basis points versus last year’s second quarter. Restructuring activities related to our MAP to Growth operating improvement plan, the details of which we shared at an investor day on November 28, are well under way. Our plan is focused on driving greater efficiency and long-term profitability of the business to enhance shareholder value.

For Q3, RPM expects earnings between 10 and 12 cents per share.

Posted by on January 4th, 2019 at 9:33 am


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