RPM Reports Fiscal 2011 Second-Quarter Sales of $826.3M

RPM International Inc. RPM today reported that on a pro-forma basis, improvements were realized in net sales, net income and earnings per share for its fiscal 2011 second quarter ended November 30, 2010. Prior-year pro-forma results assume that the deconsolidation of its Specialty Products Holding Corp. and subsidiaries, which eliminated approximately $300 million in annual revenues from the company's industrial segment beginning June 1, 2010, occurred before fiscal 2010. Second-Quarter Results On a pro-forma basis, net sales, net income and earnings per share all posted improvements. Net sales grew 5.3% to $826.3 million from a pro-forma $784.5 million, while net income attributable to RPM stockholders was up 2.3%, to $48.8 million from a pro-forma $47.7 million a year ago. Diluted earnings per share increased 2.7% to $0.38 from a pro-forma $0.37 in the fiscal 2010 second period. Consolidated EBIT grew 2.7%, to $89.4 million from a pro-forma $87.1 million in the year-ago second quarter. "On a prior-year pro-forma basis, which offers a better comparison to current-year actual results, RPM's industrial segment continued a trend of year-over-year sales increases on the strength of our businesses concentrated in maintenance, repair and infrastructure, while our consumer segment faced the challenges of tough comparisons following record results in the fall of 2009. Both segments remain challenged by higher raw material costs, mainly due to capacity reductions by suppliers, which has exerted downward pressure on our gross margins," stated Frank C. Sullivan, chairman and chief executive officer. On an as reported basis, RPM's net sales of $826.3 million were down 3.8% from the $858.7 million reported in the fiscal 2010 second quarter. Net income attributable to RPM stockholders was off 12.7%, to $48.8 million from $55.9 million in the year-ago second quarter, while earnings per diluted share were down 11.6% to $0.38 from $0.43 in the fiscal 2010 second quarter. Consolidated earnings before interest and taxes (EBIT) dropped 4.1% to $89.4 million from $93.4 million a year ago.