In a presentation at the 19th Annual Citi Chemicals Conference in December, Frank C. Sullivan, RPM International's chairman and chief executive officer, announced the discontinuation of the company's guidance for its fiscal year ending May 31, 2009, and indicated that results would likely be below the previous year.
"Given the continued deterioration of economic conditions, it is highly likely that RPM results for our 2009 fiscal year will be below the prior year,” Sullivan said. “Additionally, given the volatility we are seeing in some of our core markets, it is nearly impossible to provide any definitive guidance for our fiscal 2009 results. We will provide outlook and directional comments in our upcoming second-quarter conference call, as we have done in the past based upon then-current conditions.”
Sullivan continued: "With $318 million of committed, unused, long-term credit and approximately $190 million in cash, RPM's liquidity is in excess of $500 million. Furthermore, between now and 2011, we have only $164 million of debt obligations coming due, with the remainder of our debt maturing roughly evenly in two-year increments between 2011 and 2018. With a debt/capitalization ratio at the lower level of our historic range, solid levels of liquidity and continuing strong cash generation from our operations, we are confident of our ability to maintain our current dividend and take advantage of growth opportunities, including acquisitions."
RPM is scheduled to announce second-quarter earnings and hold a conference call to discuss results on January 8.
RPM International Inc., a holding company, owns subsidiaries that are world leaders in specialty coatings and sealants, serving both industrial and consumer markets. RPM's industrial products include roofing systems, sealants, corrosion control coatings, flooring coatings and specialty chemicals. Industrial brands include Stonhard, Tremco, illbruck, Carboline, Day-Glo, Euco and Dryvit. RPM's consumer products are used by professionals and do-it-yourselfers for home maintenance and improvement, boat repair and maintenance, and more. Consumer brands include Zinsser, Rust-Oleum, DAP, Varathane and Testors.