RPM International Inc. recently announced record sales for its fiscal 2015 third quarter ended February 28, 2015. However, the company incurred an as-reported loss for the quarter due to a one-time, non-cash net charge for a tax accrual related to the possible repatriation of overseas earnings to fund future obligations for the company’s Specialty Products Holding Corp. settlement.
Net sales for the quarter grew 9.6% to $946.4 million, compared to $863.4 million in the same quarter last year. Consolidated earnings before interest and taxes (EBIT) were $34.2 million, down 7.9% from $37.2 million a year ago. Excluding the non-cash, net charge, on an as-adjusted basis, fiscal 2015 third quarter net income grew 61.2% to $26.2 million. Industrial segment sales grew 10.6%, from $560.5 million to $620 million. Organic sales improved 5.5%, while acquisitions added 12.4%.
“For the fourth quarter of our fiscal year, we expect our consumer segment to benefit from continued innovation and consistent growth in consumer DIY spending,” said Frank C. Sullivan, chairman and CEO. “In our industrial segment, we do not see a near-term turnaround in the European economies and expect a very strong U.S. dollar to continue negatively impacting results. Our businesses serving the energy sector are beginning to see the effects of a slowdown in production due to the decline in oil prices. However, we do expect continued positive momentum in our businesses serving the U.S. commercial construction markets.
“Based on these factors, along with an anticipated benefit from the SPHC companies in the fourth quarter, we expect to be at the upper end of our current EPS guidance range of $2.25 to $2.30 per share for the full 2015 fiscal year, on an as-adjusted basis.”
For more information, visit www.rpminc.com.