RPM First Quarter 2016 Net Sales Rise
RPM International Inc. recently reported a low performance for the fiscal 2016 first quarter, which ended August 31, 2015, reportedly due to the continuing strength of the U.S. dollar against most foreign currencies, coupled with rainy weather in North America. Unseasonably wet weather during June and early July reportedly had a particularly negative impact on the company's consumer segment. The company says it anticipates a return to solid growth in the consumer segment for the balance of the year.
Fiscal 2016 first-quarter net sales of $1.24 billion increased 3.2% over the $1.20 billion reported a year ago. RPM's consolidated earnings before interest and taxes (EBIT) declined 1.9% to $160.6 million from $163.7 million reported in the fiscal 2015 first quarter. First-quarter net income was up 0.7% to $99.8 million from $99.1 million in the year-ago period.
“For the industrial segment, representing RPM's largest international exposure, sales are expected to increase in the low-single-digits, as most of its organic growth will be offset by negative foreign currency translation,” said Frank C. Sullivan, chairman and CEO. “Although consumer segment sales were down for the quarter, we believe the sales shortfall will be picked up over the next three quarters, and expect sales to grow 5% to 7% for the balance of fiscal 2016. Specialty segment sales, excluding acquisitions, are expected to grow in the low-to-mid-single-digits in local currencies, all of which will be offset by negative currency translation.”
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