RPM International Inc. recently reported financial results for its fiscal 2022 third quarter, ended February 28, 2022. Fiscal 2022 third-quarter net sales were a record $1.43 billion, an increase of 13% over the $1.27 billion reported a year ago.

“RPM’s associates persevered through unprecedented supply chain challenges, Omicron-related disruptions and inflation to generate record EBIT and record sales during the third quarter despite a difficult comparison to the prior year,” said Frank C. Sullivan, chairman and CEO. “Adjusted EBIT growth was driven by three of our four segments, which leveraged selling price adjustments and operational improvements to the bottom line.

“We have been fast to respond to supply chain challenges by quickly scaling up in-house resin production at the manufacturing plant we acquired in Texas last September. Additionally, as a result of our on-going investments in the fastest-growing areas of our business, our high-performance building construction and coatings systems have achieved accelerated growth. Construction and industrial maintenance activity was robust, energy markets began to rebound and consumer takeaway remained strong.”

In the Construction Products Group (CPG), net sales increased 21.7% to a record $482 million during the fiscal 2022 third quarter. Organic growth was 23.2%, and acquisitions contributed 2.2% to sales. Foreign currency translation headwinds reduced sales by 3.7%.

RPM reports that CPG’s record revenue growth was largely due to continued success in promoting its building envelope products and differentiated restoration solutions. CPG’s fastest-growing businesses were those providing roofing systems, insulated concrete forms, and commercial sealants, as well as admixtures and repair products for concrete. The segment’s international operations generated strong top-line growth in local currencies, which was muted by the strengthening U.S. dollar.

In the Performance Coatings Group, net sales were a record $270.9 million during the fiscal 2022 third quarter, an increase of 19.6% from the prior year’s third quarter. Organic sales increased 17.8%, and acquisitions contributed 3.4%, partially offset by a foreign currency translation headwind of 1.6%.

PCG’s momentum accelerated in the third quarter, according to RPM, with all of its North American businesses generating double-digit organic sales growth. PCG’s businesses serving emerging markets experienced robust growth, and its European companies continued their steady rebound. Driving its strong top-line were increased industrial maintenance spending, recovery in energy markets and price increases. PCG’s best-performing businesses were those providing polymer flooring systems, corrosion-control coatings, and raised flooring systems.

For the fiscal 2022 fourth quarter, RPM expects that its operations and those of its suppliers will be impacted by ongoing supply chain challenges and raw material shortages, which will exert pressure on revenues and productivity. The strengthening U.S. dollar will also unfavorably impact the translation of RPM’s results in international markets. While RPM’s sales to Ukraine and Russia are immaterial, the Russian sanctions are exacerbating inflation of energy and transportation costs. They are also creating supply challenges for plant-based raw materials, as well as those that are derivatives of oil. Although it is too soon to discern, rising interest rates may slow business and consumer spending in the coming months.

In spite of these challenges, RPM expects to generate fiscal 2022 fourth-quarter consolidated sales growth in the low teens vs. a difficult comparison to last year’s fourth-quarter sales, which grew 19.6%. The company also anticipates sales growth in the low teens in all four of its operating segments as a result of strategic investments it is making to capitalize on market opportunities and industry trends.

Additional details are available at www.rpminc.com.