RPM International Inc., a provider of specialty coatings, sealants, and building materials, reported financial results for its fiscal 2023 first quarter, ended August 31, 2022. Key highlights in the report include:

  • First-quarter net sales increased 17.1% to a record $1.93 billion
  • First-quarter net income increased 25.6% to a record $169.0 million, income before income taxes was a record $225.1 million, diluted EPS was $1.31, and adjusted diluted EPS was a record $1.47
  • First-quarter EBIT increased 29.8% to a record $255.5 million and adjusted EBIT increased 33.1% to a record $275.3 million
  • Fiscal 2023 second-quarter outlook calls for sales growth of 9% to 12% and adjusted EBIT growth of 30% to 40%

“I am proud of RPM associates’ ability to generate record first-quarter consolidated sales and adjusted EBIT. Our businesses skillfully navigated supply chain tightness, cost inflation, macroeconomic challenges, and foreign exchange headwinds to expand margins and deliver record first-quarter financial results. In addition, they have continued to implement MAP operational improvement initiatives, with a positive impact on our top and bottom lines,” said RPM chairman and CEO Frank C. Sullivan.

“All four of our segments achieved double-digit sales growth driven by our procurement and technical teams’ ability to increase material supply through insourcing and qualifying new suppliers. Additionally, pricing was managed by implementing increases to catch up with persistent cost inflation. Three out of our four segments generated strong adjusted EBIT growth, led by our Consumer Group, which benefited from MAP operational efficiencies that were enhanced by our ability to improve material supply. While the global macroeconomic outlook is uncertain, we believe that our MAP 2025 initiatives, diversified business model and strategic focus on maintenance and restoration position us well for the future,” Sullivan added.

Construction Products Group

The Construction Products Group reports its sales were driven by roofing systems, which benefited from increased public sector spending, its turn-key service model and focus on renovations. The company’s admixtures and repair products for concrete generated strong sales growth and grew share. Pricing management in response to persistent cost inflation and strength in Asia-Pacific markets also contributed to revenue growth. Sales included 15.8% of organic growth, 1.9% growth from acquisitions, and foreign currency translation headwinds of 4.5%.

The Construction Products Group ’s adjusted EBIT was pressured by a slowdown in Europe where cost pressures were severe, and volumes deteriorated as macroeconomic conditions worsened during the quarter. In Canada, profitability was reduced by inefficiencies, which resulted from a transportation strike and concrete shortages that impeded the completion of construction projects. Foreign currency and mix were headwinds to profitability. CPG also incurred a negative financial impact from the Corsicana plant as the facility ramps up production toward full capacity.

For more information, visit: www.RPMinc.com.