RPM International Inc. recently reported record sales for its fiscal 2017 third quarter ended February 28. Third-quarter net income declined vs. the prior-year period primarily due to a pre-tax charge of $4.9 million for an intangible impairment on the Restore product line, and a pre-tax charge of $4.2 million for the closing of a European manufacturing facility.
Net sales grew 3.4% to $1 billion in the fiscal 2017 third quarter from $988.6 million in the fiscal 2016 third quarter. Net income of $11.9 million in the fiscal 2017 third quarter decreased 35.8% from $18.6 million reported a year ago.
During the current quarter, certain negative trends in the Restore product line where believed to have led to a loss of market share, resulting in a downward revision to its long-term forecast. This was determined to represent an impairment triggering event and, after additional testing, resulted in a pre-tax impairment charge of $4.9 million. Also during the quarter, an unprofitable operation in Europe was closed that resulted in a pre-tax charge of $4.2 million.
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