Financial News

RPM Reports FY 2002

August 9, 2005

As the company anticipated, net sales declined two
percent to $487.9 million in the fiscal 2001 second quarter.
RPM attributed the drop primarily to business disruptions
related to the Sept. 11 attacks and continued
weakness in the overall economy, which affected the
industrial segment. RPM said its consumer segment
continued to produce “solid year-overyear
gains in performance.”
For the first half of the 2002 fiscal
year, RPM’s net income rose 34% to
$61.1 million, up from $45.7 million in
the fiscal 2001 first six months. Net
sales dropped three percent to $1.021
billion from $1.055 billion reported one
year ago.
“Factors contributing to earnings
gains in the second quarter included
the benefits of a restructuring program,
lower interest rates and the
effect of a prescribed accounting
change,” said Thomas C. Sullivan,
RPM’s chairman and CEO. “These
three factors were also the primary
drivers of our first quarter earnings
improvement, and we expect them to
continue to positively impact earnings
over the next two quarters of this fiscal
year as well,” he added.
RPM paid $13 million in debt
repayments during the second quarter,
bringing total debt repayments to
nearly $60 million during the past 12
In addition, $55 million in senior
unsecured notes were issued during
the quarter, with all proceeds being
used to reduce existing bank debt,
according to the company.