RPM International Inc. announced record results in sales, earnings and earnings per share for its fourth quarter and fiscal year ended May 31.
“Our fourth quarter capped off a strong year, with growth generated from a host of new and innovative products and services developed over the last several years and from the benefits of a number of acquired product lines,” said Frank C. Sullivan, RPM International president and chief executive officer. “We were especially pleased to see our industrial segment revenues accelerate toward the end of the year in the midst of the economic recovery, which enabled us to exceed our top- and bottom-line expectations for the year.”
RPM reported record net sales of $680 million for the fourth quarter, a 15.5% increase over last year’s fourth quarter.
Net income reached $53 million, compared with last year’s fourth quarter net loss of $43.4 million. Both operating segments strengthened year-over-year during the fourth quarter, particularly RPM’s industrial segment where organic growth has lagged for several years. Industrial segment net sales, which includes the brands Stonhard, Tremco, Carboline, Day-Glo and Dryvit, grew 19%. All three business groups within this segment achieved double-digit growth. Consumer segment net sales grew 12% over the fourth quarter 2003, 10% of which was organic, reflecting solid retail demand across all of the product lines in this segment, according to the firm.
RPM achieved record net sales of $2.3 billion for its 2004 fiscal year, a 12% increase over the prior year. Organic growth, acquisitions and favorable exchange rates contributed approximately seven percent, three percent and two percent, respectively.
The industrial and consumer operating segments achieved solid growth of 14% and 11%, respectively.
“RPM remains focused on generating strong cash flow to fund continued growth through innovation, acquisitions and investments that will further boost our productivity and our competitive position,” said Sullivan. “We are very pleased with our accelerating performance in fiscal 2004. For 2005, we expect raw material costs to continue to run higher and asbestos liabilities to remain a challenge. Despite these challenges, we expect to be able to produce high single-digit growth