RPM’s second quarter net sales were $589.8 million, a 14% increase from the same period one year ago. The industrial segment posted sales gains of 15% and the consumer segment recorded sales growth of 12%, including net favorable foreign exchange differences and the impact of product line bolt-on acquisitions. RPM’s net income for the second quarter rose 19% to $35.2 million.
For the first half of the company’s fiscal year, sales rose 11% to $1.180 billion, with the industrial and consumer segments posting 12% and 11% sales growth respectively. Net income for the first six months was $82.9 million, an 11% gain.
“We are very pleased to report stronger year-over-year results in both of our operating segments, especially among our industrial businesses where meaningful growth has been long overdue,” said Frank C. Sullivan, RPM’s president and CEO. “We are now in our seasonally slowest period, December through February, yet our performance this first half of the 2004 fiscal year enables us to confidently reiterate our full year expectations for high single-digit revenue growth, accompanied by 10-12% growth in earnings.”
Sullivan further mentioned that while managing asbestos litigation continues to be a significant challenge for the company, the costs associated with this exposure remain in line with expectations. “We are encouraged by
recently enacted state tort reform legislation,” he said. “However, like many U.S. manufacturers, passage of federal trust fund legislation would bring fairness, predictability and finality to our asbestos exposure.”