RPM’s CEO Expects Results Will Be Below Prior Year
In a presentation at the 19th Annual Citi Chemicals Conference, RPM International’s chairman and CEO, Frank Sullivan, discontinued the company’s current guidance for its fiscal year ending May 31, 2009, and indicated that results would likely be below the prior year.
“Given the continued deterioration of economic conditions, it is highly likely that RPM results for our 2009 fiscal year will be below the prior year,” he said. “Additionally, given the volatility we are seeing in some of our core markets, it is nearly impossible to provide any definitive guidance for our fiscal 2009 results.
“With $318 million of committed unused long-term credit and approximately $190 million in cash, RPM’s liquidity is in excess of $500 million. Furthermore, between now and 2011, we have only $164 million of debt obligations coming due, with the remainder of our debt maturing roughly evenly in two-year increments between 2011 and 2018,” Sullivan continued. “With a debt/capitalization ratio at the lower level of our historic range, solid levels of liquidity and continuing strong cash generation from our operations, we are confident of our ability to maintain our current dividend and take advantage of growth opportunities, including acquisitions.”