RPM’s net sales of $635.4 million were down 13.2% from the $731.8 million reported a year ago. The net loss for the third quarter was $30.9 million compared to record net income of $12.2 million earned in the year-ago period.
“Sales reflected the seasonally weak nature of the third quarter, coupled with both our industrial and consumer segments now feeling the impact of the worldwide recession,” said Frank Sullivan, chairman and CEO.
Sales in the company’s industrial segment declined 13%, to $406.7 million from $467.6 million in the year-ago third quarter. “The impact of the global economic slowdown, particularly the negative impact of the financial markets on North American commercial construction activity, is being felt in our industrial businesses,” said Sullivan. “We are experiencing modest growth in certain of our more internationally focused industrial businesses, including corrosion control coatings, polymer flooring and global roofing.”
Sales in RPM’s consumer segment declined 13.4% to $228.7 million from $264.2 million in the third quarter a year ago. “In addition to the ongoing impact of depressed sales of both existing and new homes in North America, our major retail customers continued their inventory reductions in the third quarter, further impacting consumer segment results,” Sullivan said