RPM Reports Fourth-Quarter and Full-Year Results for Fiscal
July 24, 2017
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Fourth-Quarter Segment Sales and Earnings
Fiscal 2017 fourth-quarter industrial segment sales were up 5.0% to $733.5 million from $698.6 million a year ago. Organic sales improved 2.2%, while
acquisition growth added 4.3%. Foreign currency translation negatively impacted sales by 1.5%. Industrial segment IBT was down 14.9% to $92.1 million from $108.2 million a year ago. EBIT was down 14.9% to $93.4 million from
$109.7 million in the fiscal 2016 fourth quarter. Industrial segment EBIT, excluding the $7.7 million severance charge, was $101.1 million, down 7.9% from a year ago, when an $8.0 million gain was recognized on the acquisition of
the remaining 51.0% interest in Carboline Dalian Paint Production Co., Ltd. in China.
The improvement in industrial sales was driven predominately
by strong growth in the U.S. by our high-performance polymer flooring and roofing businesses, stated Sullivan. Businesses serving the oil and gas sector were off in the mid-single-digit range,
which is actually an improvement over declines during the past two fiscal years. European sales were up in the mid-single-digit range in local currencies. In addition, unfavorable transactional foreign
exchange reduced industrial segment EBIT by $5.5 million, stated Sullivan.
Sales in RPMs specialty segment increased 5.4% to
$194.0 million from $184.2 million a year ago. Organic sales increased 3.6% and acquisition growth added 3.3%. Sales were negatively impacted by 1.5% in foreign currency translation. Specialty segment IBT increased 0.6% to
$31.2 million from $31.1 million last year. EBIT increased 0.8% to $31.1 million from $30.9 million in the fiscal 2016 fourth quarter. Specialty segment EBIT, excluding the $2.9 million severance charge, was
$34.0 million, up 10.2% from a year ago.
The specialty segments sales growth was driven by recent acquisitions and solid organic growth,
particularly in our specialty cleaning products, building restoration and wood treatment businesses, stated Sullivan.
Net sales for RPMs
consumer segment increased 3.9% to $565.3 million from $543.8 million in the fiscal 2016 fourth quarter. Organic sales were down 1.0%, while acquisition growth added 5.9%. Foreign exchange translation reduced sales by 1.0%. Consumer
segment IBT was up 1.6% over the prior year, to $99.4 million from $97.9 million. EBIT was up 1.7% in the fiscal 2017 fourth quarter to $99.6 million from $98.0 million. Consumer segment EBIT, excluding the $4.3 million
severance charge, was $103.9 million, up 6.1% from a year ago. Included in the fiscal 2016 fourth quarter was a $9.3 million Restore product line legal settlement charge.
In addition to continued underperformance at our Kirker nail enamel business, consumer segment sales were impacted by higher rainfall and cooler
temperatures in the North American market during the fourth quarter, which slowed home maintenance and repair activities. We also experienced 9.9% organic growth in the fiscal 2016 fourth quarter, making for tough comparisons, stated Sullivan.
We have new senior management in place at Kirker and believe that this business has now established a stabilized base from which it can resume growth.
RPM International Inc. (NYSE: RPM) owns subsidiaries that are world leaders in coatings, sealants, building materials and related services. From homes to precious landmarks worldwide, their brands are trusted by consumers and professionals alike to protect, improve and beautify. Among its leading consumer brands are Rust-Oleum, DAP and Zinsser. Learn more about RPM brands >>
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