Coatings World - February 2008

Financial News

RPM reports record
2Q sales

RPM International Inc. has reported record sales and net income for its fiscal 2008 second quarter ended November 30, 2007. RPM’s record net sales of $905.7 million were up 11.9% from the $809.4 million reported in the fiscal 2007 second quarter. Net income for the quarter increased 3.6%, to a record $54.9 million from $52.9 million a year ago.

Sales in the company’s industrial segment grew 14.5% to $605.2 million from $528.6 million in the year-ago second quarter. “Industrial segment sales and EBIT growth continued to be robust across virtually the entire segment,” said Sullivan. “Sales growth in the second quarter mirrored our first-quarter performance, with exceptional growth posted by RPM’s flooring, corrosion control coatings and roofing products and services businesses. Many international businesses and maintenance and repair-based businesses continued to see good demand.”

Sales by RPM’s consumer segment increased seven percent to $300.6 million from $280.8 million a year ago. “Our consumer businesses continue to face a difficult retail climate, largely attributable to the lingering effects of the weak domestic housing market that has impacted many of our large retail accounts,” Sullivan said. “By continuing investments in marketing and new products, our consumer businesses have been able to post favorable same-store comps at several of our major accounts.

PPG REPORTS 4Q SALES

PPG’s performance coatings segment sales in the fourth quarter increased $183 million, or 22%, as a result of increased sales from the 2007 Renner and Barloworld acquisitions, the positive impact of stronger foreign currencies, improved sales volumes and increased selling prices. Sales volumes increased by 15% in the aerospace business and four percent in the automotive refinish business. In the architectural business, sales volumes were essentially flat. Segment earnings grew by $9 million due to solid volume growth partially offset by higher overhead costs, including selling and general administrative (SGA) costs tied to growth initiatives.

The industrial coatings segment sales for the quarter increased $86 million, or ten percent, as a result of stronger foreign currencies and improved volumes in all businesses. Volume declines in North America were more than offset by improved volumes in all other regions. Segment earnings improved by $6 million due to higher sales volumes, the positive impact of stronger foreign currencies and lower other expenses. CW

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