Financial News
RPM’s sales down 13% in third quarter
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
H.B. FULLER’S INCOME DOWN
$12 MILLION IN FIRST QUARTER
Net income for H.B. Fuller’s first quarter of 2009 was $6.1 million, down from
$18.2 million in last year’s first quarter.
This represents a loss of $12.1 million.
Net revenue for the first quarter of
2009 was $278.6 million, down 13.7%
versus the first quarter of 2008.
The decline in first quarter 2009 net
income was primarily the result of the
sharp contraction in global demand
associated with the financial market
disruption in late 2008. In addition,
gross margin was lower in the first
quarter of 2009 reflecting the residual
negative impact of raw material cost
increases that accelerated through
2008, according to the company.
“All factors considered, we had a
respectable first quarter of 2009. While
volume was down 15% from last year,
this result was expected given the difficult end market conditions. On the positive side, raw material costs are coming
down, partially restoring our gross margin to an appropriate level,” said
Michele Volpi, president and CEO.
HENKEL’S SALES DOWN 19%
The start of 2009 saw the challenging
world economic situation continue and
this was reflected in Henkel’s business
performance. The company’s Adhesive
Technologies business sector has been
affected by the worldwide difficult situation of major industry segments. Sales
of the Adhesive Technologies business
sector decreased by approximately
19%. Henkel has responded early to the
slowdown of the economic environment
and introduced appropriate countermeasures.
SHERWIN-WILLIAMS’ SALES
DROP 13% IN FIRST QUARTER
Sherwin-Williams’ first quarter sales
dropped 13% to $1.551 billion over last
year’s first quarter due to weak paint
sales. Sales in the paint stores group
of $898.4 million in the quarter were
12.9% lower than last year’s first
quarter. Paint stores group segment
profit decreased to $56.6 million from
$83.3 million last year. Segment profit
decreased as a percent to net sales to
6.3% from 8.1% last year.
In the consumer group sales increased
0.4% in the quarter to $288.2 million,
due primarily to additional sales to existing customers related to new products,
according to the company. Segment profit of the consumer group decreased to
$30.2 million in the quarter from $42.8
million in 2008. Segment profit decreased as a percent to net sales to 10.5%
from 14.9% last year.
The global finishes group’s sales in the
quarter decreased 21.5% to $362.5 million. Profit for the global group for the
quarter declined to $5.3 million from
$43.1 million in last year’s first quarter
and decreased as a percent to net sales to
1.5% from 9.3% last year.
“Global paint demand in the architectural, commercial, industrial and marine
markets remained soft as the economic
downturn we have been experiencing
continued and expanded internationally
during the first quarter of the year,” said
