RPM International today reported record net income and cash flow, despite a decline in net sales, for its fiscal 2010 second quarter ending Nov. 30, 2009.
RPM International, a holding company, owns subsidiaries that are leaders in specialty coatings, sealants, building materials and related services serving both industrial and consumer markets. RPM's consumer products are used by professionals and do-it-yourselfers for boat repair and home improvement.
RPM's net sales of $858.7 million were down 3.5 percent from the $890 million reported in the fiscal 2009 second quarter.
Net income for the quarter grew 34 percent, to a record $55.9 million from $41.7 million a year ago, while diluted earnings per share improved 30.3 percent, to 43 cents from 33 cents.
"Our net income in the second quarter continued to benefit from cost-reduction programs initiated in the prior fiscal year. Modest consumer segment sales growth continued, while sales in our larger industrial segment remained under pressure in line with our previously stated expectations," said Frank C. Sullivan, chairman and chief executive officer, in a statement.
Net sales for the first half of fiscal 2010 decreased 5.4 percent to $1.77 billion from $1.88 billion a year ago. Net income improved 15.9 percent to a record $128.9 million from $111.2 million in the fiscal 2009 first half.
Diluted earnings per share for the first half of fiscal 2010 increased 16.3 percent, to a record $1 from 86 cents a year ago.
"We continue to anticipate a loss for the seasonally weak fiscal third quarter ending Feb. 28, 2010, but operating results should be significantly improved from the same period last year," Sullivan said. "As a result, we are revising our fiscal 2010 guidance upward to a range of $1.30 to $1.45 compared to the adjusted $1.05 per diluted share earned last year."