RPM International today reported a significantly smaller loss for its fiscal 2010 third quarter, which ended Feb. 28, compared to the prior-year loss in this traditional slow seasonal period.
RPM's net sales of $666.6 million increased 4.9 percent from the $635.4 million reported a year ago. The net loss for the third quarter was $9.4 million, or 7 cents per diluted share, compared to a loss of $30.9 million, or 24 cents per diluted share, in the year-ago period.
"Last year's results were impacted not only by the recession, but also by one-time charges taken to lower our cost base. This year's third-quarter sales reflected the traditional seasonally weak nature of the quarter, magnified by extremely harsh and unusual weather in North America and Europe. Some of our industrial businesses rebounded, while sales of others that are exposed to North American commercial construction markets have not yet begun to recover," said Frank Sullivan, chairman and chief executive officer, in a statement.
"Our consumer sales were up slightly, reflecting the impact of severe winter weather throughout the entire U.S.," he added.
Sales in RPM's consumer segment, which includes products for boat maintenance, improved 1.3 percent to $208.9 million from $206.3 million in the third quarter a year ago.
"RPM's consumer businesses continue to benefit from the cost-reduction initiatives completed in the prior fiscal year, market share gains and new product introductions. We believe the consumer segment would have posted higher sales had weather during the quarter been less severe, particularly in the eastern half of the U.S.," Sullivan said.
For the nine months ending Feb, 28, RPM's sales declined 2.8 percent, to $2.44 billion from $2.51 billion a year ago.