"Given the continued deterioration of economic conditions, it is highly
likely that RPM results for our 2009 fiscal year will be below the prior year.
Additionally, given the volatility we are seeing in some of our core markets,
it is nearly impossible to provide any definitive guidance for our fiscal 2009
results. We will provide outlook and directional comments in our upcoming
second-quarter conference call, as we have done in the past based upon then
current conditions," Sullivan stated.
"With $318 million of committed unused long-term credit and approximately
$190 million in cash, RPM's liquidity is in excess of $500 million.
Furthermore, between now and 2011, we have only $164 million of debt
obligations coming due, with the remainder of our debt maturing roughly evenly
in two-year increments between 2011 and 2018," stated Sullivan. "With a
debt/capitalization ratio at the lower level of our historic range, solid
levels of liquidity and continuing strong cash generation from our operations,
we are confident of our ability to maintain our current dividend and take
advantage of growth opportunities, including acquisitions," he stated.
RPM is scheduled to announce second-quarter earnings and hold a conference
call to discuss results on January 8, 2009.
RPM International Inc., a holding company, owns subsidiaries that are
world leaders in specialty coatings and sealants serving both industrial and
consumer markets. RPM's industrial products include roofing systems, sealants,
corrosion control coatings, flooring coatings and specialty chemicals.
Industrial brands include Stonhard, Tremco, illbruck, Carboline, Day-Glo, Euco
and Dryvit. RPM's consumer products are used by professionals and
do-it-yourselfers for home maintenance and improvement, boat repair and
maintenance, and by hobbyists. Consumer brands include Zinsser, Rust-Oleum,
DAP, Varathane and Testors.
For more information, contact P. Kelly Tompkins, executive vice president
- administration and chief financial officer, at 330-273-5090 or
This press release contains "forward-looking statements" relating to our
business. These forward-looking statements, or other statements made by us,
are made based on our expectations and beliefs concerning future events
impacting us, and are subject to uncertainties and factors (including those
specified below) which are difficult to predict and, in many instances, are
beyond our control. As a result, our actual results could differ materially
from those expressed in or implied by any such forward-looking statements.
These uncertainties and factors include (a) general economic conditions; (b)
the price, supply and capacity of raw materials, including assorted pigments,
resins, solvents and other natural gas- and oil-based materials; packaging,
including plastic containers; and transportation services, including fuel
surcharges; (c) continued growth in demand for our products; (d) legal,
environmental and litigation risks inherent in our construction and chemicals
businesses and risks related to the adequacy of our insurance coverage for
such matters; (e) the effect of changes in interest rates; (f) the effect of
fluctuations in currency exchange rates upon our foreign operations; (g) the
effect of non-currency risks of investing in and conducting operations in
foreign countries, including those relating to domestic and international
political, social, economic and regulatory factors; (h) risks and
uncertainties associated with our ongoing acquisition and divestiture
activities; (i) risks related to the adequacy of our contingent liabilities,
including for asbestos-related claims; and (j) other risks detailed in our
filings with the Securities and Exchange Commission, including the risk
factors set forth in our Annual Report on Form 10-K for the year ended May 31,
2008, as the same may be updated from time to time. We do not undertake any
obligation to publicly update or revise any forward-looking statements to
reflect future events, information or circumstances that arise after the date
of this release.
SOURCE RPM International Inc.
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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