MEDINA, Ohio, Dec 27, 2005 /PRNewswire-FirstCall via COMTEX News Network/ -- RPM International Inc.
(NYSE: RPM) today said that earnings for its fiscal year 2006 second quarter,
ended November 30, 2005, excluding asbestos charges, will be below the prior
year as a result of effects associated with the Gulf coast hurricanes,
including slower sales growth and higher raw material costs. Additionally,
second quarter results will include approximately $10 million, or $0.05 per
diluted share, of unrelated, one-time costs, the most significant of which is
associated with the finalization of the Dryvit national residential class
The company expects second quarter 2006 diluted earnings per share of
$0.22 - $0.24 versus year-ago EPS of $0.31, both prior to charges related to
asbestos liabilities. Reconciliations of the prior year results and current
results, excluding the impact of asbestos charges, will be provided when the
company announces quarterly earnings on January 5, 2006.
RPM President and CEO Frank C. Sullivan stated, "The unusual costs
affecting this quarter will not recur and we remain positive in our outlook
for the year. Before acquisitions, our sales grew 9 percent in the quarter
and 10 percent in the first half, with operating margins improving toward the
end of the quarter. As raw material costs level off and higher selling prices
take effect, our margins should show further strength through the balance of
this fiscal year. For the second half of our fiscal year, earnings growth
before asbestos charges will better match our continuing strong revenue
growth, resulting in record results for the full fiscal year ending May 31,
RPM will report its second quarter and six-month 2006 results on January
5, 2006 and will host a conference call to provide additional details of those
results and to discuss its fiscal year outlook at 10 a.m. on January 5, 2006,
which can be accessed by dialing 800-591-6930 or through the company's web
site at http://www.rpminc.com.
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, automotive and
boat repair and maintenance, and by hobbyists. Consumer brands include
Zinsser, Rust-Oleum, DAP, Varathane, Bondo and Testors.
For more information, contact Glenn R. Hasman, vice president - finance
and communications, at 330-273-8820 or email@example.com.
This press release contains "forward-looking statements" relating to the
business of the company. These forward-looking statements, or other
statements made by the company, are made based on management's expectations
and beliefs concerning future events impacting the company and are subject to
uncertainties and factors (including those specified below) which are
difficult to predict and, in many instances, are beyond the control of the
company. As a result, actual results of the company 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; packaging; and transportation
services; (c) continued growth in demand for the company's products; (d)
legal, environmental and litigation risks inherent in the company's
construction and chemicals businesses and risks related to the adequacy of the
company's insurance coverage for such matters; (e) the effect of changes in
interest rates; (f) the effect of fluctuations in currency exchange rates upon
the company's 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 the company's
ongoing acquisition and divestiture activities; (i) risks related to the
adequacy of its contingent liability reserves, including for asbestos-related
claims; and other risks detailed in the company's other reports and statements
filed with the Securities and Exchange Commission, including the risk factors
set forth in the company's prospectus and prospectus supplement included as
part of the company's Registration Statement on Form S-4 (File No. 333-
114259), as the same may be amended from time to time. RPM does 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.
Glenn R. Hasman, vice president - finance and communications of RPM International
Inc., 1-330-273-8820, or firstname.lastname@example.org
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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