MEDINA, Ohio (AP) -- RPM International posted a 17 percent jump in earnings with sales being driven by coatings used in industrial maintenance and corrosion control.
But the maker of Rust-Oleum, sealants and business materials said it sees the pace of net income and revenue growth slowing in the current fiscal year.
For the quarter that ended May 31, the company earned $82.7 million, or 63 cents per share, compared with $70.2 million, or 54 cents per share, a year ago.
Revenue rose to $1.1 billion from $981.8 million a year earlier.
Analysts polled by FactSet expected a profit of 66 cents per share on revenue of $1.06 billion.
Besides an improvement in industrial maintenance coatings and corrosion control coatings, which were driven by higher energy demand, the slowly recovering commercial construction markets in North America also drove sales of sealants, waterproofing, roofing materials and concrete admixtures.
For the full year, net income rose 14 percent to $215.9 million, or $1.65 per share. Revenue rose 12 percent to $3.78 billion
For the current fiscal year that ends next May, RPM expects sales and earnings will be up between 5 and 10 percent, implying a net income prediction of $226.7 to $237.5 million on revenue of $3.97 billion to $4.16 billion.
Wall Street expects $253.6 million on revenue of about $4 billion.
The company is seeing a slowdown in North American industrial market growth amid uncertainty ahead of the U.S. Presidential election. It is also seeing sales and earnings start to decline in Europe.
But raw materials costs are stabilizing, which will keep a lid on costs. The company is also seeing consumers return to normal spending patterns for home maintenance, repair and redecorating.
Shares of RPM International Inc. fell 64 cents, or 2.4 percent, to $26.60 in midday trading.