RPM's fiscal 4Q net income falls 21 percent

RPM's fiscal 4th-quarter net income drops 21 percent; adjusted results beat expectations

Associated Press

MEDINA, Ohio (AP) -- RPM International Inc. said that its fiscal fourth-quarter net income fell 21 percent due to falling value of its investments in India. But the specialty chemical maker reported adjusted results that beat expectations and it posted a positive full-year outlook, pushing its shares up slightly.

The maker of Rust-Oleum, a protective paint, said that it earned $65.4 million, or 49 cents per share, in the three months ended May 31. That's compared to $82.6 million, or 63 cents per share, in the same quarter a year ago.

Excluding one-time items, which include a $22.5 million write-down of its investments in Kemrock Industries and Exports Ltd. in India, the company's adjusted earnings were 72 cents per share. Analysts, on average, expected adjusted earnings of 67 cents per share, according to FactSet.

The company's revenue rose 6.3 percent to $1.17 billion from $1.10 billion, missing the average analyst estimate of $1.19 billion.

RPM attributed the Kemrock write-down to India's declining economy and stock market. The company said it no longer has any investments in Kemrock, which makes fiber-reinforced composite materials.

For fiscal 2014, RPM expects adjusted earnings between $1.98 and $2.05 per share on revenue growth of 5 percent to 7 percent. Analysts expect earnings of $2.03 per share on revenue of $4.4 billion, which represents growth of 8 percent over fiscal 2013 revenue of $4.08 billion.

The Medina, Ohio-based company earned $98.6 million, or 74 cents per share, in fiscal 2013, down from $216 million, or $1.65 per share, a year earlier.

RPM International shares rose 75 cents, or 2.2 percent, to $34.87 in morning trading Monday.

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