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LONDON, UK / ACCESSWIRE / July 27, 2018 / If you want access to our free earnings report on RPM International Inc. (NYSE: RPM) ("RPM"), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=RPM. The Company reported its fourth quarter fiscal 2018 and full fiscal year 2018 operating and financial results on July 19, 2018. The specialty chemicals Company's results lagged market estimates. Register today and get access to over 1,000 Free Research Reports by joining our site below:
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Earnings Highlights and Summary
For the fourth quarter of the fiscal year 2018, RPM's net sales increased 4.4% to $1.56 billion from $1.49 billion in Q4 FY17. The Company's revenue numbers lagged analysts' estimates of $1.58 billion.
During Q4 FY18, RPM's consolidated earnings before interest and taxes (EBIT) were $135.0 million compared to $209.1 million in the year ago same period. RPM's earnings results for Q4 FY18 included restructuring and other charges, including inventory SKU rationalization, of $62.2 million, while its results for Q4 FY17 included a severance charge of $15.0 million. Excluding the charges in both periods, RPM's EBIT were $197.3 million compared to $224.1 million in Q4 FY17.
RPM's net income decreased to $85.7 million, or $0.63 per diluted share, in Q4 FY18 compared to $128.1 million, or $0.94 per diluted share, in Q4 FY17. Excluding the restructuring and other charges in both periods, the Company's net income was $142.1 million, or $1.05 per diluted share, in the reported quarter versus $138.3 million, or $1.02 per diluted share, in the prior year's comparable quarter. RPM's results came in short of Wall Street's estimates of $1.18 per share.
For the full fiscal year 2018, RPM's consolidated net sales increased 7.3% to $5.32 billion from $4.96 billion in FY17.
For FY18, RPM's net income increased to $337.8 million, or $2.50 per diluted share, compared to $181.8 million, or $1.36 per diluted share, in FY17. RPM's adjusted net income totaled $394.2 million, or $2.92 per diluted share, in FY18 compared to $333.4 million, or $2.47 per diluted share, in FY17.
During Q4 FY18, RPM's Industrial segment's sales jumped 10.8% to $812.9 million from $733.5 million in Q4 FY17. The segment's organic sales improved 6.2%, while acquisition growth added 1.7% and foreign currency translation contributed 2.9%. For Q4 FY18, the Industrial segment's EBIT were up 6.4% to $99.3 million from $93.4 million in the year earlier corresponding quarter. The segment's earnings results for Q4 FY18 included restructuring and related charges of $10.0 million, and a $7.7 million severance charge in Q4 FY17. Excluding these charges, the segment's EBIT were $109.3 million in Q4 FY18, up 8.1% from $101.1 million in Q4 FY17.
For Q4 FY18, RPM's Consumer segment's net sales were $548.4 million compared to $565.3 million in Q4 FY17. The segment's organic sales declined 5.4%, while acquisition growth added 1.2% and foreign exchange translation contributed 1.2%. During Q4 FY18, the Consumer segment's EBIT totaled $25.5 million versus $99.6 million in Q4 FY17. The segment recorded restructuring and inventory-related charges of $47.3 million in the reported quarter and a $4.3 million severance charge in the prior year's same quarter. Excluding these charges, the segment's EBIT were $72.8 million in Q4 FY18 compared to $103.9 million in Q4 FY17.
During Q4 FY18, RPM's Specialty segment's sales rose 1.5% to $196.9 million from $194.0 million in Q4 FY17. The segment's organic sales declined 0.6% but were offset by an acquisition growth of 0.6% and the positive impact of 1.5% in foreign currency translation. For Q4 FY18, the Specialty segment's EBIT increased 3.8% to $32.3 million from $31.1 million in Q4 FY17. The segment reported an enterprise resource planning (ERP) consolidation charge of $1.4 million in Q4 FY18 and a severance charge of $2.9 million in Q4 FY17. Excluding these charges, the segment's EBIT were $33.7 million in the reported quarter versus $34.0 million in the prior year's comparable quarter.
Cash Flow and Financial Position
For FY18, RPM's cash from operations was $390.4 million compared to $386.1 million in FY17. The Company's total debt was $2.17 billion at the end of FY18 compared to $2.09 billion in FY17. RPM's total liquidity, including cash and long-term committed available credit, was $1.0 billion at May 31, 2018.
For the full fiscal year 2019, RPM is forecasting the challenging raw material environment to continue, perpetuating the stress on gross profit margins. The Company noted that all of its businesses are aggressively pursuing price increases and expect to see some of that benefit in its Consumer segment in FY19.
Stock Performance Snapshot
July 26, 2018 - At Thursday's closing bell, RPM International's stock climbed 1.54%, ending the trading session at $64.06.
Volume traded for the day: 1.39 million shares, which was above the 3-month average volume of 1.37 million shares.
Stock performance in the last month - up 22.07%; previous three-month period - up 30.95%; past twelve-month period - up 21.72%; and year-to-date - up 22.21%
After yesterday's close, RPM International's market cap was at $8.45 billion.
Price to Earnings (P/E) ratio was at 19.17.
The stock has a dividend yield of 2.00%.
The stock is part of the Basic Materials sector, categorized under the Specialty Chemicals industry.
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