RPM International (RPM) 2021 Q3 Earnings Results

RPM International Inc. (NYSE:RPM) traces its roots back to 1947 when founder Frank Sullivan established Republic Powdered Metals to sell heavy-duty aluminum roof coating. The company achieved a sales landmark of $2 million by 1957. Over the years, RPM grew by adding new products to its portfolio, stepping into new regions, and making several acquisitions. Today, it is a leading manufacturer of paints, sealants, and coating for maintenance and protection.

The Medina, Ohio-based company recently announced its financial results for the third quarter. RPM reported earnings of $38.2 million, or 29 cents per share for the three months ended February 28, up from earnings of $11.9 million, or 9 cents per share in the year-ago quarter. On an adjusted basis, RPM earned 38 cents per share, beating the consensus forecast of 29 cents per share.

Revenue came in at $1.27 billion, up 8.1 percent from the comparable quarter of 2020. Analysts on average were looking for revenue of $1.21 billion. If we look at the performance of key segments, revenue from the consumer group business rose 19.8 percent to $477.7 million in the quarter, while revenue from the specialty products group segment increased 14.7 percent to $169.2 million.

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Meanwhile, revenue from the construction products group jumped 6.4 percent to $396 million, while revenue from the performance coating business fell 11.4 percent to $226.5 million.

Commenting on the results, CEO Frank Sullivan said in a statement, “The third quarter is our seasonally low quarter and historically generates only 5% to 10% of our annual earnings, so the magnitude of relatively small variations in earnings becomes magnified. Fortunately, due to the extraordinary efforts of our associates who were able to catch up and execute delivery of customer orders, as well as the fact that plants, distribution centers, and transportation networks resumed operation more quickly than anticipated, we exceeded our original third-quarter sales and earnings guidance.”

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