RPM Q2 2021 Earnings Report
Key Takeaways
RPM International Inc. reported record second-quarter sales of $1.49 billion, a 6.0% increase year-over-year, and net income of $127.7 million, up 65.7% from the previous year. Diluted EPS increased by 66.1% to $0.98, and adjusted diluted EPS rose by 39.5% to $1.06. The company's performance was driven by its MAP to Growth program and the acquisition of Ali Industries.
Record second-quarter sales, earnings, and cash from operations were achieved.
Sales increased 6.0% to $1.49 billion, boosted by the acquisition of Ali Industries.
Net income increased 65.7% to $127.7 million due to the MAP to Growth program.
Diluted EPS increased 66.1% to $0.98; adjusted diluted EPS increased 39.5% to $1.06.
RPM
RPM
RPM Revenue by Segment
Forward Guidance
For the fiscal 2021 third quarter, RPM anticipates consolidated sales to grow in the mid-single-digit range with adjusted EBIT growth of 30% or more.
Positive Outlook
- Consolidated sales are expected to grow in the mid-single-digit range.
- Adjusted EBIT is projected to grow by 30% or more.
- Consumer Group is expected to continue its double-digit sales growth.
- The Consumer Group will benefit from the acquisition of Ali Industries.
- Specialty Products Group is expected to continue positive sales growth.
Challenges Ahead
- Construction Products Group sales are expected to be flat to negative.
- Performance Coatings Group anticipates continued negative sales growth.
- Third quarter typically provides modest sales activity due to winter months.
- Construction Products Group faces a challenging construction market.
- Performance Coatings Group serves challenged end markets.