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Nov 30, 2021
RPM Q2 2022 Earnings Report
Reported record sales and mixed earnings due to supply chain challenges and inflation.
Key Takeaways
RPM International Inc. reported record second-quarter sales of $1.64 billion, a 10.3% increase over the prior year. Net income decreased by 2.2% to $124.9 million, and diluted EPS decreased by 2.0% to $0.96. Adjusted diluted EPS was $0.79, and adjusted EBIT was $157.3 million, down 21.0% from the prior year.
Record second-quarter sales of $1.64 billion, up 10.3% year-over-year.
Net income decreased 2.2% to $124.9 million.
Diluted EPS decreased 2.0% to $0.96.
Adjusted diluted EPS was $0.79, a decrease of 25.5% compared to the prior year.
Revenue by Segment
Forward Guidance
The company expects double-digit consolidated sales growth in the fiscal 2022 third quarter but anticipates a decline in adjusted EBIT of 5% to 15% versus the prior year.
Positive Outlook
- Robust demand for paints, coatings, sealants and other building materials is expected to continue.
- High-double-digit sales growth is anticipated in the CPG and PCG segments.
- Margin accretion is expected in CPG and PCG segments.
- SPG sales are expected to be up low-double digits.
- Consumer Group sales are anticipated to increase by low-single digits.
Challenges Ahead
- Supply chain challenges and raw material shortages have persisted.
- Disruptions from the Covid-19 Omicron variant are impacting operations and the supplier base.
- These factors are expected to put pressure on revenues and productivity.
- Consolidated adjusted EBIT is expected to decrease 5% to 15%.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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