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Feb 28, 2022
RPM Q3 2022 Earnings Report
Reported record results driven by strong sales growth amidst supply chain challenges and inflation.
Key Takeaways
RPM International Inc. reported record third-quarter sales of $1.43 billion, a 13% increase over the prior-year period. Net income was $33.0 million, and diluted EPS was $0.25. Adjusted diluted EPS was $0.38. The company's outlook for the fourth quarter includes sales growth and adjusted EBIT growth in the low teens.
Record third-quarter sales of $1.43 billion, a 13% increase over prior-year period.
Net income was $33.0 million, with diluted EPS at $0.25 and adjusted diluted EPS at $0.38.
Record third-quarter EBIT of $66.9 million, a 2.3% increase over prior-year period.
Fiscal 2022 fourth-quarter outlook calls for sales growth and adjusted EBIT growth in the low teens.
RPM
RPM
RPM Revenue by Segment
Revenue by Segment
Consumer Revenue
CapyFin.com Forward Guidance
RPM expects to generate fiscal 2022 fourth-quarter consolidated sales growth in the low teens. Consolidated adjusted EBIT for the fourth quarter of fiscal 2022 is anticipated to increase in the low teens.
Positive Outlook
- Strategic investments are expected to capitalize on market opportunities and industry trends.
- Anticipates sales growth in the low teens in all four of its operating segments.
- Adjusted EBIT for the fourth quarter of fiscal 2022 is anticipated to increase in the low teens.
- The Consumer Group continues to work to neutralize inflationary factors.
- Adding manufacturing capacity to improve resiliency.
Challenges Ahead
- Ongoing supply chain challenges and raw material shortages are expected to impact operations.
- The strengthening U.S. dollar will unfavorably impact the translation of RPM’s results in international markets.
- Russian sanctions are exacerbating inflation of energy and transportation costs.
- Creating supply challenges for plant-based raw materials, as well as those that are derivatives of oil.
- Rising interest rates may slow business and consumer spending in the coming months.