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May 31, 2020
RPM Q4 2020 Earnings Report
RPM's results for fiscal 2020 fourth quarter and year end were reported.
Key Takeaways
RPM International Inc. reported a decrease in fourth-quarter sales by 8.9% due to the Covid-19 pandemic, which impacted manufacturing, distribution, and customer activities. Despite the sales decline, adjusted diluted earnings per share were the second best on record, supported by proactive measures like the MAP to Growth program.
Fourth-quarter sales declined 8.9%, diluted EPS decreased 17.6%, and adjusted diluted EPS was down 8.9%.
The Consumer Group experienced strong top-line growth in the U.S., with sales up 12% due to increased home improvement activities.
RPM expects to resume growth seen in recent quarters, with fiscal 2021 first-quarter outlook anticipating net sales growth in low single digits and adjusted EBIT growth of 20% or more.
Record operating cash flow of $550 million generated due to good working capital management and margin improvement initiatives
Revenue by Segment
Forward Guidance
RPM anticipates resuming growth typical of recent quarters, with fiscal 2021 first-quarter outlook projecting net sales growth in the low single digits and adjusted EBIT growth of 20% or more.
Positive Outlook
- Net sales growth in low single digits.
- Adjusted EBIT growth of 20% or more.
- Business has been trending better in the first quarter as many markets have re-opened.
- Consumer Group has continued its sales momentum into fiscal 2021.
- Remain laser-focused on advancing our MAP to Growth program and managing our businesses to drive efficiency.
Challenges Ahead
- Construction Products Group could experience sales declines for the first three quarters.
- Performance Coatings Group could experience sales declines for the first three quarters.
- Specialty Products Group is expected to face negative sales comparisons during the first two quarters.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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