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May 31, 2021
RPM Q4 2021 Earnings Report
RPM reported strong fourth-quarter results driven by sales growth and margin improvements.
Key Takeaways
RPM International Inc. reported a 19.6% increase in net sales to $1.74 billion for the fiscal 2021 fourth quarter. Diluted EPS increased 42.9% to $1.20, and adjusted diluted EPS increased 13.3% to $1.28. The company successfully completed its MAP to Growth operating improvement program, exceeding its original target by $30 million in annualized savings.
Net sales increased by 19.6% to $1.74 billion.
Diluted EPS increased by 42.9% to $1.20.
Adjusted diluted EPS increased by 13.3% to $1.28.
MAP to Growth operating improvement program was successfully completed, exceeding savings target.
RPM
RPM
RPM Revenue by Segment
Revenue by Segment
Consumer Group Revenue
CapyFin.com Forward Guidance
RPM anticipates first-quarter consolidated sales to increase in the low- to mid-single digits. Adjusted EBIT is expected to decrease 25% to 30% due to anticipated decline in Consumer Group.
Positive Outlook
- Construction Products Group and Performance Coatings Group are expected to experience sales increases in the high-single or low-double digits.
- The Specialty Products Group is expected to generate double-digit sales increases.
- Global economies are expected to continue improving.
- Consumer Group’s fiscal 2022 first-quarter sales are expected to be above the pre-pandemic record.
- Adjusted EBIT is expected to grow in three of four segments.
Challenges Ahead
- Supply constraints have slowed production in some product categories.
- Macroeconomic factors are creating inflationary and supply pressures.
- Consumer Group sales are expected to decline double digits due to difficult comparisons to the prior year.
- First-quarter consolidated adjusted EBIT is expected to decrease 25% to 30%.
- Consumer Group is facing several margin challenges including selling price negotiations, insufficient supply of raw materials and outsourced production.