Apr. 8--There was no sugarcoating of RPM International's latest earnings report, particularly in light of the worldwide economic downturn.

The Medina holding company reported losing $30.9 million, or 24 cents a share, on sales of $635.4 million for its third quarter ending Feb. 28. A year ago, RPM, which owns companies that make consumer and industrial sealants, coatings and related products, reported a profit of $12.2 million, or 10 cents a share, on revenue of $731.8 million.

The third quarter is typically RPM's financially weakest, the company said in a press release.

Results this year were hurt by the global economic recession, one-time restructuring costs of $14.5 million and write-downs related to its insurance company.

Shares of RPM were down 16 cents to $13.42 as of 11:35 a.m. Shares are up 2.6 percent, including reinvested dividends, since Jan. 1. Shares are down 37.8 percent from a year ago.

Despite the loss and ongoing global economic turmoil, RPM has ample cash on hand, strong cash flow and other liquidity and expects it can maintain its dividend, Frank Sullivan, chairman and chief executive officer, told analysts in a conference call this morning.

If economic and business conditions worsen in the upcoming year beyond the company's already less-than-rosy expectations, RPM's board of directors will re-evaluate the dividend, he said.

RPM remains in a position to buy small and medium businesses, Sullivan said.

Industrial sales fell 13 percent to $406.7 million from $467.6 million last year. Its industrial brands include Stonhard, Tremco, Day-Glo and Dryvit.

Consumer sales fell 13.4 percent to $228.7 million compared to $264.2 million year ago. Consumer brands include Zinsser, Rust-Oleum, DAP, and Testors.

"During the third quarter, we undertook many difficult, but necessary, actions to recalibrate our business to current market conditions. The results of these actions, while painful in the short run, will enhance our future profitability by generating savings of approximately $50 million on an annualized basis," Sullivan said in a prepared statement.

"For our 2010 fiscal year, we expect to realize ongoing benefits from lower fixed costs, generating improved earnings even with the probability of a lower base of business next year," he said. "We expect to begin seeing some sales improvement as a result of infrastructure rebuilding in both domestic and overseas markets, as well as the renewed emphasis on energy savings."

RPM's 2010 fiscal year starts June 1.

Jim Mackinnon can be reached at 330-996-3544 or jmackinnon@thebeaconjournal.com.

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