(By Balachander) RPM International Inc. (NYSE:RPM) lifted its earnings and sales forecast for the full year, citing continued robust growth in North America and recent acquisitions. The specialty chemical company reported mixed results for the first quarter, dragged down by charges.
Excluding adjustments, earnings per share (EPS) increased 8.5 percent to 64 cents for the first quarter ended August, matching market expectations.
First-quarter net earnings plunged 56 percent to $33.9 million after RPM incurred a one-time, non-cash charge of $45.3 million for the write-down of its investments in Kemrock Industries and Exports Ltd. in India. In addition, the company incurred an $11.0 million charge in the roofing division at RPM's Building Solutions Group.
Sales rose 6.2 percent to $1.05 billion, yet trailed expectations of an increase of 9.90 percent.
RPM chief executive Frank Sullivan said first-quarter operating results were on plan, with both the company's industrial and consumer segments posting increases in sales and EBIT, prior to the one-time adjustments that impacted the industrial segment. "Most of our operating units are seeing growth in unit volume, pricing improvement and a stabilization of raw material prices."
The company now expects 2013 EPS between $1.80 to $1.85, a growth of 9 percent to 12 percent from prior expectations of an increase of 5 percent to 10 percent. Sales are currently projected to grow between 8 percent and 10 percent from 5 percent to 10 percent rise projected earlier.
Analysts expect EPS of $1.80 on sales growth of 7.90 percent.
The stock, which has been trading in the 52-week range of $17.67 to $29.47, ended at $26.63 on Tuesday.