(By Balachander) RPM International Inc. (NYSE: RPM) reported double-digit growth in earnings and sales for the second quarter on an adjusted basis and the specialty chemical company backed its outlook for 2013.
Excluding adjustments, earnings per share (EPS) increased 17.6 percent to 40 cents for the second quarter ended November, versus market expectations of 42 cents.
Second-quarter net earnings dropped 16.6 percent to $41.67 million. RPM incurred a non-cash charge of $10.8 million or 9 cents a share for the write-down of its investments in Kemrock Industries and Exports Ltd. in India.
Sales rose 11.1 percent to $1.02 billion, topping expectations of an increase of 9.0 percent.
RPM chief executive Frank Sullivan said second-quarter operating results on an adjusted basis, continue to meet the company's plan with sales, EBIT and net income posting strong double-digit increases.
The company continues to expect 2013 EPS between $1.80 to $1.85, a growth of 9 percent to 12 percent. Sales are still expected to grow between 8 percent and 10 percent. Analysts expect EPS of $1.85 on sales growth of 8.80 percent.
The stock, which has been trading in the 52-week range of $23.00 to $30.61, ended at $30.57 on Monday.