RPM International reported record second-quarter revenue despite what the Medina corporation said were ongoing supply chain disruptions and material shortages, while earnings fell slightly from a year ago.
RPM, whose subsidiaries make specialty coatings, sealants, building materials and more, also said on Wednesday it expects a strong third quarter and higher sales growth compared to record-setting third-quarter sales a year ago.
RPM had net income of $124.9 million, or 96 cents per share, on revenue of $1.64 billion for its fiscal 2022 second quarter ending Nov. 30. That compares to net income of $127.7 million, or 98 cents per share, on revenue of $1.49 billion a year ago.
Second-quarter sales would have been $200 million higher if not for supply chain disruptions, the company's chief executive said.
Shares of RPM were up 29 cents, or 0.3%, to $97.44 at the market's closing bell Wednesday. Over the past 52 weeks, shares have ranged from a low of $76.43 to a high of $101.48.
“Robust demand for our paints, coatings, sealants and other building materials led to strong double-digit sales growth at three of our four operating segments and drove consolidated top-line performance that was ahead of our projections. In fact, top-line growth could have been even better if not for supply chain challenges that limited access to certain raw materials and cost us roughly $200 million in sales during the quarter,” Frank C. Sullivan, chairman and chief executive officer, said in a news release.. “The decline in adjusted [earnings] was in line with our outlook and was a result of continued material, wage and freight inflation, as well as supply chain disruptions that were exacerbated by Hurricane Ida and increased our conversion costs.
The challenges were partially offset by price increases and operational improvements as part of RPM's MAP to Growth program, Sullivan said.
The company said it expects robust demand for its paints, coatings, sealants and other building materials will continue in the current third quarter.
Supply chain challenges and raw material shortages persisted in December and were further compounded by disruptions from the COVID-19 pandemic, RPM said.
Despite the challenges, RPM said it expects to generate double-digit sales growth in the third quarter compared to record third-quarter sales a year ago.
RPM International consumer, construction and other brands include Rust-Oleum, Zinsser, Varathane, DAP, Day-Glo, Stonhard, Carboline, Tremco, Dryvit and more. The company had $6.1 billion in sales in its 2021 fiscal year.
Beacon Journal reporter Jim Mackinnon can be reached at 330-996-3544 or firstname.lastname@example.org. Follow him @JimMackinnonABJ on Twitter or www.facebook.com/JimMackinnonABJ.
This article originally appeared on Akron Beacon Journal: RPM reports strong second-quarter sales despite COVID disruptions