RPM swings to profit in third quarter
RPM International, the maker of Rust-Oleum, DAP, Zinsser and other building products, reported $1.9 million in net income for its third fiscal quarter, swinging from a loss of $9.4 million in the same quarter of 2010.
Sales for the Medina, Ohio-based manufacturer were $679 million for the third quarter, compared with $666.5 million a year ago.
RPM deconsolidated its specialty products unit at the end of its previous fiscal year on May 31, 2010. This eliminated about $300 million in annual revenue from the company's industrial segment in June.
“Nearly all of our business units generated strong sales increases and substantially stronger growth in earnings," said chairman and CEO Frank Sullivan. He noted improved demand for products in the commercial construction markets, both domestically and in Europe. High-performance industrial coatings, maintenance products and polymer flooring systems are also performing well, Sullivan said.
"Our consumer lines benefited from the gradual economic recovery, consumer acceptance of new product introductions and market share gains achieved during the recent downturn," he added.