RPM International Inc. is boosting its full-year earnings estimates 13 percent to 15 percent following strong second-quarter results.
The Medina maker of coatings, sealants and related products reported record second-quarter sales and net income Wednesday morning.
And because the holding company sees continued improvement in the U.S. residential housing market and ongoing benefits from recent acquisitions and new product introductions, it expects sales to grow higher than previous forecasts.
“As a result, we are increasing our full-year (earnings per share) guidance to a range of $2.05 to $2.10, or 13 percent to 15 percent year-over-year growth, versus the range of $2 to $2.07 announced last quarter,” Frank Sullivan, chairman and chief executive officer, said in a statement. The new guidance includes the impact of a convertible bond issued on Dec. 9, he said.
RPM reported earning $63.6 million, or 48 cents per share, on revenue of $1.07 billion for the quarter. Net income was up 52.5 percent from $41.7 million, or 32 cents a share a year ago; revenue was up 5.3 percent from $1.02 billion a year ago.
Sullivan said RPM anticipates full-year consumer segment sales growth to be 8 percent to 10 higher than a year ago, better than the previous guidance of 6 percent to 8 percent growth. Industrial segment sales are expected to grow 4 to 6 percent over a year ago.
Shares of RPM were up 65 cents, or 1.6 percent, to $42.12 as of 11:55 a.m.
Jim Mackinnon can be reached at 330-996-3544 or jmackinnon@thebeaconjournal.com.