UPDATE 2-RPM raises full-year outlook, expects growth in N. America
* Expects full-year profit to grow 9-12 percent
* Sees 2013 sales growing 8-10 percent
* Shares up 3 percent
Oct 3 (Reuters) - Coatings and sealants maker RPM International Inc raised its profit and sales growth forecast for 2013 on recent acquisitions and growth expectations in North America.
The company, which has manufacturing facilities in 20 countries outside the United States, acquired three companies during the first four months of the year, it said.
RPM's competitor H.B. Fuller Co last week cut its full-year revenue outlook, citing a slight slowdown in the global market for industrial adhesives.
Medina, Ohio-based RPM now expects full-year profit to grow between 9 and 12 percent, up from 5 to 10 percent it forecast in July.
The company raised the low end of its sales growth outlook to 8 percent from 5 percent. The top end of the forecast remained at 10 percent.
RPM also lifted full-year sales growth forecast for the company's consumer segment due to higher selling price of its home improvement-related decorative paints, adhesives, rust-preventive paints and sealants. The segment accounted for one-third of the company's total first-quarter revenue of $1.05 billion.
RPM, which sells brands like Rust-Oleum, Zinsser and Carboline, expects sales growth of 7 to 10 percent for the segment, up from its prior forecast of 5 to 7 percent growth.
"The segment is also benefiting from the gradual recovery of the U.S. housing market," Chief Executive Frank Sullivan said.
Americans are buying new homes after a five-year lull as low mortgage rates and prices have made purchase most affordable since 1970.
However, the company did not raise its previous growth forecast of 6 to 10 percent for its industrial segment, which accounts for about two-thirds of total revenue.
RPM's shares were up about 3 percent at $27.31 in afternoon trading on the New York Stock Exchange.
FIRST-QUARTER PROFIT FALLS
The company reported a lower profit for the quarter ended Aug. 31, hurt by one-time charges.
The company's global roofing division took a charge of $11 million as RPM winds down the business outside of North America to focus on growing commercial construction in the United States and Canada, it said.
The company also wrote down $45.3 million of its investment in Indian corrosion-proof materials maker Kemrock Industries and Exports Ltd on deteriorating economic conditions in the country. RPM owns a 23 percent stake in Kemrock.
- Israel rejects ceasefire plan, source says, as death toll nears 850 |
- Obama tells Central American leaders most children will go home
- First Ebola victim in Sierra Leone capital on the run
- Bad weather seen as probable cause of Air Algerie crash
- EU edges to economic sanctions on Russia but narrows scope |