* Expects full-year profit to grow 9-12 percent
* Sees 2013 sales growing 8-10 percent
* Shares up 3 percent
Oct 3 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
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
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
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.