RPM International Inc. (NYSE:RPM) shares crept up in price on the release of quarterly figures.
The Medina, Ohio, company, a world leader in specialty coatings, sealants and building materials, today reported third-quarter net income of $11.9 million; adjusted EBIT of $60.5 million, increases 30.4% over prior-year quarter. Third-quarter reported diluted EPS of $0.09; adjusted diluted EPS of $0.23, increases 76.9% over prior-year quarter and exceeds guidance.
Fiscal 2020 third-quarter net sales were $1.17 billion, an increase of 2.9% over the $1.14 billion reported a year ago.
Cash provided by operating activities increases $236 million year-over-year due to improved working capital management and operating improvement initiatives
Financial guidance and stock buyback suspended due to uncertainty created by COVID-19
Said CEO Frank Sullivan, "Our financial performance was strong during the third quarter and was achieved prior to the global COVID-19 pandemic, when underlying market conditions were robust.
"We are doing our part to control the spread of the virus, with our priorities being to protect the health and well-being of our associates and their family members, support our local communities to control the spread of the virus, and serve our customers by maintaining the continuity and success of our business operations,”
"We are taking actions to adjust our business activities during this period of uncertainty and are well-positioned with a strong balance sheet and $1.14 billion in liquidity."
"However," concluded Sullivan, "like most companies, we expect our financial results to be impacted by the disruption and uncertainty COVID-19 is having on the global economy. As we cannot predict the duration or scope of the pandemic, the financial impact to our results cannot be reasonably estimated, but could be material."
Shares captured one cent to $62.46.
