From Dave Sebastian
RPM International Inc. said its earnings fell in the first quarter of fiscal as the company faced raw material shortages, supply chain disruptions, and inflation despite sales increasing.
The Medina, Ohio-based company that makes coatings, sealants, and building materials posted net income attributable to shareholders of $ 134.6 million on Wednesday, compared to $ 180.6 million for the same period last year. Earnings were $ 1.04 per share compared to $ 1.39 per share a year ago.
Adjusted earnings were $ 1.08 per share, excluding restructuring and other charges and capital gains. Analysts polled by FactSet expected $ 1.02 per share.
Net sales for the three months ended August 31 increased from $ 1.61 billion to $ 1.65 billion. Analysts searched for $ 1.64 billion.
Commodity shortages, supply chain disruptions and inflation drove sales by about $ 200 million, said Chief Executive Frank Sullivan. Sales and earnings of the company’s consumer group have also declined due to these disruptions and a difficult comparison with the prior-year quarter, added Mr. Sullivan.
“All indicators suggest that the underlying demand for our consumer products is still strong and that the supply and material disruptions the segment is currently experiencing are temporary,” said Sullivan. “We may continue to raise prices across the company to protect our margins,” he said.
Write to Dave Sebastian at [email protected]