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$RPM agreed to sell $300MM of 4.250% notes due 2048. The sale of the Notes is expected to close Dec. 20, 2017. The expected net proceeds from the offering of the Notes will be about $296.2MM. $RPM plans to use the net proceeds to repay, redeem or refinance $250MM of unsecured senior notes due Feb. 15, 2018 and for general corporate purposes.
$RPM announced that its Rust-Oleum business group has acquired Whink Products, a specialty cleaners manufacturer and marketer. Based in Iowa, Whink has annual net sales of approx. $6MM. Terms of the transaction, which is expected to be accretive to earnings within one year, were not disclosed.
$RPM declared a regular quarterly cash dividend of $0.32 per share, payable on October 31, 2017, to stockholders of record as of October 16, 2017. This payment represents a 6.7% increase over the $0.30 quarterly cash dividend paid at this time last year.
During 1Q18, $RPM's Industrial segment reported 8% rise in its sales, driven by prior year acquisitions and organic growth of 3.2%. Sales in the consumer segment rose 6.8%, helped by acquisition of Touch n’ Foam, at DAP and SPS and Rust-Oleum in Europe. Sales in the Specialty segment increased 6.9%.
$RPM expects its FY18 sales growth in its industrial and consumer segments to be in the mid-single-digit range. Net sales growth in the Specialty segment is expected to be in the low- to mid-single-digit range. The company maintains its EPS guidance of $2.85-2.95 per share.
$RPM posted a higher results in 1Q18. Net sales grew 7.5% YoY to $1.35Bil, helped by improved sales in all three segments. Net income rose 3.2% to $116.4MM from $112.8MM in the year-ago period, and diluted EPS was $0.86, up 3.6% from $0.83 in 1Q17. The company benefited from the nine acquisitions made in FY17 and its SG&A cost reduction actions.
$RPM has appointed David P Reif as President of RPM Industrial Segment. Reif, formerly President of the RPM Performance Coatings Group, has served as CFO of RPM and President of its StonCor Group. He will report to President and COO Ronald A Rice. The company also promoted David Dennsteadt to Group President of RPM Performance Coatings Group.
$RPM has acquired Key Resin Company, a provider of speciality building materials. Key Resin will be incorporated into RPM’s Euclid Group. The transaction is expected to be accretive to the company’s earnings within one year. The terms of the deal have not been disclosed.
$RPM appointed Julie Lagacy to its BoD, effective immediately, and has nominated Robert Livingston as a director candidate for election to the board at its annual stockholders' meeting on Oct. 5, 2017. Lagacy is VP of global information services and CIO at $CAT, and Livingston is president and CEO of $DOV.
$RPM stated that the weakness in the specialty market relates to challenging comps YoY. The company also saw some slowdown in certain OEM businesses. $RPM is estimating low single digit growth for the specialty market going into 4Q17. In the industrial market, $RPM expects low to mid single digit organic growth for 4Q17.
$RPM said its biggest challenge in Brazil was tough comps. The company continues to have a positive investment profile in Brazil and it is bullish across a couple of its businesses for this market. The improvement in the Real also suggests the underlying economy is improving.
In 3Q17, $RPM’s organic sales decreased 0.1%. In the Industrial segment, organic sales increased 2.5% while in the Specialty segment, organic sales decreased 0.6%. In the Consumer segment, organic sales decreased 3.6%. Consolidated gross profit increased 3.8% to $428.6MM in 3Q17.
$RPM's Industrial segment sales in 3Q17 increased 5.8% to $521.4MM, while sales in specialty segment rose 1.8% to $159.7MM. Meanwhile, $RPM reported 0.7% increase in consumer segment sales to $341.4MM during the quarter. On a different note, $RPM said its five acquisitions during the quarter will add approx $170MM in annualized sales.
$RPM posted mixed results in 3Q17. Net sales grew 3.4% to $1Bil, riding on revenue hike in all three segments. However, higher impairment and restructuring charges lowered net income attributable to $RPM to to $11.9MM, or $0.09 per share, from prior-year quarter's $18.6MM, or $0.14 per share. Excluding items, EPS was unchanged at $0.09.
$RPM has acquired Prime Resins to be part of its USL Group. Prime Resins is a manufacturer of specialty chemicals and equipment for infrastructure construction and repair and has annual net sales of approx. $7MM. Terms of the transaction, which is expected to be accretive to earnings within one year, were not disclosed.