Upcoming AWS Coverage on LyondellBasell Industries

LONDON, UK / ACCESSWIRE / January 10, 2017 / Active Wall St. announces its post-earnings coverage on RPM International Inc. (NYSE: RPM). The Company reported its second quarter fiscal 2017 financial results on January 05, 2017. The specialty chemicals Company's sales number exceeded expectations, while earnings came in below estimates. Register with us now for your free membership at: http://www.activewallst.com/register/.

One of RPM International's competitors within the Specialty Chemical space, LyondellBasell Industries N.V. (NYSE: LYB), is expected to report fiscal quarter ending December 2016 earnings results on February 03, 2017 before market open. AWS will be initiating a research report on LyondellBasell Industries following the release of its earnings results.

Today, AWS is promoting its earnings coverage on RPM; touching on stock like LYB. Get our free coverage by signing up to:

http://www.activewallst.com/registration-3/?symbol=RPM

http://www.activewallst.com/registration-3/?symbol=LYB

Earnings Reviewed

For the three months ended November 30, 2016, RPM reported net sales of $1.19 billion, up 3.0% over the $1.16 billion reported a year ago. The Company's organic sales improved 3.8% and acquisition growth added 1.7%, this was offset by foreign currency translation, which reduced sales by 2.5%. The sales figures exceeded market expectation of sales of $1.17 billion.

The Company's Q2 FY17 consolidated gross profit increased 5.6% to $521.7 million from $493.9 million last year. As a percentage of net sales gross profit increased from 42.7% in Q2 FY16 to 43.8% in Q2 FY17, representing a 110 basis point improvement, contributing to the progress were lower manufacturing costs and supply chain improvements.

For Q2 FY17, RPM reported loss of $70.9 million or $0.54 compared to net income of $83.4 million, or earnings per diluted share of $0.62, in Q2 FY16. The reported quarter's results included a $188.3 million pre-tax impairment charge related to its Kirker consumer nail enamel business. On an after-tax basis, the charge was $129.2 million, or $0.97 per share. Q2 FY17 income was also impacted by a charge of $12.3 million, or $0.09 per share, related to the decision to exit the Flowcrete polymer flooring business in the Middle East. Excluding these items, earnings per diluted share declined 5.5% from $0.55 per share to $0.52 per share in Q2 FY17. Earnings results missed Wall Street's expectations of $0.60 per share.

Segment Results

During Q2 FY17, RPM's industrial segment sales increased 1.6%, to $633.4 million from $623.3 million in Q2 FY16. Organic sales improved 2.2%, while acquisition growth added 2.2%; this was offset by foreign currency translation impact of 2.8%. Industrial segment EBIT declined 20.4% to $52.2 million from $65.6 million in the year earlier same quarter. The Company stated that Industrial sales remained irregular on a geographical basis and continued to be negatively impacted by weakness in the global oil and gas and heavy equipment industries, along with continued currency headwinds. In Europe, sales were down 1.0% in actual dollars, but up 6.3% in local currencies, with solid results in the UK. In Latin America, sales were down in the low single digits in both actual results and local currencies.

For Q2 FY17, RPM's specialty segment sales increased 5.7%, to $183.6 million from $173.6 million in Q2 FY16. Organic growth was 5.2%, while acquisitions added 2.5%. Foreign currency translation reduced sales by 2.0%. The Company's specialty segment EBIT improved 10.6% to $31.0 million in the reported quarter from $28.1 million a year ago.

RPM's Q2 FY17 consumer segment sales increased 4.1% to $373.8 million from $359.1 million a year ago. Organic sales increased 5.8%, while acquisition growth added 0.6%. Foreign currency translation reduced sales by 2.3%.

Balance Sheet

For H1 2017, RPM's cash from operations was $158.7 million, compared to $167.1 million a year ago. The Company's Capital expenditures totaled $48.0 million compared to $31.3 million during H1 2016. RPM's total debt at November 30, 2016, was $1.64 billion compared to $1.66 billion at November 30, 2015 and $1.64 billion at May 31, 2016. RPM's net (of cash) debt-to-total capitalization ratio was 52.8% compared to 53.3% at November 30, 2015. At November 30, 2016, the Company's liquidity stood at $956 million, including cash of $206.0 million and $750.0 million in long-term committed available credit.

Dividend

On January 04, 2017, RPM announced that its board of directors has declared a regular quarterly cash dividend of $0.30 per share, payable on January 31, 2017 to stockholders of record as of January 16, 2017. RPM's last cash dividend increase of 9.1% in October 2016 marked its 43rd consecutive year of increased cash dividends paid to its stockholders, which places RPM in an elite category of less than half of 1% of all 19,000 publicly-traded US companies.

Stock Performance

At the close of trading session on Monday, January 09th, 2017, the stock ended at $52.20, falling 1.40% from its previous closing price of $52.94. A total volume of 607.00 thousand shares have exchanged hands, which was higher than the 3-month average volume of 594.79 thousand shares. RPM International's stock price advanced 6.80% in the last three months, 2.66% in the past six months, and 29.70% in the previous twelve months. The Company's shares are trading at a PE ratio of 19.15 and have a dividend yield of 2.30%.

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SOURCE: Active Wall Street