Rust-Oleum Maker RPM Attributes Weak Outlook to Economic Conditions, Weather | Global News Avenue

Rust-Oleum and DayGlo parent company RPM International (Speed) issued soft guidance on Tuesday, saying difficult economic conditions and bad weather would hurt results for the current quarter.

RPM said it expects third-quarter sales to be in line with a record $1.52 billion in the same period last year. Saw the adjustment Earnings before interest and taxes (EBIT) Up or down in the low single digits. Analysts polled by Visible Alpha expected sales of $1.55 billion and adjusted EBIT growth of 13.5%.

CEO Frank Sullivan explained that RPM faced a “complex economic environment” and “market pressures resulting from winter weather that were significantly more severe than the prior year.” Sullivan added that bad weather and high mortgage rates hurt demand in its consumer products and specialty products units.

Highest second quarter performance expectations

The news offset better-than-expected second-quarter results. Reported RPM adjusted Earnings per share (EPS) $1.39, with revenue up 3% to $1.85 billion. Both set second-quarter records and beat Visible Alpha forecasts.

RPM International shares were little changed shortly after the market opened on Tuesday. They are up about 15% from last year.