MEDINA, Ohio (Jan. 13, 2009)—RPM International Inc. said its net income fell 23.9 percent in the second quarter on a 1.7-percent falloff in sales because of the worldwide recession, especially in the consumer products area.
RPM said its industrial segment sales experienced some growth—3.3 percent to $625.6 million—but at a slower pace than it has been enjoying for the past several years.
The firm posted a second quarter net income of $41.7 million, a 23.9-percent drop from the same period a year earlier. Net sales fell to $890 million for the quarter ended Nov. 30.
For the first half of fiscal 2009, net profits slid 9.6 percent to $111.1 million while sales climbed 2.2 percent to $1.88 billion.
RPM said it expects a loss in the third quarter as well because it is the firm's seasonally low period and revenues continue to decline. The company said it also is paying severance costs to some employees after cutting staff to address deteriorating demand.