RPM's CEO Expects Results Will Be Below Prior Year
04 December 2008 - 8:44AM
PR Newswire (US)
Solid liquidity, resilient capital structure and strong dividend
highlighted at analyst conference in New York MEDINA, Ohio, Dec. 3
/PRNewswire-FirstCall/ -- In a presentation yesterday at the 19th
Annual Citi Chemicals Conference, RPM International's chairman and
chief executive officer, Frank C. Sullivan, discontinued the
company's current guidance for its fiscal year ending May 31, 2009,
and indicated that results would likely be below the prior year.
"Given the continued deterioration of economic conditions, it is
highly likely that RPM results for our 2009 fiscal year will be
below the prior year. Additionally, given the volatility we are
seeing in some of our core markets, it is nearly impossible to
provide any definitive guidance for our fiscal 2009 results. We
will provide outlook and directional comments in our upcoming
second-quarter conference call, as we have done in the past based
upon then current conditions," Sullivan stated. "With $318 million
of committed unused long-term credit and approximately $190 million
in cash, RPM's liquidity is in excess of $500 million. Furthermore,
between now and 2011, we have only $164 million of debt obligations
coming due, with the remainder of our debt maturing roughly evenly
in two-year increments between 2011 and 2018," stated Sullivan.
"With a debt/capitalization ratio at the lower level of our
historic range, solid levels of liquidity and continuing strong
cash generation from our operations, we are confident of our
ability to maintain our current dividend and take advantage of
growth opportunities, including acquisitions," he stated. RPM is
scheduled to announce second-quarter earnings and hold a conference
call to discuss results on January 8, 2009. RPM International Inc.,
a holding company, owns subsidiaries that are world leaders in
specialty coatings and sealants serving both industrial and
consumer markets. RPM's industrial products include roofing
systems, sealants, corrosion control coatings, flooring coatings
and specialty chemicals. Industrial brands include Stonhard,
Tremco, illbruck, Carboline, Day-Glo, Euco and Dryvit. RPM's
consumer products are used by professionals and do-it-yourselfers
for home maintenance and improvement, boat repair and maintenance,
and by hobbyists. Consumer brands include Zinsser, Rust-Oleum, DAP,
Varathane and Testors. For more information, contact P. Kelly
Tompkins, executive vice president - administration and chief
financial officer, at 330-273-5090 or . This press release contains
"forward-looking statements" relating to our business. These
forward-looking statements, or other statements made by us, are
made based on our expectations and beliefs concerning future events
impacting us, and are subject to uncertainties and factors
(including those specified below) which are difficult to predict
and, in many instances, are beyond our control. As a result, our
actual results could differ materially from those expressed in or
implied by any such forward-looking statements. These uncertainties
and factors include (a) general economic conditions; (b) the price,
supply and capacity of raw materials, including assorted pigments,
resins, solvents and other natural gas- and oil-based materials;
packaging, including plastic containers; and transportation
services, including fuel surcharges; (c) continued growth in demand
for our products; (d) legal, environmental and litigation risks
inherent in our construction and chemicals businesses and risks
related to the adequacy of our insurance coverage for such matters;
(e) the effect of changes in interest rates; (f) the effect of
fluctuations in currency exchange rates upon our foreign
operations; (g) the effect of non-currency risks of investing in
and conducting operations in foreign countries, including those
relating to domestic and international political, social, economic
and regulatory factors; (h) risks and uncertainties associated with
our ongoing acquisition and divestiture activities; (i) risks
related to the adequacy of our contingent liabilities, including
for asbestos-related claims; and (j) other risks detailed in our
filings with the Securities and Exchange Commission, including the
risk factors set forth in our Annual Report on Form 10-K for the
year ended May 31, 2008, as the same may be updated from time to
time. We do not undertake any obligation to publicly update or
revise any forward-looking statements to reflect future events,
information or circumstances that arise after the date of this
release. DATASOURCE: RPM International Inc. CONTACT: P. Kelly
Tompkins, executive vice president - administration and chief
financial officer of RPM International Inc., +1-330-273-5090, Web
site: http://www.rpminc.com/
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