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RPM Swings to Loss

TSC and IRIS Staff

RPM International(RPM Quote), a maker of specialty paints and sealants, said it swung to fourth-quarter loss due to a higher asbestos charge.

The company lost $142.0 million, or $1.21 a share, in the fourth quarter ended May 31, compared with a gain of $46.2 million, or 37 cents a share, a year ago. Adjusted for asbestos charges, the company earned 58 cents a share in the quarter. Analysts polled by Thomson Financial were expecting the company to earn 54 cents a share.

Fourth-quarter revenue rose 20.5% from the year-ago period to $909.2 million. Analysts were estimating revenue of $892.6 million for the quarter.

The Medina, Ohio-based company expects the earnings to grow by 10% to 12%, on sales growth of 8% to 10%, in the year 2007. Analysts are estimating earnings of $1.49 a share on revenue of $3.26 billion for fiscal year 2007.

RPM said asbestos charges totaled $335.0 million in the quarter, including a long- term reserve of $321.0 million and current reserves of $14.0 million.

The company's revenue from industrial segment increased 28.4% to $536.9 million and from consumer segment increased 10.7% to $372.3 million.

The company's stock was up 33 cents, or 1.9%, to $18.14 on Monday.