RPM International Posts 3Q Loss

MEDINA, Ohio (AP) — Coatings and sealants maker RPM International Inc. on Wednesday posted a fiscal third-quarter loss driven by lower sales, one-time restructuring costs and a writedowns related to its captive insurance company.

The company reported a loss of $30.9 million, or 24 cents per share, for the three months ended Feb. 28 compared with earnings of $12.2 million, or 10 cents per share, in the prior-year period.

Revenue slid 13 percent to $635.4 million from $731.8 million a year earlier. Analysts forecast revenue of $707.4 million.

Results reflected a $14.5 million in nonrecurring restructuring charges and the write-down of about $4 million in marketable securities at its captive insurance company.

"Sales reflected the seasonally weak nature of the third quarter, coupled with both our industrial and consumer segments now feeling the impact of the worldwide recession," said Frank Sullivan, the company's chief executive.

Sullivan added that he expects the fourth-quarter to benefit from the lower raw material costs the company began realizing in the third quarter, but he did not provide details on the next quarter's earnings outlook.

Shares of RPM fell 43 cents, or 3.2 percernt, to $13.15 in morning trading Wednesday.