RPM Posts Higher Net

MEDINA, Ohio (TheStreet) -- RPM(RPM Quote) shares were just lower in the morning following news of the company's first-quarter earnings beat on Monday morning.

Per a press statement from the paint and home improvement equipment concern, RPM said its sales slumped 7% to $916 million. The slip was largely led by sliding revenue from its industrial segment, which fell to $599.7 million from $697.6 million a year earlier.

Still, revenues for its consumer unit went higher to $316.2 million from $287.9 million in the same period, and the top-line total still beat expectations. Analysts polled by Thomson Reuters expected RPM to show $873.9 million in revenue during the quarter.

Expense cuts also helped boost net income to $73 million, or 57 cents per share, from $69.5 million, or 53 cents per share, a year ago. The bottom-line, too, beat prior forecasts of 44 cents.

"It was a solid quarter for RPM, reflecting the benefits of the aggressive actions we took last year to lower our cost base, resulting in net income that was ahead of last year's record first quarter," CEO Frank Sullivan said in the release.

Looking ahead, Sullivan said the company was taking its 6.8% sequential sales jump as a "bullish sign," giving confidence that RPM "will be at the higher end of our previously stated guidance of full-year earnings per share growth of 5% to 25% over the adjusted $1.05 earned in fiscal 2009."

Shares were down 0.8%, or 15 cents, at $17.93 in the morning after surging earlier in the morning in pre-market trading.

-- Written by Sung Moss in New York

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