Apr. 8 at 10:58 AM
$RPM RPM reports Q3 adjusted EPS 35c, consensus 50c
Reports Q3 revenue
$1.48B, consensus
$1.51B. Frank Sullivan, RPM chairman and CEO commented, "The unfavorable weather conditions we discussed in early January continued and became more widespread as the third quarter progressed. Unseasonably cold weather in the southern U.S. and wildfires in the west reduced demand in geographies that typically have more construction and outdoor project activity in winter months. In addition to weather, we faced difficult comparisons to the third quarter of fiscal 2024, when adjusted EBIT was up 31%."
He continued, "By prioritizing cash flow over profitability, we generated another quarter of strong cash flow as inventories declined
$36 million versus last year. However, this disciplined inventory management, which is a key component of MAP 2025, also lowered production levels, which had a negative impact on fixed cost absorption in our seasonally smallest quarter. This, along with foreign currency headwinds and transitional costs from eight plant consolidations, pressured margins and more than offset MAP 2025 operational improvements."
