RPM International Expects Flat Sales in Fiscal Third Quarter

RPM International, an Ohio-based manufacturer specializing in coatings, sealants, and building materials, has provided guidance for its fiscal third quarter sales, indicating that they will remain flat, similar to the second quarter. The company forecasts that third-quarter revenue will be in line with last year's $1.52 billion, which is lower than the $1.59 billion expected by analysts.

Despite analysts' expectations of growth, RPM International reported stagnant sales in the second quarter, ending November 30. However, the company anticipates a rise in sales for its construction project group and performance coating group, projected to be in the mid-single-digit percentage range compared to last year. In contrast, sales from its specialty products group are forecasted to decline in the mid-teen percentage range. Additionally, consumer group sales are also expected to decrease.

Looking ahead to the full fiscal year 2024, RPM International now expects sales to increase in the low-single digits percentage range instead of the mid-single-digit range initially projected.

RPM International's outlook suggests steady sales performance in the upcoming quarter, with certain segments experiencing growth while others face challenges. The company remains cautiously optimistic despite revising its long-term sales projections downward.