RPM International, a leading maker of coatings, sealants, and building materials based in Ohio, announced that it had achieved higher sales in its fiscal first quarter. This growth was primarily attributed to price increases and strong demand from infrastructure and reshoring projects.

Increased Profit and Earnings

In the quarter that ended on August 31, RPM International reported a profit of $201.1 million, or $1.56 per share. This is a notable increase from the $169 million, or $1.31 per share, that was reported in the same quarter of the previous year.

When factoring out restructuring charges and other one-time items, the adjusted earnings for the quarter came to $1.64 per share. Analysts surveyed by FactSet had predicted adjusted earnings of $1.55 per share.

Exceeding Sales Forecasts

Furthermore, RPM International announced that sales during this period amounted to $2.01 billion, representing a 4% increase. This surpassed the forecasted sales of $1.97 billion by analysts surveyed by FactSet.

The company attributed this sales growth to the carry-over impact of price increases implemented in the previous fiscal year. Additionally, sales volumes experienced a modest rise due to the demand generated by building maintenance, infrastructure, and reshoring capital projects.

Market Challenges and Customer Inventories

While RPM International saw positive results in various business sectors, it also encountered softness in the original equipment manufacturing market. Some customers have been maintaining inventories below historical levels, posing certain challenges.

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