MEDINA, OH—RPM International Inc. (NYSE:RPM), a leader in the production of paints, varnishes, and other coatings, announced today that Kirkland B. Andrews will resign from his position as a director of the company. The resignation will take effect at the conclusion of the Board's regularly scheduled meeting on January 15, 2025.
Andrews, who has served on the RPM International Board for over six years, has recently taken on the role of Senior Vice President and Chief Financial Officer at Consolidated Edison (NYSE:ED), Inc. (Con Edison) and Consolidated Edison Company of New York, Inc. (CECONY), effective July 8, 2024. His departure from RPM's Board is attributed to the demands of his new responsibilities at Con Edison and CECONY, rather than any disputes or disagreements with RPM International or its Board.
The Board of RPM International acknowledged Andrews' forthcoming resignation, which was communicated on Thursday, and expressed that it is not related to any issues with the company's operations, policies, or practices. The exact date of Andrews' resignation aligns with the company's next annual meeting of stockholders in October 2025, where the term he would have served expires.
In other recent news, RPM International Inc. has declared a quarterly cash dividend of $0.46 per share, continuing its 50-year streak of dividend increases. The company has also reported record sales and earnings for the ninth consecutive quarter, primarily driven by the Construction Products Group and Performance Coatings Group. BMO Capital maintained an Outperform rating for RPM International, highlighting potential for better-than-anticipated earnings per share growth, largely driven by MAP25 efficiencies and cost reductions.
The company anticipates flat sales in the fourth quarter, with growth in the Construction Products Group offset by challenges in other segments. However, RPM International is expected to see a recovery in the Consumer segment and positive momentum in the Construction Products Group and Performance Coatings Group in fiscal year 2025.
In terms of strategic moves, RPM International has expressed interest in acquiring PPG's North American architectural paint business and plans to invest in emerging markets and new plants in Malaysia and India. These are the recent developments for RPM International, a company recognized for its commitment to innovation and quality in the building materials industry.
InvestingPro Insights
As RPM International Inc. navigates the upcoming changes to its Board of Directors, investors may find value in considering some key metrics and insights from InvestingPro. The company boasts a strong track record of shareholder returns, highlighted by a high shareholder yield and a remarkable history of maintaining dividend payments for 52 consecutive years. Additionally, RPM has consistently raised its dividend for 10 consecutive years, reinforcing its commitment to shareholder value.
From a financial perspective, RPM International has a market capitalization of $15.28 billion, with a P/E ratio standing at 27.36, which is relatively high compared to near-term earnings growth. The company's Price / Book ratio is also at the higher end of the spectrum at 6.5, as of the last twelve months leading up to Q3 2024. Despite these figures, RPM's liquid assets exceed its short-term obligations, suggesting financial stability. Moreover, analysts predict profitability for the company this year, a continuation of its positive performance over the last twelve months.
For those considering an investment in RPM or current shareholders looking to deepen their analysis, InvestingPro offers a wealth of additional tips and insights. To explore these further, visit InvestingPro's dedicated RPM page and consider using the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription. With several more InvestingPro Tips available, investors can gain a comprehensive understanding of RPM's financial health and market position.
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