Sealants specialist RPM International
In a very depressed residential construction market that's taking competitors like Sherwin-Williams
As is the case with General Electric
On a related note, about a third of the specialty chemical maker's debt consists of variable-rate notes. The same interest rate cuts that are pressuring the dollar are thus also lowering RPM's interest payments. Net interest expense fell 15% from the comparable period last year, and the company carried debt at an average rate of 4.9%, versus 5.5% a year ago.
Once again, RPM raised its outlook for fiscal 2008. One could accuse this management team of playing coy, but ongoing pleasant surprises are no reason to place this outperformer in the penalty box. RPM investors should just sit back, relax, and watch weaker rivals get the ax.