Solid overall performance masked divergent results in RPM's industrial and consumer segments. Growth slowed almost to a standstill in its consumer segment, with organic sales growth, excluding foreign currency effects, of only 1.3%. However, this compares favorably to the sales declines that most other housing-related businesses have seen, including those for the carpets and floor coverings sold by Mohawk
The industrial segment drove overall growth, with 7.1% organic growth excluding currency effects. For a mature, specialty chemical manufacturer such as RPM, investors should not expect organic sales growth much above this number.
Like fellow coatings manufacturer OMNOVA
Considering its strong pricing ability, modest growth, price-to-earnings ratio of 14, and a hefty dividend yield of 3%, RPM remains attractive to this Fool.
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Fool contributor Michael Goode is an investor who lives in St. Louis. Going by the handle EverydayInvestor, he is currently ranked 104 out of more than 65,000 players on Motley Fool CAPS. He has no position in any company mentioned. The Motley Fool's disclosure policy is stain-resistant, rust-resistant, and shiny.