RPM swings to profit in third quarter
RPM International, the maker of Rust-Oleum, DAP, Zinsser and other building products, reported $1.9 million in net income for its third fiscal quarter, swinging from a loss of $9.4 million in the same quarter of 2010.
Sales for the Medina, Ohio-based manufacturer were $679 million for the third quarter, compared with $666.5 million a year ago.
RPM deconsolidated its specialty products unit at the end of its previous fiscal year on May 31, 2010. This eliminated about $300 million in annual revenue from the company’s industrial segment in June.
“Nearly all of our business units generated strong sales increases and substantially stronger growth in earnings," said chairman and CEO Frank Sullivan. He noted improved demand for products in the commercial construction markets, both domestically and in Europe. High-performance industrial coatings, maintenance products and polymer flooring systems are also performing well, Sullivan said.
"Our consumer lines benefited from the gradual economic recovery, consumer acceptance of new product introductions and market share gains achieved during the recent downturn," he added.
Builders, LBM dealers win one in Central Florida
Lobbying by local builders and lumberyard owners resulted in a one-year moratorium on school-impact fees in Lake County, Fla., according to an article in the Orlando Sentinel.
Lake County commissioners voted unanimously this week to suspend the collection of the fees — estimated at $9,324 per single-family house — until April 1, 2012. The local school board had asked for a six-month moratorium.
The commissioners, who earlier suspended the collection of impact fees to build and improve roads, heard testimony from various members of the construction industry, including Don Magruder, CEO of Ro-Mac Lumber & Supply in Leesburg, Fla. Magruder, who chairs a group called Citizens for Better Government, cited the area’s 11.5% unemployment rate in arguing against the education impact fees, which would “[kill] job creation through loss of projects," he said.
Georgia-Pacific begins final phase on OSB plant
Georgia-Pacific has announced it is in the final construction phase of a nearly complete oriented strand board (OSB) facility in Clarendon, S.C. The mill was part of the acquisition last May from Grant Forest Products that also included an operating plant at Allendale, S.C., and another operating plant at Englehart, Ontario. The acquisition totaled approximately $400 million.
"We expect it will take most of this year to complete construction on the plant," said Mark Luetters, president, Georgia-Pacific wood products. "We are currently planning to start the plant in December 2011. Having now operated an identical plant at Allendale, we believe we will be able to quickly and efficiently begin producing OSB."
Luetters said Georgia-Pacific will spend an additional $30 million to complete the facility. The amount includes a construction crew of more than 100 people, plus the purchase and installation of the remaining equipment and infrastructure. Once completed, both Clarendon and Allendale will supply markets across the eastern United States with OSB products.
Applications for about 150 permanent positions, including management, craft and production roles at the Clarendon facility, will be accepted through the company’s website at gp.com/careers beginning April 11.
Headquartered in Atlanta, Georgia-Pacific is a leading manufacturer of building products, tissue, packaging, paper, cellulose and related chemicals. The company employs more than 40,000 people at more than 300 locations in North America, South America and Europe.