RPM: Q4 underperformance driven by gross margin contraction, raw material costs
RPM on its earnings conference call said that 100% of the company's underperformance in Q4 was driven by gross margin contraction and higher raw material costs. The company noted that there had been shortages on items like MDI andd MMA resins, a "critical" resin for a number of its specialty flooring products in Europe, as well as "tightness" in a number of other markets. RPM said it is committed to executing better in 2018 and "communicating better." RPM said it "communicated poorly" this year around Q3 items and did not appreciate the 12c y/y hit that was coming in Q4 from a tax perspective. RPM is down about 8% in morning trading to $50.42.