09:08 AM EDT, 04/08/2025 (MT Newswires) -- RPM International ( RPM ) warned of higher raw material inflation stemming from tariffs after the specialty chemicals manufacturer reported weaker-than-expected fiscal third-quarter results as weather conditions weighed.

Inflation for raw materials for the maker of products like Varathane wood stain and DayGlo fluorescent colors is expected to increase from a low single digit to a mid single digit because of "currently known tariffs," Chief Executive Frank Sullivan said in a statement Tuesday.

"While the tariff situation is dynamic, most of our businesses have limited cross-border trade for raw

material procurement and finished good sales," Sullivan said. "This helps mitigate the effects of tariffs; however, we are not immune."

US President Donald Trump announced sweeping new tariffs last week on imports from several countries, including China and Japan. China reportedly said Tuesday that it will "fight to the end" if the White House imposes the additional 50% tariffs threatened by Trump on Monday.

RPM expects sales to be flat in the current three-month period, which is the fiscal 2025 fourth quarter. A year ago, the company reported revenue of $2.01 billion, while the current consensus on FactSet is for sales of $2.07 billion.

"As we look toward the fourth quarter, macroeconomic conditions are challenging, but we are seeing pockets of positive momentum and are leveraging our focus on repair and maintenance in both construction and consumer end markets," Sullivan said. The company forecasts "modest earnings growth" in the quarter, the CEO added.

For the quarter ended February, RPM reported adjusted earnings of $0.35 a share, dropping from $0.52 the year before and below the Street's view for $0.49. Sales declined 3% to $1.48 billion, missing the average FactSet analyst estimate of $1.51 billion.

"The unfavorable weather conditions we discussed in early January continued and became more widespread as the third quarter progressed," Sullivan said. "Unseasonably cold weather in the southern US and wildfires in the west reduced demand in geographies that typically have more construction and outdoor project activity in winter months."

Consumer segment sales were down 0.7% to $503.8 million, while construction products revenue decreased to $473.4 million from $495.8 million. Performance coatings revenue edged down 0.8% to $340.6 million and specialty products dropped more than 10% to $158.7 million.