Headlines

H.B. Fuller Reports 7.4% Revenue Increase

September 16, 2010
/ Print / Reprints /
ShareMore
/ Text Size+

H.B. Fuller recently reported net income for the third quarter of 2010 of $19 million, or $0.38 per diluted share, compared to $35.4 million, or $0.72 per diluted share, in last year's third quarter. Net income for the third quarter 2009 included a significant one-time gain related to the settlement of a lawsuit. Excluding this settlement, net income in last year's third quarter was $0.48 per diluted share.

Net revenue for the third quarter of 2010 was $338.6 million, up 7.4% vs. the third quarter of 2009. Higher volume, higher average selling prices, and acquisitions positively impacted net revenue growth by 6.4, 2.5 and 1.6 percentage points, respectively. Unfavorable foreign currency translation reduced net revenue growth by 3.1 percentage points. Organic sales grew by 8.9% year-over-year.

"We faced many challenges in the third quarter, most notably rising raw material costs and raw material shortages, and achieved mixed results,” said Michele Volpi, president and CEO. “While we were successful in sourcing sufficient material to satisfy customer orders, our material costs escalated more than our prices and profit margins did not meet our expectations. Additionally, in the North America region, end-market demand contracted significantly at the beginning of the quarter; consequently, we did not achieve our volume expectations in the region. Amidst these challenges, we successfully maintained the overall growth momentum that is a key component of our strategic transformation. While we are disappointed in our bottom line performance this quarter, we believe that we have put in place the actions necessary to improve financial performance in the fourth quarter and beyond."

In North America, net revenue grew by 5.2% year-over-year, with Adhesives up 6.2% and Construction Products up 1.9%. Nearly all of the growth for the segment was organic. After recording stronger volume growth in the previous quarter, sales momentum (especially in Construction Products) slowed significantly at the start of the third quarter, but improved somewhat at the end of the quarter.

For more information, visit www.hbfuller.com.

Did you enjoy this article? Click here to subscribe to Adhesives & Sealants Industry Magazine.

You must login or register in order to post a comment.

Multimedia

Videos

Image Galleries

In-Depth Features

These articles detail advantages and innovations for multiple end uses.

Podcasts

ExxonMobil Tackifier Expansion

Dwight Tozer, vice president of ExxonMobil’s Adhesion Industry business, discusses the company’s latest tackifier expansion project with Editor-in-Chief Susan Sutton.

More Podcasts

THE MAGAZINE

Adhesives & Sealants Industry Magazine

ASI April 2014 cover

2014 April

Our April issue focuses on pressure-sensitive adhesives, including a preview of PSTC's 2014 Tape Summit, as well as converting/packaging and composites!

Table Of Contents Subscribe

THE ADHESIVES STORE

handbook-sealant-tech.gif
Handbook of Sealant Technology

The Handbook of Sealant Technology provides an in-depth examination of sealants, reviewing their historical developments and fundamentals, adhesion theories and properties, and today’s wide range of applications.

More Products

asi1211p_Cover-DE.gifASI's Buyers' Guide

Annual purchasing resource for equipment used in the manufacture/formulation of adhesives, sealants, pressure sensitives, tapes and labels and for application of finished adhesives. 

Clear Seas Research

With access to over one million professionals and more than 60 industry-specific publications, Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.

STAY CONNECTED

facebook_40px twitter_40  youtube_40pxlinkedin_40