H.B. Fuller Co. recently reported financial results for the second quarter that ended May 28. Net income for the second quarter of 2016 was $33.3 million, vs. income from continuing operations of $26.5 million in last year’s second quarter.
Net revenue for the second quarter of 2016 was $532.5 million, down 1.5% vs. the second quarter of 2015. Higher volume positively impacted net revenue growth by 1 percentage point. Lower average selling prices and negative foreign currency reportedly translation negatively impacted net revenue growth by 1.4 and 1.1 percentage points, respectively. Constant currency revenue decreased by 0.4% year-over-year.
During the quarter, the company reportedly continued to improve margins through effective management of pricing and raw material costs as well as driving efficiencies in our supply chain and operations. Gross profit margin increased 220 basis points vs. the prior year. Selling, General and Administrative (SG&A) expense was up by approximately 3% vs. last year, and up about 90 basis points as a percentage of net revenue.
“We continued to drive improvements in our business during the second quarter, in line with our strategic plan,” said Jim Owens, president and CEO. “Our EBITDA margin, at nearly 14%, was in line with our plan and driven by improvements in our two largest business segments–Americas Adhesives and EIMEA. Our high performing Engineering Adhesive segment grew organically by 15%, also in line with our strategic plan. Solid volume growth in our EIMEA and Asia Pacific segments, along with improving volume performance in our Americas Adhesives segment, are all indicators of the continued strengthening of our business. We also recently closed two strategic acquisitions which will enhance our returns for investors. We are pleased with the quarter and are on track to deliver our commitments for this fiscal year and the years ahead.”
Net income for the first half of 2016 was $52.2 million, compared to income from continuing operations of $36.2 million in the first half of 2015.
For more information, visit www.hbfuller.com.
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