Last week, news from H.B. Fuller regarding its financial results for the first quarter drew the most reader interest last week (H.B. Fuller Attributes 2020 First Quarter Revenue Dip to COVID-19): “H.B. Fuller Co. recently reported financial results for the first quarter ended February 29, 2020. Net revenue of $647 million decreased 3.9% compared to the first quarter of 2019. Foreign currency exchange rates and the sale of the surfactants, thickeners, and dispersants business negatively impacted revenues by 2.6% on a combined basis.
“Organic revenue, which excludes impacts from foreign currency and divestitures, was down 1.3% vs. last year. Organic revenue growth in Construction Adhesives (CA) partially offset a decline in Engineering Adhesives (EA) and flat revenues in Hygiene, Health and Consumables Adhesives (HHC). The decline in organic revenue was driven by an impact on sales resulting from the COVID-19 pandemic. The company estimates the shutdown in China following the outbreak impacted sales in the region by approximately $15 million in the quarter, including an estimated $12 million in Engineering Adhesives and an estimated $3 million in HHC. Excluding this impact, volumes would have increased compared to last year in all segments.
“‘Despite the outbreak of COVID-19 and resulting shutdown across China which began on January 23rd, H.B. Fuller delivered strong performance in the first quarter,’ said Jim Owens, president and CEO. ‘We believe that our robust global supply chain and nimbleness affords us a significant competitive advantage, which was evident in our first quarter results. Our results also reflected operational improvements and efficiencies following our realignment to three global business units. As forecasted, Construction Adhesives returned to growth and double-digit EBITDA margin, driven by an improved growth portfolio and actions we took last year. We continued to drive strong cash flow performance with a significant year-over-year increase in cash flow from operations.’”
Top 5 News that Sticks for April 5-11
- H.B. Fuller Attributes 2020 First Quarter Revenue Dip to COVID-19
#3 last week
- Berry Global to Invest in Meltblown Capacity to Serve Face Mask Demand in the EMEIA Region
- Elkem Announces Distribution Partnership with IMCD for Silicone Materials in North America
- Nouryon Expands Raw Material Partnership with Sumitomo Chemical
- Pippine Promoted to Vice President of Marketing and Technology for Emerald Kalama Chemical
This weekly roundup highlights the adhesives, sealants, and coatings-related news stories that garnered the most attention during the previous week on our website, as well as our eNewsletters and social media platforms.