H.B. Fuller Reports Financial Results
December 19, 2008
ST. PAUL, MN - H.B. Fuller Co. has reported preliminary financial results for the fourth quarter and fiscal year that ended Nov. 29, 2008.
Based on preliminary financial information, the company now expects to report net revenue of approximately $350 million and income from continuing operations per diluted share of approximately $0.24 in the fourth quarter. The company had previously expected net revenue of $380 to $390 million and income from continuing operations per diluted share of $0.40 to $0.45. On a full-year basis, the company now expects to report net revenue of approximately $1.391 billion and income from continuing operations per diluted share of approximately $1.41.
"Commercial activity remained relatively strong in the first month of our fourth quarter but then turned sharply lower in the final six weeks of the period, corresponding to the disruption in the global financial and credit markets. Operating margin was depressed due to the negative impact of lower volumes and the ongoing impact of high raw material costs," said Michele Volpi, President and Chief Executive Officer. "The decline in volume in recent weeks can be attributed to several factors including reduced end-market demand, customer decisions to reduce inventory, and disruptions related to currency fluctuations and tight credit conditions. Obviously, it is a difficult time to predict future trends. That said, it now seems clear that market demand will be challenged for some time into the future, while declining raw material costs will provide an offsetting benefit. In this environment, we are taking the steps necessary to manage those factors under our control and judiciously execute on contingency plans to address whatever market conditions exist in 2009, as we also continue capturing growth opportunities in the marketplace," continued Volpi. "We remain committed to long-term profitable growth, and we will continue to invest prudently in our strategy of innovation, differentiation and geographic expansion. In addition, we will look to seize opportunities in these difficult end-market conditions to build market share."