ST. PAUL, MN - H.B. Fuller Co. has reported financial results for the fourth quarter and fiscal year that ended Nov. 29, 2008.
In the fourth quarter, the company recorded a loss from continuing operations of $42.0 million, or $0.86 per diluted share, compared to income from continuing operations of $30.8 million, or $0.51 per diluted share, in the fourth quarter of 2007. The 2008 fourth-quarter results include pre-tax non-cash asset impairment charges of $86.9 million. On an after-tax basis, the 2008 fourth-quarter impairment charges were $53.5 million, or $1.09 per diluted share. After adjusting for the non-cash impairment charges, fourth-quarter 2008 income from continuing operations was $11.6 million, or $0.24 per diluted share. This was in line with the preliminary estimate communicated by the company in a press release on Dec. 12, 2008.
The year-over-year decline in adjusted income from continuing operations was primarily driven by lower volumes, corresponding to the sharp decline in global markets, and the ongoing impact of high raw material costs.
The company reported income from continuing operations for fiscal year 2008 at $19.3 million, or $0.37 per diluted share, versus $101.1 million, or $1.66 per diluted share, in fiscal year 2007. When adjusted for non-cash impairment charges, income from continuing operations for fiscal year 2008 was $73.2 million, or $1.41 per diluted share, in line with the preliminary estimate communicated in the press release of Dec. 12, 2008.
Net revenue for fiscal year 2008 was $1.392 billion, down 0.6 percent versus fiscal year 2007. Higher average selling prices, favorable foreign currency translation and the acquisition in Egypt positively contributed 2.4, 3.3 and 0.1 percentage points, respectively, to net revenue growth. Lower volume adversely impacted net revenue growth by 6.4 percentage points.
Regarding the company's expectations for fiscal year 2009, CEO Michele Volpi said, "Because of the continuing volatility and uncertainty in the global markets, we believe it is not useful to provide full-year earnings-per-share guidance at this time. It is clear that our first-quarter financial performance will be relatively weak, reflecting the typical seasonal pattern of our business and the continuation of the demand disruption that we experienced in the fourth quarter of 2008. We expect significant improvement in subsequent quarters.”