ST. PAUL, MN -- H.B. Fuller Co. has reported financial results for the third quarter that ended August 27, 2011. The company reported that net revenue increased 15 percent year-over-year, and gross profit margin improved 30 basis points sequentially and 50 basis points year-over-year, in the face of significant raw material cost inflation.
Net income for the third quarter of 2011 was $23.2 million, or $0.47 per diluted share, versus $19.0 million, or $0.38 per diluted share, in last year's third quarter. Diluted earnings per share in the third quarter of 2011 increased 24 percent compared to the results of the prior year.
Net revenue for the third quarter of 2011 was $387.8 million, up 14.5 percent versus the third quarter of 2010. Higher average selling prices and favorable foreign currency translation positively impacted net revenue growth by 10.5 and 6.0 percentage points, respectively. Lower volume reduced net revenue growth by 2.0 percentage points. Organic revenue grew by 8.5 percent year-over-year. On a sequential basis, net revenue decreased approximately 2 percent relative to the second quarter of 2011, driven by softer end-market demand, especially in EIMEA.
Gross profit margin was up 50 basis points versus the third quarter of 2010, and 30 basis points versus the previous quarter, reflecting the cumulative positive impact of pricing actions, product reformulations, and substitutions over the past year.
"We are pleased with our results for the third quarter and for the entire year thus far," said Jim Owens, H. B. Fuller President and Chief Executive Officer. "In the third quarter, raw material inflation continued and end-market demand softened. In the face of these adverse conditions, we increased revenue, improved gross margin and reduced our operating expenses as a percentage of revenue. Despite continuing challenges in end-market conditions, we expect a strong fourth quarter built on further revenue growth and margin expansion."