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ST. PAUL, Minn. -- H.B. Fuller Company (NYSE:FUL) reported
financial results for the first quarter that ended March 3, 2007 and announced
increased expectations for its current fiscal year.
Net Revenue:
Net revenue for this year's first quarter was $351.8 million, up 5.6
percent versus the first quarter of 2006. The impact of acquisitions and
divestitures, as well as foreign currency translation, favorably contributed
9.4 and 2.4 percentage points, respectively, to net revenue growth. Average
selling prices contributed 4.1 percentage points and volume declines reduced
growth by 10.3 percentage points year-over-year. Volume was adversely
impacted by weakness in the automotive, new housing, and durable goods
end markets in North America.
Net Income and Diluted Earnings Per Share from Continuing
Operations:
First quarter net income from continuing operations increased 44 percent
from $14.5 million in last year's first quarter to $20.8 million. Correspondingly,
diluted earnings per share from continuing operations increased from $0.24
per share in last year's first quarter to $0.34 per share. Profitable
pricing processes, mix management, and comprehensive cost controls were
the primary factors leading to the increased earnings.
"We are pleased with our first quarter results and remain optimistic
in our outlook in spite of accelerated weakness in some of our markets
in North America," said Michele Volpi, president and chief executive
officer. "The strong capabilities we have created as an organization
are enabling us to succeed in the current environment. Based upon the
strong performance in the first quarter and the confidence we have in
our strategy, processes, and ability to execute, we are raising our expectations
for the year."
Fiscal Year 2007 Expectations:
The Company now expects diluted earnings per share from continuing operations
to be between $1.65 and $1.75 for the full year. The Company's previous
expectations were to earn between $1.58 and $ 1.68 per share for 2007.
About H.B. Fuller Company:
H.B. Fuller Company is a leading worldwide manufacturer and marketer
of adhesives, sealants, paints and other specialty chemical products,
with fiscal 2006 net revenue of $1.472 billion. Its common stock is traded
on the New York Stock Exchange under the symbol FUL.
Safe Harbor for Forward-Looking Statements:
Certain statements in this document may
be considered forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. These statements are subject
to various risks and uncertainties, including but not limited to the following:
the Company's ability to effectively integrate and operate acquired businesses
including the Roanoke flooring products business and the European insulating
glass sealant business; political and economic conditions; product demand;
competitive products and pricing; costs of and savings from restructuring
initiatives; geographic and product mix; availability and price of raw
materials; the Company's relationships with its major customers and suppliers;
changes in tax laws and tariffs; devaluations and other foreign exchange
rate fluctuations; the impact of litigation and environmental matters;
the effect of new accounting pronouncements and accounting charges and
credits; and similar matters. Further information about the various risks
and uncertainties can be found in the Company's SEC 10-K filing of February
15, 2007. All forward-looking information represents management's best
judgment as of this date based on information currently available that
in the future may prove to have been inaccurate. Additionally, the variety
of products sold by the Company and the regions where the Company does
business make it difficult to determine with certainty the increases or
decreases in net revenue resulting from changes in the volume of products
sold, currency impact, changes in product mix, and selling prices. However,
management's best estimates of these changes as well as changes in other
factors have been included.
Source: H.B. Fuller Company
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