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H.B. Fuller Reports Third Quarter Results

Published on 2002-09-30. Author : SpecialChem

ST. PAUL, Minn., Sep 29, 2002 (BUSINESS WIRE) -- H.B. Fuller Company (Nasdaq:FULL) today reported sales and earnings for the third quarter that ended August 31, 2002.

Third quarter net income as reported was $9.2 million or $0.32 per share (diluted). These results include $6.3 million ($3.9 million after-tax) or $0.14 per share (diluted) of charges for asset impairments, severance and other costs relating to the restructuring initiative announced earlier in the year.

Third quarter net income, excluding special charges related to the restructuring initiative, totaled $13.1 million or $0.46 per share (diluted). Last year's third quarter net income was $14.6 million or $0.51 per share (diluted). Last year's third quarter net income included a one-time tax benefit of $0.09 per share (diluted).

Al Stroucken, CEO, said, "As any true signs of an economic recovery continue to elude us, our quarterly results are truly a reflection of our past and ongoing initiatives, which have provided us a more profitable foundation and will propel us into the future, optimistic and confident that we have taken the tough steps down the correct path."

Third Quarter Revenues

Net revenue for the third quarter of 2002 was $313.9 million, a 0.6 percent decrease from the third quarter of 2001. Reduced volume and pricing accounted for a decrease of 1.5 percent and 1.4 percent respectively, while positive currency effects resulted in an increase of 2.3 percent.

Third Quarter Segment Revenue

-- Global Adhesives' net revenue decreased 0.4 percent compared

to last year.

-- Volume decreased 1.4 percent.

-- Prices decreased 1.9 percent.

-- Currency had a positive impact of 2.9 percent.

-- Full-Valu / Specialty Group's net revenue decreased 0.9

percent compared to last year.

-- Volume decreased 1.4 percent.

-- Prices decreased 0.3 percent.

-- Currency had a positive impact of 0.8 percent.

Operating income in Global Adhesives in the third quarter was $14.7 million, a decrease of $2.5 million from the third quarter of 2001. Full-Valu / Specialty's operating income of $8.1 million increased $0.6 million from the previous year's third quarter.

Nine Month Results

Nine months' results as reported reflect net income of $17.8 million or $0.62 per share (diluted). These results included $20.6 million ($12.9 million after-tax) or $0.45 per share (diluted) of charges for asset impairments, severance and other costs relating to the restructuring initiative announced in the first quarter. Last year's first nine months' net income which included the cumulative effect of an accounting change was $31.5 million, or $1.11 per share (diluted).

For the first nine months of 2002, net income, excluding special charges related to the restructuring initiative, was $30.7 million or $1.08 per share (diluted). For the same period in 2001, net income, excluding the cumulative effect of an accounting change in the first quarter, was $32.0 million or $1.13 per share (diluted). Last year's first nine months of net income also included a one-time tax benefit of $0.09 per share (diluted).

Net revenue for the first nine months of 2002 was $926.6 million, a 2.6 percent decrease from the first nine months of 2001. Volume and pricing were down 1.6 percent and 1.1 percent respectively and positive currency effects accounted for an increase of 0.1 percent.

H.B. Fuller Company is a worldwide manufacturer and marketer of adhesives, sealants, coatings, paints and other specialty chemical products, with fiscal 2001 sales of $1.274 billion. Common stock is traded on the NASDAQ exchange under the symbol FULL. For more information about the Company, visit their website at: http://www.hbfuller.com.

Source: H.B. Fuller


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