| Connect Follow us on Twitter Like us on Facebook
About | Subscribe | Advertise


Paint and Coatings Industry News

Main News Page

H.B Fuller Reports Strong Third Quarter

Friday, September 25, 2009

Comment | More

H.B. Fuller Company (St. Paul, MN), a worldwide manufacturer of paints, sealants, adhesives, and other specialty chemical products, reported strong financial results for the third quarter that ended August 29, 2009.

Overall, the company reported, North America continued its strong performance, while Asia-Pacific made solid progress in its turnaround efforts.

Net revenue increased 5 percent from the prior quarter. Net income for the third quarter of 2009 was $35.4 million versus $21.7 million in last year’s third quarter. This year’s third quarter net income included a significant one-time gain of $11.8 million, after taxes, related to the settlement of a lawsuit filed against the former owners of the Roanoke Companies Group, which Fuller acquired in 2006.

Net revenue for the third quarter of 2009 was $315.3 million, down 12.9 percent versus the third quarter of 2008. Higher average selling prices and acquisitions positively affected net revenue growth by 2.8 and 0.9 percentage points, respectively. Lower volume and unfavorable foreign currency translation adversely impacted net revenue growth by 12.4 and 4.2 percentage points, respectively.

Weak end-market demand continued throughout the third quarter, but the year- over-year decline in volume in the third quarter–down 12.4 percent–was less than the year-over-year decline in the second quarter of 15.1 percent. Gross margin recovery was maintained as efforts to reformulate product lines and actions to reduce raw material costs offset the negative impact of significantly lower volumes year-over-year.

“We are very pleased with our third quarter performance. We achieved a sequential increase in net revenue and boosted both operating profit margin and dollars despite the significant end-market challenges that continued during the quarter,” said Michele Volpi, H.B. Fuller president and chief executive officer. “As the global economy continues its recovery we are gaining momentum on the top-line and we expect this to continue as we further invest in the business.”

At the end of the third quarter of 2009 total cash was $180 million and total debt was $244 million, compared to second quarter levels of $116 million and $233 million, respectively. Cash flow from operations was $59 million in the third quarter compared to $22 million in the third quarter of 2008 and $56 million in the second quarter of 2009. The year-over-year improvement in cash flow was driven primarily by improved profitability and reductions in net working capital.

Net income for the first nine months of 2009 was $59.1 million versus $61.3 million in last year’s first nine months.

Net revenue for the first nine months of 2009 was $893.1 million, down 14.2 percent versus the first nine months of 2008. Higher average selling prices and acquisitions positively impacted net revenue growth by 4.5 and 0.7 percentage points, respectively. Lower volume and unfavorable foreign currency translation adversely impacted net revenue growth by 14.1 and 5.3 percentage points, respectively. Consequently, organic sales declined by 9.6 percent year-over-year in the first nine months of 2009.

For more information, visit


Tagged categories: Earnings reports; Finance; H.B Fuller

Comment Join the Conversation:

Sign in to our community to add your comments.

SSPC: The Society for Protective Coatings

Join SSPC and Enhance
Your Career !

Minerals Research & Recovery


“Made in the USA!”

Why recycle waste from other countries? Go FASTER, CLEANER, at 1/3 THE COST with MR&R “All-American” Sharpshot®HP!!


Fischer Technology Inc.
MP0R with rotating display screen

Automatic rotating display screen just like your smart phone. Click for Video
Call 800-243-8417

KTA-Tator, Inc. - Corporate Office
KTA-Tator EH&S Services

• Ambient & Worker Exposure Air Monitoring
• Safety & Health Program Development
• Lead Paint Assessments
& Specifications
• Health Hazard & Jobsite Safety Assessments
Call 1-800-245-6379

Blastox/The TDJ Group, Inc.
Blastox - One Step
Lead Abatement

Don't waste $$ on added labor steps with other methods. Don't mix, meter or apply at the job-site. Avoid strict hazardous waste rules.
Let your painters paint!

Abrasives Inc.
See the difference immediately Black Magic®

Quality blast abrasive goes farther. Use Black Magic® The Tough Stuff coal slag. Cleaner, consistent, less dust. Order yours today!
Abrasives Inc. 800-584-7524

Trelawny Surface Preparation Technology
Surface Preparation Equipment

Manufacturer of needle scalers, grinders, scarifiers and scabblers. Pneumatic tools for Marine and Construction. US distributor CS Unitec: 800-700-5919

POLYGON - Temporary Humidity Control

We specialize in innovative climate control solutions for industrial painting, utilizing alternative energy sources and combining desiccants with heating or cooling.

Novetas Solutions
Number 1 Crushed Glass Abrasive in America!

6 NEW plants coast to coast! Safe for environment, 100% recycled glass. White Metal Finish! No unsafe toxins like Beryllium & Arsenic!
Call 866-775-6226

Technology Publishing

The Technology Publishing Network

The Journal of Protective Coatings & Linings (JPCL) PaintSquare
Durability + Design Paint BidTracker

EXPLORE:      JPCL   |   PaintSquare News   |   Interact   |   Buying Guides   |   Webinars   |   Resources   |   Classifieds
REGISTER AND SUBSCRIBE:      Free PaintSquare Registration   |   Subscribe to JPCL   |   Subscribe to PaintSquare News
MORE:      About   |   Privacy policy   |   Terms & conditions   |   Site Map   |   Search   |   Contact Us

© Copyright 2000-2015, Technology Publishing / PaintSquare, All rights reserved
2100 Wharton Street, Suite 310, Pittsburgh PA 15203-1951; Tel 1-412-431-8300; Fax 1-412-431-5428; E-mail