H.B. Fuller Company income falls
H.B. Fuller Company reported second quarter net income of $1.9 million, or 4 cents per diluted share, compared to $25.1 million, or 50 cents per diluted share, in last year's second quarter.
During the quarter, the adhesives supplier completed the acquisition of the Forbo industrial adhesives business and also sold its Latin America Paints business.
Excluding the Latin America Paints business, net revenue for the quarter was $527.0 million, up 43.1 percent versus the second quarter of 2011. Higher average selling prices and acquisitions positively impacted net revenue growth by 6.8 and 39.4 percentage points, respectively.
"Our underlying business had an outstanding quarter with sales up over 6 percent and profits up over 25 percent versus prior year," said Jim Owens, H.B. Fuller president and chief executive officer. "The acquired Forbo business performed at expected levels, and the synergies we committed to are clearly attainable."
As part of a company-wide reorganization following the Forbo acquisition, the company plans to close six production facilities in its North America adhesives business segment. In the Europe, India, Middle East and Africa (EIMEA) business segment, H.B. Fuller will close five existing plants and invest an estimated $90 million over the next three years in new, enhanced production assets to provide greater operating efficiencies. The EIMEA portion of the business integration project is expected to be completed by the second quarter of 2014.
INDUSTRIAL SUPPLY MAGAZINE
The May/June issue of Industrial Supply magazine features an in-depth cover story about GHX Industrial. Plus, we're featuring articles by contributing writers Dr. Bharani Nagarathnam and Frank Hurtte, as well as interviews with numerous product and distribution industry experts.
