H.B. Fuller announces restructuring
H.B. Fuller Company announced a restructuring initiative that will eliminate up to 220 positions and generate annual savings of approximately $18 million.
“Our results over the past five years demonstrate the strength of our long-term growth strategy and the commitment of our employees to the company’s success,” said Jim Owens, president and CEO. “Over the past five years, we have transformed our market focus, innovation portfolio and manufacturing capabilities to deliver value for customers, shareholders and employees. As we continue to shift our product portfolio to a richer mix of higher growth, higher profitability adhesive market segments, we need to ensure our resources align with our vision. The proactive changes we are announcing will allow us to invest in the highest opportunity areas within our portfolio and become more agile as we support our customers’ success and deliver our 2020 plan.”
The restructuring initiative will include the elimination or relocation of approximately 220 positions globally by early 2017 across various businesses and functions at the company, along with other product line and operations enhancements and efficiencies. The changes will allow H.B. Fuller to operate more effectively and efficiently, while proactively responding to end-market and global industry dynamics, such as global prices for petrochemicals and a significantly stronger U.S. dollar.
These actions, in addition to other initiatives the company will be undertaking to optimize its operations, product lines and business portfolios, will result in restructuring charges of $17 million to $20 million ($13 million to $16 million after-tax) during the 2017 fiscal year. The company expects the program to deliver approximately $18 million in annual savings.
Owens added, “The changes we are announcing will be difficult for those affected, and we will treat each person with the respect they deserve and will help them move forward. Our values and commitment to ‘winning the right way’ will guide our actions.”