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H.B. FULLER COMPANY REPORTS FIRST QUARTER SALES AND EARNINGS

 ST. PAUL, Minn., March 22 /PRNewswire/ -- H.B. Fuller Company (NASDAQ: FULL) today reported net sales of $228.1 million for the quarter ended Feb. 28, 1993, an increase of 4 percent from $218.8 million for the same period in 1992. Net earnings for the quarter were $3.0 million, down 51 percent from $6.0 million in 1992. Earnings per share decreased 51 percent to $.21, compared to last year's $.43 per share.
 As previously announced, most of the shortfall for the quarter is attributable to a one-time retroactive sales adjustment for certain products sold by H.B. Fuller Automotive Products, an affiliate acquired by the company in 1988. The impact of this adjustment on sales and net earnings is $3.4 million and $2.1 million, respectively, or $.15 per share for the quarter. The balance of the decline in earnings during the quarter is a result of lower earnings from the company's European operations.
 U.S. sales were up slightly for the quarter when compared to the same period last year. Total U.S. operations showed improvements in operating earnings due to a reduction of operating expenses as a percent of sales when the one time adjustment is excluded.
 Adhesive, Sealants and Coatings Division sales were up slightly for the quarter compared to 1992 levels. Although sales to the packaging and paper converting industries were only slightly up over last year, significant sales gains were made in several industries: polymer customers, tobacco, nonwoven and automotive. There also were increases in sales to accounts in engineered systems, window and woodworking industries.
 The Specialty Divisions and Subsidiaries experienced a slight increase in sales. Industrial Coatings had a substantial increase in sales with TEC Incorporated having a slight increase for the quarter. Foster Corporation, a subsidiary, along with the Monarch Division and Linear Products Division showed decreased sales.
 Sales in Europe were up slightly when compared to the first quarter of 1992. Excluding the positive impact of currency translation, sales were slightly down when compared to prior year. Operating earnings were down substantially. The economic recession in Europe continues to have a negative impact on results.
 Latin American operations had a strong increase in sales and slight increase in operating earnings for the quarter when compared to 1992. Results from Argentina and Brazil continue to suppress earnings in the region.
 Other sales for the quarter approximated the sales of 1992.
 Walter Kissling, president and chief operating officer, commented, "The first quarter was disappointing for us both in terms of operations and the one-time sales adjustment taken in the quarter. We are seeing an improving U.S. economy and strong sales in Latin America. Asia Pacific should be favorable. Europe will be a challenge for us in 1993."
 H.B. Fuller company is a worldwide manufacturer and marketer of adhesives, sealants, coatings, paints, and other specialty chemical products with 1992 sales of $934 million.
 H.B. FULLER COMPANY
 FINANCIAL INFORMATION
 (Dollars in thousands, except per share amounts)
 (Unaudited)
 Three Months Ended
 2/28/93 2/29/92
 Net sales $228,054 $218,807
 Cost of sales (156,978) (146,747)
 Gross profit 71,076 72,060
 Selling, administrative and other expenses (62,545) (58,319)
 Operating earnings 8,531 13,741
 Interest expense (2,677) (3,484)
 Other (expense)/income, net (546) 270
 Earnings before income taxes
 and minority interests 5,308 10,527
 Income taxes (2,111) (4,231)
 Net earnings of consolidated subsidiaries
 applicable to minority interests (247) (275)
 Net earnings $2,950 $6,021
 Earnings per common share $.21 $.43
 Dividends per common share $.12 $.1033
 Average number of common and common
 equivalent shares outstanding 14,006,315 13,959,776
 2/28/93 2/29/92
 Working capital $129,036 $114,760
 Total assets 544,908 518,587
 Long-term debt 57,670 65,487
 Stockholders' equity $250,381 $227,855
 -0- 3/22/93
 /CONTACT: Richard Edwards, investor relations, 612-647-3650, or Bill Belknap, media relations, 612-647-3604, both of H.B. Fuller/
 (FULL)


CO: H.B. Fuller Company ST: Minnesota IN: CHM SU: ERN

AL -- MN013 -- 9232 03/22/93 16:24 EST
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Publication:PR Newswire
Date:Mar 22, 1993
Words:686
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