Printer Friendly

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

 ST. PAUL, Minn., Sept. 23 /PRNewswire/ -- H.B. Fuller Company (NASDAQ-NMS: FULL) today reported third quarter net sales of $252.2 million for the quarter ended Aug. 31, 1993, an increase of 6 percent from $239.0 million for the same period in 1992. Net earnings for the quarter were $8.8 million, down 14 percent from $10.3 million in 1992. Earnings per share decreased 14 percent to $.63, compared to last year's $.73 per share. Both European and Latin American operations experienced lower operating earnings than in the previous year.
 For the first nine months of 1993 net sales were $727.5 million, up 4 percent from $696.7 million in the first nine months of 1992. Year- to-date earnings totaled $20.6 million, down 22 percent from $26.4 million in the first nine months of 1992. Earnings per share were $1.47, a decrease of 22 percent from $1.89 for the same period last year. The year-to-date results include the one-time automotive sales adjustment of $3.4 million before tax or 15 cents per share taken in the first quarter.
 U.S. sales were up 8 percent for the quarter when compared to the same period last year. Total U.S. operations showed a significant improvement in operating earnings with a reduction of operating expenses as a percent of sales. Gross margins fell slightly.
 Adhesives, Sealants and Coatings Division sales were up 9 percent for the quarter compared to 1992 levels. In the Structural Group, sales to the window market increased substantially. Engineered systems also showed a sales gain over the previous year. In the Industrial Group, a strong increase in sales was experienced in the tobacco and polymer markets. Paper converting and packaging markets showed a moderate increase over last year.
 Specialty divisions and subsidiaries in total produced a 4 percent increase in sales for the quarter, with all but Foster Products increasing from 4 to 8 percent when compared to 1992 levels.
 The company's European operations experienced an 8 percent decrease in sales for the third quarter compared to 1992, as a result of the depressed European economy. Excluding a negative currency impact, sales in Europe would have been down approximately 5 percent for the quarter. Operating earnings were down substantially due to a reduction in gross margins caused by lower production volumes and pricing pressures.
 Latin American operations had an 11 percent increase in sales, but experienced reduced operating earnings for the quarter due to lower gross margins and operating expenses increasing faster than sales in most Latin American divisions.
 The Asia/Pacific area had a substantial increase in sales over the prior year and a substantial decrease in operating earnings for the third quarter compared to 1992. The company's investment into new operations in the area adversely affected operating earnings in Asia/Pacific. Canada showed a moderate increase in sales during the quarter excluding the acquisition made in the second quarter of this year.
 Other income/expense decreased from $.5 million income in the third quarter of 1992 to $.4 million expense in 1993. This was primarily the result of a one-time $.8 million involuntary accounting fire insurance gain in 1992.
 Third quarter results were negatively impacted by $.03 per share compared to the same period in 1992, due to the effective tax rate increasing from 41.8 percent in 1992 to 44.1 percent in 1993, a result of an increase in the U.S. federal tax rate and a higher tax rate in Latin America.
 Walter Kissling, president and chief operating officer, commented, "The third quarter results have not been strong. Expectations are that the fourth quarter will be below last year's results. Consequently, estimated earnings per share for the year will be below the previously announced range. In addition, I am considering a number of major decisions including early adoption of FAS 106 and 109 which relate to post-retirement medical benefits and accounting for income taxes respectively. In view of continued depressed economies in several areas of the world, we will be reviewing facilities and operations with possible restructuring resulting."
 H.B. Fuller Company is a worldwide manufacturer and marketer of adhesives, sealants, coatings, paints and other specialty chemical products with Fiscal 1992 sales of $934 million.
 H.B. FULLER COMPANY
 FINANCIAL INFORMATION
 (Dollars in thousands, except per share amounts)
 (Unaudited)
 Three Months Ended
 8/31/93 8/31/92
 Net sales $252,202 $239,008 (a)
 Cost of sales (169,757) (157,472)(a)
 Gross profit 82,445 81,536
 Selling, administrative and other expenses (63,762) (61,373)(a)
 Operating earnings 18,683 20,163
 Interest expense (2,617) (2,940)
 Other (expense)/income, net (424) 536
 Earnings before income taxes and
 minority interests 15,642 17,759
 Income taxes (6,896) (7,418)
 Net earnings of consolidated subsidiaries
 applicable to minority interests 11 (82)
 Net earnings $8,757 $10,259
 Earnings per common share $.63 $.73
 Dividends per common share $.14 $.12
 Average number of common and common
 equivalent shares outstanding 14,029,765 14,009,989
 Working capital $125,743 $135,635
 Total assets 557,767 552,336
 Long-term debt 56,997 61,488
 Stockholders' equity $261,549 $244,859
 (a) Certain accounts reported by the company's European operations have been reclassified to conform to company policy.
 H.B. FULLER COMPANY
 FINANCIAL INFORMATION
 (Dollars in thousands, except per share amounts)
 (Unaudited)
 Nine months ended
 8/31/93 8/31/92
 Net sales $727,531 $696,745 (b)
 Cost of sales (490,513) (461,060)(b)
 Gross profit 237,018 235,685
 Selling, administrative and
 other expenses (191,283) (181,601)(b)
 Operating earnings 45,735 54,084
 Interest expense (7,834) (9,670)
 Other (expense)/income, net (1,823) 887
 Earnings before income taxes and
 minority interests 36,078 45,301
 Income taxes (15,153) (18,347)
 Net earnings of consolidated
 subsidiaries applicable to minority
 interests (346) (530)
 Net earnings $20,579 $26,424
 Earnings per common share $1.47 $1.89
 Dividends per common share $0.40 $0.34
 Average number of common and common
 equivalent shares outstanding 14,019,132 13,985,176
 (b) Certain accounts reported by the company's European operations have been reclassified to conform to company policy.
 -0- 9/23/93
 /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: SU: ERN

KH-DB -- MN009 -- 5421 09/23/93 17:20 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Sep 23, 1993
Words:1079
Previous Article:AULT REPORTS FIRST QUARTER RESULTS
Next Article:COMPUTER NETWORK TECHNOLOGY CORPORATION ANNOUNCES STOCK OFFERING AT $7.125 PER SHARE
Topics:

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters