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H.B. FULLER REPORTS RECORD SECOND QUARTER SALES AND EARNINGS

 H.B. FULLER REPORTS RECORD SECOND QUARTER SALES AND EARNINGS
 ST. PAUL, Minn., June 22 /PRNewswire/ -- H.B.Fuller Company (NASDAQ: FULL) today reported record second quarter net sales of $234.6 million for the quarter ended May 31, 1992, an increase of 8 percent from $216.3 million for the same period in 1991. Net earnings for the quarter were also a record $10.1 million, up 42 percent from $7.1 million in 1991. Earnings per share increased 41 percent to $.73, compared to last year's $.51 per share.
 Net sales for the first six months of 1992 were $453.4 million, up 8 percent from 418.4 million in the first half of 1991. Year-to-date earnings totalled $16.2 million, up 50 percent from $10.8 million in the first half of 1991. Earnings per share were $1.16, an increase of 48 percent from $.78 for the first half of 1991.
 (Earnings-per-share numbers for the quarter and year-to-date have been adjusted for the 3-for-2 stock split which took effect on June 1 of this year.)
 U.S. sales were up significantly for the quarter when compared to the same period last year. Total U.S. operations showed substantial improvements in operating earnings due to better gross margins and a reduction of operating expenses as a percent of sales. Gross margins improved due to better plant utilization and a slight reduction in raw material costs.
 The Adhesive, Sealants and Coatings Division sales were up moderately for the quarter compared to 1991 levels. The Structural Group of the division, including sales to the woodworking, appliance, window, aerospace and automotive markets, had significant increases in sales. In the Industrial Group, significant increases in sales were experienced in the non-woven, tobacco, and polymer markets while the paper converting and packaging markets showed a moderate increase over last year.
 The Specialty Divisions and subsidiaries produced a significant increase in sales for the quarter, led by the Industrial Coatings Division's substantial increase. TEC Incorporated;Foster Products, Inc.; and Linear Products Division showed significant sales increases for the quarter.
 The company's European operations experienced flat sales for the second quarter compared to 1991. cExcluding a negative currency impact, sales in Europe would have been up approximately 6 percent for the quarter. Operating earnings were up moderately for the quarter. Sales improved in Austria, Italy, United Kingdom, France, Sweden and Spain. Sales were below prior year in Germany due to a general slowdown in that economy. Operating earnings improved due to higher gross margins.
 Latin America operations had a significant increase in sales and a substantial increase in operating earnings for the quarter when compared to 1991. The company's paint operations in Central America had significant increases in sales. Gross margins improved in the region partially due to lower raw material costs.
 The Asia/Pacific area had a substantial increase in sales and a moderate increase in operating earnings for the second quarter compared to 1991. Canada's sales were up moderately compared to prior year.
 Walter Kissling, president and COO, commented, "For the first half of 1992 we are right on plan. In the second half of this year we see challenges with some economies experiencing slowdowns, but Fuller is prepared to meet those challenges. 1992 should be another satisfying year for us."
 H.B. Fuller Company is a worldwide manufacturer and marketer of specialty chemical products, including adhesives, sealants, coatings, paints, waxes and sanitation chemicals with 1991 sales of $853 million.
 H.B. FULLER COMPANY
 Financial Information
 (Dollars in thousands, except per share amounts)
 (unaudited)
 Three Months Ended
 5/31/92 5/31/91
 Net Sales $234,575 $216,347
 Cost of Sales (154,690) (146,275)
 Gross Profit 79,885 70,072
 Selling, Administrative
 and Other Expenses (59,705) (55,010)
 Operating Earnings 20,180 15,062
 Interest Expense (3,246) (3,548)
 Other Income/(Expense), Net 81 755
 Earnings Before Income Taxes
 and Minority Interests 17,015 12,269
 Income Taxes (6,698) (5,028)
 Net Earnings of Consolidated
 Subsidiaries Applicable to
 Minority Interests (173) (118)
 Net Earnings $10,144 $7,123
 Earnings Per Common Share $0.73 $0.51
 (Adjusted for 3-for-2 split
 Effective June 1, 1992)
 Dividends Per Common Share $0.12 $0.1033
 (Adjusted for 3-for-2 split
 Effective June 1, 1992)
 Average Number of Common and
 Common Equivalent Shares Outstanding 13,985,762 13,850,262
 (Adjusted for 3-for-2 split
 Effective June 1, 1992)
 May 31, 1992 May 31, 1991
 Working Capital $121,991 $110,574
 Total Assets $523,329 $491,468
 Long-term Debt $58,721 $90,090
 Stockholders' Equity $233,555 $203,191
 H.B. FULLER COMPANY
 Financial Information
 (In thousands, except per-share amounts)
 (Unaudited)
 Six Months Ended
 5/31/92 5/31/91
 Net Sales $453,382 $418,428
 Cost of Sales (301,437) (284,029)
 Gross Profit 151,945 134,399
 Selling, Administrative
 and Other Expenses (118,024) (109,237)
 Operating Earnings 33,921 25,162
 Interest Expense (6,730) (7,145)
 Other Income (Expense), Net 351 775
 Earnings Before Income Taxes
 and Minority Interests 27,542 18,792
 Income Taxes (10,929) (7,675)
 Net Earnings of Consolidated
 Subsidiaries Applicable to
 Minority Interests (448) (341)
 Net Earnings $16,165 $10,776
 Earnings per Common Share
 (Adjusted for 3-for-2 split
 effective June 1, 1992) $1.16 $.78
 Dividends per Common Share
 (Adjusted for 3-for-2 split
 effective June 1, 1992) $0.2233 $0.2033
 Average Number of Common and
 Common Equivalent Shares
 Outstanding (adjusted for 3-for-2
 split effective June 1, 1992) 13,972,769 13,804,842
 -0- 6/22/92
 /CONTACT: Richard Edwards, 612-647-3650, or Bill Belknap, 612-647-3604, both of H.B. Fuller Company/
 (FULL) CO: H.B. Fuller Company ST: Minnesota IN: CHM SU: ERN


DB -- MN011 -- 2596 06/22/92 17:25 EDT
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Date:Jun 22, 1992
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