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Home | News |H.B.Fuller:Second Quarter 2017 Results
H.B.Fuller:Second Quarter 2017 Results
Updated: 2017-07-04 11:18 Source: H.B.Fuller share:
PU WORLD--Second Quarter Diluted EPS $0.50, 

Second Quarter Adjusted Diluted EPS $0.621;

Fiscal Year 2017 Adjusted Diluted EPS Guidance Narrowed to $2.57 to $2.67

 

ST. PAUL, Minn. – H.B. Fuller Company (NYSE: FUL) today reported financial results for the second quarter that ended June 3, 2017.

Items of Note for the Second Quarter of 2017:

Net revenue grew 5.5 percent. Constant currency sales2 growth was nearly 10 percent, with organic volume growth of 4 percent;

Net income was $25.9 million in the second quarter of 2017; Adjusted net income was $31.8 million, or $0.621 per diluted share;

Adjusted EBITDA3 margin up 80 basis points sequentially to 12.5 percent despite higher raw materials costs;

Constant currency2 growth for Engineering Adhesives was over 20 percent and adjusted EBITDA3 increased 48 percent versus the second quarter of 2016;

Asia Pacific and EIMEA delivered constant currency2 growth of 11 and 8 percent, respectively, for the quarter;

Construction Products adjusted EBITDA3 margins returned to double digits, at 10.7 percent, after completing the start up of our Aurora facility.

Second Quarter 2017 Results:

Net income for the second quarter of 2017 was $25.9 million, or $0.50 per diluted share, versus net income of $33.3 million, or $0.65 per diluted share, in last year’s second quarter. Adjusted diluted earnings per share in the second quarter of 2017 were $0.621 versus the prior year’s adjusted result of $0.671. Higher raw material costs were the primary driver of the year-over-year decline.

Net revenue for the second quarter of 2017 was $561.7 million, up 5.5 percent versus the second quarter of 2016. Higher volume, and acquisitions positively impacted net revenue growth, which was offset by negative foreign currency translation. Constant currency revenue2 grew by nearly 10 percent year over year. Organic revenue, defined as constant currency revenue less the impact from acquisitions, was up 4 percent.

Gross profit margin was 26.0 percent and adjusted gross profit margin4 was 27.2 percent. During the quarter, margins declined year over year due to increasing raw material costs relative to the timing of price increases. Selling, General and Administrative (SG&A) expense was $102.8 million. Adjusted SG&A expense5 was $102.6 million, down by approximately 1 percent versus last year, primarily driven by discretionary expense management and restructuring actions, offset by the impact of acquisitions.

A spike in raw material costs and the timing of our price increases impacted earnings in the second quarter, however price increases have been implemented and the underlying performance of our business is in line with expectations for 2017,” said Jim Owens, H.B. Fuller president and chief executive officer. “We continued to drive solid growth across most of the businesses, led again by nearly 20 percent volume growth in the strategically important Engineering Adhesives business and strong constant currency growth in Americas, EIMEA and Asia Pacific. All businesses showed solid EBITDA performance in the quarter, including Construction Products, which delivered double digit margins ahead of schedule. Price increases announced early in the quarter were successfully implemented late in the second quarter which will deliver the targeted earnings and cash flow performance for the rest of 2017. We expect 2017 to provide another strong positive step forward in delivering our 2020 strategic commitments for growth, profit and cash flow performance.” 

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