EX-99.1 2 dex991.htm PRESS RELEASE Press Release

Exhibit 99.1

 

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Corporate Headquarters    Contact:   Scott Dvorak
P.O 64683        Investor Relations
St. Paul, Minnesota 55164-0683        651-236-5150

 

NEWS   For Immediate Release                                   June 22, 2004

 

Note: H.B. Fuller will host a conference call June 23, 2004 at 9:30 a.m. central time (10:30 a.m. eastern time). The call can be heard live over the Internet at H.B. Fuller’s website at http://www.hbfuller.com under the section shareholder information or at www.streetevents.com. A replay is also available.

 

H.B. Fuller Reports Second Quarter Results

 

ST. PAUL, Minn. - H.B. Fuller Company (NYSE: FUL) today reported operating results for the second quarter that ended May 29, 2004.

 

Second quarter net income was $11.7 million or $0.41 per share (diluted). Last year’s second quarter net income as reported was $9.8 million or $0.34 per share (diluted), which included $0.09 per share (diluted) of net charges for severance and other costs related to the restructuring initiative announced in the early part of 2002. Also included in last year’s second quarter net income was $0.05 per share (diluted) tax benefit in Europe from the company’s long-term investment in tax planning initiatives. Excluding the special charges related to the restructuring initiative, last year’s second quarter net income totaled $12.3 million or $0.43 per share (diluted).

 

          Net income

    EPS (diluted)

 

As reported

   Q2, 2004    $ 11.7 million     $ 0.41  
     Q2, 2003    $ 9.8 million     $ 0.34  
     Change      19.8 %     20.6 %

 

          Net income

    EPS (diluted)

 

Excluding special items related to the restructuring initiative in 2003

   Q2, 2004    $  11.7 million     $ 0.41  
     Q2, 2003    $  12.3 million     $ 0.43  
     Change      -4.7 %     -4.7 %


Second Quarter Net Revenue

 

Net revenue for the second quarter of 2004 was $ 363.1 million, an 11.9 percent increase from the second quarter of 2003. Improved volumes and positive currency effects contributed to increases of 6.4 percent and 3.9 percent, respectively. The acquisition announced earlier this year accounted for an increase in revenues of 2.6 percent and reduced pricing caused a decrease of 1.0 percent.

 

Second Quarter Segment Net Revenue

 

  Global Adhesives’ net revenue increased 12.8 percent compared to last year.

 

  Volume increased 5.9 percent.

 

  Prices decreased 1.5 percent.

 

  Currency had a positive impact of 4.6 percent.

 

  Acquisition had a positive impact of 3.8 percent.

 

  Full-Valu / Specialty Group’s net revenue increased 9.9 percent compared to last year.

 

  Volume increased 7.6 percent.

 

  Prices increased 0.2 percent.

 

  Currency had a positive impact of 2.1 percent.

 

Al Stroucken, CEO, said, “We are pleased to see our volumes increasing at a solid pace. To continue the positive trend in our operating income we will need to focus on passing through the raw material increases we are facing.”

 

Six Month Results

 

For the first six months of 2004, net income was $16.3 million or $0.56 per share (diluted). For the same period last year, net income was $13.0 million, or $0.45 per share (diluted), which included $0.19 per share (diluted) of charges for severance and other costs relating to the restructuring initiative. Also included in last year’s period net income was $0.05 per share (diluted) tax benefit in Europe from the company’s long-term investment in tax planning initiatives. Excluding the special charges related to the restructuring initiative, last year’s first six months net income was $18.6 million or $0.65 per share (diluted).

 

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     Six Months

   Net income

    EPS (diluted)

 

As reported

   YTD, 2004    $  16.3 million     $ 0.56  
     YTD, 2003    $  13.0 million     $ 0.45  
     Change      25.4 %     24.4 %

 

     Six Months

   Net income

    EPS (diluted)

 

Excluding special items related to the restructuring initiative in 2003

   YTD, 2004    $  16.3 million     $ 0.56  
     YTD, 2003    $  18.6 million     $ 0.65  
     Change      -12.2 %     -13.8 %

 

Net revenue for the first six months of 2004 was $681.6 million, a 10.1 percent increase from the first six months of 2003. Improved volumes and positive currency effects contributed to increases of 5.1 percent and 4.5 percent, respectively. The acquisition announced earlier this year accounted for an increase in revenues of 1.4 percent and reduced pricing caused a decrease of 0.9 percent.

 

Some of the information presented above reflects adjustments to ‘As reported’ results to exclude certain special items related to the company’s restructuring initiative. This adjusted information should not be construed as an alternative to the reported results determined in accordance with accounting principles generally accepted in the United States of America. It is provided solely to assist in an investor’s understanding of the impact of the special items on the comparability of the company’s operations. A reconciliation of the company’s results excluding the special items related to the company’s restructuring initiatives and the company’s reported results is provided in the accompanying consolidated financial information.

 

Safe Harbor for Forward-Looking Statement

 

Certain statements in this document may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to various risks and uncertainties, including but not limited to the following: political and economic conditions; product demand; competitive products and pricing; costs of and savings from restructuring initiatives; product mix; availability and price of raw materials; the company’s relationships with its major customers and suppliers; changes in tax laws and tariffs; devaluations and other foreign exchange rate fluctuations (particularly with respect to the euro, the British pound, the Japanese yen, the Australian and Canadian dollars, the Argentine peso and the Brazilian real); the effect of new accounting pronouncements and accounting charges and credits, and similar matters. Further information about the various risks and uncertainties can be found in the company’s SEC 10-K filing of February 25, 2004 and 10-Q filing of April 6, 2004. All forward-looking information represents management’s best judgment as of this date based on information currently available that in the future may prove to have been inaccurate. Additionally, the variety of products sold by the company and the regions where the company does business makes it difficult to determine with certainty the increases or decreases in sales resulting from changes in the volume of products sold, currency impact, changes in product mix and selling prices. However, management’s best estimates of these changes as well as changes in other factors have been included. References to volume changes include volume and product mix changes, combined.

 

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H.B. Fuller Company is a worldwide manufacturer and marketer of adhesives, sealants, coatings, paints and other specialty chemical products, with fiscal 2003 net sales of $1,287 million. Common stock is traded on the NYSE exchange under the symbol FUL. For more information about the Company, visit their website at: http://www.hbfuller.com.

 

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H.B. FULLER COMPANY AND SUBSIDIARIES

CONSOLIDATED FINANCIAL INFORMATION

In thousands, except per share amounts (unaudited)

 

    

13 Weeks
Ended

May 29, 2004


   

13 Weeks
Ended

May 31, 2003


 

Net revenue

   $ 363,063     $ 324,481  

Cost of sales

     (262,517 )     (234,909 )
    


 


Gross profit

     100,546       89,572  

Selling, general and administrative expenses

     (77,731 )     (73,129 )

Interest expense

     (3,638 )     (3,602 )

Other expense, net

     (2,150 )     (614 )
    


 


Income before income taxes, minority interests and income from equity investments

     17,027       12,227  

Income taxes

     (5,449 )     (2,664 )

Minority interests in consolidated income

     (233 )     (292 )

Income from equity investments

     352       495  
    


 


Net Income

   $ 11,697     $ 9,766  
    


 


Basic income per common share

   $ 0.41     $ 0.35  
    


 


Diluted income per common share

   $ 0.41     $ 0.34  
    


 


Weighted-average common shares outstanding:

                

Basic

     28,402       28,223  

Diluted

     28,853       28,648  

 

Selected Balance Sheet Information (subject to change prior to filing of the Company’s Quarterly Report on Form 10-Q)

 

     May 29, 2004

   November 29, 2003

   May 31, 2003

Inventory

   $ 154,255    $ 146,571    $ 155,949

Trade accounts receivable, net

     248,961      239,593      222,882

Trade accounts payable

     131,569      117,001      112,374

Total assets

     1,045,178      1,007,588      1,004,841

Long-term debt, including current installments

     161,714      162,430      168,567

 

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H.B. FULLER COMPANY AND SUBSIDIARIES

CONSOLIDATED FINANCIAL INFORMATION

In thousands, except per share amounts (unaudited)

 

    

13 Weeks
Ended

May 29, 2004


    13 Weeks Ended - May 31, 2003

 
       As Reported

    Special Items

    Excluding
Special Items


 

Net revenue

   $ 363,063     $ 324,481     $ —       $ 324,481  

Cost of sales

     (262,517 )     (234,909 )     (1,609 )     (233,300 )
    


 


 


 


Gross profit

     100,546       89,572       (1,609 )     91,181  

Selling, general and administrative expenses

     (77,731 )     (73,129 )     (1,581 )     (71,548 )

Interest expense

     (3,638 )     (3,602 )     —         (3,602 )

Other expense, net

     (2,150 )     (614 )     —         (614 )
    


 


 


 


Income before income taxes, minority interests and income from equity investments

     17,027       12,227       (3,190 )     15,417  

Income taxes

     (5,449 )     (2,664 )     683       (3,347 )

Minority interests in consolidated income

     (233 )     (292 )     —         (292 )

Income from equity investments

     352       495       —         495  
    


 


 


 


Net Income

   $ 11,697     $ 9,766     $ (2,507 )   $ 12,273  
    


 


 


 


Basic income (loss) per common share

   $ 0.41     $ 0.35     $ (0.09 )   $ 0.43  
    


 


 


 


Diluted income (loss) per common share

   $ 0.41     $ 0.34     $ (0.09 )   $ 0.43  
    


 


 


 


Weighted-average common shares outstanding:

                                

Basic

     28,402       28,223       28,223       28,223  

Diluted

     28,853       28,648       28,648       28,648  

 

The information presented above reflects adjustments to ‘As Reported’ results to exclude certain special items related to the Company’s restructuring initiative. This adjusted information should not be construed as an alternative to the reported results determined in accordance with accounting principles generally accepted in the United States of America. It is provided solely to assist in an investor’s understanding of the impact of the special items on the comparability of the Company’s operations.

 

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H.B. FULLER COMPANY AND SUBSIDIARIES

CONSOLIDATED FINANCIAL INFORMATION

In thousands, except per share amounts (unaudited)

 

    

26 Weeks
Ended

May 29, 2004


   

26 Weeks
Ended

May 31, 2003


 

Net revenue

   $ 681,637     $ 619,069  

Cost of sales

     (495,313 )     (447,349 )
    


 


Gross profit

     186,324       171,720  

Selling, general and administrative expenses

     (153,140 )     (144,073 )

Interest expense

     (7,202 )     (7,367 )

Other expense, net

     (3,084 )     (3,294 )
    


 


Income before income taxes, minority interests and income from equity investments

     22,898       16,986  

Income taxes

     (7,327 )     (4,298 )

Minority interests in consolidated income

     (113 )     (550 )

Income from equity investments

     853       874  
    


 


Net Income

   $ 16,311     $ 13,012  
    


 


Basic income per common share

   $ 0.57     $ 0.46  
    


 


Diluted income per common share

   $ 0.56     $ 0.45  
    


 


Weighted-average common shares outstanding:

                

Basic

     28,374       28,212  

Diluted

     28,870       28,654  

 

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H.B. FULLER COMPANY AND SUBSIDIARIES

CONSOLIDATED FINANCIAL INFORMATION

In thousands, except per share amounts (unaudited)

 

    

26 Weeks
Ended

May 29, 2004


    26 Weeks Ended - May 31, 2003

 
       As Reported

    Special Items

    Excluding
Special Items


 

Net revenue

   $ 681,637     $ 619,069     $ —       $ 619,069  

Cost of sales

     (495,313 )     (447,349 )     (3,436 )     (443,913 )
    


 


 


 


Gross profit

     186,324       171,720       (3,436 )     175,156  

Selling, general and administrative expenses

     (153,140 )     (144,073 )     (4,216 )     (139,857 )

Interest expense

     (7,202 )     (7,367 )     —         (7,367 )

Other expense, net

     (3,084 )     (3,294 )     —         (3,294 )
    


 


 


 


Income before income taxes, minority interests and income from equity investments

     22,898       16,986       (7,652 )     24,638  

Income taxes

     (7,327 )     (4,298 )     2,092       (6,390 )

Minority interests in consolidated income

     (113 )     (550 )     —         (550 )

Income from equity investments

     853       874       —         874  
    


 


 


 


Net Income

   $ 16,311     $ 13,012     $ (5,560 )   $ 18,572  
    


 


 


 


Basic income (loss) per common share

   $ 0.57     $ 0.46     $ (0.20 )   $ 0.66  
    


 


 


 


Diluted income (loss) per common share

   $ 0.56     $ 0.45     $ (0.19 )   $ 0.65  
    


 


 


 


Weighted-average common shares outstanding:

                                

Basic

     28,374       28,212       28,212       28,212  

Diluted

     28,870       28,654       28,654       28,654  

 

The information presented above reflects adjustments to ‘As Reported’ results to exclude certain special items related to the Company’s restructuring initiative. This adjusted information should not be construed as an alternative to the reported results determined in accordance with accounting principles generally accepted in the United States of America. It is provided solely to assist in an investor’s understanding of the impact of the special items on the comparability of the Company’s operations.

 

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