Corrected: HB Fuller 2008 net loss at $42m on impairment charges

20 January 2009 03:07  [Source: ICIS news]

Correction: In the ICIS news story headlined “HB Fuller 2008 net loss at $42m on impairment charges” dated 20 January 2008, please read the headline as “HB Fuller Q4 net loss …” instead of   “… 2008 net loss …”
Please read in the first paragraph … fiscal fourth quarter ended … instead of … fiscal year …. Please read in the second paragraph … for the fourth quarter … instead of … for the year …. Please read in the seventh paragraph … for the fourth quarter to $350m … instead of … for the full year …. A corrected story follows.

SINGAPORE (ICIS news)--US specialty chemicals maker HB Fuller has booked a $42m (€31.5m) net loss for its fiscal fourth quarter ended 29 November 2008 on a $85m write-off in goodwill relating to its Roanoke acquisition in 2006, the company said on Tuesday.

The $42m net loss for the fourth quarter was as compared to a profit of $30.8m for the previous corresponding period.

“The indicated goodwill impairment charge is an estimate. The final charge will be determined during the first quarter of 2009 and any necessary adjustment recorded at that time,” the company said in a statement.

“The total amount of goodwill associated with the specialty construction business component was $99 million at the end of the third quarter of 2008; therefore, any subsequently determined impairment would not exceed $14 million,” it added.

Roanoke is held under HB Fuller’s Specialty Construction business arm.

Discounting the one-off impairment charge, the year-on-year decline in adjusted income from continuing operations was primarily due to lower volumes in line with the sharp decline in the global markets, and the ongoing impact of high raw material costs, HB Fuller said.

The company booked a 3% year-on-year decline in net revenue for the fourth quarter to $350m as compared to $361m in the same period last year.

"Because of the continuing volatility and uncertainty in the global markets we believe it is not useful to provide full-year earnings per share guidance at this time,” said Michele Volpi, chief executive officer at HB Fuller.

“It is clear that our first-quarter financial performance will be relatively weak, reflecting the typical seasonal pattern of our business and the continuation of the demand disruption that we experienced in the fourth quarter of 2008. We expect significant improvement in subsequent quarters,” he added.

($1 = €0.75)

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By: Bohan Loh
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