US HB Fuller posts 63.1% rise in Q3 income on lawsuit settlement

22 September 2009 22:44  [Source: ICIS news]

HOUSTON (ICIS news)--HB Fuller posted a third-quarter net income of $35.4m (€24.1m), up 63.1% from prior-year levels as a one-time gain from a lawsuit settlement more than offset lower sales volumes, the US sealants and adhesives maker said on Tuesday.

Net revenue fell to $315.3m, down 12.9% compared with the 2008 third quarter as weak end-market demand continued. However, sales increased 5% on a sequential basis, HB Fuller said.

“We achieved a sequential increase in net revenue and boosted both operating profit margin and dollars despite the significant end-market challenges that continued during the quarter,” said CEO Michele Volpi.

“As the global economy continues its recovery, we are gaining momentum on the top-line, and we expect this to continue as we further invest in the business,” he added.

The lawsuit gain came from a filing against the former owners of the Roanoke Companies Group, which HB Fuller acquired in 2006. The settlement totalled $18.8m on a pre-tax basis and $11.8m after taxes, the company said.

HB Fuller did not disclose details about the suit.

The year-over-year net revenue decline came as higher average selling prices and acquisitions did not offset lower volumes and unfavourable foreign currency exchange rates, HB Fuller said.

The company said it expected fourth-quarter net revenue to reach $330m, compared with $350m in the 2008 fourth quarter.

($1 = €0.68)

To discuss issues facing the chemical industry go to ICIS connect

By: Ben DuBose
+1 713 525 2653

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly