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)
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