US HB Fuller Q4 income surges to $24.6m on lower costs

12 January 2010 23:46  [Source: ICIS news]

HOUSTON (ICIS news)--HB Fuller posted a 2009 fourth-quarter net income of $24.6m (€17.0m), up from a net loss of $42.4m in the year-ago quarter due in part to significantly lower raw material costs, the US sealants maker said on Tuesday.

The company’s cost of sales was $235.1m for the quarter, down 10.6% from the year-earlier cost of $262.9m.

The year-earlier income loss also reflected $54m in non-cash asset impairment charges. After adjusting for the non-cash impairment charges, 2008 fourth quarter net income was $11.6m.

Revenues for the 2009 fourth quarter were $341.6m, down 2.5% year-over-year. However, revenue increased 8% from the third quarter due to more favourable end-market conditions, the company said.

For the full 2009 fiscal year, net revenue was $1.24bn, down 11.3% from 2008.

“We are very pleased with our performance in 2009 and the steady, incremental improvements we made throughout the year,” chief executive Michele Volpi said. “Despite persistent weak end-market demand conditions, we remained focused and determined in executing our long-term growth strategies.

Volpi pointed to the company’s acquisition of Nordic Adhesives and the addition of new manufacturing capacity in China and Egypt as examples of the company’s long-term planning.

Looking ahead, the company said the demand for 2010 remained largely uncertain, but that it would continue to outperform the market with respect to revenue.

However, gross margin profitability would likely remain around 2009 levels due to low-to-mid single-digit raw material cost increases, Volpi said.

($1 = €0.69)

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By: Ben DuBose
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