29 March 2012 17:40 [Source: ICIS news]
HOUSTON (ICIS)--HB Fuller expects its raw material costs to begin rising again in the second quarter after falling in the first quarter, the chief executive of the US-based producer of sealants, adhesives, paints and specialty chemicals said on Thursday.
HB Fuller CEO Jim Owens said that raw material prices would likely increase in the second quarter after declining by about 1.5% sequentially in the company’s 2012 fiscal first quarter, which ended on 3 March.
“We expect [raw material prices] to increase again beginning in the second quarter, and then to continue to modestly increase through the balance of the year,” Owens told analysts during a conference call.
Generally, Fuller expects a more benign raw material cost environment this year, compared with 2011 when raw materials saw extreme price inflation, he said.
Fuller will react to raw material cost volatility by aligning its product prices, and by changing the formulations of its products to optimise costs, said Owens.
Owens added that Fuller is optimistic about its outlook, with 2012 revenues from the company’s base business – excluding the recent acquisition of an industrial adhesives business – expected to rise by up to 9% year on year.
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.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|
Asian Chemical Connections