16 January 2014 00:05 [Source: ICIS news]
HOUSTON (ICIS)--HB Fuller’s Q4 and full-year 2013 net income fell year over year despite growth in net revenue, the US adhesives and specialty chemicals producer announced on Wednesday.
The company’s Q4 net income fell almost 13% year over year to $21.8m from $25.1m in the year prior period. The drop was mostly due special charges almost doubling in the quarter to $16.1m.
The special charges are a continuing effect from the company’s effort to implement an integration programme that delivers synergies related to the acquisition of Forbo’s adhesives business, as well as to improve the performance of its operating segment for Europe, India, Middle East and Africa (EIMEA).
Meanwhile, full-year 2013 net income fell about 23% to $96.8m from $126m due to the 2012 numbers including $57.6m in income from discontinued operations.
For the quarter, which ended on 30 November 2013, organic revenue growth increased 3.6% year over year, the highest quarterly growth rate of the year, HB Fuller said. Organic revenue growth rose 2% for the year compared with 2012, it said.
"In the midst of a major business integration and weaker than expected end-market conditions in some key markets, our team delivered solid results,” said Jim Owens, HB Fuller president and CEO. “We delivered record revenue and grew organically for the fourth year in a row with stronger organic growth at the end of the year.”
Going into 2014, HB Fuller said it expects growth “at the low end of our long-term growth targets of 5-8%” and that recent momentum in the Asia Pacific and Construction Products operating segments to lead the way.
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