HB Fuller Co. Announces Unaudited Consolidated Earnings Results for Second Quarter and Six Months Ended May, 31, 2014; Revises Earnings Guidance for the Fiscal Year Ending November 2014
Jun 25 14
HB Fuller Co. announced unaudited consolidated earnings results for second quarter and six months ended May 31, 2014. For the quarter, the company reported net revenue of $544,034,000, income before income taxes and income from equity method investments of $27,781,000, net income attributable to company of $20,537,000 or $0.4 per diluted share, EBITDA of $62,510,000 compared to the net revenue of $519,016,000, income before income taxes and income from equity method investments of $35,269,000, net income attributable to company of $25,929,000 or $0.51 per diluted share, EBITDA of $66,739,000 for the same quarter a year ago. Higher volume and positive foreign currency translation positively impacted net revenue growth by 4.8 and 0.3 percentage points, respectively. Lower average selling prices negatively impacted net revenue growth by 0.3 percentage points. Cash flow used operations was $17 million, primarily due to inventory building to support the business integration project and higher accounts receivable balances. Adjusted Income before income taxes and income from equity method investments was $52,623,000 against $46,112,000 a year ago. Adjusted net income attributable to the company was $40,117,000 or $0.78 per diluted share against $34,305,000 or $0.67 a year ago.
For the year to date, the company reported net revenue of $1,030,015,000, income before income taxes and income from equity method investments of $47,117,000, net income attributable to company of $35,108,000 or $0.69 per diluted share, EBITDA of $113,695,000 compared to the net revenue of $998,858,000, income before income taxes and income from equity method investments of $60,723,000, net income attributable to company of $46,606,000 or $0.91 per diluted share, EBITDA of $117,728,000 for the same period a year ago. Adjusted income before income taxes and income from equity method investments was $85,033,000 against $76,899,000 a year ago. Adjusted net income attributable to the company was $65,144,000 or $1.27 per diluted share against $59,216,000 or $1.16 a year ago. Capital spending levels have been elevated in the first half of the year as the business integration winds down in Europe and China and as Project ONE progress through the design and build phases of the project.
The company revised earnings guidance for the fiscal year ending November 2014. The company announced that it is adjusting full-year earnings per share guidance down to a range of $2.80 to $2.95 from the previous range of $3.00 to $3.15, primarily reflecting the expected delay in realizing margin improvement following the completion of business integration project in Europe. The company is also adjusting guidance for core income tax rate, which excludes discrete items, to 29% for the full year, down from previous guidance of 30%. The company expects capital expenditure levels to drop in the second half of the year in line with the original projections for full year capital spending of about $105 million. The outlook for the revenue growth remains unchanged. Specifically at the beginning of the year, the company indicated that it expected its revenue to increase at the low end of its long-term growth range target. The revised earnings guidance assumes full year revenue growth of about 5%.
H.B. Fuller Opens New Manufacturing Facility in Rionegro, Colombia
May 5 14
HB Fuller Co. announced the opening of its new $10 million manufacturing facility to support the expansion of its business in the Andean Region of South America. The plant is located in Rionegro, approximately 36 kilometers east of Medellin, Colombia. The new site will provide increased production capacity, a new technical laboratory for hygienic products and better access to the country's second airport. The Rionegro facility will supply hot melt and water-based adhesive technologies for the hygienic, packaging, and corrugate and assembly markets. In addition to production, the facility houses administrative offices, labs, and receiving and dispatching. The new hygienic technical laboratory will help meet the demands of the region's growing nonwoven hygiene market and provide value to H.B. Fuller's principal customer's who have a presence there.