H.B. Fuller Reports EPS From Continuing Operations Up 3 Percent in the First Quarter
H.B. Fuller Reports EPS From Continuing Operations Up 3 Percent in the First Quarter Monday March 31, 6:00 pm ET Company Maintains Bottom Line Performance While Investing For Growth; Fiscal Year 2008 Guidance Reaffirmed
ST. PAUL, Minn.--(BUSINESS WIRE)--H.B. Fuller Company (NYSE: FUL - News) today reported financial results for the first quarter that ended March 1, 2008. First Quarter Highlights:
Earnings from continuing operations per diluted share up 3 percent from prior year to $0.32 Earnings expectation for fiscal year to earn between $1.76 and $1.86 per diluted share reaffirmed Completed $100 million of $200 million share repurchase program to date; $61 million in the first quarter Plans unveiled to establish a new technology center in China to foster innovation and enhance value-added offerings First Quarter:
Income from continuing operations for the first quarter of 2008 was $18.2 million, or $0.32 per diluted share, versus $18.7 million, or $0.31 per diluted share, in last year’s first quarter. The economic slowdown and raw material cost inflation had a negative impact on the financial performance of the business, but this was almost completely offset by continued cost controls and lower interest expense. Lower share count, resulting from the Company’s share repurchase program, led to the per share improvement year-over-year.
Net revenue for this year’s first quarter was $322.6 million, down 3.2 percent versus the first quarter of 2007. Foreign currency translation favorably contributed 4.4 percentage points to net revenue growth. Higher average selling prices positively impacted net revenue growth by 0.4 percentage points and lower volume adversely impacted net revenue growth by 8.0 percentage points.
“We are pleased with our earnings performance in the first quarter, again in the midst of a difficult macro economic environment and continued inflationary raw material cost pressures,” said Michele Volpi, president and chief executive officer. “Despite these challenges, we achieved a slight increase in year-over-year diluted earnings per share from continuing operations while supporting the investments needed to successfully implement our five-year strategic plan and position the Company for long-term success. With that said, we are committed to improving our operational execution.”
Fiscal Year 2008 Expectations:
The Company reaffirms its expectation to achieve net income per diluted share in fiscal year 2008 of between $1.76 and $1.86. This expectation continues despite the slowdown in the economy and the inflationary pressures. Additionally, the Company continues to expect capital expenditures to be $30 to $35 million, depreciation expense to be approximately $35 million, amortization expense to be approximately $12 million, and the effective tax rate to be approximately 29 percent for fiscal year 2008.
“All of the actions we have taken and plan to take in the future, including making the necessary investments, growing the top line, managing the overall profitability of the business, and optimizing our capital structure, are focused on achieving both the expectations we have for 2008 and the long term financial goals of our five-year plan,” commented Volpi. “We are committed to these and we are confident that we can achieve both objectives.”
Investing For Innovation:
As an example of the Company’s commitment to invest, a regional technology center in Shanghai, China will be established. The