H.B. Fuller Company (FUL, Financial) filed Quarterly Report for the period ended 2009-05-30.
H.B. Fuller Company is a worldwide manufacturer and marketer of adhesives sealants coatings paints and other specialty chemical products. The company's largest worldwide business category is adhesives sealants andcoatings. These products are sold to customers in a wide range ofindustries including packaging woodworking automotive aerospace graphic arts (books/magazines) appliances filtration windows sporting goods nonwovens shoes and ceramic tile. H.B. Fuller Company has a market cap of $939.6 million; its shares were traded at around $19.34 with a P/E ratio of 17.7 and P/S ratio of 0.6. The dividend yield of H.B. Fuller Company stocks is 1.5%. H.B. Fuller Company had an annual average earning growth of 0.6% over the past 10 years.
Through the first six months of 2009 net revenue decreased 15.0 percent and net income decreased 40.2 percent from the first six months of 2008. The diluted EPS for the first six months of 2009 was $0.48 as compared to $0.72 in the first six months of 2008.
In the fourth quarter of 2008 an $85.0 million impairment charge was taken as a reduction of the goodwill balance of the specialty construction reporting unit. This amount was considered an estimate as of November 29, 2008 with final valuation work to be completed in the first quarter of 2009. The additional charge of $0.8 million in the first quarter of 2009 was the result of the final valuation work. There were no additional charges in the second quarter of 2009.
Interest income was $0.4 million in the second quarter of 2009 and $1.5 million in the second quarter of 2008. Interest income was $0.7 million in the first half of 2009 and $3.4 million in the first half of 2008. The lower average cash balance in the first six months of 2009 as compared to 2008 was the primary reason for the lower interest income however lower interest rates also contributed to the decrease. Currency transaction and re-measurement losses in the second quarter 2009 were $1.4 million as compared to losses of $0.7 million in the second quarter of 2008. Currency transaction and re-measurement losses in the first six months of 2009 were $2.4 million as compared to losses of $1.0 million in the first six months of 2008. Fluctuations in currency exchange rates during the first six months of 2009 combined with changes in foreign currency exposures were the main reasons for the higher losses in 2009 as compared to last year.
Read the The complete ReportFUL is in the portfolios of Kenneth Fisher of Fisher Asset Management, LLC.
H.B. Fuller Company is a worldwide manufacturer and marketer of adhesives sealants coatings paints and other specialty chemical products. The company's largest worldwide business category is adhesives sealants andcoatings. These products are sold to customers in a wide range ofindustries including packaging woodworking automotive aerospace graphic arts (books/magazines) appliances filtration windows sporting goods nonwovens shoes and ceramic tile. H.B. Fuller Company has a market cap of $939.6 million; its shares were traded at around $19.34 with a P/E ratio of 17.7 and P/S ratio of 0.6. The dividend yield of H.B. Fuller Company stocks is 1.5%. H.B. Fuller Company had an annual average earning growth of 0.6% over the past 10 years.
Highlight of Business Operations:
The depressed global economic conditions continued to have a significant impact on the 2009 financial results. Weak end-market demand led to a net revenue decrease of 16.1 percent in the second quarter of 2009 as compared to the second quarter of 2008. Each of the four operating segments experienced sales volume declines in the quarter in excess of 10 percent as compared to last year. Currency effects contributed a negative 6.6 percent to the net revenue variance compared to 2008. Decreases in raw material prices combined with selling price discipline resulted in an improved gross profit margin of 29.9 percent, which compared to the second quarter of 2008 of 26.7 percent. This also represents a 3.0 percentage point improvement from the 26.9 percent recorded in the first quarter of 2009. Net income for the quarter of $17.6 million was 17.8 percent below the second quarter of 2008 and the diluted earnings per share (EPS) of $0.36 was 12.2 percent less than the $0.41 per share recorded in the second quarter of 2008.Through the first six months of 2009 net revenue decreased 15.0 percent and net income decreased 40.2 percent from the first six months of 2008. The diluted EPS for the first six months of 2009 was $0.48 as compared to $0.72 in the first six months of 2008.
In the fourth quarter of 2008 an $85.0 million impairment charge was taken as a reduction of the goodwill balance of the specialty construction reporting unit. This amount was considered an estimate as of November 29, 2008 with final valuation work to be completed in the first quarter of 2009. The additional charge of $0.8 million in the first quarter of 2009 was the result of the final valuation work. There were no additional charges in the second quarter of 2009.
Interest income was $0.4 million in the second quarter of 2009 and $1.5 million in the second quarter of 2008. Interest income was $0.7 million in the first half of 2009 and $3.4 million in the first half of 2008. The lower average cash balance in the first six months of 2009 as compared to 2008 was the primary reason for the lower interest income however lower interest rates also contributed to the decrease. Currency transaction and re-measurement losses in the second quarter 2009 were $1.4 million as compared to losses of $0.7 million in the second quarter of 2008. Currency transaction and re-measurement losses in the first six months of 2009 were $2.4 million as compared to losses of $1.0 million in the first six months of 2008. Fluctuations in currency exchange rates during the first six months of 2009 combined with changes in foreign currency exposures were the main reasons for the higher losses in 2009 as compared to last year.
Read the The complete ReportFUL is in the portfolios of Kenneth Fisher of Fisher Asset Management, LLC.
