Home / Knowledge / News / Textiles / H.B. Fuller reports EPS from continuing operations up 2% in Q2
H.B. Fuller reports EPS from continuing operations up 2% in Q2
25
Jun '08
H.B. Fuller Company reported financial results for the second quarter that ended May 31, 2008.

Second Quarter:
Income from continuing operations for the second quarter of 2008 was $21.4 million, or $0.41 per diluted share, versus $24.9 million, or $0.40 per diluted share, in last year's second quarter. While net revenue for the second quarter totaled $357 million, up 1 percent versus the prior year, lower income was primarily attributable to rising raw materials costs and a lag in selling price increases. Increasing raw material costs were partially offset by lower SG&A expense levels. The lower share count, resulting from the Company's share repurchase program, led to the year-over-year per share improvement.

This year's second quarter net income from continuing operations included two one-time charges that significantly reduced the gross profit margin of the Company's North American segment. These charges included severance and related expenses associated with the realignment of an adhesive facility in Kentucky as well as channel resetting costs associated with the acquisition of new retail business within the Company's Specialty Construction business.

In total these charges were $2.7 million on a pre-tax basis, or the equivalent of $0.03 per diluted share. Excluding these charges, net income from continuing operations would have been $0.44 per diluted share versus reported results of $0.41 per diluted share.

Net revenue for this year's second quarter was $357 million, up 1 percent versus the second quarter of 2007. Foreign currency translation favorably contributed 5.4 percentage points to net revenue growth. Higher average selling prices positively impacted net revenue growth by 0.9 percentage points and lower volume adversely impacted net revenue growth by 5.4 percentage points. Organic sales declined by 4.5 percent year over year in the second quarter, a sequential improvement of 310 basis points versus the 7.6 percent decline in the first quarter.

“As we had anticipated, the challenges we faced in the first quarter that resulted from both the sluggish North American economy and also the global inflationary raw material environment continued into the second quarter. On the other hand, we were pleased that despite these continued pressures we were able to manage the business from both an operational and capital perspective in order to maintain per-share profitability levels,” said Michele Volpi, president and chief executive officer.

“Raw material costs have continued to escalate and pricing actions naturally lagged. To compensate for the short-term timing delay as we ramped up our pricing execution, we implemented strong cost controls to partially mitigate the correspondent gross margin pressure.”

Year-To-Date:
Income from continuing operations for the first half of 2008 was $39.6 million, or $0.72 per diluted share, versus $43.5 million, or $0.71 per diluted share, in the first half of last year.


Must ReadView All

Textiles | On 19th Sep 2017

Maharashtra govt plans 9 textile parks for value-addition

Maharashtra plans to set up nine textile parks in the northern...

Textiles | On 19th Sep 2017

New Delhi urged to include textiles in MERCOSUR PTA talks

The Indian Texpreneurs Federation (ITF) has appealed to the commerce...

Textiles | On 19th Sep 2017

HSBC report says India to be 3rd largest economy by 2028

India is expected to surpass Germany and Japan to become the third...

Interviews View All

Shiladitya K Joshi
Truetzschler India Private Limited

India ITME provides a platform to interact with our stakeholders

Ghanshyam Ghoghari
Kimora Fashion

Bridalwear is not about reds and whites anymore

Yash Agarwal
Hitansh Online

Every market region has its own culture and trends

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

September 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
74.5%
No
12.8%
Skip
12.8%

Total Votes: 47

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.7%
No
25.5%
Skip
12.8%

Total Votes: 47

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.2%
No
6.4%
Skip
6.4%

Total Votes: 47

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
70.2%
No
10.6%
Skip
19.1%

Total Votes: 47


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search