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H.B. Fuller reports EPS from continuing operations up 2% in Q2

25 Jun '08

4 min read

Net revenue for the first half of 2008 was $679 million, down 1 percent versus the first half of 2007. Foreign currency translation favorably contributed 5.0 percentage points to net revenue growth. Higher average selling prices positively impacted net revenue growth by 0.7 percentage points and lower volume adversely impacted net revenue growth by 6.8 percentage points. Organic sales declined by 6.1 percent year over year in the first half of the year.

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 inflationary pressures and weakening end-market demand. Additionally, the Company now expects capital expenditures to be $20 to $25 million, down from the previous range of $30 to $35 million.

For fiscal year 2008, the Company continues to expect depreciation expense to be approximately $35 million, amortization expense to be approximately $12 million, and the effective tax rate to be approximately 29 percent, excluding any future significant discrete items.

“Through our global footprint and continued focus on expense management, we remain confident for fiscal year 2008 despite the challenges we have outlined. Top line improvements are expected to accelerate through the end of the year and EBITDA margin is expected to improve from first half levels as we realize the benefits of pricing actions,” commented Volpi. “At the same time, we intend to continue our discretionary cost controls while we invest for growth in accordance with our five-year plan.”

H.B. Fuller Company

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