EXHIBIT 99 -------------------------------------------------------------------------------- Note: H.B. Fuller will host a conference call September 26, 2001 at 9:30 a.m. central time (10:30 a.m. eastern time). The call can be heard live over the Internet at H.B. Fuller's website at http://www.hbfuller.com under the section shareholder information or at www.streetevents.com. H.B. Fuller Reports Significantly Improved Third Quarter Results ST. PAUL, Minn. - H.B. Fuller Company (NASDAQ: FULL) today reported net income for the third quarter ended September 1, 2001 of $14.6 million or $1.03 per share (diluted). Last year's third quarter net income was $7.4 million or $0.52 per share (diluted). The increase in income includes the results of improved operating efficiencies combined with a one-time tax benefit of $0.19 per share (diluted). Al Stroucken, chairman, president and chief executive officer remarked, "I am very proud of our total organization and the tenacity which they have demonstrated over the past year. In a difficult economic environment, our associates have continued to provide to our customers the value-added services which set us apart from our competitors while carefully managing our spend levels which has allowed us to post this significant improvement in earnings." Third Quarter Net Sales ----------------------- Net sales for the third quarter of 2001 were $315.7 million, a 3.1 percent decrease from the third quarter of 2000. Lower volume, a result of the weak global economies, and effects from foreign currencies accounted for a decrease of 3.1 and 2.3 percent respectively. These negative effects were partially offset by an increase in pricing of 2.3 percent. Third Quarter Segment Sales --------------------------- >> North America Adhesives net sales decreased 2.0 percent compared to last year. o Volume decreased 4.4 percent. o Prices increased 2.6 percent. o Currency had a negative impact of 0.2 percent. 1 >> Europe Adhesives net sales decreased 5.2 percent compared to last year. o Volume decreased 2.0 percent. o Prices increased 4.3 percent o The currency impact was a negative 7.5 percent. >> Latin America Adhesives net sales decreased 3.4 percent compared to last year. o Volume decreased 4.1 percent. o Prices increased 0.7 percent. >> Asia/Pacific Adhesives net sales decreased 1.9 percent compared to last year. o Volume increased 6.1 percent. o Prices increased 3.2 percent o Negative currency effects were 11.2 percent. >> Specialty Group net sales decreased 4.5 percent. o Volume decreased 4.2 percent. o Prices increased 0.3 percent. o Negative currency effects were 0.6 percent Operating income increased, as compared to the third quarter of 2000, in all the segments except for the Specialty Group. 2 Nine Month Results ------------------ For the first nine months of 2001, net income was $32.0 million or $2.26 per share (diluted). For the same period in 2000, net income was $34.9 million or $2.47 per share (diluted). Net sales for the first nine months of 2001 were $951.2 million, a 4.9 percent decrease from the first nine months of 2000. Volume was down 5.0 percent while selling price increases of 2.3 percent were offset by negative currency effects of 2.2 percent. H.B. Fuller Company is a worldwide manufacturer and marketer of adhesives, sealants, coatings, paints and other specialty chemical products, with fiscal 2000 sales of $1.353 billion. Common stock is traded on the NASDAQ exchange under the symbol FULL. For more information about the company, visit our website at: http://www.hbfuller.com. Safe Harbor for Forward-Looking Statement Certain statements in this document are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to various risks and uncertainties, including but not limited to the following: political and economic conditions; product demand and industry capacity; competitive products and pricing; manufacturing efficiencies; new product development; product mix; availability and price of raw materials and critical manufacturing equipment; new plant startups; accounts receivable collection; the company's relationships with its major customers and suppliers; changes in tax laws and tariffs; patent rights that could provide significant advantage to a competitor; devaluations and other foreign exchange rate fluctuations (particularly with respect to the euro, the Japanese yen, the Australian dollar and the Brazilian real); the regulatory and trade environment; and other risks as indicated from time to time in the company's filings with the Securities and Exchange Commission. All forward-looking information represents management's best judgment as of this date based on information currently available that in the future may prove to have been inaccurate. Additionally, the variety of products sold by the company and the regions where the company does business makes it difficult to determine with certainty the increases or decreases in sales resulting from changes in the volume of products sold, currency impact, changes in product mix and selling prices. However, management's best estimates of these changes as well as changes in other factors have been included. References to volume changes includes volume and product mix changes, combined. 3 H.B. FULLER COMPANY FINANCIAL INFORMATION In thousands, except per share amounts (unaudited) 13 Weeks 13 Weeks 39 Weeks 39 Weeks Ended Ended Ended Ended 1-Sep-01 26-Aug-00 1-Sep-01 26-Aug-00 --------- ---------- --------- --------- Net sales $ 315,712 $ 325,977 $ 951,153 $ 999,780 Cost of sales (229,789) (239,930) (694,442) (720,886) --------- ---------- --------- --------- Gross profit 85,923 86,047 256,711 278,894 Selling, administrative and other expenses (61,173) (67,034) (194,064) (204,459) Nonrecurring credits -- -- 300 Interest expense (5,198) (5,802) (16,364) (17,999) Other income (expense), net (1,537) (1,591) (2,229) (2,219) --------- ---------- --------- --------- Income before income taxes and minority interests 18,015 11,620 44,054 54,517 Income taxes (3,676) (4,293) (12,790) (20,171) Minority interests in consolidated income (177) (285) (687) (1,262) Income from equity investments 426 352 1,421 1,812 --------- ---------- --------- --------- Net income $ 14,588 $ 7,394 $ 31,998 $ 34,896 ========= ========== ========= ========= Basic income per common share $ 1.04 $ 0.53 $ 2.29 $ 2.51 Diluted income per common share $ 1.03 $ 0.52 $ 2.26 $ 2.47 Dividends per common share $ 0.215 $ 0.210 $ 0.64 $ 0.625 Weighted-average common shares outstanding Basic 13,985 13,938 13,976 13,903 Diluted 14,198 14,102 14,153 14,096 Select Balance Sheet Information (subject to change prior to filing of the Company's Quarterly Report on Form 10-Q) ------------------------------------------------------------------------------------------------------------------- Inventory $ 147,315 $ 156,964 Trade accounts receivable, net 213,766 219,707 Trade accounts payable 111,129 118,541 Total assets 990,867 1,008,735 Long-term debt 230,824 250,579 Stockholders' equity 430,693 397,637 -------------------------------------------------------------------------------- Pursuant to FASB Emerging Issues Task Force Issue No. 00-10, Accounting for Shipping and Handling Fees and Costs, the company has reclassified freight billed to customers from selling, administrative and other expenses to net sales, and has reclassified related freight costs from selling, administrative and other expenses to cost of sales. -------------------------------------------------------------------------------- 4