EXHIBIT 99
[H.B. Fuller H.B. Fuller Company Contact: Scott Dvorak
Logo] Corporate Headquarters Investor Relations
651-236-5150
P.O. 64683
St. Paul, Minnesota 55164-0683
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NEWS For Immediate Release March 26, 2002
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Note: H.B. Fuller will host a conference call March 27, 2002 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 Web site at http://www.hbfuller.com under the section
shareholder information or at www.streetevents.com.
H.B. Fuller Reports First Quarter Results
ST. PAUL, Minn. - H.B. Fuller Company (NASDAQ: FULL) today reported sales and
earnings for the first quarter of 2002, ended March 2, 2002.
First quarter net income, excluding special charges related to the restructuring
initiative, totaled $5.6 million or $0.20 per share (diluted). Last year's first
quarter net income, excluding the cumulative effect of an accounting change, was
also $5.6 million or $0.20 per share (diluted).
First quarter results as reported were $0.7 million or $0.02 per share
(diluted). These results included $4.9 million, or $0.18 per diluted share, of
charges for asset impairments, severance and other costs relating to the
restructuring initiative announced earlier in the quarter. Last year's first
quarter net income including the cumulative effect of an accounting change was
$5.0 million, or $0.18 per share (diluted).
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Net earnings EPS (diluted)
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Excluding special items in 2002 and the Q1, 2002 $5.6 million $0.20
cumulative effect of an accounting change Q1, 2001 $5.6 million $0.20
in 2001 Change 0.8% --
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Net earnings EPS (diluted)
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As reported, including special items in 2002 Q1, 2002 $0.7 million $0.02
and the cumulative effect of an accounting Q1, 2001 $5.0 million $0.18
change in 2001 Change -86.8% -88.9%
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EXHIBIT 99
Al Stroucken, chairman, president and chief executive officer said, "We are
still operating in an environment of softened demand, but I believe we have the
infrastructure and market coverage in place to be able to provide us with some
top line growth independent of the current economic situation."
First Quarter Revenues
Net sales for the first quarter of 2002 were $293.2 million, a 4.5 percent
decrease from the first quarter of 2001. Reduced volume accounted for a decrease
of 2.7 percent, while negative currency effects and pricing accounted for
decreases of 1.4 and 0.4 percent respectively.
First Quarter Segment Sales
Starting in 2002, the segment reporting has changed to be aligned with the
Company's new internal management structure.
>> Global Adhesives net sales decreased 4.5 percent compared to last
year.
o Volume decreased 3.0 percent.
o Prices increased 0.3 percent.
o Currency had a negative impact of 1.8 percent.
>> Full-Valu / Specialty Group net sales decreased 4.4 percent.
o Volume decreased 1.9 percent.
o Prices decreased 2.0 percent.
o Currency had a negative impact of 0.5 percent.
Operating income as compared to the first quarter of 2001 increased in Global
Adhesives and decreased in Full-Valu / Specialty.
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H.B. Fuller Company is a worldwide manufacturer and marketer of adhesives,
sealants, coatings, paints and other specialty chemical products, with fiscal
2001 sales of $1.274 billion. Common stock is traded on the NASDAQ exchange
under the symbol FULL. For more information about the Company, visit their Web
site at: http://www.hbfuller.com.
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EXHIBIT 99
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 British pound, the
Japanese yen, the Australian dollar, the Argentine peso 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 include volume
and product mix changes, combined.
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EXHIBIT 99
H.B. FULLER COMPANY
FINANCIAL INFORMATION
In thousands, except per share amounts (unaudited)
13 Weeks 13 Weeks
Ended Ended
March 2, 2002 March 3, 2001
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Net sales $ 293,240 $ 306,934
Cost of sales (218,062) (224,359)
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Gross profit 75,178 82,575
Selling, administrative and other expenses (68,832) (68,291)
Interest expense (4,716) (5,663)
Other income (expense), net (626) (521)
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Income before income taxes and minority interests 1,004 8,100
Income taxes (442) (2,997)
Minority interests in consolidated income (279) (15)
Income from equity investments 383 462
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Income before cumulative effect of accounting change $ 666 $ 5,550
Cumulative effect of accounting change - (501)
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Net Income $ 666 $ 5,049
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Basic income (loss) per common share:
Income before accounting change $ 0.02 $ 0.20
Accounting Change - (0.02)
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Net Income $ 0.02 $ 0.18
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Diluted income (loss) per common share:
Income before accounting change $ 0.02 $ 0.20
Accounting change - (0.02)
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Net Income $ 0.02 $ 0.18
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Weighted-average common shares outstanding
Basic 28,006 27,932
Diluted 28,437 28,252
Selected Balance Sheet Information (subject to change prior to filing of the
Company's Quarterly Report on Form 10-Q)
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Unaudited Unaudited
March 2, 2002 December 1, 2001 March 3, 2001
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Inventory $ 143,404 $ 141,210 $ 159,180
Trade accounts receivable, net 205,546 211,590 214,332
Trade accounts payable 108,132 114,155 119,434
Total assets 949,595 966,173 1,008,230
Long-term debt 196,793 203,001 253,410
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EXHIBIT 99
H.B. FULLER COMPANY
FINANCIAL INFORMATION
In thousands, except per share amounts (unaudited)
13 Weeks Ended - March 2, 2002
------------------------------------------------------- 13 Weeks
Excluding Ended
As Reported Restructuring Restructuring March 3, 2001
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Net sales $ 293,240 $ - $ 293,240 $ 306,934
Cost of sales (218,062) (6,254) (211,808) (224,359)
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Gross profit 75,178 (6,254) 81,432 82,575
Selling, administrative and other expenses (68,832) (1,421) (67,411) (68,291)
Interest expense (4,716) - (4,716) (5,663)
Other income (expense), net (626) - (626) (521)
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Income before income taxes and minority interests 1,004 (7,675) 8,679 8,100
Income taxes (442) 2,596 (3,038) (2,997)
Minority interests in consolidated income (279) 150 (429) (15)
Income from equity investments 383 - 383 462
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Income before cumulative effect of accounting change $ 666 $ (4,929) $ 5,595 $ 5,550
Cumulative effect of accounting change - - - (501)
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Net Income $ 666 $ (4,929) $ 5,595 $ 5,049
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Basic income (loss) per common share:
Income before accounting change $ 0.02 $ (0.18) $ 0.20 $ 0.20
Accounting Change - - - (0.02)
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Net Income $ 0.02 $ (0.18) $ 0.20 $ 0.18
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Diluted income (loss) per common share:
Income before accounting change $ 0.02 $ (0.18) $ 0.20 $ 0.20
Accounting change - - - (0.02)
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Net Income $ 0.02 $ (0.18) $ 0.20 $ 0.18
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Weighted-average common shares outstanding
Basic 28,006 28,006 28,006 27,932
Diluted 28,437 28,437 28,437 28,252
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