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 June 25, 2002
Note: H.B. Fuller will host a conference call June 26, 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 website at http://www.hbfuller.com under the section shareholder
information or at www.streetevents.com.
H.B. Fuller Reports Second Quarter Results
ST. PAUL, Minn. - H.B. Fuller Company (NASDAQ: FULL) today reported sales and
earnings for the second quarter that ended June 1, 2002.
Second quarter net income, excluding special charges related to the
restructuring initiative, totaled $12.0 million or $0.42 per share (diluted).
Last year's second quarter net income was $11.9 million or $0.42 per share
(diluted).
Second quarter net income as reported was $7.9 million or $0.28 per share
(diluted). These results include $6.6 million ($4.1 million after-tax) or $0.14
per diluted share, of charges for asset impairments, severance and other costs
relating to the restructuring initiative announced earlier in the year.
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Net earnings EPS (diluted)
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Excluding special items in 2002 Q2, 2002 $12.0 million $0.42
Q2, 2001 $11.9 million $0.42
Change 1.2% 0.0%
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Net earnings EPS (diluted)
-----------------------------
As reported, including special items in 2002 Q2, 2002 $7.9 million $0.28
Q2, 2001 $11.9 million $0.42
Change -33.1% -33.3%
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Al Stroucken, CEO, said, "Our second quarter results were slightly better than
expected, a result of our continuing cost reduction initiatives. The full effect
of the earnings leverage we
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EXHIBIT 99
have created will manifest itself through growth of our top line. In light of
continuing economic uncertainty, this will remain an area of focus for our
company going forward."
Second Quarter Revenues
Net revenue for the second quarter of 2002 was $319.4 million, a 2.8 percent
decrease from the second quarter of 2001. Reduced volume accounted for a
decrease of 1.1 percent, while negative currency effects and pricing accounted
for decreases of 0.6 percent and 1.1 percent, respectively.
Second Quarter Segment Revenue
>> Global Adhesives' net revenue decreased 3.1 percent compared to last
year.
o Volume decreased 1.5 percent.
o Prices decreased 0.8 percent.
o Currency had a negative impact of 0.8 percent.
>> Full-Valu / Specialty Group's net revenue decreased 1.9 percent
compared to last year.
o Volume was even.
o Prices decreased 1.7 percent.
o Currency had a negative impact of 0.2 percent.
Operating income as compared to the second quarter of 2001 decreased in Global
Adhesives and Full-Valu / Specialty due to the lower sales levels.
Six Month Results
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For the first six months of 2002, net income, excluding special charges related
to the restructuring initiative, was $17.6 million or $0.62 per share (diluted).
For the same period in 2001, net income, excluding the cumulative effect of an
accounting change in the first quarter, was $17.4 million or $0.62 per share
(diluted).
Six months' results as reported reflect net income of $8.6 million or $0.30 per
share (diluted). These results included $14.3 million ($9.0 million after-tax)
or $0.32 per diluted share, of charges for asset impairments, severance and
other costs relating to the restructuring initiative
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announced in the first quarter. Last year's first six months' net income which
included the cumulative effect of an accounting change was $16.9 million, or
$0.60 per share (diluted).
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Net earnings EPS (diluted)
-------------------------------
Excluding special items in 2002 and the YTD, 2002 $17.6 million $0.62
cumulative effect of an accounting change YTD, 2001 $17.4 million $0.62
in 2001 Change 1.1% 0.0%
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Net earnings EPS (diluted)
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As reported, including special items in 2002 YTD, 2002 $8.6 million $0.30
and the cumulative effect of an accounting YTD, 2001 $16.9 million $0.60
change in 2001 Change -49.1% -50.0%
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Net revenue for the first six months of 2002 was $612.6 million, a 3.6 percent
decrease from the first six months of 2001. Volume was down 1.7 percent while
negative currency effects and pricing accounted for decreases of 1.0 percent and
0.9 percent, respectively.
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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
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 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
June 1, 2002 June 2, 2001
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Net sales $ 319,402 $ 328,507
Cost of sales (231,965) (240,294)
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Gross profit 87,437 88,213
Selling, administrative and other expenses (71,382) (64,600)
Interest expense (4,420) (5,503)
Other income (expense), net 171 (171)
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Income before income taxes, minority interests
and income from equity investments 11,806 17,939
Income taxes (4,079) (6,117)
Minority interests in consolidated income (328) (495)
Income from equity investments 536 533
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Net Income $ 7,935 $ 11,860
========= =========
Basic income per common share $ 0.28 $ 0.42
========= =========
Diluted income per common share $ 0.28 $ 0.42
========= =========
Weighted-average common shares
outstanding:
Basic 28,071 27,954
Diluted 28,643 28,270
Selected Balance Sheet Information (subject to change prior to filing of the
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Company's Quarterly Report on Form 10-Q)
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Unaudited Unaudited
June 1, 2002 December 1, 2001 June 2, 2001
------------ ---------------- ------------
Inventory $ 149,243 $ 141,210 $ 148,943
Trade accounts
receivable, net 218,525 211,590 213,421
Trade accounts payable 112,286 114,155 112,480
Total assets 971,916 966,173 985,940
Long-term debt 173,297 203,001 242,654
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H.B. FULLER COMPANY
FINANCIAL INFORMATION
In thousands, except per share amounts (unaudited)
13 Weeks Ended - June 1, 2002
----------------------------------- 13 Weeks
Excluding Ended
As Special Special June 2,
Reported Items Items 2001
--------- --------- --------- ---------
Net sales $ 319,402 $ -- $ 319,402 $ 328,507
Cost of sales (231,965) (3,844) (228,121) (240,294)
--------- --------- --------- ---------
Gross profit 87,437 (3,844) 91,281 88,213
Selling, administrative
and other expenses (71,382) (2,778) (68,604) (64,600)
Interest expense (4,420) -- (4,420) (5,503)
Other income (expense), net 171 -- 171 (171)
--------- --------- --------- ---------
Income before income taxes,
minority interests and income
from equity investments 11,806 (6,622) 18,428 17,939
Income taxes (4,079) 2,371 (6,450) (6,117)
Minority interests in
consolidated income (328) 188 (516) (495)
Income from equity
investments 536 -- 536 533
--------- --------- --------- ---------
Net Income $ 7,935 $ (4,063) $ 11,998 $ 11,860
========= ========= ========= =========
Basic income (loss)
per common share $ 0.28 $ (0.14) $ 0.43 $ 0.42
========= ========= ========= =========
Diluted income (loss)
per common share $ 0.28 $ (0.14) $ 0.42 $ 0.42
========= ========= ========= =========
Weighted-average common shares
outstanding:
Basic 28,071 28,071 28,071 27,954
Diluted 28,643 28,643 28,643 28,270
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EXHIBIT 99
H.B. FULLER COMPANY
FINANCIAL INFORMATION
In thousands, except per share amounts (unaudited)
26 Weeks 26 Weeks
Ended Ended
June 1, 2002 June 2, 2001
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Net sales $ 612,642 $ 635,441
Cost of sales (450,027) (464,653)
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Gross profit 162,615 170,788
Selling, administrative and other expenses (140,214) (132,891)
Interest expense (9,136) (11,166)
Other income (expense), net (455) (692)
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Income before income taxes, minority
interests and income from equity investments 12,810 26,039
Income taxes (4,520) (9,114)
Minority interests in consolidated income (607) (510)
Income from equity investments 918 995
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Income before cumulative effect of
accounting change $ 8,601 $ 17,410
Cumulative effect of accounting change -- (501)
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Net Income $ 8,601 $ 16,909
========= =========
Basic income (loss) per common share:
Income before accounting change $ 0.31 $ 0.62
Accounting Change -- (0.02)
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Net Income $ 0.31 $ 0.60
========= =========
Diluted income (loss) per common share:
Income before accounting change $ 0.30 $ 0.62
Accounting change -- (0.02)
--------- ---------
Net Income $ 0.30 $ 0.60
========= =========
Weighted-average common shares outstanding:
Basic 28,038 27,944
Diluted 28,540 28,260
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EXHIBIT 99
H.B. FULLER COMPANY
FINANCIAL INFORMATION
In thousands, except per share amounts (unaudited)
26 Weeks Ended - June 1, 2002
-----------------------------------
Excluding 26 Weeks
As Special Special Ended
Reported Items Items June 2, 2001
--------- --------- --------- ------------
Net sales $ 612,642 $ -- $ 612,642 $ 635,441
Cost of sales (450,027) (10,098) (439,929) (464,653)
--------- --------- --------- ---------
Gross profit 162,615 (10,098) 172,713 170,788
Selling, administrative
and other expenses (140,214) (4,199) (136,015) (132,891)
Interest expense (9,136) -- (9,136) (11,166)
Other income (expense), net (455) -- (455) (692)
--------- --------- --------- ---------
Income before income taxes,
minority interests and income
from equity investments 12,810 (14,297) 27,107 26,039
Income taxes (4,520) 4,967 (9,487) (9,114)
Minority interests in
consolidated income (607) 338 (945) (510)
Income from equity investments 918 -- 918 995
--------- --------- --------- ---------
Income before cumulative
effect of accounting
change $ 8,601 $ (8,992) $ 17,593 $ 17,410
Cumulative effect of
accounting change -- -- -- (501)
--------- --------- --------- ---------
Net Income $ 8,601 $ (8,992) $ 17,593 $ 16,909
========= ========= ========= =========
Basic income (loss) per
common share:
Income before
accounting change $ 0.31 $ (0.32) $ 0.63 $ 0.62
Accounting Change -- -- -- (0.02)
--------- --------- --------- ---------
Net Income $ 0.31 $ (0.32) $ 0.63 $ 0.60
========= ========= ========= =========
Diluted income (loss)
per common share:
Income before
accounting change $ 0.30 $ (0.32) $ 0.62 $ 0.62
Accounting change -- -- -- (0.02)
--------- --------- --------- ---------
Net Income $ 0.30 $ (0.32) $ 0.62 $ 0.60
========= ========= ========= =========
Weighted-average common
shares outstanding
Basic 28,038 28,038 28,038 27,944
Diluted 28,540 28,540 28,540 28,260
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