EXHIBIT 99(a)
[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 September 24, 2002
Note: H.B. Fuller will host a conference call September 25, 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 Third Quarter Results
ST. PAUL, Minn. - H.B. Fuller Company (NASDAQ: FULL) today reported sales and
earnings for the third quarter that ended August 31, 2002.
Third quarter net income as reported was $9.2 million or $0.32 per share
(diluted). These results include $6.3 million ($3.9 million after-tax) or $0.14
per share (diluted) of charges for asset impairments, severance and other costs
relating to the restructuring initiative announced earlier in the year.
Third quarter net income, excluding special charges related to the restructuring
initiative, totaled $13.1 million or $0.46 per share (diluted). Last year's
third quarter net income was $14.6 million or $0.51 per share (diluted). Last
year's third quarter net income included a one-time tax benefit of $0.09 per
share (diluted).
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Net earnings EPS (diluted)
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As reported, including special items in 2002 Q3, 2002 $9.2 million $0.32
Q3, 2001 $14.6 million* $0.51*
* Includes a one-time tax benefit of $2.6 million Change -36.9% -37.3%
or $0.09 per share
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Net earnings EPS (diluted)
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Excluding special items in 2002 Q3, 2002 $13.1 million $0.46
Q3, 2001 $14.6 million* $0.51*
* Includes a one-time tax benefit of $2.6 million Change -10.0% -9.8%
or $0.9 per share
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Al Stroucken, CEO, said, "As any true signs of an economic recovery continue to
elude us, our quarterly results are truly a reflection of our past and ongoing
initiatives, which have provided us a more profitable foundation and will propel
us into the future, optimistic and confident that we have taken the tough steps
down the correct path."
Third Quarter Revenues
Net revenue for the third quarter of 2002 was $313.9 million, a 0.6 percent
decrease from the third quarter of 2001. Reduced volume and pricing accounted
for a decrease of 1.5 percent and 1.4 percent respectively, while positive
currency effects resulted in an increase of 2.3 percent.
Third Quarter Segment Revenue
>> Global Adhesives' net revenue decreased 0.4 percent compared to last
year.
o Volume decreased 1.4 percent.
o Prices decreased 1.9 percent.
o Currency had a positive impact of 2.9 percent.
>> Full-Valu / Specialty Group's net revenue decreased 0.9 percent
compared to last year.
o Volume decreased 1.4 percent.
o Prices decreased 0.3 percent.
o Currency had a positive impact of 0.8 percent.
Operating income in Global Adhesives in the third quarter was $14.7 million, a
decrease of $2.5 million from the third quarter of 2001. Full-Valu / Specialty's
operating income of $8.1 million increased $0.6 million from the previous year's
third quarter.
Nine Month Results
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Nine months' results as reported reflect net income of $17.8 million or $0.62
per share (diluted). These results included $20.6 million ($12.9 million
after-tax) or $0.45 per share (diluted) of charges for asset impairments,
severance and other costs relating to the restructuring initiative announced in
the first quarter. Last year's first nine months' net income
2
which included the cumulative effect of an accounting change was $31.5 million,
or $1.11 per share (diluted).
For the first nine months of 2002, net income, excluding special charges related
to the restructuring initiative, was $30.7 million or $1.08 per share (diluted).
For the same period in 2001, net income, excluding the cumulative effect of an
accounting change in the first quarter, was $32.0 million or $1.13 per share
(diluted). Last year's first nine months of net income also included a one-time
tax benefit of $0.09 per share (diluted).
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Net earnings EPS (diluted)
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As reported, including special items in 2002 YTD, 2002 $17.8 million $0.62
and the cumulative effect of an accounting YTD, 2001 $31.5 million* $1.11*
change in 2001 Change -43.5% -44.1%
* Includes a one-time tax benefit of $2.6 million
or $0.09 per share
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Net earnings EPS (diluted)
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Excluding special items in 2002 and the YTD, 2002 $30.7 million $1.08
cumulative effect of an accounting change YTD, 2001 $32.0 million* $1.13*
in 2001 Change -4.0% -4.4%
* Includes a one-time tax benefit of $2.6 million
or $0.09 per share
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Net revenue for the first nine months of 2002 was $926.6 million, a 2.6 percent
decrease from the first nine months of 2001. Volume and pricing were down 1.6
percent and 1.1 percent respectively and positive currency effects accounted for
an increase of 0.1 percent.
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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.
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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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H.B. FULLER COMPANY
FINANCIAL INFORMATION
in thousands, except per share amounts (unaudited)
13 Weeks 13 Weeks
Ended Ended
August 31, 2002 September 1, 2001
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Net sales $ 313,936 $ 315,712
Cost of sales (229,752) (229,789)
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Gross profit 84,184 85,923
Selling, administrative and other expenses (67,673) (61,173)
Interest expense (4,353) (5,198)
Other income (expense), net 1,594 (1,537)
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Income before income taxes, minority interests
and income from equity investments 13,752 18,015
Income taxes (4,728) (3,676)
Minority interests in consolidated income (74) (177)
Income from equity investments 249 426
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Net Income $ 9,199 $ 14,588
========= =========
Basic income per common share $ 0.33 $ 0.52
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Diluted income per common share $ 0.32 $ 0.51
========= =========
Weighted-average common shares outstanding:
Basic 28,135 27,970
Diluted 28,632 28,396
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
August 31, December 1, September 1,
2002 2001 2001
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Inventory $149,109 $141,210 $147,315
Trade accounts receivable, net 210,774 211,590 213,766
Trade accounts payable 112,386 114,155 111,130
Total assets 967,684 966,173 990,867
Long-term debt 170,188 203,001 230,824
H.B. FULLER COMPANY
FINANCIAL INFORMATION
in thousands, except per share amounts (unaudited)
13 Weeks Ended - August 31, 2002
---------------------------------------------------- 13 Weeks
Excluding Ended
As Reported Special Items Special Items September 1, 2001
----------- ------------- ------------- -----------------
Net sales $ 313,936 $ -- $ 313,936 $ 315,712
Cost of sales (229,752) (4,525) (225,227) (229,789)
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Gross profit 84,184 (4,525) 88,709 85,923
Selling, administrative and other expenses (67,673) (1,801) (65,872) (61,173)
Interest expense (4,353) -- (4,353) (5,198)
Other income (expense), net 1,594 -- 1,594 (1,537)
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Income before income taxes, minority interests
and income from equity investments 13,752 (6,326) 20,078 18,015
Income taxes (4,728) 2,302 (7,030) (3,676)
Minority interests in consolidated income (74) 93 (167) (177)
Income from equity investments 249 -- 249 426
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Net Income $ 9,199 $ (3,931) $ 13,130 $ 14,588
========= ========= ========= =========
Basic income (loss) per common share $ 0.33 $ (0.14) $ 0.47 $ 0.52
========= ========= ========= =========
Diluted income (loss) per common share $ 0.32 $ (0.14) $ 0.46 $ 0.51
========= ========= ========= =========
Weighted-average common shares outstanding:
Basic 28,135 28,135 28,135 27,970
Diluted 28,632 28,632 28,632 28,396
H.B. FULLER COMPANY
FINANCIAL INFORMATION
in thousands, except per share amounts (unaudited)
39 Weeks 39 Weeks
Ended Ended
August 31, 2002 September 1, 2001
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Net sales $ 926,578 $ 951,153
Cost of sales (679,779) (694,442)
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Gross profit 246,799 256,711
Selling, administrative and other expenses (207,887) (194,064)
Interest expense (13,489) (16,364)
Other income (expense), net 1,139 (2,229)
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Income before income taxes, minority interests
and income from equity investments 26,562 44,054
Income taxes (9,248) (12,790)
Minority interests in consolidated income (681) (687)
Income from equity investments 1,167 1,421
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Income before cumulative effect of accounting change $ 17,800 $ 31,998
Cumulative effect of accounting change -- (501)
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Net Income $ 17,800 $ 31,497
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Basic income (loss) per common share:
Income before accounting change $ 0.63 $ 1.15
Accounting Change -- (0.02)
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Net Income $ 0.63 $ 1.13
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Diluted income (loss) per common share:
Income before accounting change $ 0.62 $ 1.13
Accounting change -- (0.02)
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Net Income $ 0.62 $ 1.11
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Weighted-average common shares outstanding:
Basic 28,071 27,952
Diluted 28,571 28,306
H.B. FULLER COMPANY
FINANCIAL INFORMATION
in thousands, except per share amounts (unaudited)
39 Weeks Ended - August 31, 2002
-------------------------------------------------- 39 Weeks
Excluding Ended
As Reported Special Items Special Items September 1, 2001
----------- ------------- ------------- -----------------
Net sales $ 926,578 $ -- $ 926,578 $ 951,153
Cost of sales (679,779) (14,623) (665,156) (694,442)
--------- --------- --------- ---------
Gross profit 246,799 (14,623) 261,422 256,711
Selling, administrative and other expenses (207,887) (6,000) (201,887) (194,064)
Interest expense (13,489) -- (13,489) (16,364)
Other income (expense), net 1,139 -- 1,139 (2,229)
--------- --------- --------- ---------
Income before income taxes, minority interests
and income from equity investments 26,562 (20,623) 47,185 44,054
Income taxes (9,248) 7,267 (16,515) (12,790)
Minority interests in consolidated income (681) 431 (1,112) (687)
Income from equity investments 1,167 -- 1,167 1,421
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Income before cumulative effect of accounting change $ 17,800 $ (12,925) $ 30,725 $ 31,998
Cumulative effect of accounting change -- -- -- (501)
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Net Income $ 17,800 $ (12,925) $ 30,725 $ 31,497
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Basic income (loss) per common share:
Income before accounting change $ 0.63 $ (0.46) $ 1.09 $ 1.15
Accounting Change -- -- -- (0.02)
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Net Income $ 0.63 $ (0.46) $ 1.09 $ 1.13
========= ========= ========= =========
Diluted income (loss) per common share:
Income before accounting change $ 0.62 $ (0.45) $ 1.08 $ 1.13
Accounting change -- -- -- (0.02)
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Net Income $ 0.62 $ (0.45) $ 1.08 $ 1.11
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Weighted-average common shares outstanding
Basic 28,071 28,071 28,071 27,952
Diluted 28,571 28,571 28,571 28,306