[H.B. Fuller Logo] Exhibit 99
Corporate Headquarters Contact: Scott Dvorak
Investor Relations
P.O 64683 651-236-5150
St. Paul, Minnesota 55164-0683
NEWS For Immediate Release June 24, 2003
Note: H.B. Fuller will host a conference call June 25, 2003 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 Improved Second Quarter Results
ST. PAUL, Minn. - H.B. Fuller Company (NYSE: FUL) today reported net revenue and
net income for the second quarter that ended May 31, 2003.
Second quarter net income as reported was $9.8 million or $0.34 per share
(diluted). These results include $0.09 per share (diluted) of charges for
severance and other costs relating to the restructuring initiative announced in
the early part of 2002, as well as $0.03 per share (diluted) to increase
reserves for claims associated with an exterior insulation finishing system sold
by a subsidiary of the company prior to 1999. Also included in the period is a
$0.05 per share (diluted) tax benefit in Europe from the Company's long-term
investment in tax planning initiatives. Last year's second quarter net income as
reported was $7.9 million or $0.28 per share (diluted), which included $0.14 per
share (diluted) of charges for asset impairments, severance and other costs
related to the restructuring initiative.
Second quarter net income, excluding special charges related to the
restructuring initiative, totaled $12.3 million or $0.43 per share (diluted).
Last year's second quarter net income, excluding special charges related to the
restructuring initiative, was $12.0 million, or $0.42 per share (diluted).
- ---------------------------------------------------------------------------------------------------------
Net income EPS (diluted)
----------------------------------------
As reported Q2, 2003 $ 9.8 million $0.34
Q2, 2002 $ 7.9 million $0.28
Change 23.1% 21.4%
- ---------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------
Net income EPS (diluted)
-----------------------------------------
Excluding special items related to the Q2, 2003 $12.3 million $0.43
restructuring initiative in 2003 and 2002 Q2, 2002 $12.0 million $0.42
Change 2.3% 2.4%
- ---------------------------------------------------------------------------------------------------------
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Al Stroucken, CEO, said, "Given the continuing competitive business environment,
we are very pleased to post an earnings improvement over last year. Despite the
challenges, we are achieving strong increases in key growth markets, such as
Latin America and Asia / Pacific."
Second Quarter Revenues
Net revenue for the second quarter of 2003 was $324.5 million, a 1.6 percent
increase from the second quarter of 2002. Reduced volume and pricing accounted
for decreases of 1.9 percent and 1.0 percent respectively, while positive
currency effects accounted for a 4.5 percent increase.
Second Quarter Segment Revenue
- Global Adhesives' net revenue increased 3.2 percent compared to last
year.
. Volume decreased 1.5 percent.
. Prices decreased 1.2 percent.
. Currency had a positive impact of 5.9 percent.
- Full-Valu / Specialty Group's net revenue decreased 2.0 percent
compared to last year.
. Volume decreased 2.7 percent.
. Prices decreased 0.6 percent.
. Currency had a positive impact of 1.3 percent.
Six Month Results
For the first six months of 2003, net income as reported was $13.0 million or
$0.45 per share (diluted). These results included $0.19 per share (diluted) of
charges for severance and other costs relating to the restructuring initiative
announced in the early part of 2002. For the same period last year, reported net
income was $8.6 million, or $0.30 per share (diluted), which included $0.32 per
share (diluted) of charges for asset impairments, severance and other costs
relating to the restructuring initiative.
For the first six months of 2003, net income, excluding special charges related
to the restructuring initiative, was $18.6 million or $0.65 per share (diluted).
For 2002, first six months' net income, excluding charges for asset impairments,
severance and other costs relating to the restructuring initiative, was $17.6
million or $0.62 per share (diluted).
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Six Months Net income EPS (diluted)
---------------------------------------
As reported YTD, 2003 $13.0 million $0.45
YTD, 2002 $ 8.6 million $0.30
Change 51.3% 50.0%
- -------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------
Six Months Net income EPS (diluted)
---------------------------------------
Excluding special items related to the YTD, 2003 $18.6 million $0.65
restructuring initiative in 2003 and 2002 YTD, 2002 $17.6 million $0.62
Change 5.6% 4.8%
- -------------------------------------------------------------------------------------------------------
Net revenue for the first six months of 2003 was $619.1 million, a 1.0 percent
increase from the first six months of 2002. Volume and pricing were down 2.0
percent and 0.9 percent respectively and positive currency effects accounted for
an increase of 3.9 percent.
------------------------------------------------
The information presented above reflects adjustments to `As Reported' results to
exclude certain special items related to the Company's restructuring initiative.
This adjusted information should not be construed as an alternative to the
reported results determined in accordance with accounting principles generally
accepted in the United States of America. It is provided solely to assist in an
investor's understanding of the impact of the special items on the comparability
of the Company's operations. A reconciliation of the Company's results excluding
the special items related to the Company's restructuring initiatives and the
Company's reported results is provided in the accompanying consolidated income
statements.
Safe Harbor for Forward-Looking Statement
Certain statements in this document may be considered 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;
competitive products and pricing; costs of and savings from restructuring
initiatives; product mix; availability and price of raw materials; the company's
relationships with its major customers and suppliers; changes in tax laws and
tariffs; 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 effect of new accounting
pronouncements and one-time accounting charges and credits, and similar matters.
Further information about the various risks and uncertainties can be found in
the company's SEC 10-K filing of
3
February 28, 2003 and 10-Q filing of April 15, 2003. 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.
------------------------------------------------
H.B. Fuller Company is a worldwide manufacturer and marketer of adhesives,
sealants, coatings, paints and other specialty chemical products, with fiscal
2002 net sales of $1.256 billion. Common stock is traded on the NYSE exchange
under the symbol FUL. For more information about the Company, visit their
website at: http://www.hbfuller.com.
4
H.B. FULLER COMPANY
FINANCIAL INFORMATION
In thousands, except per share amounts (unaudited)
13 Weeks 13 Weeks
Ended Ended
May 31, 2003 June 1, 2002
------------ ------------
Net revenue $ 324,481 $ 319,402
Cost of sales (234,909) (231,965)
------------ ------------
Gross profit 89,572 87,437
Selling, administrative and other expenses (73,129) (71,382)
Interest expense (3,602) (4,420)
Other income (expense), net (614) (334)
------------ ------------
Income before income taxes, minority
interests and income from equity
investments 12,227 11,301
Income taxes (2,664) (3,573)
Minority interests in consolidated
income (292) (328)
Income from equity investments 495 535
------------ ------------
Net Income $ 9,766 $ 7,935
============ ============
Basic income per common share $ 0.35 $ 0.28
============ ============
Diluted income per common share $ 0.34 $ 0.28
============ ============
Weighted-average common shares
outstanding:
Basic 28,223 28,071
Diluted 28,648 28,643
Selected Unaudited Balance Sheet Information (subject to change prior to filing
of the Company's Quarterly Report on Form 10-Q)
May 31, 2003 November 30, 2002 June 1, 2002
------------ ----------------- ------------
Inventory $ 155,949 $ 143,012 $ 149,243
Trade accounts receivable, net 222,882 212,342 218,525
Trade accounts payable 112,374 113,297 112,286
Total assets 1,010,014 961,439 969,766
Long-term debt 168,567 163,125 175,623
H.B. FULLER COMPANY
FINANCIAL INFORMATION
In thousands, except per share amounts (unaudited)
13 Weeks Ended - May 31, 2003 13 Weeks Ended - June 1, 2002
----------------------------------------- ------------------------------------------
Excluding Excluding
As Reported Special Items Special Items As Reported Special Items Special Items
----------------------------------------- ------------------------------------------
Net revenue $ 324,481 $ - $ 324,481 $ 319,402 $ - $ 319,402
Cost of sales (234,909) (1,609) (233,300) (231,965) (3,844) (228,121)
----------------------------------------- ------------------------------------------
Gross profit 89,572 (1,609) 91,181 87,437 (3,844) 91,281
Selling, administrative and other expenses (73,129) (1,581) (71,548) (71,382) (2,778) (68,604)
Interest expense (3,602) - (3,602) (4,420) - (4,420)
Other income (expense), net (614) - (614) (334) - (334)
----------------------------------------- ------------------------------------------
Income before income taxes, minority
interests and income from equity investments 12,227 (3,190) 15,417 11,301 (6,622) 17,923
Income taxes (2,664) 683 (3,347) (3,573) 2,371 (5,944)
Minority interests in consolidated income (292) - (292) (328) 188 (516)
Income from equity investments 495 - 495 535 - 535
----------------------------------------- ------------------------------------------
Net Income $ 9,766 $ (2,507) $ 12,273 $ 7,935 $ (4,063) $ 11,998
========================================= ==========================================
Basic income (loss) per common share $ 0.35 $ (0.09) $ 0.43 $ 0.28 $ (0.14) $ 0.43
========================================= ==========================================
Diluted income (loss) per common share $ 0.34 $ (0.09) $ 0.43 $ 0.28 $ (0.14) $ 0.42
========================================= ==========================================
Weighted-average common shares outstanding:
Basic 28,223 28,223 28,223 28,071 28,071 28,071
Diluted 28,648 28,648 28,648 28,643 28,643 28,643
The information presented above reflects adjustments to `As Reported' results to
exclude certain special items related to the Company's restructuring initiative.
This adjusted information should not be construed as an alternative to the
reported results determined in accordance with accounting principles generally
accepted in the United States of America. It is provided solely to assist in an
investor's understanding of the impact of the special items on the comparability
of the Company's operations.
H.B. FULLER COMPANY
FINANCIAL INFORMATION
In thousands, except per share amounts (unaudited)
26 Weeks 26 Weeks
Ended Ended
May 31, 2003 June 1, 2002
------------ ------------
Net revenue $ 619,069 $ 612,642
Cost of sales (447,349) (450,027)
------------ ------------
Gross profit 171,720 162,615
Selling, administrative and other expenses (144,073) (140,214)
Interest expense (7,367) (9,136)
Other income (expense), net (3,294) (1,464)
------------ ------------
Income before income taxes, minority
interests and income from equity investments 16,986 11,801
Income taxes (4,298) (3,511)
Minority interests in consolidated income (550) (607)
Income from equity investments 874 918
------------ ------------
Net Income $ 13,012 $ 8,601
============ ============
Basic income per common share $ 0.46 $ 0.31
============ ============
Diluted income per common share $ 0.45 $ 0.30
============ ============
Weighted-average common shares outstanding:
Basic 28,212 28,038
Diluted 28,654 28,540
H.B. FULLER COMPANY
FINANCIAL INFORMATION
In thousands, except per share amounts (unaudited)
26 Weeks Ended - May 31, 2003 26 Weeks Ended - June 1, 2002
----------------------------------------- -----------------------------------------
Excluding Excluding
As Reported Special Items Special Items As Reported Special Items Special Items
----------------------------------------- -----------------------------------------
Net revenue $ 619,069 $ - $ 619,069 $ 612,642 $ - $ 612,642
Cost of sales (447,349) (3,436) (443,913) (450,027) (10,098) (439,929)
----------------------------------------- -----------------------------------------
Gross profit 171,720 (3,436) 175,156 162,615 (10,098) 172,713
Selling, administrative and other expenses (144,073) (4,216) (139,857) (140,214) (4,199) (136,015)
Interest expense (7,367) - (7,367) (9,136) - (9,136)
Other income (expense), net (3,294) - (3,294) (1,464) - (1,464)
----------------------------------------- -----------------------------------------
Income before income taxes, minority
interests and income from equity investments 16,986 (7,652) 24,638 11,801 (14,297) 26,098
Income taxes (4,298) 2,092 (6,390) (3,511) 4,967 (8,478)
Minority interests in consolidated income (550) - (550) (607) 338 (945)
Income from equity investments 874 - 874 918 - 918
----------------------------------------- -----------------------------------------
Net Income $ 13,012 $ (5,560) $ 18,572 $ 8,601 $ (8,992) $ 17,593
========================================= =========================================
Basic income (loss) per common share $ 0.46 $ (0.20) $ 0.66 $ 0.31 $ (0.32) $ 0.63
========================================= =========================================
Diluted income (loss) per common share $ 0.45 $ (0.19) $ 0.65 $ 0.30 $ (0.32) $ 0.62
========================================= =========================================
Weighted-average common shares outstanding:
Basic 28,212 28,212 28,212 28,038 28,038 28,038
Diluted 28,654 28,654 28,654 28,540 28,540 28,540
The information presented above reflects adjustments to `As Reported' results to
exclude certain special items related to the Company's restructuring initiative.
This adjusted information should not be construed as an alternative to the
reported results determined in accordance with accounting principles generally
accepted in the United States of America. It is provided solely to assist in an
investor's understanding of the impact of the special items on the comparability
of the Company's operations.