H.B. Fuller manufactures adhesives, sealants, paints and other specialty chemical products for customers in more than 100 countries. The company operates in four geographic regions: North America, Latin America, Europe and Asia Pacific. It has employees in 36 countries.

H.B. Fuller Surprised on the Third Quarter by 33.33%

On Sep 22, H.B. Fuller reported third-quarter results and easily beat the Zacks Consensus Estimate by 12 cents per share. Earnings per share were 48 cents compared to 44 cents in the year ago quarter. This surpassed the Zacks Consensus Estimate of 36 cents per share.

Revenues, however, fell 12.9% to $315.3 million from the third quarter of 2008 as weak end-market demand continued. The good news was that this was less of a decline than in the second quarter, when revenues fell 15.1% year over year.

Lower volumes and unfavorable foreign currency translation hurt growth but the company was able to sustain a higher average sales price. Acquisitions also impacted revenues positively in the quarter.

On a quarter over quarter basis, the company saw improvement. Revenues rose 5% on improved volumes and slightly lower raw material costs in the third quarter compared to the second.

Outlook

The company expects revenues to continue the quarter over quarter improvement that was seen in the second to third quarters. It expects net revenue to be $330 million in the quarter.

Analysts Are Bullish on 2009

The Zacks Consensus Estimates for the fourth quarter and the full year jumped after the better-than-expected third quarter report. Fourth-quarter estimates rose 5 cents to 41 cents over the last 30 days with 5 out of 6 covering analysts raising during that time.

The 2009 Zacks Consensus Estimate jumped 11.6% to $1.35 from $1.21 per share in the last month.

Value Fundamentals

H.B. Fuller is a Zacks #1 Rank (strong buy) stock. It is trading with a price-to-book of 1.54. The company has a strong 5-year average return on equity (ROE) of 11.12%.

As an added bonus, H.B. Fuller also pays a dividend, with a current yield of 1.40%.

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"We are pleased that this lawsuit has been settled and that this chapter is behind us," said Michele Volpi, president and chief executive officer. "Although this has proven to be a very challenging acquisition, we remain committed and focused on improving the performance of our Specialty Construction Brands business unit for the long term benefit of our shareholders."

About H.B. Fuller Company: H.B. Fuller Company is a leading worldwide manufacturer and marketer of adhesives, sealants, paints and other specialty chemical products, with fiscal 2008 net revenue of $1.4 billion. Its common stock is traded on the New York Stock Exchange under the symbol FUL. For more information, please visit the website at www.hbfuller.com.

Safe Harbor for Forward-Looking Statements: 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: the Company's ability to effectively integrate and operate acquired businesses; political and economic conditions; product demand; competitive products and pricing; costs of and savings from restructuring initiatives; geographic and 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; the impact of litigation and environmental matters; the effect of new accounting pronouncements and accounting charges and credits; and similar matters. Further information about the various risks and uncertainties can be found in the Company's SEC 10-Q filings of April 3, 2009 and July 1, 2009 and 10-K filing of January 28, 2009. 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 make it difficult to determine with certainty the increases or decreases in net revenue 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.

SOURCE: H.B. Fuller Company

H.B. Fuller Company 
Investor Relations: 
Steven Brazones, 651-236-5158 
or 
Public Relations: 
Keralyn Groff, 651-236-5104

SOURCE: H.B. Fuller Company

H.B. Fuller Company 
Investor Relations: 
Steven Brazones, 651-236-5158

About H.B. Fuller Company:

H.B. Fuller Company is a leading worldwide manufacturer and marketer of adhesives, sealants, paints and other specialty chemical products, with fiscal 2008 net revenue of $1.4 billion. Its common stock is traded on the New York Stock Exchange under the symbol FUL. For more information, please visit the website at www.hbfuller.com.

SOURCE: H.B. Fuller Company

H.B. Fuller Company 
Steven Brazones, 651-236-5158 
Assistant Treasurer