SPX5,074.08-322.44 -5.97%
DIA383.22-22.00 -5.43%
IXIC15,587.79-962.82 -5.82%

Based on the provided financial report articles, the title of the article is: "Fuller H B Co. 10-Q for the quarterly period ended March 31, 2025" This title indicates that the article is a quarterly report (10-Q) filed by Fuller H B Co. with the Securities and Exchange Commission (SEC) for the period ended March 31, 2025.

Press release·03/27/2025 20:11:47
Listen to the news
Based on the provided financial report articles, the title of the article is: "Fuller H B Co. 10-Q for the quarterly period ended March 31, 2025" This title indicates that the article is a quarterly report (10-Q) filed by Fuller H B Co. with the Securities and Exchange Commission (SEC) for the period ended March 31, 2025.

Based on the provided financial report articles, the title of the article is: "Fuller H B Co. 10-Q for the quarterly period ended March 31, 2025" This title indicates that the article is a quarterly report (10-Q) filed by Fuller H B Co. with the Securities and Exchange Commission (SEC) for the period ended March 31, 2025.

Fuller H B Co reported its financial results for the first quarter of 2025, with net sales of $10.22 billion, a decrease of 1.4% compared to the same period last year. The company reported a net loss of $54.19 million, compared to a net income of $54.66 million in the same period last year. Gross profit decreased by 2.2% to $7.13 billion, while operating expenses increased by 4.4% to $7.45 billion. The company reported a net loss per share of $0.33, compared to a net income per share of $0.34 in the same period last year. As of March 31, 2025, the company had cash and cash equivalents of $307.17 million, and total debt of $160 million. The company also reported that it had reclassified certain amounts from accumulated other comprehensive loss into earnings, and that it had not provided for income taxes on foreign currency translation relating to indefinite investments in international subsidiaries.

Overview

H.B. Fuller, a leading global adhesives provider, reported a decrease in net revenue of 2.7% in the first quarter of 2025 compared to the same period in 2024. This was primarily due to a negative currency effect of 3.4%, partially offset by organic growth of 1.9% from increased sales volume and pricing. Gross profit margin decreased by 70 basis points, mainly due to higher raw material and manufacturing costs.

Net income attributable to H.B. Fuller was $13.2 million in the first quarter of 2025, down 57.4% from $31.0 million in the first quarter of 2024. Diluted earnings per share decreased from $0.55 to $0.24 over the same period.

Restructuring Plans

The company approved restructuring plans in 2023 related to organizational changes and operational optimization, with expected total costs of $60-65 million. As of March 1, 2025, the company has incurred $61.7 million in restructuring costs.

Segment Performance

  • Hygiene, Health and Consumable Adhesives: Net revenue was flat, but segment operating income decreased 36.9% due to higher raw material, manufacturing, and SG&A costs.
  • Engineering Adhesives: Net revenue increased 4.7%, with segment operating income up 8.5%, driven by acquisitions.
  • Building Adhesive Solutions: Net revenue increased 2.2%, but segment operating income decreased 8.3% due to higher SG&A expenses.
  • Corporate Unallocated: Segment operating loss increased 34.1% due to the inclusion of the divested North American Flooring business.

Financial Condition and Liquidity

  • Cash and cash equivalents were $105.7 million as of March 1, 2025, down from $169.4 million at the end of fiscal 2024.
  • Total debt was $2,180.0 million, up from $2,010.6 million at the end of fiscal 2024.
  • The company remains in compliance with its debt covenants and believes it has sufficient liquidity and access to financing to meet its needs.

Outlook

H.B. Fuller continues to face headwinds from higher raw material and manufacturing costs, as well as unfavorable currency effects. The company’s restructuring efforts are ongoing, and it is focused on optimizing operations and integrating recent acquisitions to drive future profitability. Overall, the company’s financial position remains stable, but it will need to navigate the challenging market environment in the coming quarters.