H.B. Fuller Q2 Profit Meets Estimate; Cuts FY14 EPS Outlook

(RTTNews) - H.B. Fuller Company (FUL) reported net income for the second quarter of $20.5 million or $0.40 per share, compared to $25.9 million or $0.51 per share for the year-ago quarter.

Excluding items, adjusted earnings per share in the second quarter were $0.78, compared to prior year's $0.67.

Net revenue for the second quarter rose 4.8% to $544.03 million from $519.02 million a year ago.

Analysts polled by Thomson Reuters expected the company to earn $0.78 per share on revenue of $545.18 million for the second quarter. Analysts' estimates typically exclude special items.

The company lowered its full year earnings per share guidance to a range of $2.80 to $2.95 from its previous guidance of $3.00 to $3.15, mainly reflecting the expected delay in realizing margin improvement following the completion of the company's business integration project in Europe. Analysts currently expect the company to earn $3.07 per share for the fiscla year 2014.

Separately, H.B. Fuller said that it has signed an agreement to buy Tonsan Adhesive, Inc.

With the acquisition, H.B. Fuller will add strong customer relationships in high-value, fast-growing engineering adhesives markets, state-of-the-art manufacturing facilities, and strong product and technology development capabilities. Tonsan's current annual revenue is about $100 million.

H.B. Fuller will acquire 95% of the equity of Tonsan for cash consideration of Rmb 1.4 billion, or about $230 million. The four founding shareholders of Tonsan will remain with the company as a part of the leadership team and retain a minority equity interest.

The deal is expected to close in the fourth quarter of this year.