H.B. Fuller Q3 Profit Down 66%, But Beats View; Lifts Low End Of 2013 Outlook

(RTTNews) - Paint and adhesive maker H.B. Fuller Co. (FUL) on Wednesday reported a 66 percent decline in profit for the third quarter as higher revenues and margins were more than offset by one-time charges.

However, adjusted earnings per share beat analysts' expectations, while revenues slightly missed their estimates. Looking ahead to fiscal 2013, the company raised the lower end of its earnings outlook for fiscal 2013.

The St. Paul, Minnesota-based company's net income for the third quarter to $28.27 million or $0.55 per share, down from $83.27 million or $1.64 per share in the year-ago period.

The latest quarter's results include special charges of $12.78 million related to the acquisition of the Forbo adhesives business, while the year-ago period included special charges of $4.65 million in the previous-year quarter.

Adjusted earnings from continuing operations were $0.74, compared to $0.53 per share in the same period last year. On average, seven analysts polled by Thomson Reuters expected the company to earn $0.67 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter grew 3 percent to $514.58 million from $500.54 million in the year-ago period. Analysts had a consensus revenue estimate of $508.84 million.

Higher volume, higher average selling prices and positive foreign currency translation had a positive impact on revenue growth. Organic revenue grew by 1.5 percent year-over-year.

Gross margins, or gross profit as a percent of revenues, for the quarter climbed to 28.1 percent from 26.8 percent last year.

Looking ahead to the fourth quarter, H.B. Fuller forecasts earnings in a range of $0.70 to $0.75 per share. Analysts expect the company to report earnings of $0.74 per share for the fourth quarter.

For fiscal year 2013, the company now forecasts earnings in a range of $2.60 to $2.65 per share, compared to the prior range of $2.55 to $2.65 per share. Analysts expect earnings of $2.56 per share for the year.

FUL closed Tuesday's trading at $40.42, down $0.19 or 0.47 percent on a volume of 546,594 shares.