HB Fuller 1Q Earnings Up 36%

St. Paul, MN, March 29, 2007--HB Fuller said cost controls and higher prices in the first quarter boosted its earnings 36 percent, despite end-market slowdowns.

Earnings rose to $20.8 million, or 34 cents per share, in the 13 week period ended March 3, from $15.3 million, or 26 cents per share, in the year-ago quarter.

Income from continuing operations totaled 34 cents per share, which beat analyst expectations for earnings of 29 cents per share, according to a Thomson Financial poll.

Sales rose 5.6 percent to $351.8 million from $333 million in the 2006 quarter, boosted in part by acquisitions and divestitures and foreign currency translations. Analysts were looking for higher sales of $358.5 million.

Average selling price rose, while volume declined due to weakness in the automotive, new housing, and durable goods end markets in North America, the company said.

"We believe successful prices increases and Fuller's effort to reposition its portfolio toward higher-margin products has also affected volume trends," said JPMorgan Securities Inc. analyst Jeffrey J. Zekauskas in a client note.

HB Fuller lifted its forecast for annual earnings per share from continuing operations to a range between $1.65 and $1.75, from a prior range between $1.58 and $1.68. Wall Street is looking for earnings of $1.64 per share, on average.