St. Paul MN, September 14--H.B. Fuller Co. said that net income for the third quarter ended August 28, 2004 is expected to be $0.32 to $0.34 per share (diluted).
The primary reasons for the reduced net income compared to the third quarter of 2003 are the rate of rapidly rising raw material costs exceeding selling price increases, higher than expected operating expenses for bad debt and legal settlements, partially offset by a favorable tax settlement.
The fourth quarter's net income is expected to see improvement over that of the previous year's fourth quarter, as selling price increases implemented earlier begin to be realized.
Due to the third quarter results and the continuing volatility of raw material pricing and supply, full year net income for fiscal year 2004 is expected to be lower than the original guidance given earlier this year.
H.B. Fuller Company is a worldwide manufacturer and marketer of adhesives, sealants, coatings, paints and other specialty chemical products, with fiscal 2003 net sales of $1,287 million.
