H.B. Fuller's Income Falls 66% in First Quarter

St. Paul, MN, April 1, 2009--Adhesives maker H.B. Fuller Co.'s first-quarter net income dropped 66% on lower sales and margins because of the global economic downturn.

The chemicals maker forecast fiscal-year revenue below analysts' estimates.

"All factors considered, we had a respectable first quarter of 2009," said Chief Executive Michele Volpi.

Volpi noted raw material costs are falling and the company cut expenses by 4% during the quarter.

Specialty-chemical companies have been struggling with lower demand and higher costs of raw materials. H.B. Fuller, which makes adhesive, sealant and paint products, has been raising prices to cover the higher costs.

For the quarter ended Feb. 28, the chemical-products company reported net income of $6.1 million, or $0.13 a share, down from $18.2 million, or $0.32 a share, a year earlier.

Revenue fell 14% to $278.6 million on a 15% drop in volume and the impact of foreign currency despite a 5.7% increase in average selling price and revenue from the acquisition of a business in Egypt.

H.B. Fuller expects fiscal-year revenue to fall 10% to 12%.

On Monday, H.B. Fuller said it agreed to acquire Nordic Adhesives, a developer and manufacturer of flexible packaging adhesives based in Germany.