HB Fuller (FUL) Beats Expectations for Q2

HB Fuller Co (NYSE:FUL) has been around for more than a century. It started its operations in 1887 by selling Fuller’s Premium Liquid Fish Glue for cementing a range of objects. Its first product gained popularity in a short span of time, which encouraged the company to introduce more adhesives. Over the years, HB Fuller grew to become a leading player in the adhesives market, not just in the U.S. but in several countries across the globe.

The Minnesota-based adhesives manufacturer recently announced better-than-expected financial results for the second quarter. HB Fuller reported earnings of 90 cents per share for the three months ended May 29, up from 61 cents per share in the comparable period of 2020. The company earned 94 cents per share on an adjusted basis, ahead of analysts’ average estimate of 92 cents per share.

Revenue for the quarter rose 22.7 percent to $828 million, easily beating the consensus forecast of $764.4 million. The strong quarterly performance was mainly driven by restructuring efficiencies and better industrial demand.

Commenting on the results, CEO Jim Owens said in a statement, “Despite considerable raw material and packaging shortages, H.B. Fuller was able to meet a sizeable increase in demand by leveraging our extensive global network and partnering with customers and suppliers. Raw material costs increased substantially in the second quarter, exacerbated by shortages and impacts from Storm Uri earlier this year. We have implemented significant price adjustments and delivered efficiencies through our streamlined global business unit structure and operational excellence programs. These actions are enabling us to seamlessly serve our customers, achieve our profit targets, and increase our debt paydown over last year’s level, in line with our target for $200 million of debt reduction in 2021.”

Suggested Article: 20 Best Airlines in the World