H.B. Fuller (FUL) Reports Mixed Q2 Results; CEO Comments on 2H09 Outlook

June 23, 2009 5:18 PM EDT

H.B. Fuller Company (NYSE: FUL) reports Q2 EPS of $0.36, 11 cents better than the analyst estimate of $0.25. Revenue for the quarter was $299.2 million, versus the consensus of $304.35 million.

"We are pleased with our first half performance and grateful to our associates, especially in light of the external economic challenges we have faced. We expect these external challenges to persist through the remainder of our fiscal year and, therefore, we expect our net revenue to decline 10 to 12 percent for the full year, in-line with our prior guidance. This outlook is based upon our expectation for a gradual improvement in the second half of the year resulting from both an end to the inventory de-stocking cycle and the benefit of new business already landed with key customers," commented Michele Volpi, the company's President and CEO. "From a profitability perspective, we were able to restore our gross margin in the second quarter to a more appropriate level. For the second half of the year, we will strive to maintain our gross margin at this level while we invest in additional resources to accelerate growth and position ourselves for the long term."

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