Coatings World - October 2011

H.B. Fuller reports third quarter results

H.B. Fuller Company reported financial results for the third quarter that ended August 27, 2011. Net income for the third quarter of 2011 was $23.2 million versus $19.0 million in last year’s third quarter.

Net revenue for the third quarter of 2011 was $387.8 million, up 14. 5 percent versus the third quarter of 2010. Higher average selling prices and favorable foreign currency translation positively impacted net revenue growth. Net income for the first nine months of 2011 was $62.7 million versus $48.9 million in the first nine months of last year. Net revenue for the first nine months of 2011 was $1,121.0 million, up 12. 6 percent versus the first nine months of 2010.

“We are pleased with our results for the third quarter and for the entire year thus far,” said Jim Owens, H. B. Fuller president and chief executive officer. “In the third quarter raw material inflation continued and end-market demand softened. In the face of these adverse conditions, we increased revenue, improved gross margin and reduced our operating expenses as a percentage of revenue. Despite continuing challenges in end-market conditions, we expect a strong fourth quarter built on further revenue growth and margin expansion.”

Valspar’s third quarter revenue surged while
bottom line slumped

The Valspar Corporation recently reported its results for the third-quarter ended July 29, 2011.

Third-quarter sales totaled $1.07 billion, a 22. 5 percent increase from the third quarter of 2010. However, net income for the quarter was $67.4 million, down from $75.1 million a year ago due mostly to increased raw material costs.

To counter higher costs, paint companies have been hiking prices. Valspar last raised prices in July.

Valspar is increasing its presence in the emerging markets. It opened around 100 new warrant stores in China during the quarter. Earlier this year, Valspar acquired a Brazil-based coatings company to strengthen its foothold in Latin America.

“We were pleased with our improved sales and earnings performance for the quarter,” said Gary Hendrickson, Valspar president and chief executive officer. “Double-digit top-line growth resulting from acquisitions, pricing and market share gains helped to mitigate the impact of higher raw material costs and a challenging demand environment.” CW

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