HB Fuller Co (NYSE:FUL) reported weaker-than-expected results for its fourth quarter on Wednesday.
The company based in St. Paul, Minn., said higher full year 2019 operating cash flow of $269 million enabled debt pay down of $268 million, exceeding the company's initial 2019 paydown target of $200 million by 34%, and also exceeding its updated outlook of $260 million.
Net income was $32 million or $0.61 of earnings per diluted share (EPS). Adjusted net income was $46 million, or $0.88 adjusted EPS. Net revenue of $739 million decreased 3.8% compared with the fourth quarter of 2018.
Gross profit margin was 27.2%. Adjusted gross profit margin of 27.6% was down 20 basis points versus last year, driven by lower revenues and temporary higher manufacturing and inventory write off costs at certain former Royal Adhesives factories in the quarter.
Net revenue for fiscal 2019 of $2,897 million decreased 4.7% compared with fiscal 2018. Gross profit margin was 27.9%. Adjusted gross profit margin of 28.1%4 increased 50 basis points versus last year on lower raw material cost, favorable pricing and cost synergies
At the end of the fourth quarter, FUL had cash on hand of $112 million and total debt equal to $1,979 million. This compares to cash and debt levels equal to $151 million and $2,248 million, respectively, at the end of the fourth quarter of 2018
Shares opened Thursday removed 12 cents to $49.13.
