HB Fuller Co (NYSE:FUL) reported better-than-expected results for its third quarter on Wednesday.
The St. Paul, Minn.-based company revealed net revenue of $691 million decreased 4.7% compared with the third quarter of 2019. Gross profit margin was 27.2%. Adjusted gross profit margin of 27.3% was down 150 basis points versus last year. The decline was due to lower revenues and unfavorable business mix related to impacts from COVID-19, partially offset by favorable raw material costs.
As a result of these factors, net income attributable to H.B. Fuller in the quarter was $42 million, or $0.79 per diluted share. Adjusted net income attributable to H.B. Fuller was $40 million, or $0.76 of adjusted EPS, down from $44 million , or $0.86 of adjusted EPS in the prior year. Adjusted EBITDA was $106 million in the quarter, compared with $116 million in the same period last year, and adjusted EBITDA margin was 15.3% versus 16% in the prior year.
According to CEO Jim Owens, "In the third quarter, we delivered higher-than-expected organic revenue performance by building on our market share gains in HHC, improving performance in Construction Adhesives and winning new business in Engineering Adhesives.
"We continued to realize operational cost efficiencies from our GBU re-alignment, reduce SG&A spending and bring down raw material costs, which drove EBITDA results that were also better than forecasted. Strong cash flow enabled us to exceed our debt paydown target in the quarter, keeping us on track for $200 million of total debt paydown for the year."
FUL shares acquired 55 cents, or 1.2%, to $46.68.
