$12 million in first quarter
Net income for H.B. Fuller’s first quarter of 2009 was $6.1 million, down from $18.2 million in last year’s first quarter. This represents a loss of $12.1 million. Net revenue for the first quarter of 2009 was $278.6 million, down 13.7% versus the first quarter of 2008.
The decline in first quarter 2009 net income was primarily the result of the sharp contraction in global demand associated with the financial market disruption in late 2008. In addition, gross margin was lower in the first quarter of 2009 reflecting the residual negative impact of raw material cost increases that accelerated through 2008, according to the company.
“All factors considered, we had a respectable first quarter of 2009. While volume was down 15% from last year, this result was expected given the difficult end market conditions. On the positive side, raw material costs are coming down, partially restoring our gross margin to an appropriate level,” said Michele Volpi, president and CEO.