H.B. Fuller Company has recently released its 10-Q report, revealing key financial and operational insights. The company, headquartered in Saint Paul, Minnesota, specializes in formulating, manufacturing, and marketing adhesives, sealants, coatings, polymers, tapes, and other specialty chemical products. Operating through three segments * Hygiene, Health and Consumable Adhesives; Engineering Adhesives; and Construction Adhesives * H.B. Fuller caters to various markets globally, including packaging, nonwoven and hygiene, aerospace and defense, and consumer markets.
In the second quarter of 2024, H.B. Fuller reported a 2.1% increase in net revenue compared to the same period in 2023. This growth was attributed to a 3.9% increase due to acquisitions and a 3.3% increase due to sales volume, partially offset by a 3.4% decrease in pricing and a 1.7% decrease due to negative currency effects. The company's gross profit margin increased by 220 basis points primarily due to lower raw material costs and higher sales volume.
For the first six months of 2024, net revenue increased by 1.2% compared to the same period in 2023, driven by a 4.4% increase due to acquisitions and a 1.4% increase due to sales volume, partially offset by a 3.4% decrease in pricing and a 1.2% decrease due to negative currency effects. The gross profit margin increased by 260 basis points primarily due to lower raw material costs.
Net income attributable to H.B. Fuller in the second quarter of 2024 was $51.3 million, a significant increase from $40.4 million in the second quarter of 2023. Diluted earnings per share for the second quarter of 2024 was $0.91 per share compared to $0.73 per share for the second quarter of 2023. For the first six months of 2024, net income attributable to H.B. Fuller was $82.3 million, up from $62.3 million in the first six months of 2023. Diluted earnings per share for the first six months of 2024 was $1.45 per share compared to $1.12 per share for the first six months of 2023.
H.B. Fuller also outlined restructuring plans related to organizational changes and other actions to optimize operations and integrate acquired businesses. The company expects to incur costs of approximately $39.1 million to $44.1 million for these plans, with the majority of the charges recognized and cash payments occurring in fiscal 2023 and 2024.
The company's operating segments, including Hygiene, Health and Consumable Adhesives, Engineering Adhesives, and Construction Adhesives, were also detailed in the report, providing a comprehensive overview of their individual performances and contributions to H.B. Fuller's overall results. Today the company's shares have moved -0.4% to a price of $75.97. For the full picture, make sure to review H.B. Fuller's 10-Q report.
