ST. PAUL, Minn.—H.B. Fuller Co. reported a decrease of net income and net revenue for the first quarter of fiscal 2015.
Net income was $9.7 million, down from $14.6 million from the first quarter of 2014. Net revenue was $470.7 million, a 3.2 percent drop from $486 in the first quarter of 2014. The company said that foreign currency rates impacted growth in net revenue by 4.6 percentage points.
The company said its constant currency revenue increased 1.4 percent compared to 2014, led by more than 20 percent growth in Construction Products.
H.B. Fuller, which completed its acquisition of the Tonsan adhesive business in China in early February, also said that its expenses in the quarter were down 2 percent from a year ago.
“Our Construction Products segment was very active finalizing the integration of the ProSpec acquisition that we completed last fall and preparing for the launch of a significant new volume of business with a key customer,” Jim Owens, H.B. Fuller president and CEO, said in a statement. “Clearly, the significant and broad-based strengthening of the U.S. dollar against most foreign currencies that continued through the first quarter had a negative impact on our business and lowered our reported financial results.
“We anticipate offsetting this impact by capitalizing on the opportunity for lower raw material costs in some product lines that has developed due to lower petrochemical costs and a more favorable supply and demand environment.”
H.B. Fuller is a global adhesives provider that serves the packaging, hygiene, general assembly, electronic and assembly materials, paper converting, woodworking, construction, automotive and consumer industries.