H.B. Fuller Q3 2020 Earnings Report
Key Takeaways
H.B. Fuller reported strong Q3 2020 results with net income of $42 million and adjusted EBITDA of $106 million, exceeding guidance. The company saw continued share gains in Hygiene, Health and Consumable Adhesives and higher sequential revenues in Engineering and Construction Adhesives. Debt paydown of $59 million exceeded target, and the company is on track for $200 million debt repayment in 2020.
Net income of $42 million and adjusted EBITDA of $106 million exceeded the company’s guidance.
Organic revenues declined by 2.5% compared with last year, ahead of the company’s expectations.
Debt paydown of $59 million exceeded the company’s $40 to $50 million targeted debt paydown for the quarter.
Delivered restructuring savings of $7 million in the quarter, with expected savings of approximately $30 million for fiscal year 2020.
H.B. Fuller
H.B. Fuller
H.B. Fuller Revenue by Segment
Forward Guidance
The company anticipates revenue in the fourth quarter to increase by 4% to 7% sequentially from the third quarter and be approximately flat to down 3% year over year. Adjusted EBITDA is anticipated to be approximately $110 million to $115 million, in line with the fourth quarter of 2019. Debt reduction of $200 million for the full year, consistent with our original 2020 plans.
Positive Outlook
- Revenue in the fourth quarter is anticipated to increase by 4% to 7% sequentially from the third quarter.
- Adjusted EBITDA is anticipated to be approximately $110 million to $115 million.
- Adjusted EBITDA is expected to be in line with the fourth quarter of 2019.
- Debt reduction of $200 million for the full year is expected.
- Debt reduction is consistent with original 2020 plans.
Challenges Ahead
- The extent of COVID-19’s impact on global economic factors remains uncertain.
- Revenue in the fourth quarter is anticipated to be approximately flat to down 3% year over year.
- Guidance is based on current economic projections, order patterns and assumptions for global commercial activity.
- Global economic factors may worsen due to COVID-19
- Future performance is subject to various risks and uncertainties.