H.B. Fuller Company reported financial results for the second quarter that ended May 30, 2015. Income from continuing operations was $26.5 million, or $0.51 per diluted share.
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This compares to income from continuing operations of $20.6 million, or $0.40 per diluted share, in last year's second quarter.
Adjusted diluted earnings per share in the second quarter of 2015 were $0.631, down versus the prior year's adjusted result of $0.781.
The negative impacts of a stronger US dollar and a higher core tax rate were key drivers of the year-over-year decline in adjusted diluted EPS.
In the second quarter the company increased its expected full-year 2015 core tax rate due to a revised outlook for the geographic mix of our earnings. The increase in our expected core tax rate reduced adjusted EPS in the second quarter by $0.04 relative to the guidance the company provided last quarter.
Net revenue for the second quarter of 2015 was $540.8 million, down 0.6 percent versus the second quarter of 2014. Higher volume and higher average selling prices positively impacted net revenue growth by 5.5 and 0.9 percentage points, respectively.
Foreign currency translation negatively impacted net revenue growth by 7 percentage points. Constant currency revenue grew by 6.4 percent year-over-year.
Adjusted gross profit margin was up 100 basis points versus the prior year primarily as the result of raw material cost management. Adjusted SG&A expense3 was well controlled at 18.1 percent of adjusted net revenue.
Adjusted SG&A expense was up about 9 percent versus last year but, excluding the SG&A added by the Tonsan acquisition, adjusted SG&A expense was down 2 percent versus the same period last year.
Adjusted EBITDA in the second quarter was $73 million and 13.5 percent of adjusted net revenue4, up 430 basis points from the prior quarter, despite the negative impacts of a stronger U.S. dollar and lower than expected margins in the EIMEA operating segment. ■