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H.B. Fuller Q2 net income $32 million

Christian Fernsby |
H.B. Fuller Company reported financial results for its second quarter ended May 30, 2020.

Topics: H.B. FULLER   

Items of note

Strong operational performance with net income of $32 million and adjusted EBITDA of $101 million, which exceeded the company's guidance, driven by solid organic sales results, benefits from restructuring efficiencies, and lower raw material costs.

Total organic revenues declined by 7% compared with last year, reflecting the company's broadly diversified customer base and end markets.

7% organic growth in Hygiene, Health and Consumable Adhesives (HHC) revenues, driven by double-digit growth in adhesives for essential goods and packaging.

Greater China organic revenues increased approximately 1% versus the same period last year as a result of China's ongoing recovery from coronavirus.

Year-to-date cash flow from operations increased by 40% versus the same period in 2019, driven by working capital reductions.

Debt paydown of $45 million in the quarter exceeded the amount repaid in the second quarter of last year.

The company remains on track to achieve $200 million debt repayment target for 2020.

During the quarter, the company increased its dividend payout for the 51st consecutive year.

Restructuring savings were $7 million in the quarter.

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