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The St. Paul, Minnesota-based company reported net income for the second quarter of $17.6 million or $0.36 per share, compared to 21.4 million or $0.41 per share for the year-ago quarter.
The year-ago quarter results included two one-time charges totaling $0.03 per share in the company's North America segment.
On average, 7 analysts polled by Thomson Reuters expected the company to earn $0.25 per share for the second quarter. Analysts' estimates typically exclude special items.
Gross margin for the second quarter improved to 29.9% from 26.7% a year earlier mainly due to lower raw material costs.
Net revenue for the second quarter fell 16% to $299.19 million from $356.77 million in the same quarter last year. Four analysts had a consensus revenue estimate of $304.35 million for the second quarter.
The company noted that higher average selling prices and acquisitions positively impacted net revenue growth by 5.0 and 0.6 percentage points, respectively, while lower volume and unfavorable foreign currency translation adversely impacted net revenue growth by 15.1 and 6.6 percentage points, respectively.
HB Fuller said the global economic recession continued to negatively impact the its financial performance compared to the prior year.
Michele Volpi, H.B. Fuller president and chief executive officer, said, "Our efforts to maintain pricing discipline in this environment while continuing to add value to our customers, together with the success we realized in managing our raw material costs and driving efficiencies in our plants, helped us to mitigate the impact of sharply lower end-market demand."
For the first six months of its fiscal year, the company reported net income of $23.7 million or $0.48 per share, compared to $39.6 million or $0.72 per share for the same period last year.
Net Revenue for the first-half fell 15% to $577.76 million from $679.41 million in the prior year period.
Looking forward, the company said it continues to expect its full year net revenue to decline 10% to 12%. With the company's fiscal 2008 revenue of $1.39 billion, 10% to 12% decline implies fiscal 2009 revenue of $1.22 billion to $1.25 billion. Analysts currently expect the company to post revenue of $1.27 billion.
Volpi noted that the outlook is based upon the company's expectation for a gradual improvement in the second half of the year resulting from both an end to the inventory de-stocking cycle and the benefit of new business already landed with key customers.
HB Fuller shares, which have traded in a range of $9.70 to $27.84 over the past year, closed Tuesday's regular trading session at $16.70, down 6 cents.
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