H.B. Fuller Co. recently announced financial results for the first quarter that ended March 3. Net revenue grew 42% in the first quarter of 2018 vs. the first quarter of 2017, reportedly driven by the addition of the Royal business. Net income for the first quarter of 2018 was $47.7 million, compared to net income of $14.8 million in last year’s first quarter.
Net revenue for the first quarter of 2018 was $713.1 million, up 41.7% vs. the first quarter of 2017. Higher volume, customer price, mix, foreign currency translation and acquisitions were all reportedly positive contributors to net revenue growth.
“Our year started with strong momentum and we followed through on our commitment to deliver solid EBITDA (earnings before interest, taxes, depreciation and amortization) during the first quarter while integrating Royal into our business segments,” said Jim Owens, H.B. Fuller president and CEO. “Our engineering adhesives segment continues to show double digit growth and the Americas and EIMEA segments both grew organically above our long-term targets. Pricing improved and will become a strong contributor to our margin improvement as we move through the fiscal year. Raw material savings from the Royal integration showed benefits late in the first quarter and we are on track to deliver $15 million in synergy savings this year. Our plans to deliver $465 million in EBITDA this year and $600 million in EBITDA by 2020 remain on track. We expect free cash flow generation of $200 million and a reduction in debt of $170 million in 2018.”
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