As second-quarter sales rose 43 percent, the Vadnais Heights adhesives maker raised its profit outlook for the fiscal year.
Shares of adhesives manufacturer H.B. Fuller Co. jumped 8 percent Tuesday after the company posted strong second-quarter earnings that beat Wall Street's expectations.
Sales at the Vadnais Heights-based company rose 43 percent to $527 million for the three-month period ended June 2. Revenue was boosted by higher average selling prices and the company's recent acquisition of Swiss adhesives manufacturer Forbo.
Earnings per share of 62 cents, adjusted for the Forbo acquisition and other changes, came in ahead of the consensus analysts' estimate of 55 cents, as compiled by Bloomberg.
The company's net income was $1.9 million, compared with $25.1 million a year ago.
"By all measures, in the quarter and long-term strategically, we delivered an outstanding quarter," CEO Jim Owens said on a conference call with investors.
H.B. Fuller is restructuring its business, which it believes will improve profits. It plans to close facilities in North America and Europe, reduce its global workforce and upgrade production equipment.
The company raised its earnings estimates to $2.10 to $2.15 per share for the 2012 fiscal year. Previously, the company expected earnings to be in the $1.94 to $2.14 a share range.
Michael Sison, an analyst with KeyBanc Capital Markets who recommends the stock, said the solid earnings results confirm H.B. Fuller's "transformation into a more consistent growth and higher quality specialty chemical" firm.
"[The] company is unfolding as expected as momentum gains from ongoing restructuring actions and Forbo integration initiatives," Sison said in a note to investors.
Shares closed at $31.06 on Tuesday.
Staff writer James Walsh contributed to this report. Wendy Lee 612-673-1712