H.B. Fuller to cut capacity 20% as fourth-quarter sales fall
Bloomberg News
Published Jan 15 2002
H.B. Fuller Co., which makes adhesives and sealants, said
Monday it will eliminate 20 percent of its production capacity
as fourth-quarter sales fell 11 percent from a year ago.
Net income for the quarter ended Dec. 1 fell 9.6 percent to
$12.9 million, or 46 cents a share, from $14.3 million, or 50
cents, a year ago, the company said in a news release. Sales fell
to $322.9 million from $364.2 million.
Fourth-quarter sales were hurt by a decline in demand from
the company's customers in the automotive and durable goods
industries, which have been cutting output in response to the
slumping economy, spokesman Scott Dvorak said. The
company won't disclose how many jobs will be affected until it
has informed its employees, he said.
Vadnais Heights-based Fuller hopes to save $10 million to $12
million a year by eliminating capacity in Europe, Latin
America and North America. It will record $30 million to $35
million in pretax costs related to the restructuring, $1.6 million
of which it posted in the fourth quarter.
Fuller shares fell $1.09 to $27.61. |
