H.B. Fuller Announces Additional Actions Toward Strategic Objective to Improve Operational Efficiency
20 Julho 2023 - 6:15PM
Business Wire
Beardow Adams Acquisition Catalyzes
Additional Network Optimization Opportunities
H.B. Fuller Company (NYSE: FUL) today announced that it was
implementing an additional strategic restructuring to expedite the
integration of recently acquired businesses and drive overall
operational improvements.
The restructuring actions, prompted by the recent acquisition of
Beardow Adams, will accelerate profitable growth in many of our
core end markets, while streamlining operations and enhancing
customer service. As part of our standard acquisition integration
process, and in conjunction with ongoing efforts to review our
manufacturing footprint, several opportunities were identified to
further optimize our global manufacturing and supply chain
operations. This will result in the closure of three manufacturing
facilities and the redistribution of production across the network
to improve overall efficiency.
“We are executing our strategic plan to improve our business
model, our portfolio, and our customer experience, augmented by our
position as the acquirer of choice in the adhesives industry,” said
Celeste Mastin, president and CEO. “Acquisitions enable us to
expand our market share and network, bring in new talent and
technology, and provide a new framework from which to optimize
production efficiency.”
These actions will be initiated in the third quarter of fiscal
year 2023 and are expected to be completed in fiscal year 2026.
Restructuring costs of approximately $20 million (pre-tax) will be
spread across the next several fiscal quarters as these measures
are implemented. Once completed, this restructuring is expected to
result in on-going annualized cost savings of approximately $20
million (pre-tax). The majority of the restructuring charges and
cost savings are expected to be recognized in fiscal year 2024.
About H.B. Fuller Since 1887, H.B. Fuller has been a
leading global adhesives provider focusing on perfecting adhesives
and sealants to improve products and lives. With fiscal 2022 net
revenue of $3.75 billion, H.B. Fuller’s commitment to innovation
and sustainable adhesive solutions brings together people, products
and processes that answer and solve some of the world's biggest
challenges. Our reliable, responsive service creates lasting,
rewarding connections with customers in electronics, disposable
hygiene, medical, transportation, aerospace, clean energy,
packaging, construction, woodworking, general industries and other
consumer businesses. Our promise to our people connects them with
opportunities to innovate and thrive. For more information, visit
us at https://www.hbfuller.com.
Safe Harbor for Forward-Looking Statements Certain
statements in this press release may be considered forward-looking
statements within the meaning of the federal securities laws,
including Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended.
Such statements often address expected future business and
financial performance, financial condition, and other matters, and
often contain words or phrases such as “anticipate,” “believe,”
“estimate,” “expect,” “intend,” “may,” “opportunity,” “outlook,”
“plan,” “project,” “seek,” “should,” “strategy,” “target,” “will,”
“will be,” “will continue,” “will likely result,” “would” and
similar expressions, and variations or negatives of these words or
phrases. These statements are subject to various risks and
uncertainties that could cause our actual results to differ
materially from those in the forward-looking statements, including
but not limited to the following: the consequences of the COVID-19
outbreak and other pandemics on our operations and financial
results; the impact on the supply chain, raw material costs and
pricing of our products due to the Russia-Ukraine war; the impact
on our margins and product demand due to inflationary pressures;
the substantial amount of debt we have incurred to finance our
acquisition of Royal, our ability to repay or refinance our debt or
to incur additional debt in the future, our need for a significant
amount of cash to service and repay the debt and to pay dividends
on our common stock, the effect of debt covenants that limit the
discretion of management in operating the business or in paying
dividends; our ability to pay dividends and to pursue growth
opportunities if we continue to pay dividends according to the
current dividend policy; our ability to achieve expected synergies,
cost savings and operating efficiencies from our restructuring
initiatives and operational improvement projects within the
expected time frames or at all; our ability to effectively
implement Project ONE; uncertain political and economic conditions;
fluctuations in product demand; competing products and pricing; our
geographic and product mix; availability and price of raw
materials; disruptions to our relationships with our major
customers and suppliers; failures in our information technology
systems; regulatory compliance across our global footprint; trade
policies and economic sanctions impacting our markets; changes in
tax laws and tariffs; devaluations and other foreign exchange rate
fluctuations; the impact of litigation and investigations,
including for product liability and environmental matters;
impairment charges on our goodwill or long-lived assets; the effect
of new accounting pronouncements and accounting charges and
credits; and similar matters.
Additional information about these various risks and
uncertainties can be found in the “Risk Factors” section of our
Form 10-K filings, and any updates to the risk factors in our Form
10-Q and 8-K filings with the SEC, but there may be other risks and
uncertainties that we are unable to identify at this time or that
we do not currently expect to have a material impact on the
business. You should not place undue reliance on forward-looking
statements, which speak only as of the date they are made. We do
not undertake to update or revise any forward-looking statements,
except as required by law.
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