H.B. Fuller to Discontinue Production of Polysulfide-Based
IG Sealant Product Line in Europe
April 27, 2010
H.B. Fuller Co. announced on April 26 that it will exit the polysulfide-based
insulating glass sealant product line in Europe by the end of calendar
year 2010. The company, which provides sealant solutions for the
residential insulating glass market in the United States and has
a presence in Asia, says the move will allow the company to "focus
on more innovative technologies."
In 2006 the company expanded into the European residential insulating
glass market by acquiring a polysulfide-based product line. In fiscal
year 2009, the company says this product line generated net revenue
of approximately $25 million.
The company says it will now focus on "more innovative technologies
for this market" and adds that polysulfide-based products are
difficult to differentiate and have essentially become commodity
products, leading to this decision.
According to a company press release, the change in Europe does
not affect the company's business in the United States or any other
region of the world.
HB Fuller says it will incur exit costs of approximately $2.2 million
($1.8 million after tax, or $0.04 per diluted share) and non-cash
impairment charges of about $9.2 million ($6.3 million after-tax,
or $0.13 per diluted share). These figures are estimates and will
be finalized in the next quarterly filing. The exit costs primarily
consist of severance and other related charges.
"This decision is consistent with our long-term strategic plan
and represents another step in our transformation toward a profitable
growth company that thrives around innovation, value-added solutions
and superior human capital," says Michele Volpi, H.B. Fuller
president and chief executive officer. "Exiting this business
will meaningfully enhance both our growth and profitability profile
in EIMEA and allow us to more effectively focus on our core market
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