ST. PAUL, Minn., Sept. 21, 2011 /PRNewswire via COMTEX/ --

H.B. Fuller Company (NYSE: FUL) today reported financial results for the third quarter that ended August 27, 2011.

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Third Quarter 2011 Highlights Included:

• Net revenue increased 15 percent year-over-year;
• Gross profit margin improved 30 basis points sequentially and 50 basis points year-over-year in the face of significant continued raw material cost inflation;
• Selling, General and Administrative (SG&A) expense reduced by 120 basis points as a percent of net revenue year-over-year;

Third Quarter 2011 Results:

Net income for the third quarter of 2011 was $23.2 million, or $0.47 per diluted share, versus $19.0 million, or $0.38 per diluted share, in last years third quarter. Diluted earnings per share in the third quarter of 2011 increased 24 percent compared to the results of the prior year.

Net revenue for the third quarter of 2011 was $387.8 million, up 14.5 percent versus the third quarter of 2010. Higher average selling prices and favorable foreign currency translation positively impacted net revenue growth by 10.5 and 6.0 percentage points, respectively. Lower volume reduced net revenue growth by 2.0 percentage points. Organic revenue grew by 8.5 percent year-over-year. On a sequential basis, net revenue decreased approximately 2 percent relative to the second quarter of 2011, driven by softer end-market demand, especially in EIMEA.

Gross profit margin was up 50 basis points versus the third quarter of 2010, and 30 basis points versus the previous quarter reflecting the cumulative positive impact of pricing actions, product reformulations and substitutions over the past year. Relative to the prior year, SG&A expense was higher by 8.1 percent, driven in part by foreign currency translation, but was down 120 basis points as a percentage of net revenue. Operating incomeINSERT INTO [lzx].[dbo].[tb_new]([id],[type],[title],[source],[personal],[image],[contents],[time],[number]) VALUES (1) was $32.4 million, up 43 percent compared to the third quarter of 2010.

Balance Sheet and Cash Flow:

At the end of the third quarter of 2011, the Company had cash totaling $149 million and total debt of $238 million. This compares to second quarter levels of $138 million and $240 million, respectively. Net debt was $89 million at the end of the third quarter, down approximately $13 million from the previous quarter. Cash flow from operations was $28 million in the third quarter. Capital expenditures for the third quarter were $9.6 million.

Year-To-Date:

Net income for the first nine months of 2011 was $62.7 million, or $1.26 per diluted share, versus $48.9 million, or $0.99 per diluted share, in the first nine months of last year. Net income for