HB Fuller to carry out restructuring to further its 2020 strategic vision

The restructure will include the elimination or relocation of approximately 220 positions globally by early 2017, across various businesses and functions at the company, along with other product line and operations enhancements and efficiencies. HB Fuller said the changes will allow the company to operate more effectively and efficiently, while proactively responding to end-market and global industry dynamics, such as global prices for petrochemicals and a significantly stronger US dollar.

These actions, in addition to other initiatives the company will be undertaking to optimize its operations, product lines and business portfolios, will result in restructuring charges of 17-20 million USD (13-16 million USD after-tax) during the 2017 fiscal year. The company expects the program to deliver approximately 18 million USD in annual savings, a portion of which will be realized in 2017. The company plans to provide further financial details concerning the 2016 fiscal year and 2017 guidance during its regularly scheduled conference call in mid-January.

Jim Owens, HB Fuller president and CEO, said: ‘Our results over the past five years demonstrate the strength of our long-term growth strategy and the commitment of our employees to the company’s success. Over the past five years, we have transformed our market focus, innovation portfolio and manufacturing capabilities to deliver value for customers, shareholders and employees.

‘As we continue to shift our product portfolio to a richer mix of higher growth, higher profitability adhesive market segments, we need to ensure our resources align with our vision. The proactive changes we are announcing will allow us to invest in the highest opportunity areas within our portfolio and become more agile as we support our customers’ success and deliver our 2020 plan.’

The new organizational structure is based on a thorough analysis of the company’s operations and 2020 strategic vision, and is subject to Works Council and/or trade union consultations and other legal requirements.

Owens added: ‘The changes we are announcing will be difficult for those affected, and we will treat each person with the respect they deserve and will help them move forward. Our values and commitment to “winning the right way” will guide our actions.’