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H.B. Fuller names new board chair as Mitau retires

Published 21/10/2024, 14:18
FUL
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ST. PAUL, Minn. - H.B. Fuller Company (NYSE: FUL), a global leader in industrial adhesives, announced that Teresa (Terry) J. Rasmussen will succeed Lee R. Mitau as Chair of the Board of Directors starting January 22, 2025. Mitau's retirement marks the end of a significant tenure with the company, during which H.B. Fuller has seen considerable growth.

Rasmussen, who joined the H.B. Fuller Board in 2020, brings a wealth of experience to her new role as Chair. Currently, she is the president and CEO of Thrivent, a Fortune 500 diversified financial services organization. Her background includes various leadership positions at American Express (NYSE:AXP) and a stint as a trial attorney with the United States Department of Justice.

The company's president and CEO, Celeste Mastin, expressed confidence in Rasmussen's ability to guide H.B. Fuller into new high-growth markets and achieve a 20% EBITDA margin business. Mastin also praised Mitau for his contributions, crediting his leadership with establishing H.B. Fuller as the world's largest pureplay adhesives company.

Rasmussen acknowledged the talent within H.B. Fuller and expressed eagerness to work closely with Mastin and the Board to continue the company's global success and innovation.

Mitau reflected on his time at H.B. Fuller, expressing gratitude for the opportunity to work with the leadership team and confidence in the company's ongoing growth strategy.

H.B. Fuller, founded in 1887, specializes in manufacturing adhesives, sealants, and other chemical products for various industries. With a global footprint, the company collaborates with customers in over 140 countries and reported 2023 revenues of $3.5 billion.

The transition of leadership comes as H.B. Fuller continues to focus on its strategic growth and market expansion. The information regarding this announcement is based on a press release statement.

In other recent news, H.B. Fuller, a global manufacturer of adhesives and sealants, reported modest organic sales growth and a volume increase in its third quarter of 2024. The company saw a 6% rise in adjusted EBITDA to $165 million and robust growth in its Construction Adhesives segment, despite challenges in the solar segment in China. The company also completed the acquisition of HS Butyl Limited, expecting annualized sales of about $23 million.

Following these developments, H.B. Fuller updated its full-year guidance, projecting more conservative growth and adjusted EPS figures. The revised 2024 guidance includes net revenue growth of approximately 2%, adjusted EBITDA between $610 million and $620 million, and adjusted diluted EPS projected to be between $4.10 and $4.20.

In addition to these financial updates, H.B. Fuller announced the retirement of Traci L. Jensen, the company's Executive Vice President and Chief Administrative Officer, effective November 30, 2024. The company indicated that an announcement regarding Jensen's successor would be made in the forthcoming months. These are recent developments in H.B. Fuller's operations and strategic direction.

InvestingPro Insights

As H.B. Fuller prepares for this significant leadership transition, InvestingPro data provides valuable context for investors. The company's market capitalization stands at $4.33 billion, reflecting its substantial presence in the industrial adhesives sector. Despite a slight revenue decline of 0.5% over the last twelve months, H.B. Fuller has maintained a solid financial position with a gross profit margin of 30.54% and an operating income margin of 11.98%.

InvestingPro Tips highlight H.B. Fuller's commitment to shareholder returns. The company has an impressive track record of raising its dividend for 32 consecutive years and has maintained dividend payments for 54 years straight. This consistency aligns with the company's long-term stability and growth strategy mentioned in the article. The current dividend yield is 1.12%, with a notable dividend growth of 8.54% over the last twelve months.

The company's P/E ratio of 23.82 suggests that investors are pricing in future growth expectations, possibly reflecting confidence in the incoming leadership and the company's strategic direction. This valuation metric becomes particularly relevant as H.B. Fuller aims to expand into new high-growth markets under Rasmussen's guidance as the new Chair.

For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights. Currently, there are 7 more InvestingPro Tips available for H.B. Fuller, providing a deeper understanding of the company's financial health and market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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