H.B. Fuller Implements Surcharge to Recover Significant Cost Increases in Raw Materials and Related Services

Rhea-AI Summary

H.B. Fuller (NYSE: FUL) announced an 11% surcharge on product shipments globally, effective September 1, 2021, due to substantial cost increases in chemical feedstocks, logistics, and packaging. This surcharge will be integrated into existing pricing by December 1, 2021. The company cited ongoing supply shortages and inflationary pressures as primary causes for this decision, which aims to ensure continued customer service amidst escalating operational costs.

Positive

• H.B. Fuller is responding proactively to rising costs to maintain service quality.
• The company has secured materials essential for producing a wide range of products.

Negative

• The need for a surcharge indicates significant cost pressures that could affect profitability.
• Pricing increases may impact customer relationships and sales volumes.

ST. PAUL, Minn.--(BUSINESS WIRE)-- H.B. Fuller (NYSE: FUL) announced today that it will implement an 11% surcharge on shipments of its products globally, effective September 1, 2021, in addition to other communicated price increases. The surcharge is expected to be permanently incorporated into existing pricing by December 1, 2021.

This pricing action is driven by continued short supply and significant cost escalation of certain chemical feedstocks and plastic and metal packaging that have resulted in unprecedented costs to serve customers. These increases have been followed by inflationary costs and short supply for logistics, freight, packaging, labor and many other items required to meet customer needs. H.B. Fuller, one of the world’s largest, global providers of adhesives and sealants, has done remarkable work in this unprecedented supply environment to secure materials and provide customers the essential adhesives they need to produce everything from electronics and solar panels to food packaging and personal hygiene products.

The speed and unrelenting continuation of inflationary pressures has resulted in the need for a surcharge, which will be implemented immediately.

About H.B. Fuller Company:

Since 1887, H.B. Fuller has been a leading global adhesives provider focusing on perfecting adhesives, sealants and other specialty chemical products to improve products and lives. With fiscal 2020 net revenue of $2.8 billion, H.B. Fuller’s commitment to innovation 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, health and beauty, transportation and infrastructure, aerospace, new energy, packaging, construction, woodworking, general industries and other consumer businesses. And, our promise to our people connects them with opportunities to innovate and thrive. For more information, visit us at hbfuller.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210830005197/en/

Barbara Doyle

Investor Relations

+1 651-236-5023

Kimberlee Sinclair

Corporate Communications

+1 612-845-5342

Source: H.B. Fuller

FAQ

What is the reason for H.B. Fuller's surcharge on shipments?

H.B. Fuller implemented an 11% surcharge due to significant cost escalation in chemical feedstocks, packaging, and logistics.

When will the surcharge by H.B. Fuller take effect?

The surcharge will take effect on September 1, 2021.

How long will the surcharge last for H.B. Fuller products?

The surcharge is expected to be permanently incorporated into pricing by December 1, 2021.

What products does H.B. Fuller provide that are affected by the surcharge?

The surcharge affects adhesives and sealants used in various industries, including electronics and packaging.