H.B. Fuller Implements Additional Strategic Restructuring; Plans Closure Of Three Manufacturing Facilities And Redistribution Of Production
Portfolio Pulse from Benzinga Newsdesk
H.B. Fuller plans to close three manufacturing facilities and redistribute production as part of a strategic restructuring. The restructuring will begin in Q3 2023 and is expected to be completed by 2026. The restructuring costs are estimated at $20 million pre-tax, which will be spread across several fiscal quarters. The restructuring is expected to result in annualized cost savings of approximately $20 million pre-tax, with most charges and savings recognized in fiscal year 2024.
July 20, 2023 | 9:17 pm
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NEUTRAL IMPACT
H.B. Fuller's restructuring plan, including the closure of three manufacturing facilities, is expected to cost $20 million pre-tax and result in annualized savings of $20 million. The majority of the impact will be seen in fiscal year 2024.
The restructuring plan is a significant move for H.B. Fuller, which will likely have a neutral short-term impact on its stock. The costs and savings balance each other out, but the long-term benefits could be positive if the savings are realized as expected. The majority of the impact will be seen in fiscal year 2024, which is when most of the restructuring charges and cost savings are expected to be recognized.
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