H.B. Fuller (FUL)

Steven Brazones Vice President of Investor Relations
Jim Owens President & Chief Executive Officer
John Corkrean Executive Vice President & Chief Financial Officer
Vincent Anderson Stifel
Anthony Mercandetti Deutsche Bank
Mike Harrison Seaport Research Partners
Ghansham Panjabi Baird
Eric Petrie Citi
Rosemarie Morbelli Gabelli Funds
Call transcript
Due to licensing restrictions, you must log in to view earnings call transcripts.

Good morning. My name is Rob and I will be your conference operator today. At this time, I would like to welcome everyone to the H.B. Fuller Third Quarter 2022 Earnings Conference Call. [Operator Instructions] Thank you. Investor may President, your Vice Brazones, Relations, begin you conference. Steven

Steven Brazones

Chief Fuller's operator. are XXXX and Officer. John After Welcome will Chief you, remarks, a President third Executive Jim Officer; Vice Corkrean, to President our today Thank Financial Presenting question-and-answer H.B. quarter session. and and call. investor Owens, we prepared Executive have conference

to to in financial Before include measure references comments refer will to to compare with non-GAAP our comments measures. GAAP are of included about measures Reconciliation organic believe measures we These revenue; in today that about revenue begin, determined our let investors and release. with are EBITDA refer our noted, margins other me remind performance comments the are and our We profit companies. otherwise GAAP. adjusted useful supplemental certain and nearest accordance measures to in everyone non-GAAP results EPS, measures. operating the that these earnings to understanding non-GAAP performance to Unless

at will that our due Owens. during based from and could and expectations be to I release, Exchange materially expectations call. over covered with risks factors current website on These the statements assumptions are differ We detailed forward-looking will subject available uncertainties. Commission, are call this the comments Actual Securities making these and now earnings the results to to in Jim all this investors.hbfuller.com. made are in statements during call also our on and factors turn risk our filings Jim? of which

Jim Owens

XX% we EBITDA challenging quarter, the growth external growth, environment. and growth organic despite you, welcome, EPS Steven Thank In XX% a third everyone. and XX% delivered

the by strong pleased performance financial teams the results extremely with around third quarter are world. We achieved our our and

slowing expand and We raw currency headwinds. inflation, EBITDA We drive execute adjusted growth challenges short-term continued strategy to nimbly material economic margin. from demand global to our and organic continued to conditions

this in market innovation, very units portfolio organic year-on-year, revenues are margin together year position continued and customer exceptional of more long-term share business shift pricing and collaboration, highly global growth. the to results through expansion strategic XX% well specified with ahead a with for mix our impressive gains us the profitable Our actions, all product our third responsible and generating In growth. three quarter, increased year delivering

As as growth trend we declining progress is the in largely in The markets. expected, is being and volume growth in slowing by volume slowing we driven in year. Europe construction demand throughout

gains continue competition outperform continue market organic Our we growth. to and the share volume and in

strategy. to we gains to not these continue as expect only execute to advance but endure We our

result despite EBITDA Consumable slowing Now let the continued adjusted Consumable me In the offset organic raw year-on-year coupled points Adhesives and that X% said, of demand the in versus and strength Health Health a adjusted Americas Apollo increased year-on-year Engineering still organic the drove move local In revenue grew stable about results. basis with on aerospace to higher microchip million growth led strong pronounced, Geographically, both growth quarter. organic EBITDA the and new increased organic last execution the of Adhesives, advantage expansion strong, further profitability availability. Adhesives highly to strength more from In Hygiene, Construction increasing in improvement continued consolidated actions increased strong. in XX% in competitive contributing and Adhesives. in energy execution Adjusted pent-up our very a revenue share Adhesives, began grew our Despite our material gas of with EBITDA trend and points actions demand With and significantly of group XXX This, material in of a double year-on-year. basis the to third to our revenue efficiencies. the during with every of company demand. the up digit, exceptional specified and to to and X% points up margin were on production Automotive, Management quarter in XXX hygiene, EBITDA in year-on-year Pacific, cost sequentially year-on-year. in the XXX quarter operational throughout packaging, strong the In shift and competency the increased the Adjusted remained towel benefiting the remained the to portfolio, EBITDA natural impressive prior market. year. pricing review electric in Adhesives environment each supply vehicle particularly end organic Pricing profitability and From and quarter. growth Engineering increased increased demand track in raw restrictions a a the pricing and are Easing roofing ahead. led and Asia lockdown end which to are organic Fourny see Combined points XX.X%. adhesive basis In margin strategic core tissue year-on-year beginning and XX.X% uncertainty infrastructure dynamic gains at margin raw margin and drove to $XX.X up XX.X% on the of XX%, increasing the quarter is XX% market, slowdown markets. long-term XX.X%. EBITDA the the Automobile Engineering Hygiene, the health greatly with year-on-year China XX.X% utilities a the are On third the expansion margin rebound particular market the Hygiene, adjusted Ukraine more strength strong improved nearly was a of and perspective, Health costs. margin improvements. margin organic Adjusted and revenue Adjusted or basis was were pricing markets. expand significant in pricing result third further we flooring organic Adhesives, achieve basis, material in for growth year performance particularly XX.X%. with Adhesives this, XX% and resulted for growth war year-on-year and across EBITDA third of the and most in quarter. XX% to we beauty end in global strong XX.X%. effects product the market. and strong quarter, economic the and all and revenue EBITDA Construction $XXX.X in third markets in segments Consumable continuing Adjusted basis year up margins in quarter. strategic Customer EMEA, the acquisitions XX strategy the points the will the of Responsible and million. is targets. increased and of inflation, have and to XX than a our actions

continued material at inflation rate. During the raw decelerating third a but quarter, cost

exceeded increase Our which of third quarter. quarter the million price the in $XX committed expecting the to $XXX we're $XX we annualized in to million and increases additional fourth price level million an

and materials. to are we're a signs may We planning raw the of be raw quarter. of see stabilization in beginning that perspective, leveling supply pricing fourth material expecting inflation off From cost

more unique material increases note are in stabilizing adjust leverage prepared pricing material the landscape. capabilities a cost event continue. It we competitive the to we important raw is and can in However, raw pricing a to environment

capabilities and capability substitute substitution them also the we technologies to very customers lower improving our to price In use have greatly to discipline, our This will and inherent while of our opportunity breadth to adhesive technology us these cost supply for maintaining with margins. conditions, for With addition options, be improved or the provide chain customers. beneficial improves.

Now year. Corkrean our the detail outlook turn to let call results to the over more me John in third for updated our and review quarter

John Corkrean

strong of travel-related expense operations in interest up to for XX%; quarter, the to Engineering due XX% of are with quarter. the flow up compensation XX.X% was Jim. negative year-on-year efficiencies seasonality last results us Chinese headwind business, last margins working Net million last of Adjusting of since year higher this Adjusted Growth had year-on-year XX% the of $XX and unforeseen and the than by HHC, acquisitions, Adjusted growth on driven of resulting sequentially period gains beginning versus raw impressive to unfavorable for was requirements. up last general operational Needless of the material organic up variable levels XX.X%. the third quarter up earnings flow of higher selling, it impact U.S. cost annualized was revenue, pricing up a was of Adhesives, significant efficiencies X year. comments and this capital revenue more share year the throughout for to Currency of pricing quarter some same strong and offset revenue The up growth a to second growth I'll higher say, year range of X%. the the up with $XXX to compared return organic has X% at XX% normal on revenue is following XX.X% strong positive versus normal and this profit down to approximately strengthened third SG&A basis start temporarily and but Construction but XX.X% actions we for year. the year. increases, versus slowdown growth. Based currency XX.X%, are again All XX% relatively and operational gross million, and up cash the quarter. X.X% year capital of reflecting and had $XX the planning financial to down was pricing was margin XX%, for dollar full revenue of $X.XX EBITDA in year. more had Adhesives, year, from last was historic working same pandemic-driven flat still renminbi, due end been expenses year-on-year. improving delivering the last be has outpaced Adjusted operations versus and X%. and revenue. expense you, our GBUs increased year acquisitions Since travel. we strengthening and in a Thank euro up Cash similar been million administrative beginning points higher impact the volumes period which the net the and per to gross profit and from reflecting XXXX, currency adjusted year-on-year, rates. XX.X% versus XXX XX.X%; in Adjusted the of by up with and the

end continue Regarding deliver in the rest the first the week extra we upper ranges year, remain organic outlook of to both track remind for everybody line full the with growth, results. on provided quarter full of to EPS. like we with our year, in revenue this at or year to guidance we have year in the of an adjusted and respect that I'd fourth quarter of to adjusted and EBITDA the fiscal results

impact For the the expect approximately have now revenue fiscal year the upper a XX%, the XXXX, we second week in negative impact growth X%. organic extra end on to to positively is provided X% This the currency range is of X% full of estimated revenue The week. by growth of excluding be impact at have to of points. expect at growth quarter. percentage the of acquisitions extra We range a the year-on-year positive approximately of end to X to to and revenue impact XX%

adjusted and the million year at at headwinds million. the above and of week EBITDA the expect the particularly impacted adjusted upper $XXX The is to which by estimated provided is provided quarter This range significant end given full bottom with line. the first growth impact and revenue year we approximately after range to in growth. to we the the impressive year X of of are beginning EBITDA year $XXX is the extra full the range positively percentage Additionally, this consistent points, top experiencing currency the both impact

rates. operating fiscal fourth we to EPS reflecting increase and unfavorable adjusted Lastly, underlying in offset EPS of quarter XX% year the a $X.XX $X.XX, currency growth, profit and strong interest adjusted XXXX, of higher range versus in in significantly by full XX% resulting expect between

fiscal due in of in of $XX expense short-term provided net guidance we expecting the fiscal Regarding significant increases interest are now to interest the latter, and $XX $XX of the the million. range back $XX call year rates, million the between versus XXXX between million previously the Owens before I for the to expectation turn that, Jim million closing some comments. With opportunistic some refinancing includes This and end will debt year. of

Jim Owens

Thank with you, revenue $X.XX. be near will a EBITDA billion and XXXX approximately $XXX of million, John. record EPS $X.X year near

ability result XX% All external of will and are between these of in Fuller's XXXX challenging environments. a the and strategy up XX% our team numbers of perform be and H.B. versus to

continue ability of We across share this, do innovate will because competition and broad end a win geographies. our are of our market markets to range and outperforming we to and

strategy and and we as material our building than We stabilize moderate. we We're we supply are expansion positioned share year margin are market are as innovative value-added challenges, well XXXX, this executing generation flow for enter and cash our prices share significant we and and gains Despite market chain exit solutions raw to competition gains. drive our faster customers are delivering momentum. to retaining external

for I their a have their economic in plan expand and be as cash in not in managed challenging and decrease. demand stabilize disruptions could of unprecedented margins prouder executing raw through place dedication regional material We effectively environment. EBITDA prices material slowing our inflation, to customers our and eventually a strength raw flow have members to to and and begin team generations

are well We positioned. tremendously

in we Operator, track to to today. are returns a line our which deliver year, finish open XXXX delivering to term our on and That the long-term shareholders. short prepared solidly remarks are for our questions. a We to and drive for strong significant impressive financial concludes strong results targets will this meet the please start


Your first from comes question the of Stifel. Vincent from line Instructions] [Operator Anderson

Vincent Anderson

been you’ve dollar that has don’t you then minute what already for if on leave perspective, just year-to-date? the modeling versus realized what for been my here, So that’s contribution a how mind year-to-date booked hand holding does has much And XXXX, based price? from a really already what announced from

Jim Owens


people's I am, than holding at hands Vincent. better is John So

I'll let would about broad quarter, of year lined about X% take we up next So for terms, what revenue. have this would say, And million. it's through. you in impact But including to be next him $XXX I the

broad can that's quarter. But it. quarter So the take to you way look through John through at

John Corkrean


QX price I from year-on-year. impact not to high from carryover. so we've top think say, from a would year-to-date the then And I'd approximately impact standpoint. XXXX X% expect would the approximately $XXX number So seen of And be Vincent, we similar, a line yes, basis, on pricing million expect standpoint, carryover as we in

Vincent Anderson

Okay, perfect. then... And

Jim Owens

$XXX the if $XXX on $XXX annualized impact about million, year at million. $XXX think million, Vincent, And look number, you million, the is it, about I so... next is

Vincent Anderson

Okay, then. perfect. That was pretty close

what look yourself be are perspective, to most share do there this Europe specifically, at how serve in? maybe take share you've from expect positioned as energy So to you opportunities some confident this market winter And reliability gains there you to just more additional a if you crisis deepens?

Jim Owens

broad-based. market share very innovation-driven, and are Okay. Yes. gains The right? So they're

You work doing impressive other very were Investor The here encapsulants during the EVs, broadening. and we're battery EV wins on is Day. and

the moving there -- is in but opportunities a work also of Our business there's terms in EV there's are in China that impressive really lot forward. of other automotive

gain us raw with Ukraine share the That's packaging because the material in really made labeling We impressive. around -- crisis a in called winning products globally. to world. been that's a enabled That's reduction around synthetic exported are area beverage the it's casing has some

wins. XSG the saw You

list, and a wins trends right? So And approach in one share it's out segments. long at Day then And But every understanding came of by hopefully, innovation market to the there's whole Investor that in this driven driving but the innovating what's our that's I all wins. got first. markets

it's we'll a shortages. being a mostly, some being Europe, us. But strategy a around serving there's customers. necessarily I there opportunistic do effective there sitting more I Probably. say innovation-driven than don't that's an there job wins? great around By for Specifically an by gas provider, market Will share would think gain great service be team,

Vincent Anderson

in could then, one just Excellent. And Okay. I quick one. sneak if

you roofing little saw quarter? could in a just you additional add detail this on what If maybe

Jim Owens

at CA, was good organically. us. But been organic we so -- year XX% pretty almost quarter And numbers year-on-year growth look X% the if for think had strong roofing it's Yes, the only you organic up in I up where against we're we growth. last were is which

of biggest bit in for materials. is our customers there's and up So roofing little other and a getting down challenge the

us, some in able but other resulted demand had of the slowdown So But they not some in to the adhesive it because for didn't Certain a roofing customers. materials. pent-up supply. have they're we needed our see materials, they

is So commercial mostly -- and again, roofing. ours


comes of the question Begleiter next Your from Bank. Deutsche David from line

Anthony Mercandetti

months Mercandetti demand Anthony the of X here. the looks on last here? by couple provide A demand. maybe from for market? there on of visibility Maybe Dave. Is is any that me demand additional This you on year your can questions slowing first region and color how into on And

Jim Owens


market as So in the we in I quarter. in the Europe definitely mentioned a comments, saw prepared change

we the mostly So then outside expect North broadly, continue that in quarter. third we that, America, fourth Asia. and in slowed And in And I construction down was uptick quarter would say, in saw Europe it of to significant the downturn.

double-digit had first pandemic. organic to I quarter think great organic One long time, in growth of if had China. a growth the is our especially think impacts pandemic good But in in quarter we in we the exclude issues you because a double-digit quarter, see. I Asia of

it's say, would North quarter not So in the quarter, the of to it's sizable then we America. little the slowdown Europe, into don't off in sort Europe like We're most this visibility uptick see a same. U.S. then that of falling nice construction. as get enter we far and dramatic as anticipating the the into more changes. it worse was I But but next as quarter. table. a slowdown, And

Anthony Mercandetti

still going you would forward? for raw on so, we signs they of Got deflation, will your raws then costs, have helpful. price majority me there’s if that peaked? maybe pricing versus the maybe be Very of that And sustained confident one are material know And just said more say it. you I here.

Jim Owens

back. But peaked, materials the doesn't Yes. have come was can't QX peak. Raw mean definitely they

in than in We a a decline QX. of lower much inflation right? inflation, of expected we slight slight saw the think QX I level was amount It QX. decline in a

the peak. QX So was

in expecting relatively commentary, be up, raws some to we're will down, be QX QX. As said the in flat be I to some will net-net,

-- of And second question and part the was... so your

Anthony Mercandetti


Jim Owens

Yes, to we're price. our retention, our is mentioned hold very Oh, our a HHC on of before, in confident I business indexed. portion pricing As right?

with move will little a bit that So lag. a

months, our in part very happened of But pricing, raw it's increases there outside materials certainly in will -- stability XX way months, XX the short over next that, giveback HHC. -- our we'd to few works the some be But what in in of really the So in term. QX, no in QX expect next the its numbers. it's that into eventually of in coming strong


next Your Harrison Mike from from Research line question Seaport comes the Partners. of

Mike Harrison

I And wondering nice Congrats talk your segment expectations the then for about price little QX. us pricing by you fourth you at a was quarter. give look volume and segment can on if quarter. bit for volume and the the breakdown as maybe by

Jim Owens


we CA and further know, on you don't as But pretty volume the was comment on through mostly we overall, showed that? want as go solid. do had HHC So But were declines details and volume you and to EA this John, specific price. price-driven.

John Corkrean

the pricing then X flattish up Volume Adhesives. and was in Volume digits was think double EA. in digits I Construction Yes, up down digits mid-single in mid-single in all GBUs. HHC

Jim Owens

a more and at positive, EA, in look Mike. you those if And HHC Yes. lot they'd ex-Europe, numbers be

So the Europe is drag.

Mike Harrison

still saw QX, in I a to number? that or flattish And worsen? consolidated of flattish in you guess, compared of the kind a that in maybe terms decline is basis Yes. slight volume to Or QX, on expected

Jim Owens

volumes economically that. it's would some what signs to, the just have worse, out there We're expectation we economic news not based But about planning that definitely think know to on right? out for We you we've it. see But of news see market I be But worse. guided think from I Asia. are share little a see numbers. again, Yes. it's that it's we like if we overall a an signs in given that potential. definitely what's through the improvements don't in more We coming it there, in get gains think our of

uptick that So in but for economically out are -- it some mitigating definitely anything some market for happening Asia and upside, and definitely share that's there. wins we're hoping planning an so

Mike Harrison

Can to construction Construction million would some to about price/cost, but anticipated? Okay. what revenue leverage talk comparing of And the you operating in the number maybe similar, we I QX. some saw we quarter, in business on compared terms then The in what would have $XX assumed about seeing have leverage QX, might higher and even you’re that I’m though was what pretty and maybe margin the see business, price/cost mix operating dragged this that improvement. that it’s margin performance in was you

Jim Owens

construction Yes. of Well, is this versus are January again, Mike, of the an talking a about up quarter, time December, bit last And terms in margins way and little year. odd We're QX February. market.

-- is I versus QX not John, dramatically like But you QX to would It's Is to a up answer? to QX comparing say mix? QX and and year comparing So so here the year-over-year. mostly QX QX that ago. it's

John Corkrean

year say, the overall, I coming margins and out margin elements gate very came really changed. drove strong nice terms haven’t this which of and mix. pricing mostly I pent-up improvement. other of yes, -- the it’s mean of and in impact, But lot roofing was the had would into business fundamentals demand a


Panjabi the Baird. of Your next line from question Ghansham from comes

Ghansham Panjabi

your on confidence want just to back to retention. pricing go I

we're material customers of comments, backdrop. into that instituted. you've in terms materials macro Raw of given significantly the sort raw year, some cycle. have Here next instituted, inflation there's just even hitting deceleration and unprecedented with the just are it perhaps we -- point are pricing seems plateauing The and going gone significant like on up numbers have your that based

what than understand your historically. trying industry I'm which on just confidence be scenario that being in very to would done So the has retain able to different pricing

that be that would why different? why So -- is

Jim Owens

Well, has the industry retained historically, pricing. I mean,

costs. adhesives someone's of think part I So small are overall a

a of lot to a specified see. of the normally would XX the what has shifted months, certainly pricing, we applications. first is retention more So over And highly remember, part portfolio our

comments. new products, substitution. trying when for people was come get across that's into dynamics where what in my So And there's is introduce play prepared to alternates I when competitive

opportunities of aggressively you'll new One substitute raw do as after us things smaller adhesive the new technologies. see to go is competitors or materials

only in new introduce raw no products, as can yes, technology, where that supply new But work with we'll price. -- there's our a there's giveback globe suppliers an So margins do that you never the will environment to availability. around happens. introduce that materials lower-cost there's of But been manage

have Now mentioned, do customers are indexes. I as on that I some

lag. So our into those to in they'll of pushback portion have move business. you'll of with that quarters those small But up a start be and numbers. still a But built increases on only see They'll couple of a price that's down, if will the raws will -- HHC come a contracts. be that's a

Ghansham Panjabi

the OEM then et about it's big 'XX? which auto markets great. EA well, I end it mean, going into as Okay, that end we as I fiscal on other exposed has the backlogs, that with a should But cycle cetera. to there's and how markets there? segment -- some know has on lot think cyclical what we historical about And year

Jim Owens


So I think think cyclicality. you the worry to about as business about right, broadly, got you

we you got things, the aerospace auto a into an solar the of one think details, I We've business. business. We've a sizable dig got business. when got

the others of that to are some use. products have that that commercial durable tied are We goods construction, consumers

a cycle little all differently. they So

following And you decent-sized to now out. then geographic cycle Right positive way that’s broad at happening have it to showing the But have the that of continue this there's its Congress, also on work Chinese on, say is time, you in that's And good will would business eventually some that helping. in expect right? Asia What’s the automotive not now, got would benefit business XXXX. will we've life. going Europe hit. move signs that of a in I same we this People’s dynamic business So

guess segments it’s EA. different I they’ll diverse cycle So across market the differently and very point is XX business,

bit. separately. feel phase right don’t we off one feel those each we a all like world, they’re [indiscernible] going I look on with at in we -- And what’s so have now a like the of So


from line from comes Your next question of Eric Petrie the Citi.

Eric Petrie

XX%. So released sales XX% adhesive largest target growth the I think to competitor of organic

sustainable at You’re how year versus XX% is basis? How spec XX%. of you this substitutable and would next portfolio And pricing more specified your is much a to year? on and say that

Jim Owens

thanks out, Yes, Yes. yes. pointing for that

big a it's for is higher X fact, year tied driver built market pricing. in and that growth And In into we We impact of do price delta, but XX%, that's and our largest finding XX%. segment organic these some our business a first XX% strategy all versus That's the of the to there's of showed market trends. XX% difference segmented have those competitors the half of XX very sustainable. volume approach have. by innovation segment this model and segments that to And our the biggest

focus very and strategy in new the what's making on were to whether there half model. all driving they're is the on is we're Willow new growth you ways built EV, here the And So when and intense in that on think it not going paper those change and electronics being trends quarter saw you really certain front Celeste that's year. And packaged, the after of team innovation focused are market being which our doing the on which segment end very of this first is segment work business trends, Lake. on e-commerce understanding be front in the of new by straws, quarter. ways in that segment end I into windows things. delivering that produced, just It's are That

the numbers years. last You over organic see in it few the

it sustainable? is. I think is it so And

competition, team to growth what spec the it. And Celeste versus competitive that's a but that's we I that talked I doing a going sustainable delivering in the look think our can't it's market of job advantage organic continue. great delta to achieve. about that you are

Eric Petrie

Xx? then And How in do reaching maybe for going that of forward target Xx debt paydown question to Okay. see John. you a

John Corkrean


Eric, our this type would be said year. year full expect next of delivery flow And opening cash think, year cash be operating last in as think we flow for expected we that comments, I So year. I our to similar to

expectations around our there can the obviously debt year getting won't you we to that get of end our think into I sort this range. next towards but year think pay So in down. We of target is bake

our also next But continue deliver end I closer our that's to some -- expect think year cash Of the cash flow next target potentially quarter by a is and flow we'll in plan fourth bolt-on year. course, to the have to get have similar us M&A. of that the we strong

Jim Owens

very that Or from in right, earlier depending as cash with by that quarter. year, we’ll saw this certainly, way to Eric, one mentioned We next right, see strong what And next even this capital. quarter another liberate of if better the a cash year. this happens, raws, be happens you’ll working the But on get downtick call, in Xs big people to end low we’re us to in committed, a that and flow Xx. helps Xx


line comes Funds. from Your question next the Gabelli Rosemarie of Morbelli from

Rosemarie Morbelli

great a quarter. on Congratulations

Jim Owens

Thanks, Rosemarie.

Rosemarie Morbelli

really because you Can are that maybe recession, out wondering was feel terms And there? could I your for the supply whether us they give you improving. if a see of you in they talk feel not. building inventory? you of looming supply linked the customers’ seeing about you is Do what Or Jim, inventories? are better it what chain, are the to chain,

Jim Owens


where yet. are chains quarters, versus versus improving we're So So we're but the X last say we fragile, they're normal, definitely I not right? would better still were but supply much there X,

inventory don't some markets adhesives, it's a while here destocking. going generally for drive. going great big is on there in be that's are cautious right? very not on but speaking, to be to I little And destocking going materials So of think a is like think especially input I on saving customers So some bit adhesives I think some

are going that supply right? built, chain? lot of -- products built to are chain will end also So supply a the Certainly, that's come our fully half there autos customers. there's get beyond of but that are filled there's out the not Now

supply dealerships there's inventories are very while happen will in contraction downstream So some and that our low. chain,

quarters, as balance look Rosemarie. the I they're to to we So think few going out next

Rosemarie Morbelli

you And All two really well, in -- right. one. then talked questions, about

of being indexed. small You a part talked about HHC

you of talk you last could indexed that position in a the And about So if for one? versus in give you of recession if the the business. were could Fuller a us size way the feel then of piece

Jim Owens

last I sorry, question, that? I'm Rosemarie. you Can say the missed

Rosemarie Morbelli

should XXXX, than better in were how example? positioned XXXX, along you in position, a your much Regarding recession you come are for

Jim Owens

Yes, Yes. that's great.

is than this work is -- XX% we this industry our overall, company, team have are XX% and total HHC. And of been well the maybe Yes, would in the be index say XX that years. XX% the this Celeste I to of to less case of will So right? it's quarter I inflation mean, I've done for gross and positioned, our margin and extremely is, way going our year. math, this is is EBITDA on margins, the going expansion a way currency it manage you if it currency to have kind big the this run it when was drag

So for up EBITDA it this going XX%, our it currency just wasn't -- a be is to up XX%. if were lot this going And more impact. translational

And impacts as solid. will we're position recessionary team margins the and is out, extremely has in our work you point So hit. expand as done the the

we're XXXX. on So benefit early pointed price And I somebody for have significant Vincent also we the into margin positioned -- think go in also, well out we as as as this carryover call, expansion. a of very we

this in happen have natural works as way we So price revenue its going that to that's uplift through.

prepared well in preparing been. really worst QX we a will we're I well in as all look as we for extremely and position comments. yes, than get hoping But think but come the we've the we're whatever at and And And right? good best to better there So make ever and for weather to the tried point positioned we're at positioned. us, that I


from And your Anderson from of comes Stifel. the Vincent question next line

Vincent Anderson

mean are quarter in for And one exceptional. pretty margins the that XQ I were raw materials here. in later increase through in the this HHC if follow-up just a had lot your I price passed mentioned of of correctly. then some you I planned segment, the is last call, a that heard

this margins quarter. I'm the more by So guess, lag, I given even the surprised

raws you little that performance XQ, speak price lag? to it just and so And on if in reverts that bit a versus could

Jim Owens


team something a there’s sudden a process of all great I the happened So been not This think, an yes, that has in job. there like ongoing doing of QX.

in QX. things again expect an have we be big in solid to So uptick uptick QX. not I’d in but some QX didn’t

all the bit margin little be positive. very expect that’s a expect of businesses, to we to HHC. into wouldn’t the think QX across But we going in I our say expansion because expansion margin dynamics our -- well, EA QX business are in I overweighted


And the you turn there some for remarks. are Owens, no to closing further questions back at this I time. over Mr. final call Jim

Jim Owens

H.B. of the great your everybody, interest for and thanks, Thanks, Well, and Celeste support results. And for to our questions, world your for Fuller. everyone. around the teams thanks your Great.


for This call. participation. Thank concludes you today's your conference

disconnect. now may You