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<SEC-DOCUMENT>0001045969-01-500652.txt : 20010717
<SEC-HEADER>0001045969-01-500652.hdr.sgml : 20010717
ACCESSION NUMBER:		0001045969-01-500652
CONFORMED SUBMISSION TYPE:	10-Q
PUBLIC DOCUMENT COUNT:		3
CONFORMED PERIOD OF REPORT:	20010602
FILED AS OF DATE:		20010716

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			FULLER H B CO
		CENTRAL INDEX KEY:			0000039368
		STANDARD INDUSTRIAL CLASSIFICATION:	ADHESIVES & SEALANTS [2891]
		IRS NUMBER:				410268370
		STATE OF INCORPORATION:			MN
		FISCAL YEAR END:			1130

	FILING VALUES:
		FORM TYPE:		10-Q
		SEC ACT:		
		SEC FILE NUMBER:	001-09225
		FILM NUMBER:		1681560

	BUSINESS ADDRESS:	
		STREET 1:		1200 WILLOW LAKE BLVD
		CITY:			ST PAUL
		STATE:			MN
		ZIP:			55110-5132
		BUSINESS PHONE:		6126453401
</SEC-HEADER>
<DOCUMENT>
<TYPE>10-Q
<SEQUENCE>1
<FILENAME>d10q.txt
<DESCRIPTION>FORM 10-Q
<TEXT>

<PAGE>

                                 UNITED STATES

                      SECURITIES AND EXCHANGE COMMISSION

                            Washington, D.C.  20549

                                   FORM 10-Q

         (Mark One)
         [X]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                        SECURITIES EXCHANGE ACT OF 1934
                      For the quarter ended June 2, 2001
                                      OR
         [_]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                        SECURITIES EXCHANGE ACT OF 1934
             For the transition period from ____________ to___________

                          Commission File No.  0-3488

                              H.B. FULLER COMPANY
            (Exact name of registrant as specified in its charter)

<TABLE>
<CAPTION>
                                Minnesota                                              41-0268370
        <S>                                                               <C>
        (State or other jurisdiction of incorporation or organization)    (I.R.S. Employer Identification No.)

             1200 Willow Lake Boulevard, Vadnais Heights, Minnesota                    55110-5101
               (Address of principal executive offices)                                (Zip Code)
</TABLE>

                                (651) 236-5900
             (Registrant's telephone number, including area code)

       Securities registered pursuant to Section 12(b) of the Act: None

 Securities registered pursuant to Section 12(g) of the Act:  Common Stock, par
                             value $1.00 per share

Indicate by check mark whether the Registrant (1) has filed all reports required
to be filed by Section 13 of 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the Registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.   Yes  X    No

The number of shares outstanding of the Registrant's Common Stock, par value
$1.00 per share, was 14,125,556 as of June 30, 2001.

                                       1
<PAGE>

                         PART 1 FINANCIAL INFORMATION
                         ----------------------------

Item 1. Financial Statements
- ----------------------------

               H.B. FULLER COMPANY AND CONSOLIDATED SUBSIDIARIES
                  Consolidated Condensed Statement of Income
                                  (Unaudited)
                    (In thousands except per share amounts)

<TABLE>
<CAPTION>
                                                      Thirteen Weeks Ended                     Twenty-six Weeks Ended
                                              -------------------------------------    -----------------------------------
                                                June 2, 2001         May 27, 2000       June 2, 2001        May 27, 2000
                                              ---------------      ----------------    --------------     ----------------
<S>                                             <C>                  <C>                 <C>                <C>
Net sales                                        $ 328,507             $ 350,173         $ 635,441            $ 673,803
Cost of sales                                     (240,294)             (250,447)         (464,653)            (480,956)
                                              ---------------      ----------------    --------------     ----------------
 Gross profit                                       88,213                99,726           170,788              192,847
Selling, administrative and
 other expenses                                    (64,600)              (67,809)         (132,891)            (137,425)
Nonrecurring items                                       -                     -                 -                  300
Interest expense                                    (5,503)               (6,068)          (11,166)             (12,110)
Other income (expense), net                           (171)                1,749              (692)                (714)
                                              ---------------      ----------------    --------------     ----------------
 Income before income taxes
  and minority interests                            17,939                27,598            26,039               42,898
Income taxes                                        (6,117)               (9,911)           (9,114)             (15,878)
Minority interests in consolidated income             (495)                 (650)             (510)                (978)
Income from equity investments                         533                   735               995                1,460
                                              ---------------      ----------------    --------------     ----------------
Net income                                       $  11,860             $  17,772         $  17,410            $  27,502
                                              ===============      ================    ==============     ================

Weighted-average common
 shares outstanding:
 Basic                                              13,977                13,909            13,972               13,885
                                              ===============      ================    ==============     ================
 Diluted                                            14,135                14,086            14,130               14,093
                                              ===============      ================    ==============     ================

Net income per common share:
 Basic                                           $    0.85             $    1.28         $    1.25            $    1.98
                                              ===============      ================    ==============     ================
 Diluted                                         $    0.84             $    1.26         $    1.23            $    1.95
                                              ===============      ================    ==============     ================

Cash dividend per common share                   $   0.215             $   0.210         $   0.425            $   0.415
                                              ===============      ================    ==============     ================
</TABLE>

See accompanying notes to consolidated condensed financial statements.

                                       2
<PAGE>

               H.B. FULLER COMPANY AND CONSOLIDATED SUBSIDIARIES
                     Consolidated Condensed Balance Sheet
                                (In thousands)

<TABLE>
<CAPTION>
                                                                    (Unaudited)
                                                                    June 2, 2001           December 2, 2000
                                                                 ------------------       ------------------
<S>                                                              <C>                       <C>
ASSETS
Current assets:
  Cash and cash equivalents                                       $            8,477      $           10,489
  Trade receivables                                                          220,856                 227,709
  Allowance for doubtful accounts                                             (7,435)                 (6,913)
  Inventories                                                                148,943                 153,785
  Other current assets                                                        47,839                  49,994
                                                                  ------------------      ------------------
      Total current assets                                                   418,680                 435,064

Property, plant and equipment, net of
  accumulated depreciation of $375,630
   in 2001 and $362,553 in 2000                                              382,500                 394,689
Deposits and miscellaneous assets                                             97,285                  88,903
Other intangibles, net                                                        23,470                  25,202
Excess of cost over net assets acquired                                       64,005                  66,503
                                                                  ------------------      ------------------
      Total assets                                                $          985,940      $        1,010,361
                                                                  ==================      ==================


LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
  Notes payable                                                   $           34,911      $           34,543
  Current installments of long-term debt                                       1,940                   5,718
  Accounts payable                                                           112,480                 126,713
  Accrued expenses                                                            46,157                  53,515
  Accrued nonrecurring charges                                                   666                   1,210
  Income taxes payable                                                         9,255                   5,026
                                                                  ------------------      ------------------
      Total current liabilities                                              205,409                 226,725

Long-term debt,
  excluding current installments                                             242,654                 250,464
Accrued pension cost                                                          64,151                  71,927
Deferred income taxes and other liabilities                                   38,649                  37,452

Minority interests                                                            19,537                  19,083

Stockholders' equity:
  Preferred stock                                                                306                     306
  Common stock                                                                14,126                  14,116
  Additional paid-in capital                                                  37,192                  36,707
  Retained earnings                                                          389,247                 377,846
  Accumulated other comprehensive income (loss)                              (22,146)                (20,088)
  Unearned compensation                                                       (3,185)                 (4,177)
                                                                  ------------------      ------------------
      Total stockholders' equity                                             415,540                 404,710
                                                                  ------------------      ------------------
      Total liabilities and stockholders' equity                  $          985,940      $        1,010,361
                                                                  ==================      ==================
</TABLE>

See accompanying notes to consolidated condensed financial statements.

                                       3
<PAGE>

<TABLE>
<CAPTION>
                                         H.B. FULLER COMPANY AND CONSOLIDATED SUBSIDIARIES
                                          Consolidated Condensed Statement of Cash Flows
                                                            (Unaudited)
                                                          (In thousands)


                                                                               Twenty-six Weeks Ended
                                                                     -------------------------------------------
                                                                           June 2,                  May 27,
                                                                            2001                     2000
                                                                     ------------------      -------------------
<S>                                                                    <C>                     <C>
Cash flows from operating activities:
  Net income                                                                   $ 17,410                 $ 27,502
  Adjustments to reconcile net income
   to net cash provided by operating activities:
    Depreciation and amortization                                                26,344                   25,916
    Nonrecurring items                                                                -                     (300)
    Other items                                                                  (7,590)                   4,414
    Change in current assets and liabilities (net of
      effects of acquisitions/divestitures):
        Accounts receivable                                                       3,304                     (419)
        Inventories                                                               3,386                  (13,195)
        Prepaid assets                                                             (404)                  (4,134)
        Accounts payable                                                        (11,590)                  (9,308)
        Accrued expense                                                          (5,665)                  (8,660)
        Accrued nonrecurring charges                                               (544)                  (5,232)
        Income taxes payable                                                      4,901                    6,579
                                                                     ------------------      -------------------
          Net cash provided by operating activities                              29,552                   23,163

Cash flows from investing activities:
  Purchased property, plant and equipment                                       (15,600)                 (22,727)
  Purchased business, net of cash acquired                                            -                   (5,498)
  Proceeds from sale of assets                                                    3,849                   10,270
                                                                     ------------------      -------------------
          Net cash used in investing activities                                 (11,751)                 (17,955)

Cash flows from financing activities:
  Proceeds from long-term debt                                                    7,724                   36,121
  Payments on long-term debt                                                    (16,798)                 (33,008)
  Proceeds (payments) from/on notes payable                                         564                    4,614
  Dividends paid                                                                 (6,010)                  (5,849)
  Other financing activities                                                     (5,282)                  (9,158)
                                                                     ------------------      -------------------
          Net cash used in financing activities                                 (19,802)                  (7,280)

Effect of exchange rate changes on cash                                             (11)                    (229)
                                                                     ------------------      -------------------
Net change in cash and cash equivalents                                          (2,012)                  (2,301)
Cash and cash equivalents at beginning of year                                   10,489                    5,821
                                                                     ------------------      -------------------
Cash and cash equivalents at end of period                                     $  8,477                 $  3,520
                                                                     ==================      ===================
</TABLE>

See accompanying notes to consolidated condensed financial statements.

                                       4
<PAGE>

               H.B. FULLER COMPANY AND CONSOLIDATED SUBSIDIARIES
              Notes to Consolidated Condensed Financial Statements
                             (Amounts in Thousands)

1. Accounting Policies: The accompanying unaudited consolidated condensed
   financial statements have been prepared in accordance with accounting
   principles generally accepted in the United States of America for interim
   financial information and with the instructions to Quarterly Reports on Form
   10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all
   of the information necessary for a fair presentation of results of
   operations, financial position, and cash flows in conformity with accounting
   principles generally accepted in the United States of America. In the opinion
   of management, the interim consolidated condensed financial statements
   reflect all adjustments of a normal recurring nature considered necessary for
   a fair presentation of the Company's results for the periods presented.
   Operating results for interim periods are not necessarily indicative of
   results that may be expected for the fiscal year as a whole. The preparation
   of financial statements in conformity with accounting principles generally
   accepted in the United States of America requires management to make
   estimates and assumptions that affect the reported amounts of assets,
   liabilities, revenues, expenses, and related disclosures at the date of the
   financial statements and during the reporting period. Actual results could
   differ from these estimates. These interim consolidated condensed financial
   statements should be read in conjunction with the consolidated financial
   statements and notes thereto included in the Company's Annual Report on Form
   10-K for the year ended December 2, 2000 as filed with the Securities and
   Exchange Commission.

2. Net Income per Common Share: A reconciliation of the net income and common
   share components for the basic and diluted net income per common share
   calculations is as follows:

<TABLE>
<CAPTION>

                                                              Thirteen Weeks Ended
                                                          --------------------------------
                                                           June 2, 2001      May 27, 2000
                                                          ---------------   ---------------
<S>                                                       <C>                    <C>
Net income                                                      $11,860        $17,772
Dividends on preferred shares                                        (4)            (4)
                                                                -------        -------
Income attributable to common shares                            $11,856        $17,768
                                                                =======        =======

Weighted-average common shares - basic                           13,977         13,909
Equivalent shares from stock compensation plans                     158            177
                                                                -------        -------
Weighted-average common shares - diluted                         14,135         14,086
                                                                =======        =======

                                                                Twenty-six Weeks Ended
                                                          --------------------------------
                                                             June 2, 2001    May 27, 2000
                                                          ---------------   ---------------
Net income                                                      $17,410        $27,502
Dividends on preferred shares                                        (8)            (8)
                                                                -------        -------
Income attributable to common shares                            $17,402        $27,494
                                                                =======        =======

Weighted-average common shares - basic                           13,972         13,885
Equivalent shares from stock compensation plans                     158            208
                                                                -------        -------
Weighted-average common shares - diluted                         14,130         14,093
                                                                =======        =======
</TABLE>

 The computations of diluted income per common share do not include 28 and 32
 stock options with exercise prices greater than the average market price of the
 common shares for second quarter 2001 and 2000, respectively, and of 38 and 16
 for the twenty-six weeks 2001 and 2000, respectively, as the results would have
 been anti-dilutive.

3.  Comprehensive Income:  The components of total comprehensive income are:

<TABLE>
<CAPTION>

                                                              Thirteen Weeks Ended
                                                          --------------------------------
                                                           June 2, 2001      May 27, 2000
                                                          ---------------   ---------------
<S>                                                     <C>                <C>
 Net income                                                     $ 11,860       $ 17,772
 Other comprehensive income
  Foreign currency translation, net                               (5,068)        (3,575)
                                                                --------       --------
   Total comprehensive income                                   $  6,792       $ 14,197
                                                                ========       ========

</TABLE>

                                       5
<PAGE>

                                                       Twenty-six Weeks Ended
                                                   -----------------------------
                                                   June 2, 2001     May 27, 2000
                                                   ------------     ------------

    Net income                                       $ 17,410         $ 27,502
    Other comprehensive income
       Foreign currency translation, net               (2,058)          (7,062)
                                                     --------         --------
          Total comprehensive income                 $ 15,352         $ 20,440
                                                     ========         ========

4.  Inventories: The composition of inventories is:

                                                 June 2, 2001   December 2, 2000
                                                 ------------   ----------------

    Raw materials                                  $ 59,615         $ 59,986
    Finished goods                                  100,404          104,836
    LIFO reserve                                    (11,076)         (11,037)
                                                   --------         --------
                                                   $148,943         $153,785
                                                   ========         ========

5.  Restructuring Reserve: The restructuring reserve related to the Company's
    1998 restructuring plan has a remaining balance of $666. The balance
    consists of redundant lease payments and severance costs in Europe. Payments
    in the twenty-six weeks of 2001 were $544.

6.  Derivatives: On December 3, 2000, the Company adopted Statement of Financial
    Accounting Standards ("SFAS") No. 133, "Accounting for Derivative
    Instruments and Hedging Activities." The standard requires that all
    derivatives be recorded on the balance sheet at fair value and establishes
    criteria for designation and effectiveness of hedging relationships. The
    cumulative effect of adopting SFAS 133 as of December 3, 2000 was not
    material to the Company's consolidated condensed financial statements. The
    Company is exposed to foreign currency exchange rate risk inherent in
    forecasted sales, cost of sales, and assets and liabilities denominated in
    currencies other than the U.S. dollar. The Company does not enter into any
    speculative positions with regard to derivative instruments.

    Derivatives consisted primarily of forward contracts used to manage foreign
    currency balance sheet liabilities. Because contracts used for balance sheet
    liabilities outstanding are not designated as hedges, the gains and losses
    on forward contracts used to manage balance sheet exposures are recognized
    in other income and expense in the same period as the remeasurement of the
    related foreign currency denominated liabilities.

    Notional amounts outstanding were $1,912, however, notional amounts are not
    a measure of the Company's exposure. As of June 2, 2001, the Company had
    forward contracts maturing between June 15, 2001 and November 30, 2001. In
    the opinion of the Company, changes in market value were not material during
    the quarter ended June 2, 2001.

7.  Operating Segments:  The following table presents information about the
    Company's operating segments for all periods presented.

<TABLE>
<CAPTION>
                                                                    Inter-
    For the Thirteen Weeks                           Trade         Segment       Operating
    Ended June 2, 2001                              Revenue        Revenue        Income
    ------------------                              -------        -------        ------
    <S>                                             <C>            <C>           <C>
    North America Adhesives                         $146,450       $ 4,861         $15,907
    Europe Adhesives                                  55,974         1,458             824
    Latin America Adhesives                           18,522           323            (844)
    Asia/Pacific Adhesives                            23,668            --             196
    Specialty Group                                   83,893           432           7,530
    Corporate and Unallocated                             --        (7,074)             --
                                                    --------       -------         -------
    Total                                           $328,507            --         $23,613
                                                    ========       =======         =======
</TABLE>

                                       6
<PAGE>

<TABLE>
<CAPTION>
                                                                           Inter-
   For the Thirteen Weeks                                   Trade         Segment       Operating
   Ended May 27, 2000                                      Revenue        Revenue        Income
   ------------------                                      -------       --------        ------
   <S>                                                    <C>            <C>            <C>
   North America Adhesives                                $153,414       $  2,743       $13,697
   Europe Adhesives                                         60,328          1,180         4,171
   Latin America Adhesives                                  20,051            333         1,313
   Asia/Pacific Adhesives                                   25,200             --           584
   Specialty Group                                          91,180            607        12,152
   Corporate and Unallocated                                    --         (4,863)           --
                                                          --------       ---------      -------
   Total                                                  $350,173             --       $31,917
                                                          ========       =========      =======

<CAPTION>
                                                                           Inter-
   For the Twenty-six Weeks                                 Trade         Segment       Operating
   Ended June 2, 2001                                      Revenue        Revenue        Income
   ------------------                                      -------       --------        ------
   <S>                                                    <C>            <C>            <C>
   North America Adhesives                                $275,827       $  9,664       $25,989
   Europe Adhesives                                        107,916          2,768           623
   Latin America Adhesives                                  37,971            663        (1,665)
   Asia/Pacific Adhesives                                   47,400             --           (24)
   Specialty Group                                         166,327            979        12,974
   Corporate and Unallocated                                    --        (14,074)           --
                                                          --------       --------       -------
   Total                                                  $635,441             --       $37,897
                                                          ========       ========       =======

<CAPTION>
                                                                           Inter-
   For the Twenty-six Weeks                                 Trade         Segment       Operating
   Ended May 27, 2000                                      Revenue        Revenue        Income
   ------------------                                      -------        -------        ------
   <S>                                                    <C>            <C>            <C>
   North America Adhesives                                $291,358       $  8,572       $24,000
   Europe Adhesives                                        117,038          1,787         7,905
   Latin America Adhesives                                  38,969            762           824
   Asia/Pacific Adhesives                                   49,934             --         1,082
   Specialty Group                                         176,504          1,036        21,611
   Corporate and Unallocated                                    --        (12,157)           --
                                                          --------       --------       -------
   Total                                                  $673,803             --       $55,422
                                                          ========       ========       =======
</TABLE>

Reconciliation of Operating Income to Pretax Income:

<TABLE>
<CAPTION>
   For the Thirteen Weeks Ended                                     June 2, 2001   May 27, 2000
   -----------------------------                                    ------------   ------------
   <S>                                                              <C>            <C>
   Operating income                                                   $ 23,613       $ 31,917
   Interest expense                                                     (5,503)        (6,068)
   Gains from sales of assets                                            1,623          1,777
   All other                                                            (1,794)           (28)
                                                                      --------       --------
   Pretax income                                                      $ 17,939       $ 27,598
                                                                      ========       ========

<CAPTION>
   For the Twenty-six Weeks Ended                                   June 2, 2001   May 27, 2000
   ------------------------------                                   ------------   ------------
   <S>                                                              <C>            <C>
   Operating income                                                   $ 37,897       $ 55,422
   Nonrecurring items                                                       --            300
   Interest expense                                                    (11,166)       (12,110)
   Gains from sales of assets                                            1,623          2,035
   All other                                                            (2,315)        (2,749)
                                                                      --------       --------
   Pretax income                                                      $ 26,039       $ 42,898
                                                                      ========       ========
</TABLE>

8. Reclassification: Effective December 3, 2000, the Company adopted the
   Financial Accounting Standards Board (FASB) Emerging Issues Task Force (EITF)
   Issue No. 00-10, "Accounting for Shipping and Handling Fees and Costs." Under
   its provisions, the EITF requires proceeds from shipping charges billed to
   customers to be included as revenue. The Company previously included shipping
   charges billed to customers as a reduction of the costs related thereto as a
   component of selling, administrative and other expenses. Beginning December
   3, 2000, the Company classified revenues from shipping charges billed to
   customers and the costs related thereto as net sales and cost of sales,
   respectively. The 2000 reported results are presented on a consistent basis.

                                       7
<PAGE>

9. Accounting Standard: In December 1999, the Securities and Exchange Commission
   issued Staff Accounting Bulleting No. 101 (SAB 101), which summarizes certain
   of the Staff's views in applying generally accepted accounting principles to
   revenue recognition in financial statements. The Company is in the process of
   analyzing the requirements of SAB 101, as amended, and is required to comply
   by no later than the fourth quarter of fiscal year 2001. The impact of
   adopting this accounting standard is not expected to have a material effect
   on the Company's financial position or results of operations.


Item 2. Management's Discussion and Analysis of Financial Condition and Results
        -----------------------------------------------------------------------
        of Operations
        -------------

The following discussion includes comments and data relating to the Company's
financial condition and results of operations during the periods included in the
accompanying unaudited consolidated condensed financial statements.

Results of Operations
- ---------------------

Net sales in the second quarter of 2001 of $328.5 million were $21.7 million or
6.2 percent below the net sales in the second quarter of 2000. The lower sales
were primarily the result of reduced demand due to the slowing global economy as
well as the weakness in foreign currencies as compared to the U.S. dollar. As
compared to the second quarter of 2000, sales volume decreased 6.2 percent, the
foreign currency weakness caused a 2.0 percent decline and selling prices
increased 2.1 percent.

Through the first six months of 2001, net sales of $635.4 million were $38.4
million or 5.7 percent below the first six months of 2000.  Reduced volume
accounted for a decline of 5.6 percent, foreign currency weakness caused a 2.2
percent decline and selling prices were 2.1 percent above the first six months
of 2000.

The following table shows the net sales changes from 2000 to 2001 for the second
quarter and six months year-to-date by operating segment:

($ Millions)

Increase / (Decrease)        Second Quarter          Six Months
- ------------------------------------------------------------------
North America Adhesives     $ (7.0)   (4.5%)       $(15.6)  (5.3%)
Europe Adhesives              (4.4)   (7.2%)         (9.1)  (8.0%)
Latin America Adhesives       (1.5)   (7.6%)         (1.0)  (2.6%)
Asia/Pacific Adhesives        (1.5)   (6.1%)         (2.5)  (5.1%)
Specialty Group               (7.3)   (8.0%)        (10.2)  (5.8%)
                            ------                 ------
Total                       $(21.7)   (6.2%)       $(38.4)  (5.7%)
                            ======                 ======

The net sales decrease in North America Adhesives for the second quarter was
driven by a 6.9 percent decrease in volume. Sales to the automotive market were
down over 12 percent in the second quarter of 2001. This was a direct result of
production cutbacks within the North American automotive industry. Selling
prices in North America Adhesives increased in the second quarter of 2001 by 2.7
percent as compared to the second quarter of 2000. Excluding the automotive
market where prices declined, selling prices increased 3.4 percent over the
second quarter of 2000.

The relative weakness of the euro as compared to the U.S. dollar continued to
hinder sales performance in Europe Adhesives. In the second quarter of 2001, the
currency weakness resulted in a 4.9 percent sales decline as compared to last
year. A slowdown in the European economy also had a negative impact, as sales
volume in the second quarter of 2001 was 6.6 percent below the second quarter of
2000. Offsetting the negative volume and currency variances was an increase in
selling prices of 4.3 percent as compared to the second quarter of 2000.

The net sales decrease for the second quarter of 2001 in Latin America Adhesives
was due primarily to the weak economic conditions in South America, especially
Argentina. Brazil's acceleration of the currency devaluation process also had a
negative impact on the second quarter net sales.

                                       8
<PAGE>

Asia/Pacific Adhesives showed a volume increase in net sales of 4.5 percent in
the second quarter of 2001 as compared to the second quarter of 2000.  The
volume increase was offset however, by a decrease of over 11 percent due to
negative currency effects.  The weakness of the Australian dollar and Japanese
yen, as compared to the U.S. dollar, caused the sales decrease.

The Specialty Group net sales were also hard hit by volume decreases in the
second quarter.  The volume decrease compared to the second quarter of 2000 was
8.2 percent.  Global Coatings, TEC Specialty Products and Liquid Paints each had
significant net sales shortfalls in the second quarter of 2001 as compared to
the second quarter of 2000, primarily due to lower volume.  The volume
reductions in Global Coatings and TEC Specialty Products were largely due to the
general slowdown of the U.S. economy.

The consolidated gross profit margin was 26.9 percent for both the second
quarter and the first six months of 2001.  This compares to 28.5 percent in the
second quarter of 2000 and 28.6 percent in the first six months of 2000.  The
lower gross profit margin in 2001 was due primarily to higher raw material costs
as compared to the same periods in 2000.  Higher energy costs also contributed
to the lower margin along with reduced plant utilization related to the lower
sales volume.

Selling, administrative and other expenses were $64.6 million or 19.7 percent of
net sales in the second quarter of 2001.  This compares to $67.8 million or 19.4
percent of net sales in the second quarter of 2000.  Last year's expenses
included a credit of $1.3 million from the settlement of a claim against a raw
material vendor in Latin America.  Payroll costs were lower in the second
quarter of 2001 as compared to 2000 due to lower census.  The total number of
employees at June 2, 2001 was 4,966 as compared to 5,142 at May 27, 2000.  The
number of employees included in operating expenses was 2,418 at June 2, 2001 as
compared to 2,571 at May 27, 2000 - a reduction of approximately 6 percent.
Another factor that contributed to the lower expenses in the second quarter of
2001 was reduced U.S. pension costs of $1.8 million as compared to the second
quarter of 2000.  The second quarter of both 2001 and 2000 included reversal of
management bonuses accrued in the first quarter.  In 2001 the reversal amount
was approximately $0.9 million as compared to $1.5 million in the second quarter
of 2000.

Through the first six months of 2001, selling, administrative and other expenses
were $132.9 million or 20.9 percent of net sales.  For the same period of 2000,
the expenses were $137.4 million or 20.4 percent of net sales.

Interest expense was $5.5 million in the second quarter of 2001 as compared to
$6.1 million in the second quarter of 2000.  In the first six months of 2001
interest expense was $11.2 million as compared to $12.1 million for the same
period in 2000.  Lower average debt levels during 2001 resulting from improved
cash flows as compared to last year was the reason for the lower interest
expense.

Other income/expense, net was expense of $0.2 million in the second quarter of
2001 as compared to income of $1.7 million in the second quarter of 2000.  The
second quarter of 2001 included a gain of $1.6 million from the sale of an
investment in a Japanese company.  The second quarter of 2000 included gains
totaling $1.6 million from the sales of unproductive assets.  Also included in
the second quarter of 2000 was $2.4 million of income from the Company's SERP
portfolio, when the portfolio was invested 100 percent in equities.  The income
from the SERP portfolio, which has been converted to fixed income securities, in
the second quarter of 2001 was $0.2 million.

The income tax rate for the first six months of 2001 was adjusted to 35 percent
from 37 percent in the first quarter of 2001, which resulted in a second quarter
rate of 34.1 percent.  The 35 percent rate reflects the expected rate for the
year, taking into consideration the current mix of worldwide income and the tax
planning initiatives, both of which are subject to change.  In the second
quarter of 2000 the effective tax rate was lowered to 37 percent from 39 percent
in the first quarter of 2000.  Therefore, the effective rate for the second
quarter of 2000 was 35.9 percent.

Net income in the second quarter of 2001 was $11.9 million as compared to $17.8
million in the second quarter of 2000 - a reduction of 33 percent.  The net
income per diluted share was $0.84 in the second quarter of 2001, as compared to
$1.26 per diluted share in the second quarter of 2000.  Through the first six
months of 2001 the net income of $17.4 million was 37 percent below the net
income of $27.5 million in the first six months of 2000.

                                       9
<PAGE>

The net income per diluted share of $1.23 for the first six months of 2001 was
37 percent below the income per diluted share of $1.95 earned in the first six
months of 2000. Last year's net income per diluted share for the first six
months included a nonrecurring credit of $.01 per share.

Operating Segment Results
- -------------------------

Operating income in North America Adhesives of $15.9 million in the second
quarter of 2001 was $2.2 million or 16.1 percent above the operating income in
the second quarter of 2000.  Reduced expenses, primarily related to employee
payroll and benefits costs, more than offset the negative effects of lower sales
volume and higher raw material costs.  Through the first six months of 2001,
operating income in North America Adhesives was $2.0 million or 8.2 percent
above the operating income for the first six months of 2000.

Europe Adhesives reported operating income of $0.8 million in the second quarter
of 2001 as compared to $4.2 million in the second quarter of 2000, a reduction
of over 80 percent.  Lower sales volume, higher raw material costs and negative
currency effects all contributed to the reduced operating income.  The gross
profit margin for Europe Adhesives in the second quarter of 2001 was 3.5
percentage points below the second quarter of last year.  For the first six
months of 2001 Europe Adhesives operating income was below the first six months
of 2000 by $7.3 million or 92 percent.

In Latin America Adhesives, the operating income reduction of $2.2 million in
the second quarter of 2001 as compared to the second quarter of 2000 was caused
primarily by the settlement against a raw material supplier in the second
quarter of 2000.  As discussed above, the impact on selling, administrative and
other expenses was a credit of $1.3 million.  The total settlement was for a
credit of $1.5 million as an additional $0.2 million was credited to cost of
sales.  Excluding this settlement, operating income for the second quarter of
2001 in Latin America Adhesives was $0.6 million below the second quarter of
2000.

In Asia/Pacific Adhesives, the lower operating income in the second quarter of
2001 as compared to the second quarter of 2000 was primarily due to the sales
decrease discussed above.

Lower sales volume was the main reason operating income in the Specialty Group
dropped from $12.2 million in the second quarter of 2000 to $7.5 in the second
quarter of 2001.  The operating income through six months of 2001 was $13.0
million as compared to $21.6 million for the same period in 2000, a 40 percent
reduction.

Liquidity and Capital Resources
- -------------------------------

Cash flows provided by operating activities in the first six months of 2001 were
$29.6 million as compared to $23.2 million in the first six months of 2000.
Improved cash flows due to changes in working capital more than offset the lower
net income in 2001 as compared to 2000.  In 2001, negative cash flows due to
increased working capital were $6.6 million as compared to a negative $34.4
million in the first six months of 2000.  Positive cash flows related to
decreases in inventories were $3.4 million in the first six months of 2001 while
in the first six months of 2000, negative cash flows related to increases in
inventories were $13.2 million.  Cash flows related to accounts receivable were
a positive $3.3 million in the first six months of 2001 as compared to a
negative $0.4 million in the first six months of 2000.  Trade accounts
receivable DSO (Days Sales Outstanding) was 59 days at June 2, 2001 compared to
61 days at May 27, 2000. The DSO at December 2, 2000 was 55 days.  Total working
capital of $213.3 million at June 2, 2001 was $13.1 million or 6.5 percent
higher than at the end of the first six months of 2000.  The current ratio was
2.0 at June 2, 2001 as compared to 1.8 at May 27, 2000.  Total working capital
at December 2, 2000 was $208.3 million and the current ratio was 1.9.

The Company's ratio of long-term debt to long-term debt plus equity was 36.9
percent at June 2, 2001 as compared to 40.3 percent at May 27, 2000 and 38.2
percent at December 2, 2000.  Long-term debt of $242.7 million at June 2, 2001
was $23.3 million or 8.8 percent lower than at May 27, 2000.  The long-term debt
at December 2, 2000 was $250.5 million.

Capital expenditures for property, plant and equipment were $15.6 million during
the first six months of 2001 as compared to $22.7 million in the first six
months of 2000.  These expenditures were primarily for information technology
projects and general improvements intended to increase manufacturing efficiency.

Cash and cash equivalents were $8.5 million at June 2, 2001.  Current cash
levels, combined with the Company's unused lines of credit are considered
adequate to meet Company obligations over the next year.

                                       10
<PAGE>

Euro Currency Conversion
- ------------------------

On January 1, 1999, 11 of the 15 member countries of the European Union (EU)
established fixed conversion rates through the European Central Bank (ECB)
between existing local currencies and the euro, the EU's new single currency.
During a transition period from January 1, 1999 through June 30, 2002, the euro
will replace the national currencies that exist in the participating countries.

The transition to the euro creates a number of finance, accounting and
information systems issues for the Company.  These issues are being evaluated
and addressed by the management of the Company.

While the Company will continue to evaluate the impact of the euro introduction
over time, based on currently available information and the nature of the
exposures, the Company does not, at this time, believe that the transition to
the euro will have a significant effect on the Company's consolidated results of
operations, financial position or liquidity.

Safe Harbor Statement under the Private Securities Litigation Act of 1995
- -------------------------------------------------------------------------

Certain statements in this document are forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.  These
statements are subject to various risks and uncertainties, including but not
limited to the following: political and economic conditions; product demand and
industry capacity; competitive products and pricing; manufacturing efficiencies;
new product development; product mix; availability and price of raw materials
and critical manufacturing equipment; new plant startups; accounts receivable
collection; the Company's relationships with its major customers and suppliers;
changes in tax laws and tariffs; patent rights that could provide significant
advantage to a competitor; devaluations and other foreign exchange rate
fluctuations (particularly with respect to the euro, the Japanese yen, the
Australian dollar and the Brazilian real); the regulatory and trade environment;
and other risks as indicated from time to time in the Company's filings with the
Securities and Exchange Commission.  All forward-looking information represents
management's best judgment as of this date based on information currently
available that in the future may prove to have been inaccurate.  Additionally,
the variety of products sold by the Company and the regions where the Company
does business makes it difficult to determine with certainty the increases or
decreases in sales resulting from changes in the volume of products sold, the
impact of exchange rates, changes in product mix and selling prices.  However,
management's best estimates of these changes as well as changes in other factors
have been included.  References to volume changes include volume and product mix
changes, combined.

Item 3.  Quantitative and Qualitative Disclosures About Market Risk
- -------------------------------------------------------------------

See Note 6 to unaudited consolidated condensed financial statements.


                          PART II.  OTHER INFORMATION

Item 4.  Submission of Matters to a Vote of Security Holders:

(a)  The Registrant's annual meeting of security holders was held on April 19,
     2001.

(b)  The following matters were submitted to a vote of security holders during
     the second quarter:

     Proposal 1 - Election of Directors - Class II (term ending in 2004):


     Nominees                 Votes For      Votes Withheld
     --------                 ---------      --------------
     Norbert R. Berg          11,451,278        4,280,524
     Freeman A. Ford          11,458,553        4,273,249
     John J. Muriel, Jr.      11,406,158        4,325,644

     Robert J. Carlson, Gail D. Fosler, Reatha Clark King, Albert P.L.
     Stroucken; Edward L. Bronstien, Jr., Walter Kissling, Lee R. Mitau and R.
     William Van Sant continued to serve as directors following the meeting.

                                       11
<PAGE>

     Proposal 2 - Proposal to Ratify the Appointment of Independent Auditors:

     Votes for: 15,379,948    Votes against: 253,400    Votes to abstain: 98,454

     Proposal 3 - To consider and vote on a security holder proposal regarding
     tobacco-related business of the Registrant:

     Votes for: 823,952   Votes against: 12,403,983   Votes to abstain:  684,729
     Broker non-vote:  1,819,138

Item 6.

Exhibits and Reports on Form 8-K
- --------------------------------

(a)  Exhibits

          10(a)  International Service Agreement with Peter Koxholt dated May 1,
                 2001
          10(b)  Letter to Peter Koxholt dated May 1, 2001

(b)  Reports on Form 8-K.

     One report on Form 8-K was filed during the thirteen weeks ended June 2,
2001 reporting the Company's financial results for the first quarter of 2001.


                                  SIGNATURES


Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.


                                        H. B. Fuller Company


Dated:  July 17, 2001                   /s/ Raymond A. Tucker
                                        ---------------------
                                        Raymond A. Tucker
                                        Senior Vice President and
                                        Chief Financial Officer

                                       12
<PAGE>

                                 EXHIBIT INDEX

Exhibit Number

10(a)  International Service Agreement with Peter Koxholt dated May 1, 2001
10(b)  Letter to Peter Koxholt dated May 1, 2001

                                       13
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.A
<SEQUENCE>2
<FILENAME>dex10a.txt
<DESCRIPTION>SERVICE AGREEMENT WITH PETER KOXHOLT
<TEXT>

<PAGE>

                           [LOGO] H.B.Fuller Company
                                                                   Exhibit 10(a)

To:              Peter Koxholt

From:            Albert Stroucken

cc:              James Metts

Effective Date:  May 1, 2001

Subject:         International Service Agreement

This memo serves to confirm the arrangements regarding your expatriate
assignment to St. Paul, MN from May 1, 2001 to May 1, 2004.
                                -----------    -----------

In this memo, "home country" refers to Germany and "host country" refers to your
assignment location in St. Paul, MN. H.B. Fuller Company will be referred to as
the "Company".

I.  LENGTH AND CONDITIONS OF ASSIGNMENT
- ---------------------------------------

It is expected that the length of this assignment will be 3 years, although the
parties may, by mutual consent agree to lengthen or shorten the assignment.  In
any event, however, the assignment will not exceed a maximum length of five
years.  At the completion of this assignment, you will be returned to your home
country and city.

II.  POSITION AND SALARY
- ------------------------

- -----------------------------------------------------------------------
Job Title :                      President, Global Adhesives
- -----------------------------------------------------------------------
Pay Grade :                      38
- -----------------------------------------------------------------------
Base Salary :                    583,482 DM
- -----------------------------------------------------------------------
Bonus :  Target                  40%
         Superior                60%
- -----------------------------------------------------------------------

Salary administration will be according to German practice and policy and will
remain on the US/German fiscal year basis. Your salary will be up for review
during the regular merit review period in the US during November/December of
each year. Your next PPA review is November 2001. All salary increases will be
based on German salary increase guidelines.  A portion of your salary will be
paid in local currency and a portion paid to you in the US in US dollars. The
exchange rate will be updated on a US fiscal year quarterly basis.

III.  INTERNATIONAL SERVICE PREMIUM
- -----------------------------------

In connection with this assignment, you will receive an international service
premium equal to 15% of your base salary annually (tax protected). This premium
may be paid in an annual lump sum or on a periodic basis, at the election of
H.B. Fuller Company.  This premium recognizes your international mobility and
the difficulties associated with living in a foreign country.

Payment of this premium shall cease upon repatriation or in the event you go on
local payroll.

IV.  HARDSHIP PREMIUM
- ---------------------

No hardship premium will be paid as St. Paul, MN is not a designated hardship
location based on the findings of the US State Department.

                                       1
<PAGE>

                           [LOGO] H.B.Fuller Company

V.  GOODS AND SERVICES DIFFERENTIAL
- -----------------------------------

A Goods and Services Differential is the extra spendable income an employee of a
particular income level and family size needs to purchase equivalent goods and
services in the host location. Your goods and services differential has been
determined to be 7,405DM ($3,359) per month (tax protected), subject to
quarterly review.  To calculate a goods and services differential a third party
source tracks price differences between Germany and the US throughout the year.
This differential compares the costs in the US with those in Germany calculated
at a specific exchange rate in effect at that time.  If the difference between
the current quarter's goods and services differential is more than 5% above or
below the previous quarters differential, the company will protect the
differential from severe fluctuations by adjusting only 25% of the difference
from the previous quarter.

VI.  HOUSING
- ------------

You will be provided 8,157 DM ($3,700) per month (tax protected) to be used for
a housing allowance and furniture rental.

VII.  RELOCATION AND RELATED EXPENSES
- -------------------------------------

Relocation Allowance: You will receive a relocation allowance equal to one
- --------------------
month's base salary of up to $10,000.  Your allowance is 22,045 DM ($10,000)(tax
                                                         ---------
protected). The relocation allowance is intended to help cover some of the
incidental expenses, which may be encountered as a result of the Company
initiated relocation. This allowance will be a one-time payment made
approximately two weeks prior to arrival at the assignment location.

Movement of household goods: Transportation charges of moving your goods from
- ---------------------------
your residence in Germany, to your assignment location in St. Paul, MN
(including duties) will be paid by the Company subject to the following
limitations:

Air:      500 lb. limit       Surface:        1,500 lb. limit
- ----                          --------

The Company will pay for moving only personal effects. This does not include
furniture, special items of high value, size or width. Transportation charges
for moving a similar weight of household goods will be paid upon your return to
Germany.

Travel documentation: The Company will reimburse you for obtaining, or provide
- --------------------
at no cost to you, any passports, visas, or letters of guarantee required for
your assignment.

Vaccinations: You are responsible for ensuring that you have the proper
- ------------
vaccinations prior to your departure. The Company will reimburse any expense not
already covered under medical insurance.

Home Maintenance Assistance: If the expatriate chooses to retain the home
- ---------------------------
country residence, Fuller will pay up to 551 DM ($250) per month for receipted
                                         ------
costs used for approved standard maintenance of the residence while on
assignment.  This assistance is only available for those who do not rent out
their residence during assignment.  This assistance will be provided for up to a
maximum period of 36 months.

Loss on sale of automobile: You will be reimbursed for reasonable losses
- --------------------------
resulting from the forced sale of up to two automobiles. Losses will be based on
the difference between the sale price and the current retail market value to be
determined based on the use of the most current (NADA) publication (Average
Retail Value column). The maximum reimbursement amount is 4,409 DM ($2,000) per
                                                          --------
automobile.

VIII.  TAX EQUALIZATION
- -----------------------

The Company follows the personal income tax equalization policy. The intent of
this policy is to ensure that you bear an income tax cost in your host country
which is approximately equivalent to what that tax would have been in your home
country for the same income. The equalization policy relates to your normal
Company derived income. Private income up to $25,000 is covered under the tax
equalization guideline. The tax equalization policy does not cover estate or
real estate taxes.

                                       2
<PAGE>

                           [LOGO] H.B.Fuller Company

In order to meet these objectives, each year we will have the Company's Tax
Department determine a "hypothetical income tax" for your home country. This
hypothetical tax will be estimated using the earnings information offered in
this memo. The hypothetical calculation will not include the international
service premium or the hardship differential, as these are "tax protected". In
other words, the Company picks up all tax obligations derived from this type of
earning.

At the end of each year, the actual tax, if any, will be calculated. If the
hypothetical tax was underwithheld during the year, you may owe the Company the
difference when your return is filed and vice versa.

The "hypothetical income tax" will be deducted from your paychecks and will
cover your obligation under the tax equalization policy. You should contact
Ernst & Young as soon as you are settled to ensure your taxes will be properly
filed and withheld as you are responsible for paying your taxes in an
appropriate and timely manner. They will also be able to refer you to the
appropriate Ernst & Young office St. Paul, MN.

In turn, the Company will pay your income tax filing costs and all its stated
obligations on your behalf at the appropriate time and in accordance with all
applicable tax laws and regulations.

IX.  BENEFIT COVERAGE
- ---------------------

You will remain on home country policy for benefits purposes. Your health
insurance coverage will be provided by Aetna.

X.  HOLIDAYS, WORK SCHEDULES, VACATION AND SICK LEAVE
- -----------------------------------------------------

Host country norms will govern the schedule of holidays and related work
schedule issues. You will receive vacation time and sick leave in accordance
with your home country practices.

XI.  HOME LEAVE
- ---------------

After completion of 12 months of the assignment, you will have the opportunity
to take home leave. Home leave is three weeks, exclusive of travel time. Home
leave is taken once per year. Round trip airfare, in accordance with US travel
policy, for you (and your family) via the most direct route will be paid by the
Company. Home leave must be taken in Germany.

XII. COMPANY CAR
- ----------------

While on assignment you agree to accept the Company car allowance in lieu of use
of a company car in your home country, and you further agree to abide by the
Company's U.S. Key Manager Car Allowance Policy, as it may exist from time to
time.

XIII.  TERMINATION
- ------------------

Your employment with the Company may be terminated in the same manner, and for
the same reasons, that your employment with H. B. Fuller GmbH may be terminated
pursuant to the terms of your Managing Director Agreement dated October 15,
1998, as subsequently amended in writing.

It is understood that termination of employment before completion of the period
covered by this memo will result in the immediate termination of the terms of
this agreement.

In the case of a voluntary resignation by you prior to completion of this
assignment, payment of relocation expenses to Germany will depend on the
circumstances; the Company will pay for your return to Germany, as well as your
household items pursuant to this agreement unless you leave to work for another
company. In that situation it would be the responsibility of your new employer
to bear the cost.

In the event of an involuntary termination of employment with the Company, we
agree to pay the reasonable expenses related to your relocation from Minnesota
to Germany.

                                       3
<PAGE>

                           [LOGO] H.B.Fuller Company

XIII.  NATURE OF THIS AGREEMENT
- -------------------------------

This memo sets out the conditions of your assignment and its expected duration.
It is understood and agreed that the special premiums and allowances paid or
provided to you during this assignment will not be part of your compensation on
your return to your home country.

The Company reserves the right to change or amend any or all of the above-
mentioned conditions of employment and has the sole discretion to introduce new
terms of employment as management sees fit.

Please acknowledge your acceptance of this offer with your signature where
required.


H.B. Fuller Company                   H.B. Fuller GmbH



/s/ James Metts                       /s/ Albert P. L. Stroucken
- -------------------------------       ---------------------------------
James Metts                           Albert P. L. Stroucken
Vice President, Human Resources       Representative of the Shareholder
                                      H. B. Fuller Company


/s/ Peter Koxholt
- -------------------------------
Peter Koxholt
Employee



*For purposes of establishing a dollar equivalent an exchange rate of 2.2045DM
to the Dollar was used.

                                       4
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.B
<SEQUENCE>3
<FILENAME>dex10b.txt
<DESCRIPTION>LETTER TO PETER KOXHOLT DATED MAY 1, 2001
<TEXT>

<PAGE>

                                                                   Exhibit 10(b)


               [Letter of H.B. Fuller GmbH to Mr. Peter Koxholt]

Dear Mr. Koxholt:

You are employed with H.B. Fuller GmbH (the "Company") on the basis of a
Managing Director Agreement dated October 15, 1998 (the "Agreement"). You are
expected to be assigned to H.B. Fuller Company, in St. Paul, Minnesota, for a
period of three years according to the terms and conditions of the International
Service Agreement dated May 1, 2001. This letter is to confirm the amendment of
the Agreement for the duration of this assignment.

1.   During your assignment, you will remain Managing Director of the Company,
     however, you will be removed from your position as Group President and
     General Manager Europe ASC.

2.   For the term of the assignment, the salary to be paid by the Company will
     be reduced to DM 104,400 p.a. This amount will be paid in 12 equal monthly
     instalments to your bank account in Germany.  The Company will make all
     necessary withholdings with regard to wage tax and social security
     contributions.  The annual salary will be adjusted in accordance to the
     annual adjustment of the income limit for the assessment of contributions
     to the German Social Security Scheme (Beitragsbemessungsgrenze).  An
     increase of the annual salary paid by the Company means a respective
     reduction of your salary paid by H.B. Fuller Company, so that your total
     annual base salary during the assignment will not exceed the base salary
     amount as provided in the International Service Agreement, which amount may
     be adjusted for periodic base salary increases.

3.   The right to give ordinary notice of termination as provided in Section 7.1
     of the Agreement is excluded for a period of 30 months beginning on April
     30, 2001.  Thus, either party may terminate the Agreement with six months
     notice with effect to April 30, 2004, at the earliest.  The right to give
     termination for cause (Kundigung aus wichtigem Grund) remains unaffected.

4.   Upon successful completion of your assignment you shall be deemed to have
     achieved age 62 for the purpose of your participation in the SERP, provided
     that your age upon your actual retirement does not exceed 62 years.

In addition, and on a permanent basis, this letter confirms the amendment of
Section 2.7 of the Agreement, to recognize that you have been provided with
Class II, and not Class I business travel accident insurance, in accordance with
corporate Policy.

Please acknowledge the acceptance of the provisions of this letter with your
signature below.

With kind regards

/s/ Albert P.L. Stroucken
- -------------------------
H.B. Fuller GmbH
by Albert P.L. Stroucken
Representative of the Shareholder,
H.B. Fuller Company

Agreed:

/s/ Peter Koxholt
- -----------------
Peter Koxholt

Date: May 1/st/, 2001
      ---------------
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
