Investing.com — Shares of HB Fuller Company (NYSE: ) fell 5% on Thursday after the adhesives maker cut its 2024 financial outlook due to weaker-than-expected demand and delayed customer orders.
The company now expects fiscal 2024 adjusted EBITDA of $594 million, down from the previous range of $610 million to $620 million, with estimated net income at $3.57 billion and adjusted earnings per share at $3.84. Cash flow from operations is forecast at 300 million dollars.
The downward revision was attributed to a slowdown in volumes in key segments including FMCG, packaging and durable goods, along with higher raw material costs in the hygiene, health and consumable adhesives division.
“There was a negative volume inflection point late in the fourth quarter, with a number of market segments showing a slowdown compared to the prior quarter, which negatively impacted our operating results and led to a disappointing fall in comparison to our expectations,” he said. CEO Celeste Mastin, adding that the company is implementing new pricing strategies, cost controls and restructuring efforts to meet the challenges.
HB Fuller expects some delayed price increases to materialize in fiscal 2025.
