Shares of H.B. Fuller Co. (FUL) dropped after hours on Wednesday following the company’s acknowledgment of slower industrial demand impacting its third-quarter results and full-year forecast.
H.B. Fuller Co., known for its adhesives and sealants used in various industries including food containers, medical products, and automobiles, now anticipates adjusted earnings per share for the full year to be in the range of $3.80 to $3.90. This revised projection is lower than the initial forecast of $3.80 to $4.20 made in June. The company also expects revenue to be between $3.5 billion and $3.55 billion, attributing the decrease to decreased volume due to customer destocking actions and slower-than-anticipated underlying demand conditions.
The company reported net income of $37.6 million, or 67 cents per share, for the current quarter, compared to $46.5 million, or 84 cents per share, during the same period last year. Revenue for the quarter declined from $941.2 million to $900.6 million.
FactSet analysts had projected adjusted earnings of $1.14 per share and sales of $954 million. However, H.B. Fuller Co.’s actual adjusted earnings per share for the quarter stood at $1.06.
Despite these challenges, the company remains optimistic about its future prospects and is actively working towards adapting to the changing market dynamics.