Investing.com -- Shares of HB Fuller Company (NYSE:FUL) fell 5% on Thursday after the adhesive manufacturer slashed its 2024 financial outlook on weaker-than-expected demand and delayed customer orders.
The company now expects fiscal 2024 adjusted EBITDA of $594 million, down from its prior range of $610 million to $620 million, with net revenue estimated at $3.57 billion and adjusted earnings per share at $3.84. Cash flow from operations is forecast at $300 million.
The downward revision was attributed to decelerating volumes in key segments, including consumer goods, packaging, and durable goods, alongside higher raw material costs in its Hygiene, Health, and Consumable Adhesives unit.
"Late Late in the fourth quarter there was a negative inflection point on volume whereby a number of market segments exhibited topline deceleration versus the previous quarter, and this adversely impacted our operating results and led to a disappointing shortfall relative to our expectations,” said CEO Celeste Mastin, adding that the company is implementing new pricing strategies, cost controls, and restructuring efforts to counter the challenges.
H.B. Fuller expects some delayed price increases to materialize in fiscal 2025.
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