Investing.com – Shares of HB Fuller Company (NYSE:) fell 5% on Thursday after the adhesive maker lowered its 2024 financial outlook due to weaker-than-expected demand and delays in customer orders .
The company now expects fiscal 2024 adjusted EBITDA of $594 million, down from its previous range of $610 million to $620 million, with net income estimated at $3.57 billion and adjusted earnings per share of $3.57 billion. 84 dollars. Cash flow from operations is expected to be $300 million.
The downward revision was attributed to slowing volumes in key segments, including consumer goods, packaging and durable goods, along with higher raw material costs at its Hygiene, Health and Consumable Adhesives unit.
“At the end of the fourth quarter there was a negative inflection point in volume whereby several market segments exhibited a slowdown compared to the previous quarter, and this negatively affected our operating results and led to a disappointing deficit 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.
HB Fuller expects some delayed price increases to materialize in fiscal 2025.
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