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NEW YORK (AP) — Shares of H.B. Fuller Inc. tumbled Thursday, after the specialty chemical maker reported lower-than-expected third-quarter revenue and cut its revenue forecast for the full year.
THE SPARK: For the quarter ended Sept. 1, H.B. Fuller posted an adjusted profit of 53 cents per share, which matched the average estimate of analysts surveyed by FactSet.
Revenue jumped 38 percent to $500.5 million, below average Wall Street estimates of $512.4 million in revenue.
For the full year, the company said it still expects to earn $2.10 to $2.15 per share, but it cut its revenue prediction to a range of $1.88 billion to $1.9 billion. The company previously projected $1.93 billion to $1.98 billion in revenue.
Analysts expect a profit of $2.16 per share on $1.88 billion in revenue.
THE BIG PICTURE: The St. Paul, Minn.-based company said the recent quarter's revenue got a boost from recent acquisitions, which accounted for more than a third of the growth. Higher selling prices and volumes also contributed, but were offset by the effects of unfavorable exchange rates.
H.B. Fuller, like other companies that do significant business outside the U.S., can be hurt by a rising dollar because income earned in foreign currencies shrinks when it's translated back into a stronger U.S. dollar.
The company attributed the full-year revenue guidance cut to a slight slow-down in global demand for industrial adhesives.
THE SHARES: Down $2.27, or 6.8 percent, to $31.11 in heavy morning trading, after falling as low as $29.88 earlier in the day. Over the past 52 weeks, the company's shares have traded between $16.92 and $34.52.
Since the beginning of this year, the company's shares have gained about 46 percent.