The rising cost of raw materials helped to sink H.B. Fuller's second-quarter profits.
The company reported net income of $25.9 million, or 50 cents per share, down 22 percent from the second quarter last year.
Adjusted earnings were $31.8 million, or 62 cents per share, which was 7.5 percent below the 67 cents per share in the same period last year. Earnings were adjusted to account for acquisition costs, organizational realignment, restructuring and other costs. Analysts were expecting the adjusted EPS number to be unchanged from the year-ago period.
"A spike in raw material costs and the timing of our price increases impacted earnings in the second quarter. However price increases have been implemented and the underlying performance of our business is in line with expectations for 2017," said Jim Owens, H.B. Fuller president and CEO, in the company's news release.
Revenue for the quarter increased 5.5 percent to $561.7 million, but that too was below the $571.8 million five analysts tracked by Thomson Reuters expected.
The company posted 20 percent volume growth in its engineering adhesives business and said all businesses showed solid adjusted earnings performance in the quarter.
The company, though, lowered the top-end of its guidance range for the remainder of the fiscal year. The company had previously said the earnings per share would fall in the range $2.57 to $2.77 per share; its new guidance range is $2.57 to $2.67 per share.
Shares of the Vadnais Heights-based provider of adhesives to industrial and consumer businesses dropped almost 5 percent Thursday to close at $51.13 per share. Year to date, Fuller's stock is up 6 percent.