HB Fuller Co (NYSE: FUL) in the second quarter of FY 17 has reported the adjusted earnings per share of 62 cents, missing the analysts’ estimates for the adjusted earnings per share of 67 cents. Therefore the stock is trading weak today and lost over 4.6% (as of 12:45PM EDT on June 29th, 2017; Source: Google finance). HB Fuller stock has risen 19.4% in the last one year (source: Google Finance).

On the other hand, HB Fuller has grown across most of the businesses in the second quarter, led again by nearly 20 percent volume growth in the strategically important Engineering Adhesives business and strong constant currency growth in Americas, EIMEA and Asia Pacific. All businesses showed solid EBITDA performance in the second quarter, including Construction Products, which delivered double digit margins ahead of schedule. The price increases announced early in the quarter were successfully implemented late in the second quarter which will deliver the targeted earnings and cash flow performance for the rest of 2017.

The company had reported the adjusted revenue growth of 5.5 percent to $561.7 million in the second quarter of FY 17, missing the analysts’ estimates for revenue of $563.4 million. Higher volume, and acquisitions have positively impacted the net revenue growth, which was offset by negative foreign currency translation. Constant currency revenue grew by nearly 10 percent year over year. Organic revenue, defined as constant currency revenue less the impact from acquisitions, was up 4 percent. Overall the net income for the second quarter of 2017 was $25.9 million, compared to the net income of $33.3 million, in last year’s second quarter. Higher raw material costs were the primary driver of the year-over-year decline, however price increases have been implemented and the underlying performance of the business is in line with expectations for 2017.

For FY 17, HB Fuller has narrowed the adjusted earnings per share guidance from the previous range of $2.57 to $2.77 to the new guidance range of $2.57 to $2.67. The adjusted EBITDA for the fiscal year 2017 is expected to be between approximately $290 million and $300 million compared to the previous estimate of $300 million. Constant currency growth, on a comparable 52-week basis, is now expected to be around 9 percent for 2017 compared to the 2016 fiscal year to reflect more pricing to offset raw material inflation, which will be offset by approximately 3 percentage points of negative foreign currency translation. The core tax rate, excluding the impact of discrete items, is expected to be between 29 and 30 percent. HB Fuller still expect to invest approximately $60 million in capital items in 2017. This guidance excludes between $30 and $35 million, pre-tax, of previously announced restructuring charges, as well as acquisition-related costs and Project ONE development costs.