(Reuters) - Specialty chemicals maker H.B. Fuller Co (FUL.N) raised its full-year profit forecast citing cost savings from a recently acquired adhesives business, sending its stock up as much as 8 percent.
Shares of the company, which makes adhesives used in industries like construction and packaging, rose to $31.08, making them one of the top percentage gainers on the New York Stock Exchange, on Tuesday morning.
H.B. Fuller said on Monday it now expects to earn between $2.10 and $2.15 per share for 2012, compared with its prior forecast of $1.94 to $2.14 per share. It also forecast revenue between $1.93 billion and $1.98 billion.
Analysts on average had been expecting the company to earn $2.17 per share on revenue of $1.92 billion for the full year, according to Thomson Reuters I/B/E/S.
H.B. Fuller bought Swiss firm Forbo Holding AG’s (FORN.S) industrial adhesives business for $395 million last December to expand its presence in Europe.
The company forecast annual pre-tax profit improvement of $90 million on completing integration of the Forbo business.
H.B. Fuller reported a profit of $1.9 million, or 4 cents per share, for the second quarter, compared with $25.1 million, or 50 cents per share, a year earlier.
On an adjusted basis, the Saint Paul, Minnesota-based company earned 56 cents per share, just ahead of analyst expectations of 55 cents per share.
Revenue rose 43 percent to $527 million, in line with analysts’ estimates.
Reporting by Divya Lad in Bangalore; Editing by Joyjeet Das