Shares of H.B. Fuller (FUL) will fall when the market opens this morning. The firm failed to meet Q3 earnings and revenue expectations.
In the last quarter, H.B. Fuller posted a non-GAAP EPS of $1.13. Revenue of $918 million is up by 1.9% Y/Y. Its CEO said that the firm continued to advance its strategy to expand EBITDA margins through volume growth. However, it acknowledged that the dynamic macroeconomic environment is hurting its portfolio. Demand slowed for its durable goods market.
Worthington Steel (WS) will open down by around 7% today. The firm reported net sales falling by 8% to $834.0 million. Despite the CEO commenting on stable demand, markets are not convinced.
In the automotive industry, General Motors (GM) received a rare downgrade. On September 23, 2024, Bernstein warned that GM would need more capital, which would increase costs.
Its earnings will face pressure. To limit the slowdown in 2025, GM needs to increase its expenses. In sympathy with GM stock falling by 4.87% on Wednesday, Ford (F) lost 4.14% to close at $10.42.
The automotive sector has an existential crisis. China rapidly advanced exports of EVs in Europe, since domestic demand weakened greatly.
Be wary of EV firms like Rivian (RIVN) and Lucid Motor (LCID). In addition, parts suppliers like Magna (MGA) and Aptiv (APTV) could fall further from here.
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