3M Co (NYSE: MMM)
3M Co reported lower than expected third-quarter earnings and lowered its 2018 EPS guidance. The St. Paul, Minnesota-based company said that it expects its earnings for the full year to be hurt a strong dollar.
Shares of the Dow Jones Industrial component dropped as much as 7% in premarket trade on Tuesday. At 12:30 p.m. in New York, the stock was down $11.09, or 5.51% to $190.27.
The shares dropped 14% this year through Monday, while the Standard & Poor’s 500 index of industrial companies sank 3.9%.
MMM Earnings & Outlook
The industrial adhesives and Post-it Notes maker posted earnings of $1.54 billion, or $2.58 a share, for the quarter. During the same period last year, the company had earnings of $1.43 billion, or $2.33 a share.
Revenue came in at $8.15 billion during the three months ended Sept. 30, down 0.2% from $8.17 billion a year earlier. Analysts were expecting adjusted earnings of $2.70 per share on revenue of $8.41 billion.
3M recorded a sales decline of 2.8% in its health care unit, while sales in its industrial business came in flat. The electronics and energy business sales slid 4.8% to $1.4 billion, with its consumer division falling 3.4%.
Its safety and graphics segment posted sales of $1.7 billion for the quarter, up 7.1% from the prior-year period.
For the full year, 3M expects adjusted earnings to be in the range of $9.90 to $10 per share, down from its previous guidance of $10.20 to $10.45 per share. Analysts are for full-year adjusted earnings of $10.28 per share.
3M CEO Comments
“In the third quarter, 3M delivered a double-digit increase in cash flow and earnings-per-share, along with strong margins despite slower growth. We also continued to deploy capital to invest in our future and return cash to our shareholders,” commented Mike Roman, 3M chief executive officer.
“Through nine months of the year, our global team posted organic growth of more than 3 percent, and we are positioned to deliver a solid 2018. Going forward, we remain focused on innovating for our customers and driving growth, while continuing to transform our enterprise.”
3M Company Profile
3M operates as a diversified technology company, manufacturing numerous products, including adhesives, abrasives, laminates, passive fire protection, dental and orthodontic products, electronic materials, medical products, car-care products, electronic circuits and optical films.
The Company operates in the industrial and transportation, health care, safety, security and protection services, consumer and office, display and graphics, electro and communications businesses.
Its industrial and transportation business serves a range of markets, such as appliance, paper and packaging, food and beverage, electronics, automotive original equipment manufacturer and automotive aftermarket. – Craft