3M trims earnings forecast as sales sputter
3M Co. lowered its earnings forecast for the year after it reported slower sales growth across most of its business lines in the third quarter. The maker of Post-it Notes and industrial adhesives said sales fell 0.2% from a year earlier to $8.15 billion. On an organic, local-currency basis, sales rose by 1.3%.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| MMM | 3M CO. | 128.42 | +1.10 | +0.86% |
Of all its segments, 3M's safety and graphics business posted the largest sales growth for the quarter, at 7%. Meanwhile, revenue from its health care, electronics and energy and consumer lines segments fell 2.8%, 4.8% and 3.4% respectively. Industrial sales were flat. 3M said it now expects earnings to be between $8.78 and $8.93 a share, down from the range of $9.08 to $9.38 a share it previously guided.
It now expects its adjusted earnings for the year to be between $9.90 and $10 a share, lower than its previous guidance of $10.29 to $10.45 a share. Organic local-currency sales growth for the year was projected to be about 3%, from between 3% and 4% it previously guided. The company said its third-quarter profit rose 8% to $1.54 billion, or $2.58 a share. Analysts polled by Refinitiv expected the company to earn $2.70 a share.