3M Profit Slips in Q3 – Annual Guidance Reduced

October 27 00:00 2011

New York, October 26 (RainbowNewsLine.com) – The slowing global growth and a difficult market that is not helping the electronics sector have resulted in 3M missing analysts’ expectations for the third quarter. Sales and profit were lower and business was slower than expected. 3M has now lowered its forecast for the full year.

3M stock dropped 6.3 percent on Tuesday, or $5.14 to close at $77.04. The latest forecast of the Maplewood, Minn., company is that earnings will be $5.85 to $5.95 per share compared with $6.10 to $6.25 per share previously. Compared to a previous forecast of 6 to 7.5 percent, the core sales are expected to grow by only 3 to 4 percent.

3M posted third quarter earnings of $1.09 billion, or $1.52 per share down 2 percent from $1.11 billion, or $1.53 per share, a year earlier. Its revenue went up 10 percent to $7.53 billion but mainly due to acquisitions and gains in foreign exchange. Analysts had expected $1.61 per share on revenue of $7.78 billion, on average.

3M reported that during the third quarter a number of its customers reduced their inventories expecting slowing demand. However, the company’s industrial and transportation unit grew by double digits, as did its sales in safety, security and protection services and health care.