3M Cuts Earnings Outlook Amid Flat Sales
October 25 2016 - 9:50AM
Dow Jones News
3M Co. cut the top end of its yearly earnings forecast as it
posted nearly flat sales for its latest quarter, pressured by a
7.4% slide in revenue for its electronics and energy segment.
Shares slipped 1.6% premarket to $168.61 as 3M said it expected
per-share earnings to be between $8.15 and $8.20, compared with the
previous estimate of $8.15 to $8.30. 3M also trimmed its
expectations for organic local-currency sales growth to be roughly
flat compared with previous projections of no growth to a 1%
climb.
Still, earnings beat Wall Street expectations by a penny and
sales met projections.
The St. Paul, Minn.-based company has posted weaker sales
results recently amid slowing demand in some markets, including
materials used in consumer electronics, such as adhesives and films
that go into screens for computers, tablets and phones.
Over all for the latest quarter, 3M reported a profit of $1.33
billion, or $2.15 a share, compared with $1.30 billion, or $2.05 a
share, a year earlier. Analysts polled by Thomson Reuters expected
$2.14 a share. Sales were essentially flat at $7.71 billion,
meeting analysts' expectations.
In the latest quarter, sales in the electronics and energy
segment fell 7.4% to $1.29 billion. Industrial segment sales edged
up 1% to $2.58 billion. Safety and graphics climbed 2.2% to $1.45
billion. The consumer arm posted a revenue increase of 4% to $1.21
billion.
Write to Ezequiel Minaya at ezequiel.minaya@wsj.com
(END) Dow Jones Newswires
October 25, 2016 09:35 ET (13:35 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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