DOW JONES NEWSWIRES
3M Co.'s (MMM) third-quarter earnings fell 3.4%, beating analysts' estimates, as the diversified manufacturer again raised its full-year earnings view.
The company now expects $4.50 to $4.55 a share in 2009, well above its July guidance for $4.10 to $4.30.
Declines in manufacturing and transportation markets have hampered 3M, which makes such diverse products as Scotch tape, Post-It, furnace filters and power lines. To deal with the difficult environment, it has made broad costs cuts, including work-force reductions.
But as the economy shows signs of warming up, manufacturers restocking inventory, even if its by a modest degree, would boost income at 3M, who books nearly two-third of its revenue from industrial staples. Because of its diversity, the company is considered a bellwether across a variety of consumer and industrial sectors.
3M posted a profit of $957 million, or $1.35 a share, from $991 million, or $1.41 per share, a year earlier. Excluding such items as restructuring charges, profit fell to $1.37 from $1.42.
Revenue decreased 5.6% to $6.19 billion.
A survey of analysts by Thomson Reuters predicted earnings of $1.17 a share on revenue of $5.77 billion.
Gross margin rose to 48.8% from 47.7%.
Chairman and Chief Executive George W. Buckley said the results reflected the strength of 3M's business model, as they again delivered better-than-expected sales and strong margins. He said the company is continuing to invest in research and development, improving supply chains and strengthening its brands and customer relationships, which he said will position it well for the economy's rebound.
Two of the company's six business segments reported increased sales: health care and display and graphics, which rose 1.6% and 4.5% respectively. The electro and communications division saw sales fall 17%.
Shares in 3M closed Wednesday at $76.33 and weren't active premarket. The stock, which hit an eight-year low in March, has risen by a third since the beginning of the year.
-By Joan E. Solsman, Dow Jones Newswires; 212-416-2291; joan.solsman@dowjones.com