3M Co.'s (MMM) fourth-quarter earnings rose a
better-than-expected 2.8% as the consumer and industrial products
maker saw strong growth in its industrial and transportation
segment, but its display and graphics unit continued to post weaker
sales.
The industrial conglomerate, whose products range from Post-it
notes to power lines to orthodontic braces, had predicted its sales
growth would remain sluggish in the new year, following an
unexpectedly soft third quarter. It cited more customers drawing
down inventories instead of making more orders, a problem currently
challenging many providers of raw materials and product components.
Its long-term outlook, though, has been bright, particularly in
Asia, Latin America and other fast-growing areas.
Earlier this month, 3M agreed to buy Avery Dennison Corp.'s
(AVY) office and consumer products business for $550 million,
giving it a new line of labels, binders and filing and indexing
products.
3M reported a profit of $954 billion, or $1.35 a share, up from
$928 billion, or $1.28 a share, a year earlier. Sales improved 5.7%
to $7.09 billion, mostly thanks to organic local-currency sales
growth and higher selling prices, the company said.
Analysts polled by Thomson Reuters most recently forecast
earnings of $1.31 on revenue of $7.09 billion.
Operating margin edged down to 19.2% from 19.4%.
Sales in its industrial and transportation segment rose 14%,
while its safety, security and protection services segment's sales
were up 9.4%. Display and graphics sale continued to decline,
falling 8.8% in the latest quarter.
Shares of 3M, which backed its full-year guidance, closed
Wednesday at $86.48 and were inactive premarket. The stock is up
12% over the past three months.
-By Ben Fox Rubin, Dow Jones Newswires; 212-416-3108; ben.rubin@dowjones.com;