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3M Boosts 2017 Profit Outlook After Electronics, Currency Gains

Published 24/10/2017, 11:56 pm
3M Boosts 2017 Profit Outlook After Electronics, Currency Gains
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(Bloomberg) -- 3M Co. (NYSE:MMM) raised its profit forecast for this year after a boost from a weaker dollar and sales gains across its product portfolio.

Revenue at all divisions climbed in the third quarter, led by a 13 percent jump in electronics, the maker of touchscreen components and Post-it notes said in a statement Tuesday. Sales also rose in all major geographic regions.

3M is rebounding from sluggishness in the electronics and office-supplies markets and achieving growth that has proven elusive for many manufacturers. The St. Paul, Minnesota-based company, which gets two thirds of sales from overseas, is getting an added tailwind from the dollar’s slide.

“Coming off a strong first half, our team delivered an even more robust performance in the third quarter,” Chief Executive Officer Inge Thulin said in the statement.

The shares advanced 2.6 percent to $227.20 before the start of regular trading in New York. 3M climbed 24 percent this year through Monday, topping the 14 percent gain of a Standard & Poor’s index of industrial companies.

Adjusted earnings will be $9 to $9.10 a share this year, the company said, ahead of the $8.97 average of analysts’ estimates compiled by Bloomberg. The previous forecast was $8.80 to $9.05.

In the third quarter, earnings climbed to $2.33 a share, exceeding even the highest projection from analysts. Sales gained 6 percent to $8.17 billion. Foreign currency translation increased revenue by 0.6 percent, 3M said.

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