(Bloomberg) -- 3M (NYSE:MMM) Co. cut its annual profit forecast as the maker of Post-it notes and touch-screen displays said third-quarter sales fell in the health-care and consumer divisions.
- Adjusted earnings will be $9.90 to $10 a share in 2018, the company said Tuesday in a statement, down from an earlier projection of $10.20 to $10.45. This is the third time the company has trimmed its outlook this year.
Key Insights
- The diversified manufacturer now expects foreign-currency exchange rates to pare earnings by 5 cents. That’s a big change from a previous expectation of a 10 cent benefit. As recently as last month, 3M said currency effects would be neutral.
- The bellwether has had a rough year, facing weak automotive and dental markets. 3M spooked industry investors last month after citing high raw-material prices -- a point likely to be a key topic on the 9 a.m. conference call.
- The consumer business was a particular weak spot for 3M in the third quarter. Sales fell 3.4 percent in the unit, or down 2 percent on an organic local-currency basis.
Market Reaction
- The shares tumbled 7.1 percent to $187 in New York premarket trading. 3M had dropped 14 percent this year through Monday, while the Dow Jones Industrial Average climbed 2.4 percent.
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- The company reported third-quarter profit of $2.58 a share, missing the lowest estimate among analysts surveyed by Bloomberg. The average expectation was $2.70.
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