Tags: Earns | 3M

3M Lowers Year Outlook on Slowing Global Growth

Tuesday, 25 Oct 2011 08:55 AM

Manufacturing conglomerate 3M Co. on Tuesday lowered its earnings expectations for the year on slowing imports from overseas — especially in products like LCD TVs and other electronics from Asia that drive its business.

The company's stock sank 5.8 percent, or $4.73 to $77.45 in premarket trading.

The Maplewood, Minn., maker of Post-its and Scotch Tape now expects to earn $5.85 to $5.95 per share compared with $6.10 to $6.25 per share previously. Core sales are expected to grow by 3 to 4 percent, compared with a previous forecast of 6 to 7.5 percent growth.

3M issued the outlook as it reported third-quarter earnings fell about 2 percent to $1.09 billion, or $1.52 per share, from $1.11 billion, or $1.53 per share, a year earlier.

Revenue rose 10 percent to $7.53 billion. Most of that increase was driven by acquisitions and gains in foreign exchange.

Analysts expected $1.61 per share on revenue of $7.78 billion, on average.

3M said a number of its customers reduced inventories during the quarter, expecting slowing demand.

Revenue in the company's industrial and transportation unit — its biggest segment — grew by double-digits, as did sales in safety, security and protection services and healthcare.

The 3M unit most familiar to many people — consumer and office — posted a 4.6 percent revenue increase. Electro and communications revenue rose just 1 percent, and display and graphics sales fell 14 percent because of weakness in the LCD TV market.

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Manufacturing conglomerate 3M Co. on Tuesday lowered its earnings expectations for the year on slowing imports from overseas especially in products like LCD TVs and other electronics from Asia that drive its business.The company's stock sank 5.8 percent, or $4.73 to...
Earns,3M
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2011-55-25
Tuesday, 25 Oct 2011 08:55 AM
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