Earnings jump at 3M thanks to electronic sales
Diversified US manufacturer 3M reported a higher quarterly profit yesterday, lifted by strong sales to the consumer electronics industry.
The company, which makes products ranging from Post-It notes to films used in flat-panel TVs, posted a third-quarter profit of $1.1bn (£690m), or $1.53 a share, up from $971m, or $1.35 a share, a year earlier.
3M, which also makes Scotch tape and a host of medical products, said sales rose 11 per cent to $6.9bn.
Analysts, on average, expected the Minneapolis-based company to report a profit of $1.51 a share on sales of $6.83bn, according to Thomson Reuters.
The company said sales in the Asia Pacific region, including China and Korea, were especially strong, jumping 28 per cent. Sales in emerging markets grew 25 per cent and now comprise 34 per cent of worldwide sales, it said.
The company said it now expects a full-year profit of $5.70 to $5.74 per share, down from a previous estimate of $5.70 to $5.80. It said the reduction was “due solely to anticipated earnings dilution” related to a series of acquisitions it made during the quarter, including its $900m purchase of Cogent.