Diversified technology company 3M Co. (MMM) on Thursday reported a slight increase in profit for the first quarter, reflecting higher sales and margins that were offset by currency impacts. Both revenue and earnings per share missed analysts' estimates.
Looking ahead, the company lowered its earnings outlook for fiscal 2013, citing the stronger U.S. dollar and softer demand in some end markets. Shares of the company are down more than 3 percent in pre-market trades.
Inge Thulin, 3M chairman, president and chief executive officer said, "We achieved record first-quarter sales and solid operating margins in the face of a low-growth economic environment and the strong U.S. dollar. At the same time, we further strengthened the company through increased investments in innovation, commercialization and manufacturing."
Industrial and transportation sales for the quarter rose 4.6 percent to $2.68 billion, health care sales increased 2.8 percent to $1.31 billion, consumer segment sales grew 2 percent to $1.08 billion and safety and graphics sales grew 2.2 percent to $1.42 billion. Meanwhile, electronics and energy sales declined 3.3 percent to $1.28 billion.
St. Paul, Minnesota-based 3M's first-quarter net income was $1.129 billion or $1.61 per share, up from $1.125 billion or $1.59 per share in the prior-year quarter. On average, 15 analysts polled by Thomson Reuters expected the company to earn $1.65 per share for the quarter. Analysts' estimates typically exclude special items.
Sales for the quarter rose 2 percent to an all-time first-quarter record of $7.63 billion from $7.49 billion in the same quarter last year, but missed analysts' consensus estimate of $7.81 billion.
Organic local currency sales for the quarter grew 2.1 percent and acquisitions added 1.7 percent to sales, while currency impacts reduced sales by 1.8 percent in the quarter, the company said.
Looking ahead to fiscal 2013, 3M lowered its earnings outlook to a range of $6.60 to $6.85 per share from the prior range of $6.70 to $6.95 per share. However, the company maintained its outlook for organic local-currency sales growth of 2 to 5 percent.
3M now projects foreign currency translation to reduce full-year sales by about 1.5 percent. Previously, the company anticipated no impact to 2013 sales from foreign currency translation.
Street is currently looking for full-year earnings of $6.83 per share on revenues of $31.45 billion.
Thulin said, "Considering the stronger U.S. dollar and softer demand in some end markets, it is prudent to alter our outlook a bit for 2013. We remain confident looking ahead and are keenly focused on things within our control - advancing our strategic objectives, driving productivity and improving the business."
MMM closed Wednesday's regular session at $107.87. In Thursday's pre-market, the stock is down $3.57 or 3.31 percent to $104.30.
For comments and feedback contact: editorial@rttnews.com
Business News
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.