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Key Takeaways
- 3M posted better-than-expected results Tuesday, but sales were down in two of its three divisions.
- Revenue declined at the company’s Transportation and Electronics and Consumer divisions.
- 3M’s sales were hurt by a drop in global demand for vehicles and consumers cutting back on spending, the company said.
Shares of 3M (MMM) lost ground Tuesday as two of the diversified products maker’s units posted sales declines.
The maker of Post-it notes and Scotch Tape reported third-quarter earnings from continuing operations of $1.98 per share, with revenue rising 0.4% to $6.29 billion. Both exceeded estimates.
Transportation and Electronics Unit Sales Slip
Sales at its Transportation and Electronics unit fell 1.5% to $2.14 billion as global demand for automobiles slid, especially in the European market. Consumer segment sales dropped 1.2% to $1.3 billion, which the company blamed on softness in consumer discretionary spending. Sales at the Safety and Industrial division increased 0.5% to $2.77 billion, due to the higher demand for industrial adhesives and tapes.
The company now says it sees full-year earnings per share (EPS) of $7.20 to $7.30 versus the earlier $7 to $7.30. It expects revenue growth of about 1%, whereas 3M previously anticipated a range of down 0.25% to up 1.75%.
Despite Tuesday’s drop of about 1% to $132.76, 3M shares are about 46% higher year to date (YTD) in 2024.
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