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Key Takeaways
- 3M warned about full-year profit, saying it faces a muted macroeconomic environment.
- The company’s outlook for earnings was below analyst estimates, and did not reflect the potential cost of two major legal settlements.
- Shares of 3M plunged over 11% in intraday trading Tuesday following the news.
3M (MMM) shares plunged over 11% in intraday trading Tuesday as the maker of a wide range of industrial and consumer products warned about 2024 profit, saying it faces a “muted” macroeconomic environment.
The maker of Scotch tape and Post-it notes said it expects full-year earnings per share (EPS) to be in the range of $9.35 to $9.75, missing analyst estimates.
The company noted the 2024 estimate reflects its health care unit, which it plans to spin off early this year, as part of the company. However, it does not reflect the potential cost impact of 3M’s settlements in lawsuits over so-called “forever chemicals” in water systems and military earplugs alleged to have contributed to hearing loss.
The outlook overshadowed the company’s better-than-expected results for the fourth quarter. 3M’s EPS of $2.42 and revenue of $8.01 billion were both higher than anticipated.
CEO Mike Roman said the quarter capped off “a strong year for 3M.” He added that the company “executed our priorities and delivered on our commitments—including expanding underlying operating margins and cash flow.”
Shares of 3M were down 11.7% at $95.32 per share as of about 2:30 p.m. ET Tuesday, and have lost more than 22% of their value in the past year.
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