3M Slashes 2012 Profit Outlook, Posts Disappointing Sales

By Jennifer Booton Industrials FOXBusiness

Hurt by a still-weak global economy and negative foreign exchange rates, 3M (MMM) missed sales expectations in the third quarter and narrowed its fiscal 2012 profit outlook on Friday.

Continue Reading Below

The St. Paul, Minn.-based maker of Post-Its and a wide-range of technologies used in by the healthcare, security and office sectors posted net income of $1.2 billion, or $1.65 a share, compared with a year-earlier $1.1 billion, or $1.52 a share.

All six of the company’s operating units posted 21% or more operating margins in the quarter and organic local-currency sales grew by 4.3% in health care and 3.3% in its industrial and transportation division.

“Regardless of economic conditions, we will remain focused on things within our control,” 3M CEO Inge Thulin said in a statement. 

Pressured by a strong dollar and slight slowdown in Asia, though, revenue for the three-month period fell slightly year-over-year to $7.5 billion, missing the Street’s view of $7.63 billion.

Shares of 3M fell more than 3% to $89.66 Friday morning.

Continue Reading Below

The company also slashed its full-year earnings outlook to $6.27 to $6.35 a share from a previous view of $6.35 to $6.50. The consensus is calling for $6.40.

3M warned that full-year organic local-currency sales are expected to grow in the 2% to 2.5% range, which would represent a 2.5% decrease from 2011.