3M Grows 2Q Profit, Tops Street Despite Softer Sales

By FOXBusiness

Post-it maker 3M (NYSE:MMM) revealed better-than-expected earnings in the second quarter despite negative impact from foreign exchange rates and maintained its full-year forecast that is mostly above Wall Street estimates.

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The diversified manufacturer on Thursday posted net income of $1.17 billion, or $1.66 a share compared with a year-earlier $1.16 billion, or $1.60 a share, topping average analyst estimates in a Thomson Reuters poll by a penny.

Shares of 3M climbed nearly 2% to $90.50 Thursday.

“Our team performed very well in the quarter, delivering excellent productivity and record second-quarter earnings,” 3M CEO Inge Thulin said in a statement. “We achieved these results through outstanding factory efficiency and cost discipline throughout the organization.”

Sales for the three months ended June 30 fell 1.9% to $7.5 billion from $7.6 billion a year ago and missed the Street’s view of $7.79 billion. 3M said the sales were impacted by a strong dollar and “challenging economic conditions.”

Revenue was also impacted by a 1.8% and 6.6% organic sales decline in the electro and communications as well as display and graphics groups, respectively, both impacted by weaknesses in the consumer electronics industry.

By geography, sales gains in the U.S., Latin America and Canada were partially offset by slumped demand in Asia and Europe, the Middle East and Africa.

The maker of Scotch tape reaffirmed its fiscal 2012 profit expectations in the range of $6.35 to $6.50 a share that is mostly above Wall Street expectations and said it continues to anticipate organic sales growth of 2% to 5%. Analysts are looking for earnings $6.37 a share.