3M Affirms Profit Outlook, Sets 5-year Growth Plan

By Tomi KilgoreMarketWatch Pulse

3M Co. affirmed on Tuesday its full-year 2016 earnings-per-share outlook of $8.10 to $8.45, which surrounds the FactSet consensus of $8.22. At a meeting with analysts and investors Tuesday, Chief Executive Inge Thulin will also introduce five-year growth targets, including 8% to 11% for earnings per share and 2% to 5% for local-currency sales. The company, whose brands include Scotch tape and Post-it notes, expects return on invested capital to grow 20% in five years and 100% free cash flow conversion. "These objectives reflect our confidence in driving efficient growth--that is, strong, sustainable growth and premium returns--well into the future," Inge said. The stock, which was still inactive in premarket trade, has run up 10% year to date, while the Dow Jones Industrial Average has gained 0.6%.

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