3M Profit Tops Estimates, But Tightens Outlook On Weak Global Growth

By Ciara LinnaneMarketWatch Pulse

3M Co. on Thursday reported better-than-expected second-quarter earnings, but tightened its full-year outlook to reflect lower-than-expected global economic growth. The company said it had net profit of $1.30 billion, or $2.02 a share, up from $1.27 billion, or $1.91 a share, in the year earlier period. Sales fell to $7.67 billion from $8.1 billion. The FactSet consensus was for EPS of $2.00 and sales of $7.83 billion. The manufacturer of everything from post-it notes to electronics and health care systems said it now expects full-year earnings to range from $7.80 to $8.00, compared with prior guidance of $7.80 to $8.10. Organic local-currency sales are expected to grow 2.5% to 4.0%, compared with prior guidance of 3% to 6%. The company is expecting the strong dollar to reduce 2015 sale to 6% to 7%. "We are amending our growth outlook slightly to account for lower-than-expected global economic growth," Chief Executive Inge Thulin said in a statement. Shares were indicating higher in thin pre-market trade, but are down 5.4% in the year so far, while the Dow Jones Industrial Average has gained 0.2%.

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