3M Cuts 2012 Earnings Outlook, Shares Drop

by Christopher Freeburn | October 23, 2012 11:50 am

[1]3M (NYSE:MMM[2]) shares fell more than 3% on Tuesday after the company announced third-quarter earnings in line with forecasts, but it lowered its earnings outlook for the year[3].

The maker of office, home and industrial products cut its profit outlook from earlier estimates of between $6.35 and $6.50 a share, down to a range of $6.27 to $6.35 a share. That disappointed Wall Street, which had anticipated full-year earnings of $6.40 a share, the Associated Press noted.

Company officials indicated that the new forecast reflected “current economic realities” and indicated that economic growth would likely remain lackluster.

3M noted that it earned $1.16 billion during the third quarter, up 6.7% form $1.09 billion in the same period last year. EPS came in at $1.65, which met Wall Street estimates.

The company recorded quarterly revenue of $7.5 billion, down from last year, and missing the $7.63 billion that analysts had anticipated.

The revenue dip was attributed to the negative effect of currency exchange rates.

Earlier this month, 3M announced that it would acquire Ceradyne, a ceramics manufacturer, for $847 million, but also terminated its previously announced $550 million purchase of Avery-Dennison‘s (NYSE:AVY[4]) office products unit after regulators threatened to block the deal[5].

3M is part of InvestorPlace’s Real America Index[6], a list of companies whose performance provides a window on the health of the U.S. economy. In the index, 3M represents the state of Minnesota[7].

Source URL: https://investorplace.com/2012/10/3m-cuts-2012-earnings-outlook-shares-drop/

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