by Christopher Freeburn | October 23, 2012 11:50 am
3M (NYSE:MMM) 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.
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) office products unit after regulators threatened to block the deal.
3M is part of InvestorPlace’s Real America Index, 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.
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