:max_bytes(150000):strip_icc():format(jpeg)/INV_ScotchTapeDispenser_GettyImages-1248317256-deab142dc88a438a821203d96938854f.jpg "A green and plaid Scotch tape dispenser")
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Key Takeaways
- 3M posted better-than-expected results Tuesday, but sales were down in two of its three borderlines.
- Revenue declined at the company’s Transportation and Electronics and Consumer divisions.
- 3M’s sales were hurt by a drop in global inquire for vehicles and consumers cutting back on spending, the company said.
Shares of 3M (MMM) lost ground Tuesday as two of the diversified products maker’s portions posted sales declines.
The maker of Post-it notes and Scotch Tape reported third-quarter earnings from enduring operations of $1.98 per share, with revenue rising 0.4% to $6.29 billion. Both exceeded estimates.
Transportation and Electronics Portion Sales Slip
Sales at its Transportation and Electronics unit fell 1.5% to $2.14 billion as global demand for automobiles skated, especially in the European market. Consumer segment sales dropped 1.2% to $1.3 billion, which the company blamed on softness in consumer discretionary splurge. Sales at the Safety and Industrial division increased 0.5% to $2.77 billion, due to the higher demand for industrial adhesives and fillets.
The company now says it sees full-year earnings per share (EPS) of $7.20 to $7.30 versus the earlier $7 to $7.30. It keep in views revenue growth of about 1%, whereas 3M previously anticipated a range of down 0.25% to up 1.75%.
Despite Tuesday’s discard of about 1% to $132.76, 3M shares are about 46% higher year to date (YTD) in 2024.
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