3M raises full-year forecast after 2Q profit jumps
3M Co., which makes everything from Post-its to films for flat-screen TVs, said it's optimistic about the pace of the global economic recovery and raised its full-year outlook on Thursday, while reporting stronger second-quarter profit.
3M is considered an economic bellwether because of its broad base of products. Revenue rose 17.7 percent, with most of the growth in Asia (up 42 percent) and Latin America and Canada (21 percent.) U.S. sales rose 9 percent, and sales in Europe rose 4 percent, held back by the weak euro.
Its second-quarter profit jumped 43 percent to $1.12 billion, or $1.54 per share, compared with $783 million, or $1.12 per share, a year earlier.
Revenue rose to $6.73 billion from $5.72 billion a year ago. Analysts surveyed by Thomson Reuters had expected a profit of $1.48 per share on revenue of $6.66 billion.
Its biggest division, industrial and transportation, saw operating profits rise 66 percent to $476 million. The division includes renewable energy, auto parts, and industrial adhesives. 3M said all the businesses in that unit saw improved operating profits.
The Maplewood company now expects full year earnings of $5.65 to $5.80 per share. Wall Street was expecting $5.63.
Shares rose $1.30 to $83.60 in premarket trading.