3M (MMM) Heads Lower on Lackluster Q3, Guidance

October 23, 2012 9:13 AM EDT
Shares of 3M (NYSE: MMM) are lower early Tuesday following a lackluster third quarter earnings report and guidance that was below Street estimates.

3M reported third quarter revenue of $7.5 billion, below the consensus of $7.63 billion, and down 0.4 percent year-over-year.

EPS was reported in line with estimates at $1.65, 8.6 percent higher than last year. Reflecting current economic "realities," 3M now expects full-year earnings to be in the range of $6.27 to $6.35 per share, including $0.03 per share of anticipated acquisition-related costs. 3M previously expected a range of $6.35 to $6.50 per share, which did not include acquisition-related costs, and the Wall Street consensus of $6.40.

"In the face of the current slow-growth economy, our businesses continued to grow organically and generated record profitability," said Inge G. Thulin, 3M chairman, president and chief executive officer.

Thulin continued, "Regardless of economic conditions, we will remain focused on things within our control. 3M's unique combination of technology strength, manufacturing excellence and global capability will enable us to deliver sustainable increases in sales, earnings and cash flow."

The company anticipates full-year organic local-currency sales growth of 2 to 2.5 percent and that currency translation will reduce sales by approximately 2.5 percent for the year. Operating income margins will be in the range of 21.5 to 22 percent.

Shares of MMM last traded at $90.32, down 2.4 percent from Monday's close.

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