3M (MMM) Signals Slowdown With Rare Q3 'Miss' and Lowered Guidance
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Price: $93.00 +0.41%
EPS Growth %: 0.0%
Financial Fact:
Income before income taxes: 1.86B
Today's EPS Names:
SFST, VLTO, CLIR, More
EPS Growth %: 0.0%
Financial Fact:
Income before income taxes: 1.86B
Today's EPS Names:
SFST, VLTO, CLIR, More
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Dow component 3M Co. (NYSE: MMM) is under heavy pressure early Tuesday following disappointing third-quarter results and lower guidance.
3M reported Q3 sales rose 9.6 percent to $7.5 billion, which fell flat of the Wall Street consensus of $7.78 billion.
Third-quarter earnings per share fell 1 percent from last year to $1.52, well below the consensus of $1.61.
"The business environment remains challenging, as the economic softening that we experienced late in the second quarter continued into the third," said CEO George W. Buckley.
As is normally the case, 3M said it feels the impact of these changes in the economy earlier than most as their customers decrease production in order to lower inventories.
Looking ahead, the company sees full-year 2011 EPS of $5.85 to $5.95, down from its prior view of $6.10 to $6.25 and the consensus of $6.16. 3M now sees full-year organic sales volume growth of just 3 to 4 percent versus a prior expected range of 6 to 7.5 percent.
"Early evidence suggests slower growth will persist through year end, therefore we are responding to lower demand with aggressive cost management and operational discipline in developed economies," Buckley continued.
3M last traded at $77.77, down 5 percent from Monday's close.
3M reported Q3 sales rose 9.6 percent to $7.5 billion, which fell flat of the Wall Street consensus of $7.78 billion.
Third-quarter earnings per share fell 1 percent from last year to $1.52, well below the consensus of $1.61.
"The business environment remains challenging, as the economic softening that we experienced late in the second quarter continued into the third," said CEO George W. Buckley.
As is normally the case, 3M said it feels the impact of these changes in the economy earlier than most as their customers decrease production in order to lower inventories.
Looking ahead, the company sees full-year 2011 EPS of $5.85 to $5.95, down from its prior view of $6.10 to $6.25 and the consensus of $6.16. 3M now sees full-year organic sales volume growth of just 3 to 4 percent versus a prior expected range of 6 to 7.5 percent.
"Early evidence suggests slower growth will persist through year end, therefore we are responding to lower demand with aggressive cost management and operational discipline in developed economies," Buckley continued.
3M last traded at $77.77, down 5 percent from Monday's close.
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