3M Company MMM is down after posting weak first-quarter earnings and lowering its 2013 outlook.
The St. Paul, Minnesota-based firm's EPS rose just over one percent year-over-year to $1.61, falling short of the $1.65 analysts expected.
Revenue climbed two percent to $7.63 billion, finishing shy of the $7.81 billion Wall Street consensus.
Strong Grip in the Western Hemisphere
3M's US sales jumped 5.3 percent during the quarter, representing the company's best-performing geographic region.
And, sales in Latin America and Canada grew a healthy 2.7 percent.
Meanwhile, EMEA sales remained flat while sales in the Asia-Pacific region declined a modest 0.5 percent.
Polished Industrial Sales
3M's industrial segment grew 4.6 percent to $2.68 billion. The surge was led by aerospace, industrial adhesives & tapes, liquid filtration and personal care products.
The conglomerate's healthcare, safety & graphics and consumer segments all experienced increased sales, as well. Healthcare rose 2.8 percent to $1.31 billion on increased sales across the board. Safety & graphics climbed 2.2 percent to $1.42 billion on strong growth in architectural markets, building & commercial services, commercial graphics and personal safety. The consumer segment increased two percent to $1.08 billion, led by sales in consumer healthcare, DIY and homecare.
The only segment that declined was electronics & energy, which fell 3.3 percent to $1.28 billion during the quarter due to decreased telecom sales.
Another $40 Million on its Plate
On March 13, Ceradyne, a subsidiary of 3M, announced it received an order from the US Government for 242,000 body armor plates over a six-month period for use in Afghanistan. According to Ceradyne, the deal is worth over $40 million.
Lawsuit Ends on Successful Note
On March 28, 3M announced victory in its patent infringement lawsuit against Avery Dennison Corporation AVY. The case related to retroreflective sheeting products used on pavement markings, traffic signs and other traffic control products.
Adding insult to injury, the court dismissed Avery's claims of antitrust violations and patent infringement against the multi-industry giant.
Abrasive Guidance
3M has lowered its 2013 EPS guidance from $6.70-$6.95 to $6.60-$6.85, which would likely place it short of the $6.83 analysts want to see. Chairman, President and CEO Inge G. Thulin attributed the reduced expectations to “the stronger U.S. dollar and softer demand in some end markets.”
Stock Losing Heat
After four consecutive days of gains and finishing close to $108 on Wednesday, 3M has fallen below $105 in the late morning hours. The stock is at its lowest point this week on word of the company's lackluster earnings and guidance.
3M is down around three percent on Thursday.
Market News and Data brought to you by Benzinga APIs© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in