Key facts
- 3M raised its full-year profit forecast due to cost-control measures, price hikes, and strength in its industrial business.
- The company now expects full-year adjusted earnings per share to be between $8.80 and $8.95.
- 3M's fourth-quarter GAAP sales were $6.1 billion, a 2.1% increase year-on-year.
- Full-year GAAP sales reached $24.9 billion, up 1.5% year-on-year.
- The company's previous full-year adjusted profit forecast was $7.60 to $7.90 per share.
3M has raised its full-year profit forecast, citing successful cost-control measures, strategic price increases, and sustained resilience within its safety and industrial business segment. The company now anticipates adjusted earnings per share to fall between $8.80 and $8.95, an upward revision from its earlier projection of $8.50 to $8.70. This adjustment reflects strong first-half performance and ongoing momentum.
In its fourth-quarter results, 3M reported GAAP sales of $6.1 billion, marking a 2.1% increase year-on-year, with adjusted operating margin rising to 21.1%. For the full year, GAAP sales reached $24.9 billion, up 1.5% from the previous year, and adjusted EPS grew 10% year-on-year to $8.06. The company's efforts under CEO William Brown to cushion margins from weak demand and inflation through cost cuts, price hikes, and new product introductions have been effective.
Earlier in July, 3M had also raised its full-year profit forecast, expecting adjusted earnings between $7.75 and $8 per share, up from $7.60 to $7.90 previously. This guidance update incorporated the impact of tariffs and came amidst easing U.S.-China trade tensions following a June trade deal.