3M Co. Cuts FY19 Adj. Earnings View

(RTTNews) - 3M Co. (MMM) on Thursday trimmed its forecast for fiscal 2019 adjusted earnings.

In pre-market activity, shares were losing around 9 percent to trade at $199.56.

Excluding the impact of significant litigation-related charges, 3M now expects its full-year adjusted earnings to be in the range of $9.25 to $9.75 per share, compared to previous expectation of $10.45 to $10.90 per share.

On average, 20 analysts polled by Thomson Reuters expected earnings of $ 10.52 per share for the year. Analysts' estimates typically exclude special items.

The company updated its 2019 GAAP earnings expectations to be in the range of $8.53 to $9.03 per share.

Further, 3M updated its organic local-currency sales growth guidance to be in the range of minus 1 to plus 2 percent versus a prior range of 1 to 4 percent.

The company also updated its expectation for return on invested capital of 20 to 22 percent, compared to prior range of 22 to 25 percent.

3M maintained its full-year expectations for free cash flow conversion of 95 to 105 percent.

Mike Roman, 3M chief executive officer, said, "The first quarter was a disappointing start to the year for 3M. We continued to face slowing conditions in key end markets which impacted both organic growth and margins, and our operational execution also fell short of the expectations we have for ourselves."