3M Co. Cuts FY22 Earnings, Sales Outlook - Update

(RTTNews) - While reporting weak profit and sales in the second quarter on Tuesday, 3M Co. (MMM) again lowered its forecast for fiscal 2022 to reflect the impact of the strong U.S. dollar along with the current uncertain macroeconomic environment.

In pre-market activity, 3M shares were gaining around 3.4 percent to trade at $138.71.

For the year, the company now expects earnings per share of $7.32 to $7.82, lower than previous estimate of $9.89 to 10.39. Further, adjusted earnings per share are now expected to be between $10.30 and $10.80, while previous estimate was between $10.75 and $11.25.

On average, 19 analysts polled by Thomson Reuters expect earnings of $10.60 per share for the year. Analysts' estimates typically exclude special items.

Total sales are now expected to be down 0.5 percent to 2.5 percent from last year. Previously, the company was expecting a growth of 1 percent to 4 percent.

Organic sales growth are now expected to be 1.5 percent to 3.5 percent, compared to previous estimate of 2 percent to 5 percent.

The company had lowered its full-year outlook in April while announcing weak first-quarter results.

3M chairman and CEO Mike Roman said, "Looking ahead, we updated our adjusted full-year expectations largely due to the strength of the U.S. dollar and uncertain macroeconomic environment. We remain focused on innovating for customers, driving operational improvements and advancing our environmental stewardship - while positioning 3M for the future through our plan to spin off our Health Care business and resolve Combat Arms litigation in a manner that is efficient and equitable."