shares powered higher in pre-market trading Tuesday after the industrial group posted stronger-than-expected third quarter earnings, and boosted its full-year profit forecast, as its cost-cutting drive continues to offset slumping global sales.
Looking into the coming financial year, 3M said it now sees adjusted earnings in the region of $8.95 to $9.15 per share, up from its prior forecast of $8.60 to $9.10 share, with adjusted sales falling 5% and operating cash flows in the region of $6.5 to $6.9 billion. "Our results reflect continued execution of our priorities – driving operational performance, spinning off Health Care, and reducing risk and uncertainty," he added."Our strengths in material science innovation align with global trends in high-growth markets and sustainability, enabling us to develop indispensable products in attractive areas such as automotive electrification, climate technology, and industrial automation.
Earlier this summer, 3M said it would pay $6 billion over the next six years, including $1 billion in common stock, to resolve legal claims linked to its Combat Arms Earplugs sold to the U.S. military.