Shares in the 3M Company (NYSE:MMM), the US conglomerate which makes everything from Post-it notes to Scotch tape, tumbled after it reported first quarter earnings which just met analysts’ projections, but slashed its earnings outlook for the year.
Indeed, 3M's results pushed shares down by 6% in early trade to US$202.34, with its announcement that it now sees its adjusted full-year earnings per share falling between US$10.20 and US$10.55, which falls below its previous guided range of US$10.20 to US$10.70.
The company’s net income, which endured a beating due to a legal settlement and tax changes, amounted to US$606mln, or 98 cents in the first quarter, dropping from US$1.3bln or US$2.16 in the previous year. On an adjusted basis, 3M earned US$2.50 per share which was in line with analysts’ predictions.
Its revenue, meanwhile, came in at US$8.3bln, which was higher than the US$8.1bln analysts had expected.
During the quarter, 3M recorded an expense of US$217mln related to the Tax Cuts and Jobs act. It also took a pre-tax charge of US$897mln to resolve a lawsuit with the state of Minnesota.