Industrial conglomerate 3M (NYSE:MMM) reported a strong second quarter as net income and revenue beat estimates, thanks to booming sales from its industrial group.
3M, which makes products ranging from Post-it notes to military ballistic helmets, posted net income of US$1.86bn or US$3.07 per share, up from US$1.58bn or US$2.58 per share, in the year-ago period.
Its revenue also jumped to US$8.39bn from US$7.81bn in the same period last year.
The results exceeded the consensus estimate of analysts who had projected that 3M would see earnings per share of US$2.58 on revenue of US$8.37bn.
The boost in revenue was fueled by 3M’s safety and graphics group, which reported a 16% jump in sales to US$1.8bn as well as its industrials group, which posted a 7% jump over the same period to US$3.1bn. 3M’s operating income swung 10% higher in the quarter to US$2.4bn.
The Minnesota-based company narrowed the high end of its adjusted earnings forecast for the year to a range of US$10.20 to US$10.45 per share, due to changes to the US tax code, a charge related to a legal proceeding and the sale of the majority of its communications markets business. Its previous forecast aimed for a range between US$10.20 to US$10.55.
“The 3M Playbook is working and we’re just getting started. We are well positioned to deliver even greater value for our customers and shareholders in 2018 and beyond,” said Mike Roman, 3M’s CEO, in a statement.
3M shares hovered at US$199.77 in afternoon trade.
Contact Ellen Kelleher at ellen@proactiveinvestors.com