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Shares of 3M rose on Tuesday after the company beat estimates for fourth-quarter profit and sales amid what it called “broad-based growth” and strong holiday sales.
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Sales increased in the Transportation & Electronics and Safety & Industrial units.
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3M said its restructuring program, which began in 2023, is largely complete.
3 million (MMM) shares rose on Tuesday after the industrial conglomerate beat fourth-quarter profit and revenue estimates on stronger demand for a wide range of its products.
The maker of Post-it notes and Scotch tape reported adjusted earnings per share of $1.68, topping analysts' estimates compiled by Visible Alpha. Revenues rose 0.1% from a year earlier to $6 billion and $5.8 billion excluding revenue from so-calledforever chemicals,” which he will no longer produce. Both figures exceeded forecasts.
The company attributed the sales gain to “broad-based growth in industrials, strength in electronics and aviation, softer car designs, a strong holiday season.”
The company's Transportation & Electronics division's revenue rose 3.4% to $7.5 billion due to “new product launches and special wins that led to stock gains.” Safety & Industrial grew 0.7% to $11 billion on higher demand for roofing and industrial adhesives. Consumer division revenue fell 1.2% to $4.9 billion.
3M added that its restructuring program began in 2023 to focus on streamlining operations and improving edges is “largely complete”.
Shares of 3M jumped over 4% to $146.99 in intraday trading on Tuesday after the disclosure, their highest level in three years.
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