3M Meets 2Q Expectations
Diversified manufacturer and technology conglomerate 3M Co. (NYSE: MMM – $115.80) reported second-quarter result with sales up 3% to $7.8 billion; share earnings expanded at the same rate, to $1.71. The top-line figure was a hair below what most Wall Street analysts were anticipating, but the bottom-line result was in line with consensus targets. The Industrial group had the best quarter out of the five businesses, as sales expanded 7%, and the Health Care division also performed well in the period, as sales rose 6% before foreign exchange headwinds of 1%. Safety & Graphics reported a 2% top-line gain and the Consumer group notched a sales gain of 1%, thanks to 3% organic growth. The Electronics & Energy segment was once again the clear laggard in the June quarter, as overall sales slipped 3%. The end markets remain soft here and electronics-related revenues continue to decline. The company’s share-earnings guidance remains unchanged at $6.60-$6.85 for the full year and $7.35 is possible for 2014, making the shares reasonably attractive at current levels, despite a 31% run-up over the past twelve months. Yield – 2.2%.