Industrial conglomerate 3M lifted its full-year profit forecast on Tuesday after cost-control initiatives and higher prices supported margins, while its safety and industrial business remained resilient.
The company now expects full-year adjusted profit per share of $9.10 to $9.15, up from its prior forecast of $8.80 to $8.95.
The company’s shares were up 2.7% before the bell.
Robust U.S. industrial activity, along with rising sales of chipmaking machines and materials, has helped the company offset uneven demand in some end markets affected by inflationary pressures.
Under CEO William Brown, the company has also focused on improving customer service and operational execution to strengthen growth and profitability.
Its consumer-facing businesses have continued to operate in a challenging spending environment, reflecting cautious discretionary purchases by customers.
3M share price, year-to-date.
At the same time, higher energy costs have raised concerns about the potential impact on manufacturing activity and broader industrial demand.
While demand from automotive and consumer electronics customers has remained subdued, growth in data centers and semiconductor-related markets has provided a bright spot for 3M’s Transportation and Electronics business, helping cushion weakness in some traditional end markets.
The Saint Paul, Minnesota-based company launched 87 new products in the third quarter. It expects to launch more than 350 products by the end of this year.
The Scotch-tape and Post-it maker reported adjusted quarterly revenue of $6.6 billion, up 4.2%.
The company’s quarterly adjusted profit was $2.50 per share, up from $2.23 per share a year ago.
