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3M lowers full-year earnings outlook as 3rd-quarter earnings fall, miss Wall St. estimates
NEW YORK (AP) ' Manufacturing conglomerate 3M Co. on Tuesday lowered its earnings expectations for the year on slowing imports from overseas ' especially in products like LCD TVs and other electronics from Asia that drive its business.
The company's stock sank 5.8 percent, or $4.73 to $77.45 in premarket trading.
The Maplewood, Minn., maker of Post-its and Scotch Tape now expects to earn $5.85 to $5.95 per share compared with $6.10 to $6.25 per share previously. Core sales are expected to grow by 3 to 4 percent, compared with a previous forecast of 6 to 7.5 percent growth.
3M issued the outlook as it reported third-quarter earnings fell about 2 percent to $1.09 billion, or $1.52 per share, from $1.11 billion, or $1.53 per share, a year earlier.
Revenue rose 10 percent to $7.53 billion. Most of that increase was driven by acquisitions and gains in foreign exchange.
Analysts expected $1.61 per share on revenue of $7.78 billion, on average.
3M said a number of its customers reduced inventories during the quarter, expecting slowing demand.
Revenue in the company's industrial and transportation unit ' its biggest segment ' grew by double-digits, as did sales in safety, security and protection services and healthcare.
The 3M unit most familiar to many people ' consumer and office ' posted a 4.6 percent revenue increase. Electro and communications revenue rose just 1 percent, and display and graphics sales fell 14 percent because of weakness in the LCD TV market.