May 18, 2024


Built General Tough

3M raises outlook for second half of year as office, home improvement sales rise

3M Co. is betting on growing sales for the second half of the year, based on a strong first half that included an uptick in sales of automotive products as well as office supplies and home improvement items.

3M MMM earlier Tuesday reported second-quarter adjusted earnings of $2.59 a share on sales of $8.95 billion. Analysts polled by FactSet expected the diversified industrial company to report adjusted EPS of $2.28 a share on sales of $8.53 billion.

Shares of 3M fell about 0.5% on Tuesday. So far this year, the stock has gained 14%, compared with gains of around 17% for the S&P 500 index. SPX

The company has called for full-year 2021 sales growth between 7% and 10%, compared with a previous expectation for total sales growth between 5% and 8%. 3M also forecast EPS between $9.70 and $10.10 for the year, compared with a prior expectation of between $9.20 and $9.70.

3M’s safety and industrial unit, its biggest by sales, reported a sales increase of 22%, including upticks for automotive aftermarket products and others. Personal safety sales declined, the company said.

In a decision that could have bearings on 3M’s future mask sales, the Center for Diseases Control and Prevention is expected to recommend people who have been vaccinated against COVID-19 to wear masks indoors, a reversal from a May decision that vaccinated people could forgo masks in most indoor spaces.

3M said its transportation and electronics unit saw sales rise 28% in the second quarter, which the company pinned on increases in sales of automotive and aerospace, transportation safety, and electronic products, among others.

Health care’s unit sales growth reached 25%, thanks to oral care, food safety, and others, 3M said.

The consumer unit’s sale rose 20%, on increases for office supplies, home improvement, home care, and others, 3M said.