Thursday, October 30th5.8°C
23696
23088

3M's 4Q profit climbs, but revenue misses estimates and shares fall

MINNEAPOLIS - 3M posted a better-than-expected fourth-quarter profit, although volatile exchange rates on foreign currency and weak growth in South America caused revenue to come in lower than Wall Street expected.

3M makes Post-it notes, health care products, and a wide range of industrial coatings and ceramics, and it gets some two-thirds of its revenue from outside the U.S., making it particularly susceptible to currency swings.

All five of its major divisions saw sales rise as measured in local currencies, but those gains were wiped out by foreign exchange rates in its consumer and its electronics and energy businesses. Revenue growth in its industrial, health care, and safety and graphics unit was dampened by the impact of currency issues.

At the same time, sales in the territory that covers Latin America and Canada fell 3.7 per cent, despite a price hike of 6.5 per cent. The main decline was in Venezuela, where political unrest and uncertainty about exchange rates have been a factor for many U.S. companies.

Revenue in its industrial business climbed 6.1 per cent to $2.6 billion, driven by gains for advanced materials, aerospace and automotive aftermarket products.

But revenue from consumer goods — perhaps 3M's best-known category — fell almost 1 per cent to $1.1 billion. Operating income fell 3.4 per cent to $226 million.

Sales fell 1 per cent in its electronics and energy unit because foreign currency fluctuations eliminated what would have been a small revenue increase. Sales for energy products rose, but sales of electronics-related products fell.

The Maplewood, Minn., company said it earned $1.1 billion, or $1.62 per share, in the quarter ended Dec. 31, up from $991 million, or $1.41 per share, a year ago. The results were a penny per share better than expected by analysts surveyed by FactSet.

Revenue rose 2.5 per cent to $7.57 billion from $7.38 billion, but analysts had been expecting $7.73 billion.

For the full year, net income rose almost 5 per cent to $4.66 billion, or $6.72 per share. Revenue rose 3 per cent to $30.87 billion.

3M Co. shares fell $2.20, or 1.7 per cent, to close at $128.05 on Wednesday. Its shares are up 27 per cent for the past year.

The Canadian Press


Read more Business News




Recent Trending




Today's Market
S&P TSX14431.60-95.971
S&P CDNX774.28-6.79
DJIA17092.54118.23
Nasdaq4534.652-14.574
S&P 5001982.73+0.43
CDN Dollar0.8935-0.0006
Gold1202.20-22.7001
Oil81.13-0.83
Lumber322.50+0.90
Natural Gas3.715+0.066

 
Okanagan Companies
Pacific Safety0.12+0.02
Knighthawk0.01-0.005
QHR Technologies Inc1.15+0.02
Cantex0.055-0.005
Anavex Life Sciences0.180.00
Metalex Ventures0.03-0.005
Russel Metals32.32-0.25
Copper Mountain Mining1.96-0.06
Colorado Resources0.125-0.01
ReliaBrand Inc0.012-0.004
Sunrise Resources Ltd0.025+0.005
Mission Ready Services0.35-0.02

 





FEATURED Property
1981453116 - 600 Sarsons Road
2 bedrooms 2 baths
$379,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Empty nesting: financial issues

Now that the children have ‘left the nest’, it is a good time to step back and take stock of your financial situation. Being on your own will probably cut household costs to some extent, b...


Keep your haunted home safe

Eerie sounds, spooky lights and Jack-o’-lanterns aglow—extra efforts at Halloween will keep visitors coming back for both tricks and treats. However, to keep the fun going, it’s imp...


What I learned in China

Photo: ContributedI will never be an expert on China. It is just too big, too complex and too old with layers of history and meaning that would take several lifetimes to unravel. As I said to my hosts...

_








Member of BC Press Council


22620